Introduction to marketing Explain the concept of marketing

Marketing The process of developing, promoting, pricing and distributing products in order to satisfy customers’ needs and wants. Marketing involves all the activities necessary in getting a product from the producer to the consumer.

Marketing Concept Businesses become successful by directing all of their efforts to satisfying the needs and wants of the customers. Businesses make a profit by offering the goods and services that the consumer wants. Recognizes the importance of the consumer in the buying process.

The Seven Functions of Marketing 1.Marketing Information Management 2.Product/Service Management 3.Financing 4.Pricing 5.Promotion 6.Selling 7.Distribution The Seven Functions of Marketing

Marketing-Information Management Obtaining information needed to make sound business decisions. Example: Taste tests and surveys.

Product/Service Management A. Risk Management: preventing or reducing business loss. B. Purchasing: Buying goods and services for use in the day-to-day about where a product is sold. Concepts and procedures necessary to obtain, develop, maintain, and improve a product or service mix in response to market opportunities.

Financing Obtaining money needed to finance the operation of a business. This includes bank loans and offering credit to customers.

Pricing Determining a value to charge for goods and services. It is important to consider competition and what consumers are willing and able to pay.

Promotion Communication used to inform or remind people about a business’s products. Promotion also involves persuading customers to purchase a product. Your AD here!

Pair & Share Name as many forms of promtions as you can in two minutes. How do companies make you aware of what they are selling???

Selling Determining customer needs and wants through planned, personalized communication intended to influence purchase decisions and ensure satisfaction. SELLING CLIP

Distribution The transporting, storing and handling of goods on their way from the manufacturer to the consumer. This includes the decisions about where to sell a product.

Exchange Every time something is sold in the marketplace

FIVE ECONOMIC UTILITIES Form Place Time Possession Information

UTILITY Economic term referring to the added value or “usefulness” of a product.

FORM UTILITY Value added by changing raw materials or putting parts together to make them more useful.

PLACE UTILITY Value added by having a product where customers can buy it. Playing a football game at a stadium.

TIME UTILITY Value added by having a product at a certain time of year or a convenient time of day.

POSSESSION UTILITY Value added by exchanging a product for some monetary value.

INFORMATION UTILITY Value added by communicating with the consumer.

The Four P’s of Marketing The marketing mix, known as the four P’s, is a combination of decisions a business must make in order to best reach its target market

PRODUCT The goods and services a business will offer to its customers A. Choice of product: Will the business offer a variety of products? B. Packaging: Does the packaging protect the product and provide necessary information about the product?

PRODUCT continued . . . C. Level of quality: What level of quality will the business ensure? D. Brand name: What brand name products will the business offer? E. Warranty: Will the business offer a warranty to its customers to ensure satisfaction?

PRICE The amount a business charges customers for their products A. Price setting. Price will be set based on product demand, cost, and competitors’ actions. B. Terms. Will the company only accept cash? Will the company extend credit? What type of credit will the company extend?

PRICE continued . . . Discounts. Will the business offer discounts to employees? Locals? Will the business discount merchandise at certain times of the year?

PLACE (distribution) Making products available at the right time and location. A. Channels of Distribution: the path a product takes to get from the producer to the consumer B. What specific stores will offer the products? (wholesaler, retailer, department, discount, etc.)

PLACE continued . . . C. What method of transportation will be used to get the product from the producer to the consumer? (truck, train, plane, boat, pipeline) D. How will inventory be handled and controlled? (methods- physical, storing, checking, or receiving)

PROMOTION Informing, reminding, and persuading customers of the goods and services available to them. A. What will the message be? B. When will the message be delivered? Commercial

PROMOTION continued . . . C. Where will the message be delivered? D. What incentive will be used to encourage customers to purchase the product? E. How will the message be delivered?