Part 1 Marketing Dynamics Chapter 1 Marketing Is Dynamic!

Ch. 1, Marketing Is Dynamic! Chapter Objectives State the main goal of marketing. Describe each of the Four Ps. Distinguish among good, service, and idea. Explain how marketers determine the marketing mix. Summarize the key elements of a marketing plan.

Ch. 1, Marketing Is Dynamic! Marketing Terms marketing customer target market Four Ps product good service idea place distribution price promotion marketing mix marketing plan SWOT analysis forecast

Ch. 1, Marketing Is Dynamic! Marketing Defined Marketing consists of dynamic activities that focus on the customer to generate a profitable exchange (Continued)

Ch. 1, Marketing Is Dynamic! Marketing Defined Goal of marketing meet customers’ needs and wants with products that customers can and will buy

Ch. 1, Marketing Is Dynamic! Dynamic = constantly changing Marketing is dynamic because customers’ needs and wants are constantly changing Describe a want or need of yours that has changed over time. (Continued)

Ch. 1, Marketing Is Dynamic! Customers’ needs and wants change because customers change the economy changes technology changes social trends change

Marketing Is Customer-Focused Ch. 1, Marketing Is Dynamic! Marketing Is Customer-Focused Marketing focuses on the customer A customer can be a person business nonprofit organization government (Continued)

Marketing Is Customer-Focused Ch. 1, Marketing Is Dynamic! Marketing Is Customer-Focused Marketers focus on customers by learning what customers need and want developing products to meet those needs and wants (Continued)

Marketing Is Customer-Focused Ch. 1, Marketing Is Dynamic! Marketing Is Customer-Focused A target market is a specific group of customers whose needs a company will focus on satisfying by creating products that the target market wants and will buy Teens are a popular target market Describe a product that was designed to meet the wants and needs of teens.

Marketing Is Relationships Ch. 1, Marketing Is Dynamic! Marketing Is Relationships The basis for marketing is the relationship between the buyer and the seller Many businesses develop long-term relationships with their customers Describe a long-term relationship that you have with a business.

Marketing Is International Ch. 1, Marketing Is Dynamic! Marketing Is International People can buy products from anywhere in the world Japan National Tourist Organization What enables people to buy products from anywhere?

Marketing Is the Four Ps Ch. 1, Marketing Is Dynamic! Marketing Is the Four Ps The Four Ps are the basic elements of marketing Product Place Price Promotion (Continued)

Marketing Is the Four Ps Ch. 1, Marketing Is Dynamic! Marketing Is the Four Ps Product is the what What are you selling? Place is the where Where are you selling it? Price is the how much How much will the customer pay for it? Promotion is communication What do you want the customers and the public to know?

Ch. 1, Marketing Is Dynamic! Product There are three types of products good physical item service action done for you idea concept, cause, image, issue, or philosophy (Continued)

Categorize the pictured products as good, service, or idea. ©2007 JupiterImages Corporation Categorize the pictured products as good, service, or idea.

Ch. 1, Marketing Is Dynamic! Place Place getting products to customers at convenient times and locations includes distribution Describe distribution you have seen. (Continued)

Ch. 1, Marketing Is Dynamic! Place Distribution is physically getting goods to customers Includes shipping storing inventory stocking of goods

Ch. 1, Marketing Is Dynamic! Price Price is the amount of money requested for a product determined by the marketers based on how much they think the customer will pay the costs to produce the product What might happen if you set a price too low or too high?

Ch. 1, Marketing Is Dynamic! Promotion Promotion is communication with customers telling people about your product your business Describe promotion that you have seen. (Continued)

Ch. 1, Marketing Is Dynamic! Promotion Promotion includes selling, advertising, and sales promotion public relations creating a positive image of your company

Marketing Is the Marketing Mix Ch. 1, Marketing Is Dynamic! Marketing Is the Marketing Mix The marketing mix is a plan of action for marketing a product consists of the decisions made about each of the Four Ps made with the target market in mind (Continued)

Marketing Is the Marketing Mix Ch. 1, Marketing Is Dynamic! Marketing Is the Marketing Mix Marketing mix decisions include answers to these questions What products do customers need or want? Which stores will be convenient for them? What price will they pay? Where will they see ads? Choose a product, then answer these questions for the teen target market. (Continued)

Marketing Is the Marketing Mix Ch. 1, Marketing Is Dynamic! Marketing Is the Marketing Mix Why is the target market in the center? Is the customer part of the marketing mix?

The Marketing Mix in Action Ch. 1, Marketing Is Dynamic! The Marketing Mix in Action Imagine that you want to eat dinner. You hear a commercial on the radio promoting a new value meal at a local fast-food restaurant. The announcer says that the value meal costs $3.95. You have $5.00 in your pocket. You buy the value meal. Identify the Four Ps in this marketing mix.

Marketing Is the Marketing Plan The marketing plan is a plan that guides a company so that it avoids such pitfalls as lost sales lost opportunities poor product planning

Key Elements of a Marketing Plan Key elements of a marketing plan include market opportunities and analysis a SWOT analysis helps a company determine its strengths, weaknesses, opportunities, and threats a market strategy an action plan monitoring and evaluating the plan review revenue from sales to help forecast, or predict future sales and revenue

Is Marketing in Your Future? Ch. 1, Marketing Is Dynamic! Is Marketing in Your Future? Marketing is an exciting field has potential for high earnings is useful in careers not directly related to marketing (Continued)

Is Marketing in Your Future? Ch. 1, Marketing Is Dynamic! Is Marketing in Your Future? Marketing skills can help you prepare for a job in marketing prepare for college studies in marketing use marketing in other fields make wise consumer decisions How will marketing skills help you in the future?

Ch. 1, Marketing Is Dynamic! Review Explain how marketing is more than advertising and selling. List the Four Ps. Why isn’t the customer part of the marketing mix? Name a product and describe the marketing mix for that product.

Glossary customer. Individual or group who buys products. Back customer. Individual or group who buys products. distribution. Process of physically delivering goods to customers. forecast. To predict future sales and revenue. Four Ps. Product, price, place, and promotion. (Continued)

Glossary good. A physical item; something that you can touch. Back good. A physical item; something that you can touch. idea. A concept, cause, issue, image, or philosophy that can be marketed. marketing. Dynamic activities that focus on the customer to generate a profitable exchange. (Continued)

Glossary Back marketing mix. Plan of action for marketing a product; it consists of the decisions made about each of the Four Ps for that product—product, place, price, and promotion. marketing plan. A plan that guides a company so that it avoids such pitfalls as lost sales, lost opportunities, and poor product planning. (Continued)

Glossary Back place. Marketing activities involved in making products available to customers; includes distribution. price. Amount of money requested or exchanged for a product. product. Anything that can be bought or sold; includes goods, services, and ideas. (Continued)

Glossary Back promotion. Process of telling people about the product and the company that offers it. service. Action that is done for you. SWOT analysis. An analysis that includes a company’s strengths, weaknesses, opportunities, and threats. target market. The specific group of customers whose needs a company will focus on satisfying.