Marketing Principles Unit 11

 The functions of Selling  Marketing as a complement to sales  Channels through which sales are promoted  Theories that influence buying

 Businesses sell their products for the following reasons: 1. To make a profit 2. To stay in business 3. To move their products 4. To launch new products

 Companies need to market (or advertise) their products so that… 1. Consumers recognize the company name and service or product that they provide 2. Companies can make their customers aware of new products, sales, events, promotions, etc. 3. Gain new clientele; persuade people to buy 4. Sell to existing customers: promote loyalty

 Businesses want their name to be heard so that potential and existing consumers remember their name  This is why businesses make catchy phrases and slogans  The Logic: Branding. If you remember their name and product, you will more likely purchase from them  Examples: 1. Reason for repetition, songs, catchy phrases in advertisements 2. Reason for signs, billboards, web advertisements, etc.

 When a business has a sale, a promotion, or a special event, new and established customers are encouraged to come and buy merchandise  Examples: 1. Flyers promoting a sale 2. Advertisements on Televisions 3. Red Signs: red attracts immediate attention (sense of urgency)

 All advertisements attempt to persuade new people to come into the business to purchase merchandise.  Businesses sometimes offer “Loyalty incentives” to new customers to convert them into repeat customers

 Businesses sometimes offer incentives for loyal customers such as:  Loyalty Cards that give further discounts, free items, etc.  Rewards  Offer discounts “on your next visit”

 Can you think of a few ways that businesses advertise to you?  How many students are currently wearing a name brand on their clothing? Did you know that you are advertising…for free?  Examples: Television Commercials, Paper Ads, Flyers, Signs, Billboards, Posters, Radio Announcements, etc.  Advertisements surround us.

1. Rational Actor Theory (Generic Theory) 2. Cultural Theory 3. Environmental Theory (Situational Theory) 4. Internal Theory What to Buy?

 States: Consumers will go through the most logical process to buy their products. They will look for the “most bang for their buck” to get the best quality, and the most for the good, at the lowest possible price.

 States: Customers are influenced heavily by their culture when buying products and will tend to buy the same products that other members of their culture buy.  Culture includes: Ethic culture, socioeconomic class, religious culture, nationality, family unit, friend group, etc.

 States: Customers are most influenced by their current environment (or their current situation)when buying.  Explanation: If you are on a road trip, in a hurry, and very thirsty. Would you stop in a grocery store the far away or a convenient store right off the highway?

 Sates: Customers’ personalities impact their purchasing decisions.  Personalities Include: There are people who love bargain hunting, people who love to shop, and people who hate shopping in general, etc.

 Customers are influenced by many things at the same time.  For certain products, shopping may be based on one theory, but for others shopping is based on a different theory.

 The functions of selling  Marketing as a complement to sales  Channels through which sales are promoted  Theories that influence buying