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Marketing EssentialsMarketing Essentials

Marketing Is All Around Us

What Is Marketing?

Think of a product or service that appeals to you. List as many reasons why you like it. How does the manufacturer or service provider know the product or service would appeal to you?

Think of a product or service that no longer appeals to you. List as many reasons why you’ve stopped consuming it. How can the manufacturer or service provider regain your loyalty?

Marketing

Marketing is a process of identifying& satisfying the NEEDS of

consumers.

What Is Marketing?What Is Marketing?

Marketing is the process of :

1.Developing – coming up with the ideas of what to sell.

2.Promoting - getting the word out about what you sell

3.Pricing – Deciding how much to charge

4.Selling – Convincing people to buy

5.Distributing – getting what you sell to the people who need and want them

*Do the five things above to satisfy customer’s wants and needs.

Wants vs. Needs

Maslow’s Hierarchy of Needs

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Maslow Activity

Choose a product (any product). Design/sketch an ad that reaches one of Maslow’s Hierarchy of Needs.

Customers buy a product.

• Sometimes for themselves

• Sometimes for others

Consumers use the product.

Example: Parents who buy cereal or video games from retailers are customers. The kids who play the video games or eat the cereal are the consumers.

Customers vs. Consumers

Name 6 stores in our local area:

Do you know if these stores would be considered goods producing businesses or service producing businesses?

Lets look at the next slide before we decide…………

Goods: A tangible item you can carry away with you. Examples: Hammers, automobiles, soda pop, clothing, and computers

Services: An activity you pay someone else to do for you. Examples: Dry cleaners, amusement parks, attorneys, and movie theaters

Exchange: Buying or selling a good or service

Satisfying Wants and Needs with products. Products = Goods and Services

Now see if you can correctly label your local businesses.

The Marketing ConceptThe Marketing Concept

This is an idea or belief system that is very important if your business is going to be successful.

The marketing concept states that in order to be successful, businesses must focus all their efforts on:

1. Satisfying customers' needs and wants

2. They must do this better than the competition in order to make a profit.

Marketing brings about 2 benefits to us as customers/consumers…..

Can you guess the first one?

**view Bill Cosby Commercial

•What do you think Competitors (Pepsi) did in response to this ad?

•How could they still get people to buy Pepsi?

1. New and improved products

Businesses create new products and improve existing products to maintain their current customers or attract new ones.

The Benefits of Marketing

The Benefits of Marketing

Can you guess the second one?

LowerLowerLowerLower

Prices

The Benefits of Marketing

2. - Lower prices Lower prices benefit customers while

businesses benefit by selling more product at the lower price.

SWOT analysis

1. SWOT analysis: The acronym for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis reviews the potential for success or failure of a business or product.

2. Strengths and weaknesses are Internal - Businesses must continually review internal strengths and weaknesses. For example, McDonalds introduced the fruit cup as an alternative to fries. After one month of its introduction, McDonalds evaluated the strengths and weaknesses of the product.

3. Opportunities and threats are External factors that will also affect operating the business. For example, staying informed of what current products are offered by competitors. For example, when Coke introduced its new product Vault, Pepsi suffered a decrease in sales for its existing product Mountain Dew

SWOT video

S.W.O.TStrengths:

Advantages the business already has going for them.

Resources they already have.

Brand awareness that already exists.

Money they have to work with Internal things which they

have some control over that are already in their favor.

Weaknesses: Things the store already has

going against them. Additional costs to the

business Pre existing negative

perceptions of the business. Internal things which they

have some control over.

Opportunities Potential for growth Potential to reach New Markets Potential to change negative image New trends or “fads” that would be to

their advantage. Positive economic situations External things going on that are

working for the business, but which they have very little control over.

Threats Poor economic situations Competitors coming up with similar

products or currently having similar products

Possibly Negative response from public Environmental obstacles Political obstacles External things going on that are

working against the business, but which they have very little control over.

SWOT

The most important aspect of the SWOT analysis is to make even the weaknesses and threats sound like positives.

Team SWOT 2nd activity