Marketing Unit 3

Functions of Marketing Market Planning Product/Service Development Pricing Promotion Distribution Selling Information Management Finance Risk Management

Marketing Functions Market Planning Product/Service Management Developing a strategy to: achieve company goals satisfy customer needs better than competitors Create sales and earn a profit Product/Service Management Designing, developing, maintaining, improving and acquiring products and services that meet customer needs Distribution Determining the best way for customers to locate, obtain, and use products and services

Marketing Functions Pricing Promotion Selling Setting and communicating the value of products Promotion Communicating information about products and services to potential customers. Selling Communicating directly with customers to determine and satisfy their needs.

Marketing Functions Information Management Finance Risk Management Obtaining and using information to improve business decision-making and the performance of marketing activities. Finance Budgeting for marketing activities Obtaining necessary funds for operations Providing financial assistance to customers Risk Management Reducing the possibility of financial loss Ensuring product is safe and meet all guidlines

The Need for Marketing volunteers?!? Your Business If you make a great product is marketing necessary? More important, marketing or a quality product?

Business Costs – Product, Place, & Promotion All Costs are per item Office Supply Store - $100 Cheap Pencils - $15 #1 Supplier - $50

The Marketing Concept Using the needs of customers as the primary focus throughout the functions of marketing 3 Step process: Identify needs of customers. Develop and market product/service to meet customer needs. Operate the business at a profit Satisfied or not what's the difference?

Finding out Customer Needs Marketing Research gathers and analyzes information about customers. Methods of Information gathering Surveys Focus Groups Observation Test Markets Random Sampling /Experiment Define these customer wants/needs

Developing Marketing Strategy for a Marketing Orientated Goal STEP 1 – Identify the Target Market Who are we selling our product or service to? Gatorade vs. STEP 2 – Develop Marketing Mix Product, Price, Place (Distribution), Promotion

Target Market TARGET MARKET – specific group of consumers that have similar wants and needs Companies can not meet everyone’s needs with any one product Focusing on a target market makes it easier to develop products people want

Marketing – The 4 P’s Product pricing promotion place What are we going to sell How much will we charge How will we communicate to our customers about our product or service How will we get our product or service to customers

Products – what a business offers to satisfy its customer needs

Product

Product What does the customer want/need from the product/service? What features does it have to meet these needs? What is it to be called? How is it branded? How is it differentiated versus your competitors?

Price- The money a customer must pay for a product or service

Price What is the value of the product or service to the buyer? How will your price compare with your competitors? What profit will we earn? Pricing Factors Supply and Demand Uniqueness Age Season Complexity Convenience Quality

Place (Distribution) – The location and methods used to make a product or service available to the target market

Place

Place (Distribution) What are the best methods and procedures to use so customers can find obtain and use your product? Where do buyers look for your product or service? What do your competitors do? Direct vs. Indirect Channels of Distribution Direct – From Producers to Consumer Indirect – One or more business in between the producer & consumer . Transportation Company Retailers

Promotion – Any form of communication used to inform, persuade or remind.

Promotion

Promotion Types of Promotion Where and when can you get across your marketing messages to your target market? How do your competitors do their promotions? And how does that influence your choice of promotional activity? Types of Promotion Advertising Personal Selling Sales Promotions Giveaways Publicity Word of Mouth

Effective Communication Information Communication Channel receiver feedback sender

Placement (Distribution) Marketing Mix – The 4 P’s Product Placement (Distribution) Promotion Pricing