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Marketing. Understanding what Marketing is all about!. What is Marketing? . Marketing is defined as the process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers.
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Marketing Understanding what Marketing is all about!
What is Marketing? • Marketing is defined as the process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers. • Marketing is always changing as a marketer you need to keep up with trends and customer attitudes. • Goods- are tangible items that have monetary value and satisfy your needs and wants such as cars, toys, furniture, televisions, clothing. • Services- intangible means you cannot physically touch them. Involve a task, such as cooking, hair cut, banks, dry cleaning, movie theatre.
Skills and Knowledge • Marketing is one career cluster in business administration. The practice of marketing depends on many key areas of skill and knowledge. • Business Law • Communications • Customer Relations • Economics • Emotional Intelligence • Entrepreneurship • Financial Analysis • Human Resource management • Information Management • Marketing • Operations • Professional Development • Strategic Management
Seven Marketing Core Functions • Channel Management- or distribution, is the process of deciding how to get goods into customer’s hands. Physically moving and storing goods is part of distribution planning. • Market Planning- Obtaining good information about customers, trends, and competing products. Also called Marketing research. • Pricing- Dictate how much to charge for goods and services in order to make a profit. Must determine what customers are willing to pay.
Marketing Functions Cont.. • Product/Service Management (PSM)- is obtaining, developing, maintaining, and improving a product or a product mix, in response to market opportunities. • Promotion- is an effort to inform, persuade, or remind a potential customer about a business’s products or services. TV, radio commercials are forms of promotion and also called advertising. Promotion can be used to improve a company’s image. All promotional concepts and strategies are used to achieve success in the marketplace.
Marketing Functions Cont.. • Selling- Provides customers with the goods and services they want. This includes selling in the retail market to you, the customer and selling in the business to business market to wholesalers, retailers, or manufacturers. • Customer Relationship Management (CRM)- In today’s marketplace, customer relationship is most important. This is a combination of customer information with customer service and marketing communications.
The Marketing Concept • The idea that organizations need to satisfy their customers while also trying to reach their organizations’ goals. Therefore, to be profitable, businesses must focus their efforts on customers’ needs and wants. • Need-basic necessities such as food, clothing, or shelter. • Want- things people desire based on personality, experiences, or information about a product.
The Importance of Marketing- • Marketing affects your life and the lives of other customers. • The impact of marketing is more dramatic when you consider how it affects our economy and standard of living. • How Marketing affects our Economy: • Marketing provides a means for competition to take place. In a competitive marketplace, businesses try to create new or improved products at lower prices then their competitors. Businesses also look for ways to add value to a consumer’s shopping experience.
Truth on pricing • Marketing can lower your prices because marketing increases demand. • When demand is high manufacturers can produce products in larger quantities, which reduces the manufacturing cost.
Adding Value and Utility • The function of marketing is to add value to a product. • Utility-economic term for adding value to a product or service that makes it capable of satisfying customers' wants and needs. • Form utility • Place utility • Time utility • Possession utility • Information utility
Utilities Cont.. • Form Utility- involves changing raw materials or putting parts together to make them more useful. Ex. Placing radio controls on steering wheel of car. • Place Utility-involves having a product where customers can buy it. Businesses study consumer shopping habits to determine the most convenient and efficient locations to sell products. Ex. Catalogs, internet, drive through windows, etc.
Utilities cont.. • Time Utility- Having a product available at a certain time of year or a convenient time of day. Wal-Mart is open 24 hours a day, retailers have extended shopping hours close to Christmas. Having Halloween costumes out in September. • Possession Utility- How you pay for the product. The exchange process, a retailer may accept credit cards, debit cards, checks, layaway plans etc. Ex: Sonic, you can pay with debit card. • Information Utility- involves communication with the consumer. Salespeople provide information to customers by explaining the features and benefits of products. Advertising provides a lot of information.
The Market • A market consists of potential customers with shared needs who have the desire and ability to buy a product. • It is important for a business to clearly identify a market, they must know who they need to satisfy. • You are a market and are targeted by many companies. Do you ever feel like an advertisement was directed to you?
Consumer Vs. Industrial Markets Consumer Market Industrial Market Consists of customers who purchase goods and services for personal use. Consumers are interested in products that will save them time, money, make their lives easier, improve their appearance, create status in the community, or provide satisfaction. Business to Business market includes all businesses that buy products for use in their operations. Most goals and objectives of business firms are to improve profits. Companies want to improve productivity, increase sales, decrease expenses, or make work more efficient.
Market Share • The percentage of the total sales volume generated by all companies that compete in a given market. • Knowing your market and what your market share is will help a marketer focus on the needs of the business.
Target Market & Segmentation • Target Market-a specific group of consumers whom the business focuses their marketing plan around. • Demographics-Statistics that describe a population in terms of personal characteristics. • Teen girls 13-18. What would we sell them? Or • The product is: Guitar Hero, who is the target market?
