1. What is Marketing

2. Terms to Know Customers ⁻ Those who buy products/services Consumers ⁻ Those who use the products/services Market ⁻ potential customers who have the ability and willingness to buy Disposable Income ⁻ Money left over after taxes Discretionary Income ⁻ money left over after basic necessities Products/Service ⁻ Tangible vs. Intangible

3. What is Marketing - Process of developing, promoting, and distributing products to satisfy customer’s needs and wants - Economics in action Economics – the study of how scarce limited resources are allocated to satisfy needs and wants Economics vs. Marketing - Economics ensures everyone has what they need/want, Marketing gets customers what they need/want

4. Marketing Functions Distribution Getting product from producer to consumer Finance Finding away for people to afford a product Market Information Management Determining what people want Pricing Determine what customers will pay Product/Service Management Giving people what they want Promotion Enticing customers to buy the product/service Selling Getting people to buy a product

5. Marketing Functions Distribution Finance Market Information Management Pricing Product/Service Management Promotion Selling

6. Marketing Concept 1. Satisfy needs and wants 2. Do it better than the competition Competitive Advantage

7. Utility Added value 1. Form – in a useful form 2. Place – available where customers can get it 3. Time – available when customers want it 4. Possession – able to take it home 5. Information – know about the product/service

8. Marketing Mix Strategies used to achieve the marketing concept 5 P’s 1. Product 2. Place 3. Price 4. Promotion 5. People

9. Product Strategy Strategies applied to the product Include: Branding (Name) Product Mix Product Positioning Product Life Cycle

10. Price Strategy Setting a price to achieve an objective Includes: Stage of PLC Price Skimming/Penetration Psychological Pricing Techniques Supply and Demand

11. Place Strategy How do customer get the product What are some different ways customers receive the product? Channels of Distribution

12. - Path a product takes from producer to consumer Players: 1. Producers 2. Consumers 3. Intermediaries – “middleman”; move products from producers to consumers

13. Intermediaries 1. Retailers – sell products to consumers 2. Wholesalers – buy in large quantities; sell to retailers 3. Agents - sell to wholesalers or retailers - don’t take physical ownership

14. Channels of Distribution ABDC Producer Consumer Retailer Wholesaler Agent Retailer Wholesaler

15. Distribution Intensity Exclusive Distribution – 1 outlet in a geographical area Selective Distribution – limited number of outlets in an area Intensive Distribution – available in all suitable outlets

16. Promotion Strategy Enticing customers to buy the product Promotion - Informing, persuading, or reminding them about a product Forms: Sales Promotion Selling Advertising (Print, TV, Radio, Internet Public Relations Publicity Guerilla Marketing Viral Marketing

17. People Strategy Selecting the right group of people for your product/service Creating a Target Market – very specific group of people the product is aimed at Market vs. Target Market Marketing Segmentation – dividing the total market into smaller groups of people who share specific needs and characteristics Demographic Psychographics Geographics Product Benefits

18. Personal characteristics that describe a population May Include: Age Generation X – 1965-1976, products of dual career households Generation Y – digital natives Gender Income Disposable Discretionary Others? Demographics

19. Consumers lifestyle, attitudes, and values May include: Sports enthusiasts Extremists Conservatives Liberals Others Psychographics

20. Where a population lives May Include: Rural Urban Suburbs Others? Geographics

21. Population that uses product based on benefits May Include Specialty shoes (ie. Football shoes, basketball shoes) Diet soda Others Product Benefits

22. Examples