2.01Recognize the importance of marketing.

Marketing is… The process of developing, promoting, pricing, selling, and distributing products to satisfy customer’s wants and needs. Marketing involves all the activities necessary to get a product from the manufacturer to the consumer

WANTS AND NEEDS Wants –Not a necessity –A desire Examples: –Sports Car –Designer Clothes Needs –A necessity for living Examples: –Food –Clothing –Shelter

Activity 1 – part 1 Divide a piece of paper into six sections, labeling the sections wants, needs, consumer, customer, goods, and services Draw three examples of wants and needs.

A target market is… The group of consumers a business desires to have as customers. For example, the target market for Disney DVDs is families with children under the age of 12

Customer VS. Consumer Customer –The person who purchases the product Consumer –The person who uses the product In many cases, the customer is also the consumer.

Activity 1 – part 2 Return to the divided a piece of paper Draw one good example of a consumer and one of a customer.

Products are… Are both goods and services

Goods and Services Goods –Tangible items that satisfy customer’s needs and wants Example: –Television –Car –Clothing Services –Intangible items that satisfy customer’s needs and wants. Example: –Admission to an amusement park –Getting a haircut –Seeing a movie

Activity 1 – part 3 Return to the divided a piece of paper Draw three examples of goods and one good example of a service.

The marketing concept is… A business approach that directs all marketing efforts towards satisfying customer’s wants and needs. …

Marketing Concept cont. By offering goods and services that consumer want, businesses will make a profit It recognizes the importance of establishing and maintaining relationships with consumers

The benefits to marketing are… New and improved products –Businesses create new products and improve existing products to maintain their current customers or attract new ones. Lower prices –Lower prices benefit customers while businesses benefit by selling more product at the lower price Tide

Activity 2 “Children (consumers) watching television commercials during their favorite cartoons view cereals being advertised. However, it is their parents (customer) who go to the grocery store and buy the cereal.” Select a cereal that appeals to both the consumer and the customer of the cereal and identify the features that motivate each. –What improvements would you make to this cereal to appeal more to each group?

Bass Pro ShopPregnant woman HollisterFishing and water enthusiast K and W cafeteria (J & S)Families with small children A Pea in the Pod (maternity)Sporting enthusiast Toys R UsFemales who enjoy crafts Dick’s Sporting GoodsSenior citizens Michael’sTeenagers and college students Match the retailer with their target market. Activity 3

The SWOT analysis is… S trengths W eaknesses O pportunities T hreats A SWOT analysis reviews the potential for success or failure of a business or product …

SWOT Analysis cont. Businesses must continually review INTERNAL strengths and weaknesses Opportunities and threats are EXTERNAL factors that will also affect operating the business SWOT video by Mindtools.com

Activity 4 Create a SWOT PowerPoint Label one slide each as strengths, weaknesses, opportunities, and threats. Define the four components of a SWOT analysis with illustrations using photos and clipart.