1. Marketing Basics
Chapter 10-1

2. What is Marketing?
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

3. Obvious Marketing Activities That You Take Part In:
See or hear advertisements
See the brand names of products
Read product description on website
Interact with salespeople

4. Not So Obvious Marketing Activities:
Storing products in warehouses
Distributing products
Establishing and accepting credit
Arranging for online payment
Gathering of data on consumer needs

5. Marketing Businesses Advertising agencies Marketing research firms
Transportation companies
Shipping and delivery companies
Financial services companies

6. Marketing Functions Marketing Functions
Marketing Information Management
Financing
Pricing
Promotion
Product/Service Management
Distribution
Selling

7. Product/Service Management
Designing, developing, maintaining, improving, and acquiring products and services that meet consumer needs.

8. Distribution
Determining the best ways for customers to locate, obtain, and use the products and services of an organization
Careful shipping, handling, and storing of products are needed for effective distribution

9. Selling
Communicating directly with potential customers to determine and satisfy their needs.
Selling can be face to face or by using a telephone or other technology

10. Marketing- Information Management
Obtaining, managing, and using market information to improve business decision-making and the performance of marketing activities.
Includes marketing research and the development of databases with information about products, customers, and competitors.

11. Financing
Budgeting for marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the product.

12. Pricing
The setting and communicating of the value of products and services.
Prices must be set low enough that customers are willing to pay but high enough that the business makes a profit.

13. Promotion
The communicating of information about products and services to potential customers.
Advertising and other promotional methods are used to encourage consumers to buy.
Advertising may occur in a variety of ways:
Television
Newspaper
Magazine
Radio
Direct Mail
internet

14. Marketing Strategy
Marketing strategy is a company’s plan that identifies how it will use marketing to satisfy customer needs better than competitors do, resulting in sales and profit.

15. Marketing Strategy: A 2-Step Process
Identify Target Market
Create a Marketing Mix
A blend of four marketing elements:
Product
Price
Promotion
Place
**A successful marketing mix satisfies the wants and needs of the target market and provides a profit for the company****
A specific group of consumers that have similar wants and needs
Focusing on a target market makes it easier to develop products and services that those customers want

17. Marketing Orientation
Businesses do not assume they know what customers want.
Use research to study customers and their needs
Results in marketing mix designed to satisfy customer needs

18. Two Types of Customers Final Customer Business Customer
Persons who buy products and services for their own use
Persons, companies, and organizations that buy products for the operation of a business, for incorporation into other products and services, or for resale to their customers.

19. Consumer Decision Making Process
Recognize a need
Gather information
Select and evaluate alternatives
Make a purchase decision
Determine the effectiveness of the decision

20. Rational buying motive Emotional buying motive
Buying Motives
Rational buying motive
Emotional buying motive
Guided by facts and logic
Ex: Choosing a college or buying the most cost effective car
Reasons to purchase based on feelings, beliefs, and attitudes.
Ex: buying a Valentine’s Day card or a security system for you home