Copyright 2006 – Biz/ed What is Marketing? A simple definition... The American Marketing...

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What is Marketing?

A simple definition...

The American Marketing Association defines Marketing as “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.

Marketing put simply:Marketing includes all of

the activities and functions required in a

business or organization to get goods, services, or

ideas from where they are produced or created

to where they are consumed.

Buyer & Seller• From a buyer’s point of view - a market is

any place where goods, services, or ideas are bought and sold.

• From a seller’s point of view - a market is a group of people with needs and the financial ability and willingness to satisfy those needs.

• Markets are all around us!• Marketing brings the producer and the

consumer together

The Marketing Concept

• Determining the needs or wants of the buyer

• Emphasizing the needs or wants of the buyer

• Customer oriented - “The customer always comes first!”

Determine the need

Raise sufficient funds

Make the Product

Market the Product

Customer Satisfaction

The Role of Marketing• The success of a business is directly

related to being able to identify product or service needs of consumers and satisfy those needs

• If a business is not able to do this, it will face financial & business failure

• Marketing - creates demand for the company’s products and services and services that demand.

Questions???

• Buyer’s market?• Seller’s market?• Marketing defined?• Marketing Concept?• Marketing Mix - 7

P’s?• Role of Marketing?• Further Discussion

The Marketing Mix

• The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives

• 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment

• Traditional 4Ps extended to encompass growth of service industry

• Pricing Strategy• Importance of:

– knowing the market

– elasticity– keeping an eye

on rivalsImage copyright: www.freeimages.co.uk

Product

Product• Methods used to

improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g.– Extension strategies– Specialised versions– New editions– Improvements – real or

otherwise!– Changed packaging– Technology, etc.

Image copyright: www.freeimages.co.uk

Promotion

• Strategies to make the consumer aware of the existence of a product or service

• NOT just advertising

• The means by which products and services get from producer to consumer and where they can be accessed by the consumer– The more places to buy the product

and the easier it is made to buy it, the better for the business (and the consumer?)

People

• People represent the business– The image they present can be important– First contact often human – what is the

lasting image they provide to the customer?– Extent of training and knowledge

of the product/service concerned– Mission statement – how relevant?– Do staff represent the desired culture

of the business?

Process

Process• How do people consume services?• What processes do they have to go

through to acquire the services?• Where do they find the availability

of the service?– Contact– Reminders– Registration– Subscription– Form filling– Degree of technology

Physical Environment

• The ambience, mood or physical presentation of the environment– Smart/shabby?– Trendy/retro/modern/old fashioned?– Light/dark/bright/subdued?– Romantic/chic/loud?– Clean/dirty/unkempt/neat?– Music?– Smell?

The Marketing Mix• Blend of the mix depends upon:• Marketing objectives• Type of product• Target market• Market structure• Rivals’ behaviour• Global issues – culture/religion, etc.• Marketing position• Product portfolio

– Product Life Cycle– Boston Matrix - Activity

Copyright 2006 – Biz/ed What is Marketing? A simple definition... The American Marketing...

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