Definition of Marketing Process of developing, promoting, & distributing products to satisfy customers’ needs & wants
Marketing’s Main Purpose Provide a bridge between producers & consumers so exchange of goods & services can occur Marketing Process
There are 7 main Marketing Functions that make up the marketing process Distribution: Physical movement & storage Financing: How & where funds are used in business Marketing-info- management: Collecting, disseminating, & using info. To make sound business decisions Pricing: Decisions dictating how much to charge for products Product/Service management: What products & services will be offered Promotion: Activities that inform & persuade Selling: Personalized communication that influences purchasing decisions
Marketing Mix(Four P’s): Four Main Marketing Decisions Product (P/S Planning) Place (Distribution) Price Promotion * Most important decisions because each deals directly with consumers.
Promotion All activities used to inform & persuade consumers to buy products & services.
Promotional Mix Any combination of promotional activities, including advertising, sales promotion, personal selling, & publicity a company will do to inform & persuade consumers.
Promotion in Virtual Business In VBS you have control of sales promotion & advertising
Sales Promotions Any promotional activities used to stimulate consumers to buy within a certain time frame.
Sales Promotions in Sports Marketing Cause people to attend who otherwise would not Will be planned for events that are not expected to be sold out.
Categories of Promotional Items High Cost – Expensive promotional items. Low Cost – Inexpensive promotional items. High Appeal – High demand promotional items. Low Appeal – Low demand promotional items.
Secret to Promotional Success Balance cost and promotion Too much will be too costly and drain profits. Too little will lower sales. Teams must find an equilibrium between promotions & costs to maximize profits. Try to find low cost / high appeal items. Vary promotions Maximize promotional $ by directing promotional activities towards the target market
Promotion Terms Target Market – Particular market segment selected as being the most appropriate for a certain advertising campaign or schedule. Promotional Items – Special items given out to increase sales. Forecasting – The prediction of upcoming results based on the evaluation of accessible, relevant data.