Marketing Is All Around Us

Essential Questions Describe the scope of marketing. Describe each marketing core function. Explain the marketing concept.

Marketing defined… According to the American Marketing Association (AMA), “marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

Marketing involves the process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers.

Goods Services Tangible items that have monetary value and satisfy one’s needs and wants. Intangible items that have monetary value and satisfy one’s needs and wants.

Seven Core Functions of Marketing Channel Management Marketing Information Management Market Planning Pricing Product/Service Management Promotion Selling

Channel Management/Distribution Is the process of deciding how to get goods into customer’s hands. Physically moving and storing goods is part of distribution planning. Also includes the systems used to track products.

Marketing Information Management Gathering, storing and analyzing information about customers, trends, and competing products. Companies conduct research so they can be successful at marketing and selling their products. They need to get information about their customers, their habits and attitudes, where they live, and trends in the marketplace. Marketers can use this information to create a marketing plan for their products

Market Planning involves understanding the concepts and strategies used to develop and target specific marketing strategies to a select audience. This function requires an in-depth knowledge of activities to create a marketing plan. The plan will include methods for reaching different types of customers.

Pricing Pricing decisions dictate how much to charge for goods and services in order to make a profit. Pricing decisions are based on costs and on what competitors charge for the same product or service. To determine a price, marketers must also determine how much customers are willing to pay.

Product/Service Management Product/service management is obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

Selling techniques include… determining client needs and wants and responding through planned, personalized communication.

Promotion Promotion is the effort to inform, persuade, or remind current and potential customers about a business’s products or services.

Selling Selling provides customers with the goods and services they want. This includes selling in the retail market to you, the customer, and selling in the business-to-business market to wholesalers, retailers, or manufacturers. Selling techniques include…

The Marketing Concept is the idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the business. Focus is on the CUSTOMER **The marketing concept holds that the desires and needs of the target market must be determined, anticipated, and satisfied in order to successfully achieve the goals of the producer.**

In short… Marketing involves planning, pricing, promoting, selling, and distributing goods (tangible items that have monetary value) and services (intangible items that have monetary value). The marketing concept implements marketing techniques to ensure customer satisfaction.

Essential Questions • Describe the scope of marketing. planning, pricing, promoting, selling, and distributing ideas, goods, services to create exchanges and satisfy customers. • Describe each marketing core function. channel management, marketing information management, market planning, pricing, product/service management, promotion, selling • Explain the marketing concept. businesses should strive to satisfy customers’ needs and wants while generating a profit.

The Importance of Marketing

Essential Questions Describe the benefits of marketing. Explain the concept of utility. Cite examples of types of utilities.

Economic Benefits of Marketing Marketing is a global force. The impact of marketing affects the economy and standard of living in countries around the world.

Marketing plays an important role in an economy because it provides the means for competition to take place. In a competitive marketplace, businesses try to create new or improved products at lower prices than their competitors.

There are many economic benefits of marketing to an economy and to consumers. New and improved products Lower prices Economic Utilities

New and Improved Products Marketing generates competition, which fosters new and improved products. Businesses always look for ways to satisfy customers’ wants and needs to keep customers interested. This creates a larger variety of goods and services.

Lower Prices Marketing activities increase demand, and this helps to lower prices. When demand is high, manufacturers can produce products in larger quantities. This reduces the unit cost of each product.

Identify Who is affected by the impact of marketing? People in countries all over the world are affected as economies and standards of living are impacted by marketing. Summarize What is the benefit of competition? Businesses create new or improved products at lower prices, forcing efficiency and responsiveness to consumers. Explain What role does marketing play in an economy? Marketing provides the means for competition to take place in the marketplace.

Utility The functions of marketing add value to a product. This added value in economic terms is called utility. Utilities are the attributes of goods or services that make them capable of satisfying consumers’ wants and needs.

Form Utility involves changing raw materials into usable goods or putting parts together to make them more useful. The manufacturing of products involves taking things of little value by themselves and putting them together to create more value.

Place Utility involves having a product where customers can buy it. Businesses study consumer shopping habits to determine the most convenient and efficient locations to sell products.

Time Utility having a product or service available at a certain time of year or a convenient time of day.

Possession Utility The exchange of a product for money. Retailers may accept alternatives to cash, such as personal checks or debit cards, in exchange for their merchandise. They may even offer installment or layaway plans (delayed possession in return for gradual payment).

Information Utility involves communication with the consumer. Salespeople provide information to customers by explaining the features and benefits of products. Displays communicate information, too. Packaging and labeling inform consumers about qualities and uses of a product. Advertising informs consumers about products, tells whereto buy products, and sometimes tells how much products cost. Owners manuals

Identify What are the five economic utilities? form utility, place utility, time utility, possession utility, information utility Formulate Why is form utility not directly related to marketing? When form utility involves changing putting parts together to make them useful, individual parts are not marketed as the final product. Appraise How are time and place utilities related? Time utility cannot exist without place utility. If products are to consumers at a certain time, but there is no place where they can buy them, product will not sell.

Essential Questions Describe the benefits of marketing. new and improved products, lower prices, and added value or utility Explain the concept of utility. attributes of goods or services that make them capable of satisfying consumer’s wants and needs Cite examples of types of utilities. form utility; place utility; time utility; possession utility; information utility

Fundamentals of Marketing

Essential Questions Describe how marketers use knowledge of the market to sell products. Compare and Contrast consumer and organizational markets. Explain the importance of target markets. Explain how each component of the marketing mix contributes to successful marketing.

Market and Market Identification The term market refers to all the people who might buy a product. The marketing mix is a combination of elements used to sell a product to a specific target market.

Marketers design products to satisfy customers’ needs and wants Marketers design products to satisfy customers’ needs and wants. They know not all customers may want their product or service. So they identify those people who want their product and who have the ability to pay for their product. All people who share similar needs and wants and who have the ability to purchase a given product are a market.

Consumer Market The consumer market consists of consumers who purchase goods and services for personal use. Consumers’ needs and wants generally fall into a few categories that reflect their lifestyles. For the most part, consumers are interested in products that will save them money, make their lives easier, improve their appearance, create status in the community, or provide satisfaction.

Organizational Market The organizational market or business- to-business (B-to-B) market includes all businesses that buy products for use in their operations. This market includes transactions among businesses.

Market Share A market is further described by the total sales in a product category. A company’s market share is its percentage of the total sales volume generated by all companies that compete in a given market.

Market Segmentation Businesses look for ways to sell their products to different consumers who may be potential customers. This involves segmenting, or breaking down, the market into smaller groups that have similar characteristics. Market segmentation is the process of classifying customers by specific characteristics.

Target Market The goal of market segmentation is to identify the group of people most likely to become customers. The group that is identified for a specific marketing program is the target market. Target markets are very important because all marketing strategies are directed to them.

Customer Profiles To develop a clear picture of their target market, businesses create a customer profile. A customer profile lists information about the target market, such as age, gender, income level, marital status, ethnic background, geographic residence, attitudes, lifestyle, and behavior.

Marketing Mix The marketing mix includes four basic marketing strategies called the four Ps: product, place, price, and promotion.

Marketing Mix: Product Product decisions begin with choosing what products to make and sell. Much research goes into product design. A product’s features, brand name, packaging, service, and warranty are all part of the development.

Marketing Mix: Price Price is what is exchanged for the product. Price strategies should reflect what customers are willing and able to pay.

Marketing Mix: Place The means of getting the product into the customer’s hands is the place element of the marketing mix. Knowing where one’s customers shop helps marketers make the place decision. Place strategies determine how and where a product will be distributed.

Marketing Mix: Promotion Promotion refers to activities related to advertising, personal selling, sales promotion, and publicity. Today many companies include social media in a product’s promotional mix. Promotional strategies deal with how marketers tell potential customers about a company’s products.

Marketing Mix: People Because of the importance of customers, some would add a fifth “P” to the list: people. Marketers must first clearly define each target market before they can develop marketing strategies The importance of the target market (people) cannot be overemphasized. Marketers make decisions for the other four elements of the marketing mix based on the target market.

Essential Questions Describe how marketers use knowledge of the market to sell products. Identify consumers who have the ability to pay Compare and contrast consumer and organizational markets. Consumer market: purchases for personal use. Organization market: purchases for businesses. Explain the importance of target markets. All marketing strategies are directed to target markets. Explain how each component of the marketing mix contributes to successful marketing. The product must be developed for a target market and convenient for customers to purchase.