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Learning Objectives Define marketing. Describe the various approaches to the marketplace, including production, product, selling, marketing, and social marketing. State why marketing is important to the management process. Identify differences between the nutrition professional’s role as a marketer and as a consumer.

© 2006 Thomson-Wadsworth Learning Objectives Discuss the differences between mass marketing and marketing to target populations. List the methods that are used to conduct market research. Identify the components of the marketing mix. Differentiate among the various types of products that are available to consumers.

© 2006 Thomson-Wadsworth Learning Objectives Describe the market channels that are used to get products from producer to consumer. Describe the relationship between marketing and price. List several ways to promote goods, services, and combination products.

© 2006 Thomson-Wadsworth Overview Marketing –A management tool that focuses on identifying the needs, wants, and demands of customers and developing products to meet those needs.

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The Marketplace Marketplace –The milieu in which goods are exchanged; can be viewed from the perspective of production, product, selling, marketing, or social marketing.

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The Marketplace Production Perspective –A view of the marketplace based on the idea of growing, manufacturing, or creating a product for the marketplace. –Distribution - The method of delivering a product to the marketplace.

© 2006 Thomson-Wadsworth The Marketplace Product Perspective –A view of the marketplace that focuses on the product, its value, desirable features, or performance.

© 2006 Thomson-Wadsworth The Marketplace Selling Perspective –A view of the marketplace based on getting customers to purchase the product. –Promotion - The methods used to attract consumers to a product so as to convince them to purchase it. –Middlemen - Individuals or groups who work in the distribution channel, moving the product from the producer or manufacturer to the consumer.

© 2006 Thomson-Wadsworth The Marketplace Marketing Perspective –A view of the marketplace that considers production, sales, products, and promotion in light of consumers’ needs, wants, and demands. –Four P’s of Marketing - Product, place, price, and promotion; sometimes called the marketing mix. –Needs - Things required for a state of well- being, such as physical (food, safety, and shelter) and mental (belonging, affection, and self-expression) well-being.

© 2006 Thomson-Wadsworth The Marketplace Marketing Perspective –Wants - Socially accepted ways to meet needs. –Demands - Wants that are supported by resources, such as money, that allow the wants to be fulfilled.

© 2006 Thomson-Wadsworth The Marketplace Social Marketing Perspective –A view of the marketplace that balances the needs, wants, and demands of consumers with those of the organization and those of society. –ex: Eat 5 to 9 A Day

© 2006 Thomson-Wadsworth Target Markets Mass Marketing –The marketing of a product to the population at large without discriminating among population subgroups. Target Marketing –The marketing of a product to a unique subgroup within the population rather than to the population at large.

© 2006 Thomson-Wadsworth Target Markets Market Segmentation –The identification and measurement of those characteristics that are present in a population subgroup that is likely to purchase a specific product.

© 2006 Thomson-Wadsworth Target Markets Market Targeting –Size/anticipated growth of segment –Potential to compete with other marketers –Resources necessary to reach market –Likely return on investment

© 2006 Thomson-Wadsworth Target Markets Market Positioning –Presenting a product to the target market, emphasizing the characteristics of the product that are most important to those consumers. –Equating the product with its benefits.

© 2006 Thomson-Wadsworth Market Research Market research - The gathering of information about consumers’ wants, needs, and demands to identify target markets and develop the marketing mix for those markets.

© 2006 Thomson-Wadsworth Market Research Needs identification –Either too little or too much information hampers market research –Selectivity is necessary –Information Overload - Having too much data, which may impede management processes and interfere with decision making.

© 2006 Thomson-Wadsworth Market Research Information gathering –Typically, some data is collected by the industry ex: American Hospital Association gathers data about hospitals at –Primary Data - Information gathered for the sole purpose of the party who requires the information. –Secondary Data - Information that has already been compiled by another source.

© 2006 Thomson-Wadsworth Market Research Data analysis –The compilation and analysis of primary and secondary data collected.

© 2006 Thomson-Wadsworth Marketing Mix –A combination of product, place, price, and promotion –as they contribute to the marketing of a product.

© 2006 Thomson-Wadsworth Marketing Mix

© 2006 Thomson-Wadsworth Marketing Mix Products –Anything offered to the market to satisfy the needs, wants, and demands of consumers.

© 2006 Thomson-Wadsworth Marketing Mix - Products Goods –Tangible products. Ownership is transferred when goods are sold. –Tangible - Something that can be seen, touched, and felt. –Durable Goods - Products that can oftentimes be used and reused repeatedly and that have a life expectancy measured in years.

© 2006 Thomson-Wadsworth Marketing Mix - Products Goods –Nondurable Goods - Products that get used up quickly and that have a life expectancy usually measured in days or months. –Perishable Goods - Products with a very short life span due to a high potential for deterioration or spoilage.

© 2006 Thomson-Wadsworth Marketing Mix - Products Services

© 2006 Thomson-Wadsworth Marketing Mix - Products Services –Intangible - Something that cannot be held, touched, or seen--like services. –Inseparability - A characteristic of services in which a product cannot be separated from its provider.

© 2006 Thomson-Wadsworth Marketing Mix - Products Services –Variability - A characteristic of services that indicates that services are not uniform, due to factors such as the provider of the service, the consumer, and the circumstances under which the service takes place. –Service Perishability - A characteristic of services that implies that a service cannot be stored and used later; the service must be utilized upon delivery.

© 2006 Thomson-Wadsworth Marketing Mix - Products Other products –Places –Activities –Organizations –People Combination products –ex: foodservice = food (tangible) + service (intangible)

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Marketing Mix Place –The location where the product is available to the consumer.

© 2006 Thomson-Wadsworth Marketing Mix - Place Distribution Channels –The routes products follow from the manufacturer to the end user; may be direct and simple, or complex with the products changing ownership several times along the way. Retail distribution –Retailer - An organization or individual who sells products directly to the end user of the product.

© 2006 Thomson-Wadsworth Marketing Mix - Place Wholesale distribution –Wholesaler - An organization or person who buys products from the grower or producer and sells them to the retailer who, in turn, sells the products to the end user. Service distribution –Usually, there are fewer middlemen involved –Internet and other technologies

© 2006 Thomson-Wadsworth Marketing Mix Price –The cost of a product to consumers. –The only component in the marketing mix that concerns itself with revenue and profit.

© 2006 Thomson-Wadsworth Marketing Mix - Price Marketing strategy Cost of producing the product –40% of food cost is often the basis for prices in healthcare foodservice Psychology of pricing External factors (e.g. economy)

© 2006 Thomson-Wadsworth Marketing Mix - Price Pricing strategies: –Price adjustments –Promotions pricing –Options pricing –Product line pricing

© 2006 Thomson-Wadsworth Marketing Mix Promotion –Communicating information about the product to consumers. –Ideally, the communication leads the consumer to purchase the product for an initial trial.

© 2006 Thomson-Wadsworth Marketing Mix - Promotion Advertising –A form of promotion that carries the message about the product to wide segments of the population. –Advantages: advertiser controls content/placement of ad, cost per exposure low, repetition –Disadvantages: impersonal, one-way communication, can be expensive

© 2006 Thomson-Wadsworth Marketing Mix - Promotion Personal selling –Advantage: most effective because of two-way communication –Disadvantage: most expensive because sales force must be trained and paid

© 2006 Thomson-Wadsworth Marketing Mix - Promotion Sales promotion –The use of tools to attract the consumers’ attention. –ex: games, prizes, coupons, premiums, reduced-price sales, etc.

© 2006 Thomson-Wadsworth Marketing Mix - Promotion Public relations –Unpaid publicity. –ex: news story, photograph, etc. –Advantage: more credible than advertising –Disadvantage: no control over content/placement

© 2006 Thomson-Wadsworth Marketing Mix - Promotion Merchandising –A tool that involves the physical display of the product to the customer. –ex: placement on shelf or display rack in retail store, dessert tray in restaurant, etc.

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Conclusion Marketing is a process that enables an organization to meet the wants, needs, and desires of consumers. The marketplace can be addressed from five perspectives: production, product, selling, marketing, and social marketing. A target market is identified as potential consumers of a product.

© 2006 Thomson-Wadsworth Conclusion In order to design products for a market, or for a target market, it is necessary to learn about characteristics of the consumers as well as to identify and analyze the competition in the marketplace. This is done through market research.

© 2006 Thomson-Wadsworth Conclusion The development of the marketing mix should be based on an organization’s approach to the marketplace, the target market it has identified, and the research data that it has acquired, molded together in a way that will reach consumers. The marketing mix includes product, placement, price, and promotion.

© 2006 Thomson-Wadsworth The Marketing of Nutritionjobs.com Market research Market segmentation Marketing mix Promotional plan –Advertisements –Online newsletter –Direct mail

© 2006 Thomson-Wadsworth The Marketing of Nutritionjobs.com Promotional plan –Promotional offers –Business stationery –Invoices –Presence at professional meetings –Freebies