Marketing in Today’s World Learning Objectives: Identify the four elements that make up the marketing mix Define the life cycle of a product Discuss the needs and motivations of consumers Describe the role of pricing, packaging, and promotion in marketing goods and services List the traits that marketing employees need to have

Marketing Mix  Four Elements Product: what goods and services are produced to meet the needs and desires of consumers Price: Cost that products are sold at Promotion: All of the activities that go into telling consumers about a product or service Place: Refers to where the product or service is sold Definition: All of the activities that go into the selling of a product to a consumer

Types of Products  Consumer Goods: goods sold to individuals and families  Convenience goods and services: products that consumers use regularly without spending much effort  Shopping goods and services: those that customers purchase after spending some time looking around and comparing to similar product  Specialty goods and services: those that consumers often select by brand or by company

Life Cycle of a Product  Introduction phase: The product is placed on the market for the first time  Growth Phase: If product becomes popular it will experience a growth phase. Sales and profits will increase sharply  Mature Phase: Sales level off, and profits begin to fall in products mature phase  Declining Phase: Last stage, where product is no longer profitable so the producer stops making it

Consumer Needs  To sell products successfully, marketing experts must understand the needs of consumers  Consumers spend money to meet three basic needs: 1. Physical Needs: Necessities of life (food, clothing, housing, and transportation) 2. Social Needs: Need to be loved and accepted by others (cologne, skin care products, and deodorant) 3. Psychological needs: Need for approval and prestige(expensive shoes, eat at nice restaurants) 

Consumer Motivations  No two people buy exactly the same goods and services  There are three types of motives  Rational Motives: Consumers are motivated to think logically about a purchase (comparing prices and quality)  Emotional Motives: Feelings or attitudes cause you to buy on impulse  Patronage Motives: Causes you to be loyal to a certain shop or company

Using Market Research  Definition: the gathering of information that businesses can use to determine what kind of goods or services to produce.  Allows forecasters to predict how many goods or services a business can expect to sell  Demographics: the study of a population Where people live, how much income they have, and what newspapers they like to read are examples of market research

Promotion, Packaging And Pricing  Promotion Includes all the activities involved in selling a product Telling consumers about a product Advertising is paid promotion  Packaging Consumers are strongly influenced Labels on package are advertisements for the product Labels include the logo which is the symbol of the manufacturer  Price: is the value that producers and sellers place on goods or services Price must cover the total costs of producing, shipping, and promoting the product Break-Even point: point at which the total cost is equal to the total money the product earns

Distributing Goods and Services  Marketers have to decide how and where consumers will buy their goods and services  This is the place decision of the marketing mix  Channel of Distribution: includes all of the people who direct products to consumers  Channels: Manufacturer, Wholesaler, Distributor, Retailers, Consumers

Concerns for International Marketers  When dealing with international markets, marketers may face special challenges  Communication: Understanding the language used by the people you are dealing with is important  Traditions and Customs: Often it is cultural differences that are the most troublesome for international marketers  Different Buying Habits:  Is there a need for our product?  Who are its potential customers?  What is their level of earnings?  What are their buying habits?  What are their motives for buying?

Working In Marketing  People who often like to meet the needs of others often pick a job in marketing  Communication: In marketing people spend a lot of time talking to people and writing messages to them  Human Relations: Liking people is not enough to work in marketing. They have to get along with all of their co- workers.  Math Skills: Important in any job, especially marketing Careless mistakes can result in lost sales, overlooked payments, and customer complaints.

Working in Marketing Cont.  Motivation: Marketing workers are very goal-oriented and have a lot of enthusiasm Want to accomplish something worthwhile by providing goods and services to customers  Creativity/problem solving: People who work in marketing use their imaginations to make products attractive to customers.

The End Homework: On the wiki website go to the “youtube assignment” link and watch the commercial. In short answer write the different marketing tools used in the commercial.