Intro To Marketing… What is Marketing?

Learning Goals Define important marketing concepts. Identify the steps in a marketing strategy

S0……, what is marketing?

Marketing Defined: Marketing can be defined as: a set of activities that gets products from producers to consumers Marketing begins with the first ideas of a product concept & carries through follow-up service after a sale Marketing efforts and functions are taking place at nearly every stage in the life of a product or idea Marketing is NOT just advertising or selling!

Major Marketing Activities: Buying – you have to have something to re-sell for a profit, or at least the materials to make it. Part of marketing involves finding sellers (vendors) and negotiating sales of these materials Selling – Direct, personal communication with prospective customers in order to assess needs and satisfy those needs.

Major Marketing Activities: (cont.) Distribution– products have to be moved from the place they’re made to the place where consumers can buy them Storing – products have to be held until customers buy them; this could be on shelves, in a warehouse, storage rooms, etc.

Major Marketing Activities: (cont.) Financing – budgeting for marketing activities, obtaining financing, and providing financial assistance to customers Researching – to make good marketing decisions, you have to know who you’re selling to…what they like, what they don’t like, where they shop, how much they spend, etc.

Major Marketing Activities: (cont.) Pricing – using research to determine a profitable price and pricing strategy for your product Evaluating – gathering follow-up info after sale, working to ensure customer satisfaction; working to find additional ways to add value to the product

Marketing Costs ALL of the activities associated with marketing carry a monetary cost of some kind. The cost of all of these activities is ultimately passed on the consumer You will often see “generic” or lesser known brands of products that are much less expensive This may not necessarily indicate lower quality Could just mean less marketing: Less marketing = lower marketing cost = lower cost to customer

More Marketing – Less Marketing Quality is probably similar. In many cases, the same manufacturer contracts to produce both products

More Marketing – Less Marketing The medicinal effects are the users are similar because the active ingredients are identical!

Let’s Brainstorm Take five minutes to brainstorm with the person next you to come up with at least four examples of products with familiarity to you that have lower marketing costs compared to their better-known, brand-name equivalents/competitors. Write each of them down along with the marketing activities they limit that so we can discuss and compare.

The Marketing Concept Is using the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service. Identify customers and understand them Develop a product that works Get the product into consumer’s hands Compete at a profit

Scope of Marketing Marketing efforts are not only directed to individual consumers. Marketing may be: Business to Consumer Business to Business Non-profit organizations Personal (one-to-one) Governmental Bottom line = The focus is always on the customer no matter who they are!

Checkpoint: Something’s Fishy A company in Siesta Key, meets fishing boats when they dock. They buy fresh fish caught that day. Your job is to identify and apply the marketing activities based on today’s lesson that must be completed by the company to purchase the fish and then resell the fish to restaurants and supermarkets. Work in three-person teams. This is worth 10 points, due today!