Marketing

What is Marketing?In your own words, describe what

marketing is

You will be able to…List common marketing activities

and define the marketing conceptExplain the two steps in marketing

planningExplain the advantage of small

businesses in providing customer service

MarketingAll of the activities performed to insure the

exchange of goods and services between businesses and consumers

How many different products/services are there available to purchase?

Now choose one.How many different “types” of that product/service

are there available to purchase?Multiply those numbers by the millions of americans

companies are trying to get to be customers.

How can businesses insure that the products and services they offer are available to the consumers who want them with the information needed to help them decide to buy?

The Goal of MarketingIs to get the RIGHT product or service,to the RIGHT place, at the RIGHT time, at the RIGHT price, and persuade customers to make a

purchase decision

In a nut shell• Marketers:

1. Use research to determine wants and needs of consumers

2. Test new ideas with consumers

Why is Marketing Important?About ½ of every dollar you spend pays for

marketing costs.

Successful marketing allows :consumers to get the products and services they

want at an affordable priceBusinesses to sell their products at a profit

Effective Marketing leads to SATISFYING EXCHANGES BETWEEN BUSINESSES AND CONSUMERS

Marketing and CapitalismA free market or capitalistic society is based off

of what?Voluntary Exchanges

Business are free to decide what to produce and sell

Consumers are free to decide what to buy and are willing to pay

Marketers serve as intermediaries, helping to match production decisions of producers to consumption decisions of consumers

9 Functions of MarketingMarketers perform HUNDREDS of activitiesSome work directly for a business that

produces the goods and services Marketing researchers and sales people

Others operate their own service business Advertising agencies and transportation

companies)Consumers can also perform marketing

activitiesRenting a trailer to move a new appliance

rather than paying a delivery company

Marketing FunctionsIn order for an exchange to occur, there are 9

FUNCTIONS OF MARKETING that must be completed

BuyingSellingProduct/Service Planning PromotionPricingMarketing Information ManagementFinancingPhysical DistributionRisk Management

9 functions of marketinghttps://prezi.com/ic_jqertifrt/understanding-

marketing-functions/

Pop QuizClear your deskTake out a piece of paperNumber it 1-9

List the 9 functions of Marketing

ReviewWhat is marketing?

All of the activities performed to insure the exchange of goods and services between businesses and consumers

What is the goal of marketing?Is to get the RIGHT product or service, to the RIGHT

place, at the RIGHT time, at the RIGHT price, and persuade customers to make a purchase decision

About what percent of every dollar spent goes towards marketing costs?50%

We know…That successful marketing leads to

SATISFYING EXCHANGES BETWEEN BUSINESSES AND CONSUMERS

But why?

Marketing ConceptThe most important aspect of marketing is

satisfying customer needsA business that keeps the focus on

satisfying customer needs follows the Marketing Concept

Market Orientation vs. Sales Orientation

 

What is the Organization's focus? What business are you in? To whom is the product 

directed? What is your primary goal? How do you seek to achieve your goal?

Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales 

volumePrimarily through intensive 

promotion

Market Orientation Outward, upon the needs and wants of consumers

Satisfying customer wants and needs and delivering superior 

valueSpecific groups of people Profit through customer 

satisfactionThrough a coordinated marketing strategy

Market Orientation vs. Sales Orientation

 

What is the Organization's focus? What business are you in? To whom is the product 

directed? What is your primary goal? How do you seek to achieve your goal?

Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales 

volumePrimarily through intensive 

promotion

Market Orientation Outward, upon the needs and wants of consumers

Satisfying customer wants and needs and delivering superior 

valueSpecific groups of people Profit through customer 

satisfactionThrough a coordinated marketing strategy

Market Orientation vs. Sales Orientation

 

What is the Organization's focus? What business are you in? To whom is the product 

directed? What is your primary goal? How do you seek to achieve your goal?

Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales 

volumePrimarily through intensive 

promotion

Market Orientation Outward, upon the needs and wants of consumers

Satisfying customer wants and needs and delivering superior 

valueSpecific groups of people Profit through customer 

satisfactionThrough a coordinated marketing strategy 

Defining a firms business in terms of the benefits the customer seeks:

• Ensures the firm focuses on customer needs• Encourages innovation/creativity in addressing those needs• Stimulates awareness in customer desires and preferences to keep product offerings relevant

Market Orientation vs. Sales Orientation

 

What is the Organization's focus? What business are you in? To whom is the product 

directed? What is your primary goal? How do you seek to achieve your goal?

Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales 

volumePrimarily through intensive 

promotion

Market Orientation Outward, upon the needs and wants of consumers

Satisfying customer wants and needs and delivering superior 

valueSpecific groups of people Profit through customer 

satisfactionThrough a coordinated marketing strategy

Because most potential customers are not “average,” they are NOT likely to be attracted to an average product marketed to an average consumer.

“Average” Shampoo?• Hello Hydration• Tousle Me Softly• Totally Twisted• Touchably Smooth• Hydralicious• Color Me Happy• Long-Term Relationship• None of your Frizzness• Body Envy• Drama Clean

Market Oriented organizations recognize that consumer needs and wants vary, so they develop different goods, services, and promotional appeals

Market Orientation vs. Sales Orientation

 

What is the Organization's focus? What business are you in? To whom is the product 

directed? What is your primary goal? How do you seek to achieve your goal?

Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales 

volumePrimarily through intensive 

promotion

Market Orientation Outward, upon the needs and wants of consumers

Satisfying customer wants and needs and delivering superior 

valueSpecific groups of people Profit through customer 

satisfactionThrough a coordinated marketing strategy

Marketing Oriented Organizations emphasize LONG-TERM RELATIONSHIPS by:

•Creating customer VALUE•Providing customer SATISFACTION

Marketing Orientation Goal

Market Orientation vs. Sales Orientation

 

What is the Organization's focus? What business are you in? To whom is the product 

directed? What is your primary goal? How do you seek to achieve your goal?

Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales 

volumePrimarily through intensive 

promotion

Market Orientation Outward, upon the needs and wants of consumers

Satisfying customer wants and needs and delivering superior 

valueSpecific groups of people Profit through customer 

satisfactionThrough a coordinated marketing strategy

Marketing StrategyA two-step process for successfully

planning and marketing products and services

Step one

Identifying a Target Market

Step two

Developing a Marketing Mix

Target MarketA clearly identified group of consumers

with similar wants and needs

Do Now

How is a marketing orientated company different from a sales orientated company?Give examples of both

What is a marketing strategy?

What is a target market?

Marketing Mix

ProductThe product includes more than just the

physical goodIt also includes:

Brand namePackagingAccessoriesServices which increase

customer satisfaction

PriceConsumers compare prices to the

satisfaction they believe they will receive

When satisfaction is greater than price, consumers make purchases

Goals of pricing1. Cover costs and make profit2. Set price so consumers view as good

value3. Set price to stay competitive with other

companies

Factors that Influence Price• Supply and demand• The quantity purchased• Level of customer service offered• How fragile the product is• The number of businesses in distribution

channel• The amount of advertising and

communication necessary to inform consumers

PlaceSeveral decisions need to be made when

planning product distribution.Where will products be sold?How will we get them there?How will they be packaged and protected?

Channels of Distribution• The paths that products travel from producer

to consumer– Direct channel – producer – consumer– Indirect channel – producer – middleman –

consumer

– Direct:

– Indirect:

MiddlemenAnyone in the middle that moves a product

from producer to consumer

WholesalerA Business that sells goods in large quantities

to be retailed by othersBuys directly from manufacturer/producerSells in bulkStores and ships products to retailers or smaller

wholesalers

RetailerA business that sells directly to consumer

Buys products from different manufacturersprices productsdisplays productsmakes it easy for you to buy

PromotionThe marketing tool businesses use to

communicate with consumers to persuade them to purchase its products

Role of promotionTo attract new customers, promotion is

usedto Inform prospective customers to Persuade them their product is the best

choice

Once customers have bought product, promotion is used to Reinforce their purchase decision to Remind them of how it meets their needs

Promotional methods• Advertising – information paid for by business

to reach large number of prospective customers

• Sales promotions – incentives for customers to buy products (coupons, contests, free samples)

• Publicity – information not paid for by the business

• Personal selling – direct, personal communication between a salesperson and customer to encourage the purchase of a product

Which is it?

Which is it?

Which is it?

Which is it?Old Spice Commercial