Principles of Marketing Unit 1

Marketing Vocab Marketing: Process of developing, promotion, distributing products to satisfy customers needs and wants Marketing: Process of developing, promotion, distributing products to satisfy customers needs and wants Products: Goods/services with $ value Products: Goods/services with $ value Goods: Things you can hold (game) Goods: Things you can hold (game) Services: Tasks performed for a customer (dry cleaning, amusement park) Services: Tasks performed for a customer (dry cleaning, amusement park) Exchange: takes place every time something is sold (receive payment for product) Exchange: takes place every time something is sold (receive payment for product)

Marketing is Everywhere! There There can be no business without marketing. Marketing Marketing includes the 4 P’s! Product Product Price Price Place Place Promotion Promotion It It involves all the decisions a business makes.

Marketing can take you to the top CEO’s with marketing background CEO’s with marketing background Andrea Jung (Avon) Andrea Jung (Avon) Meg Whitman (eBay) Meg Whitman (eBay) Stephen Sanger (General Mills) Stephen Sanger (General Mills) Jack Greenberg (McDonalds) Jack Greenberg (McDonalds) Paul Allaire (Xerox) Paul Allaire (Xerox) Why do marketing employees make good leaders? Why do marketing employees make good leaders?

Four Foundations of Marketing Professional development Professional development Business, management, entrepreneurship Business, management, entrepreneurship Economics Economics Communication/interpersonal skills Communication/interpersonal skills

7 Functions of Marketing Financing Financing Distribution Distribution Marketing Information Management Marketing Information Management Pricing Pricing Product/service management Product/service management Promotion Promotion Selling Selling

Marketing and You Parts of marketing: Parts of marketing: Product planning and packaging Product planning and packaging Advertising and promotion Advertising and promotion Selling Selling Distribution Distribution Research Research

Economic Utility Economic benefits of marketing Economic benefits of marketing Utility: added value to product Utility: added value to product Think about the pieces to a pen by themselves (not worth much until made) Think about the pieces to a pen by themselves (not worth much until made) Form Utility Form Utility Place Utility Place Utility Time Utility Time Utility Possession Utility Possession Utility Information Utility Information Utility

Added value The added value from marketing can increase demand for a product. Higher demand can lower costs of production as companies produce larger lots. The added value from marketing can increase demand for a product. Higher demand can lower costs of production as companies produce larger lots.

Career Information 33 million Americans work in marketing 33 million Americans work in marketing Approximately 2 million new jobs in the next 5 years Approximately 2 million new jobs in the next 5 years Service related jobs growing at 33.4% Service related jobs growing at 33.4% 1 in 3 jobs in US involve marketing 1 in 3 jobs in US involve marketing Sales, buying, designing ads, customer service, agents, inventory Sales, buying, designing ads, customer service, agents, inventory Involve planning, developing, promoting, distributing products to consumers Involve planning, developing, promoting, distributing products to consumers

Basic Marketing Concept A business must satisfy customers’ needs and wants in order to make a profit. A business must satisfy customers’ needs and wants in order to make a profit. Customer vs consumer Customer vs consumer Customer buys – consumer uses Customer buys – consumer uses

Markets Market: all potential customers who share a common needs or want and have the ability and willingness to buy the product Market: all potential customers who share a common needs or want and have the ability and willingness to buy the product Segments: pieces of the market that are used to create brand loyalty Segments: pieces of the market that are used to create brand loyalty Ethnic groups, age groups, locations Ethnic groups, age groups, locations

Target markets Very specific group of users whom marketing decisions are made for (gen x/y, baby boomers, tweens, etc) Very specific group of users whom marketing decisions are made for (gen x/y, baby boomers, tweens, etc) Gen X 1965 – 1980 Gen X 1965 – 1980 Boomers WWII – 1964 Boomers WWII – 1964 Tweens (10 – 13) Tweens (10 – 13) Customer profile: includes information about the target market (age, income, ethnicity, lifestyle, areas, etc.) Customer profile: includes information about the target market (age, income, ethnicity, lifestyle, areas, etc.)

Marketing Mix Aka “The 4 P’s” Aka “The 4 P’s” Product Product Price Price Place Place Promotion Promotion Involves all the decisions a company must make Involves all the decisions a company must make

Product Decisions What to make What to make When to make it When to make it How much to make How much to make Level of quality Level of quality Brand/label/packaging Brand/label/packaging

Price Decisions Pricing methods Pricing methods Discounts Discounts Competition prices Competition prices Profit margin needed/desired Profit margin needed/desired

Place Decisions Direct/indirect distribution Direct/indirect distribution Where to sell Where to sell Level of intensity Level of intensity Storage needs Storage needs

Promotion Decisions Advertising Advertising Sales promotions Sales promotions Public relations/publicity Public relations/publicity Personal selling Personal selling Video merchandising Video merchandising

Analyze Markets Market segmentation (break down markets) Market segmentation (break down markets) Demographics (p 24) Demographics (p 24) Physical characteristics Physical characteristics Psychographics Psychographics Attitudes/beliefs/family stage Attitudes/beliefs/family stage Geographics Geographics Location Location Income (disposable vs. discretionary income) Income (disposable vs. discretionary income)

Marketing Changes Technology changes shape the future and have huge impacts on the messages we hear. Technology changes shape the future and have huge impacts on the messages we hear. Print Print Radio Radio TV TV Internet Internet