Unit 3Basic Marketing

Concepts

http://www.youtube.com/watch?feature=player_detailpage&v=ssXV0wXUZYg

http://www.youtube.com/watch?v=yGikNBqiNyE&feature=player_detailpage

What is the product?Who is the target audience?Do you think this commercial

creates a relationship with its market? If so, what is it?

What aspects of this commercial are memorable?

Commercial Questionnaire

Unit 3 Vocabulary Consumers Consumer Market Customers Customer Profile Customer Relationship

Management (CRM) Demographics Discretionary Income Disposable Income Environmental Scan Executive Summary Geographics Goods Industrial Market Market

Market Share Marketing Marketing Concept Marketing Mix Market Segmentation Marketing Strategy Mass-Marketing Positioning Products Psychographics Sales Forecast Services Situation Analysis SWOT Analysis Target Market

Unit 3 Essential Question

How do the fundamental marketing concepts relate to the scope and impact of marketing on the economy?

What is marketing?

Essential Question 1Basic Marketing Concepts

Marketing is. . .The process of planning, pricing,

promoting, selling and distributing products to create exchanges that satisfy customers needs and wants.

Products– Goods

– Services

– Information / Ideas

How do marketing strategies relate to the marketing mix?

Essential Question 2Basic Marketing Concepts

Target Marketing - Focuses all marketing decisions on the specific group of people you want to reach.

The Marketing Mix

4 P’s of Marketing

ProductPlace

Promotion

Price

Product Positioning

Positioning: Getting the consumer to think about a product in a certain way.

Methods of positioning:– Playing to the competition's weaknesses.– Looking for underserved markets.– Leading with your strengths.– Targeting different market segments.

Marketing Strategies

Marketing strategy: Identification of target markets and determination of marketing mix choices that focus on those markets.

An effective marketing strategy will focus on a company’s or product’s competitive advantage: the key point of difference.

What are the marketing functions and their related activities?

Essential Question 3Basic Marketing Concepts

Functions of MarketingDistribution

– The physical movement of a good or service.

– Deciding where and to what extent to sell a good or service.

Functions of MarketingFinancing

– Determining the need for and availability of financial resources to aid in marketing activities.

Functions of MarketingMarketing Information Management

Gathering, recording, analyzing, and disseminating information to aid in making marketing decisions.

Functions of MarketingPricing

– The determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.

Functions of MarketingProduct/Service Management

– Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

Functions of MarketingPromotion

– Communicates information about products, services, images, or ideas to customers or clients to influence their purchase behavior.

Functions of MarketingSelling

– Responding to consumers needs and wants through planned, personalized communications intended to influence purchase decisions.

How do the effects of various marketing activities compare and contrast?

Essential Question 4Basic Marketing Concepts

What marketing activities would be associated with each function of marketing?

– Distribution?– Financing?– Marketing Information Management?– Pricing?– Product/Service Management?– Promotion?– Selling?

Marketing Activities

How do marketing plans interact with marketing strategies?

Essential Question 5Basic Marketing Concepts

Marketing PlanMarketing Plan

– A formal, written document that directs a company’s activities for a specific period of time.

– Elements of a Marketing Plan include: Situation Analysis Marketing Strategies Implementation Evaluation and Control

Marketing PlanMarketing Plan

– The Marketing Strategies section of the Marketing Plan focuses on:

Product Positioning Marketing Mix

– Product

– Place

– Price

– Promotion

How does the marketing planning process employ situational analysis?

Essential Question 6Basic Marketing Concepts

Situational Analysis

Situational Analysis: The study of the internal and external factors that affect marketing strategies and is an element of the Marketing Plan.

Situational Analysis

A Situational Analysis includes:– SWOT Analysis: An assessment of the

company’s internal Strengths and Weaknesses and external Opportunities and Threats.

– Environmental Scan: An analysis of outside influences that may have an impact on the organization. It includes:

Political Economic Socio-Cultural Technological

How are the concepts of market, market segmentation, and market identification differentiated?

Essential Question 7Basic Marketing Concepts

Market Segmentati

on

Identifying Your Customers

Market: A group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product.

Market Segmentation: Dividing the total market into smaller groups of people who share specific needs and characteristics.

Customers vs. Consumers

CustomersBuy a product

ConsumersUse the product

Consumer Marketvs.

Industrial MarketConsumer

Personal Use

IndustrialBusiness Use

Market Segmentation

GeographicsSegmentation of the market based on

where people live.

Market SegmentationDemographics

Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc.

Market SegmentationPsychographics

Involves the study of customers based on lifestyle, and the attitudes and values that shape it.

Market Segmentation

Product BenefitsBuilt in features of products in

response to consumer needs and wants.

Market Identification:Identifying Your Customers

Developing a Customer ProfileCombining geographic, demographic,

psychographic, and product benefit data to get a complete picture of your potential customers.

How does the marketing concept relate to customer needs and wants?

Essential Question 8Basic Marketing Concepts

Brainstorm

What are the differences between sales-orientedsales-oriented and marketing-orientedmarketing-oriented companies.

The Marketing Concept In order for a business to make a

profit, it must focus all of its efforts on satisfying the needs and wants of its customers.

Customer Satisfaction Involves creating a relationship with

the customer to achieve customer loyalty – also known as Customer Relationship Management (CRM).

Customer satisfaction is directly related to the product’s perceived value.