WHERE DO WE SEEMARKETING?

WHAT IS MARKETING? Process of:

1. Planning

2. Pricing

3. Promoting

4. Selling

5. Distributing

Using this process to create exchanges to satisfy customers.

Marketers must keep up with trends and consumer attitudes!

Always ongoing and changing.

ONE CAREER CLUSTERMarketing goes hand-in-hand with lots of other clusters:

Business law

Communications

Customer relations

Economics

Entrepreneurship

Operations

Etc.

7 CORE MARKETING FUNCTIONS

1. Channel Management

2. Marketing Information Management

3. Market Planning

4. Pricing

5. Product/Service Management

6. Promotion

7. Selling

CHANNEL MANAGEMENTAKA: Distribution

Deciding how goods will get into the customer’s hands.

MAIN METHODS:

MARKETING INFO MANAGEMENT

Must know about: Customers

Trends

Competing products

Gathering info about these is important.

Analyzing & storing information also important!

Conducting research vital! Must know customer: Habits

Attitudes

Where they live

Trends in marketplace

MARKET PLANNING Involves knowing strategies and concepts to target

SPECIFIC audience.

Includes plan for reaching different types of customers.

PRICING Must understand in order to price goods/services at a

reasonable price & still make a profit.

These decisions are made around: Cost

What competition charges

How much customers are willing to pay

PRODUCT/SERVICE MANAGEMENT

Obtaining

Developing

Maintaining

Improving

A product or a product mix in response to market opportunities.

Marketing research guides this.

Technology guides this.

New trends guides this.

PROMOTIONAn effort to:

inform

persuade

remind

Both current and potential customers about our products or services.

HOW?

SELLING Provides customers with the goods & services they want.

Includes selling in retail market to You

Business-to-business

Wholesalers

Retailers

Manufacturers

Must know:

Client needs & wants

Responding through planned, personalized communications

Selling influences purchasing decisions

MARKETING CONEPT Idea that a business should strive to meet customer needs

& wants.

AND generate a profit!

A business MUST meet all 7 marketing concepts.

Marketing must make sure customers KNOW that they want to keep customer’s happy.

HAPPY CUSTOMERS = RETURNING CUSTOMERS

Must easier to KEEP a customer than search for new ones.

CRMCustomer Relationship Management

21st Century marketplace MUCH different than before.

Important part of marketing that combines customer info w/customer service & marketing communications.

Allows companies to serve customers best

Businesses can better understand purchasing patterns & demographics (who & why)

SECTION 1.2

WHAT PROMOTIONS DID YOU SEE THE LAST TIME YOU WENT SHOPPING?

HOW DID THESE PROMOTIONS AFFECT YOUR DECISION TO BUY?

IN GENERAL, DO YOU TEND TO PURCHASE ITEMS THAT ARE BEING PROMOTED? WHY

OR WHY NOT?

WHO IS AFFECTED Marketing affects more than you think!

Economies in other countries

Standard of living in other countries

BENEFITS OF COMPETITION

1. New or improved products

2. Lower prices

3. Economic Utility

NEW & IMPROVED Competition drives new products

EXAMPLES?

LOWER PRICES High demand

Produce more in larger quantities

Cost of producing goes DOWN

Charge less

Sell more

Make more

ECONOMIC UTILITY UTILITY = attributes of goods & services that make them

capable of satisfying your wants & needs

FIVE Economic Utilities

1. Form - raw materials into product – special ingredients

2. Place – put where will sell

3. Time – 24/7 or time of year

4. Possession – cash, credit, check, layaway

5. Information – owners manuals, special features

WHY? Why is form utility NOT directly related to marketing?

B/C when form utility involves changing materials or putting them together to make them useful – those individual parts are not marketed.

Only final product is marketed.

HOW? How are time and place utilities related?

Time utility cannot exist w/o place utility.

If products are available at a certain time, but no place where they can buy them – products won’t sell.

Section 1.3WHAT MARKETS ARE YOU A PART OF?

DO YOU THINK ABOUT BEING PART OF A MARKET WHEN YOU ARE MAKING

PURCHASES?

DO YOU THINK IT IS AN ADVANTAGE OF DISADVANTAGE TO BE PART OF A MARKET?

CONSUMERS MARKETSThere are 2 types of markets:

1. consumer

2. organizational

CONSUMER MARKET – purchasing for own use that will meet

Save them $$

Make life easier

Improve appearance

Create status

Provide satisfaction

ORGANIZATIONAL MARKETSB2B

B2B = Business to Business

GOALS:

1. improving sales

2. increase productivity

3. decrease expenses

4. increase efficiency

MARKET SHARETOTAL SALES IN A CATEGORY

% of total sales

Changes all the time!

SEGMENTATION Finding different people likely to buy same products.

EXAMPLE: Cheerios!

TARGET MARKETSGroup selected to become the new consumer.

WHY so important?

B/C all marketing strategies directed at them – if no target market – no focus – FAIL.

Look at page 19 – example of multiple markets

CUSTOMER PROFILESLists information about target markets.

Businesses spend lots of time & money figuring this out.

What is yours?

Age

Gender

Income Level

Martial Status

Ethic background

Geographical residence

Attitudes

Lifestyle

Behavior

PRODUCTThe right product

to satisfy the needs of target customer.

PRICEThe right product

offered at the right price

PLACEThe right product

at the right price

available in the right place to be bought by customers.

PROMOTIONInforming potential customers

of the availability

of the product,

its price

its place.

PAGE 22WHAT SUGGESTIONS WOULD YOU GIVE THE COMPANY

WITH REGARD TO ITS MARKETING STRATEGIES OF THE FOUR Ps OF MARKETING?

What nutritional claims are made for V8 V-Fusion? Under with P?

Which suggested retailed price for V* offers the best price per ounce?