Objectives • Understand the definition of Marketing. • Understand the 4 Ps of Marketing. • Understand the 7 marketing functions. • Understand market segmentation.
What is Marketing? • The process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers.
Ideas, Goods, and Services • Marketing promotes ideas, goods, and services. • Products – goods and services that have monetary value • Goods • Tangible items that have monetary value and satisfy your needs and wants. • Ex. Cars, toys, furniture, televisions, clothing, candy, etc. • Services • Intangible items that have monetary value and satisfy your needs and wants. • Ex. Banks, dry cleaners, amusement parks, etc.
Marketing Concept • A business should strive to satisfy customers’ needs and wants while generating a profit. • Customer focused • Repeat customers = profit
Marketing Mix • 4 P’s of Marketing • Product • Begin with choosing what product to make and sell. • Place • Getting the product into the consumers hands. • Price • What is exchanged for the product. • Promotion • Refers to decisions about advertising, personal selling, sales promotion, and publicity.
7 Functions of Marketing • Activities that work together to get goods and services from the producer to the consumer. • Distribution • Process of deciding how to get goods in customers hands. Example: Now many rental car companies allow their customers to pre-book their rental over the phone or the internet. There is no waiting or paperwork when they get there, they can just drive away.
7 Functions of Marketing • Financing • Getting the money that is necessary to pay for setting up and running a business. • Offering credit to the customer. Such as loan options, credit cards, layaway. Example: Toyota has set-up its own financing division to provide more options to their customers.
7 Functions of Marketing • Pricing • Dictates how much to charge for goods and services in order to make a profit. Example: When there is a slump in the housing market, construction companies will offer customized decorating and new furnishing to customers who sign a purchase contract within 30 days. This strategy helps maintain sales levels while competitors struggle.
7 Functions of Marketing • Marketing Information Management • Good business and marketing decisions rely on good information about customers trends, and competing products. • Marketers create this to find out about customers , their habits, trends, and attitudes. Example: Many grocery stores use electronic savings/discount cards to keep track of customer buying habits
7 Functions of Marketing • Product/Service Management • Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities. Example: Apple combined the technologies of the widescreen of the iPod, a cellular phone, and an improved internet browser to create the iPhone.
7 Functions of Marketing • Promotion • The effort to inform, persuade, or remind potential customers about a business’s products or services. • There are many different forms of promotion including: all forms of advertising, publicity, etc.
7 Functions of Marketing • Selling • Provides customers with the goods and services they want. • Includes selling to the consumer and business-to-business.