The Role of Marketing • Marketing: is all the activities used to insure the effective exchange of goods and services between businesses and consumers. • Beginning the first idea for development of a new product or service. • Determines the wants and needs of consumers and to test new ideas • When a product is near completion , marketers select: • Products name • Design package • Begin to develop advertising • Next decisions are: • Where the product will be sold • How to get the products from place to place. (selling location)
The Role of Marketing • Final steps before sale: • Help set the price • Decide what forms of payments • After products are sold: • Provide customer service • Work on product improvements • When Marketers work well: • Customers get the products and services they want at an affordable price • Business sell their product at a profit • Leads to a satisfying exchanges between businesses and customers. • What marketers are unsuccessful: • Sometimes products can not be sold at a profit • Often customers have needs that can not find satisfactory products and services
The Role of Marketing • Marketing is especially important in capitalistic of free enterprise economic systems. • Based on voluntary exchange. • Business are free to decide what they want to produce and sell • Consumers are free to buy what they want and to choose a price they are willing to pay • Without marketers it would be more: • expensive and time consuming for business to sell what they produced • Consumers would have a harder time finding what they need.
Marketing Functions • Marketers perform countless number of activities • Some work directly for a business that produces the goods and services • Marketing researchers and sales people • Some operate their own service businesses • Advertising agencies and transportation companies • Costumers perform marketing activities • Ex: U-Haul (instead of paying for a delivery service you do it yourself by renting a trailer)
Marketing Functions • Marketing Functions: (groups of marketing activities) must be completed for an exchange to occur: • Product/Service Planning: assist in the design and development by gathering information and testing ideas. • Purchasing: identifies and obtains the products (services) needed for marketing activities. • Financing: makes sure financing and credit are available to support both the purchase and sale products. • Distribution: involves getting products to customers. • Pricing: sets prices and payment methods • Risk Management: Provides security and safety for products and people, and reduces business risks • Marketing Information Management: Obtains and organizes information needed to make marketing decision. • Promotion: Involves communicating with consumers to encourage purchases.
Effective Marketing • It was once believed Marketing was not important.All they needed to do was produce good products and the customer would find them and pay enough for the company to make a profit. • Competition • Gave customers choices that best met their needs. • Business have realized today that they will be more successful if they understand and use marketing well. • Marketing Philosophy
A Marketing Philosophy • The most successful business think of the customer as they produce and market products and services. • Marketing Concept: Considers the needs of costumers when planning, pricing, distributing, and promoting a product or service. • Identify the customers they want to serve and understand their needs. • Develop a product that will satisfy the customers and complete the necessary marketing activities effectively. • Complete all of those activities at a profit. • Think of your favorite restaurant or clothing store. What do they offer that keeps you coming back?
Marketing Strategy • Marketing Strategy: Business people who believe in the marketing concept use a two-step process. • First Step: Target Market: clearly identified group of consumers with needs that the business wants to satisfy. • Second Step: Marketing Mix: is a combination of marketing elements designed to meet the needs of a target group. 4p’s of marketing • Product: is anything offered to the target market to satisfy their needs, including both products and services • Place: (distribution) includes the locations where the products are sold and the ways they are made available to customers. • Price: Is what customers pay and the method of payment. • Promotion: Is the methods used to communicate information to customers in order to encourage purchases and to increase satisfaction.
Product Development • Planning, developing and testing new goods and services. • Developing products and services that consumers want. • Discovering the buying motives of the target market
Planning distribution channels • Getting goods and services from producer to consumers • Channels of distribution • Direct • Indirect • Wholesaler/Retailer
Planning distribution channels • Characteristics of effective distribution. • Differences in quantity • Business usually produce enough for thousands of customers • Difference in assortment • Manufacturers tend to specialize in a limited line of products, customers usually want to buy from a single source. • Differences in location • Distribution brings products from all over the world to locations convenient for consumers • Differences in time • Effective distributors lets manufacturers maximize efficiency while delivering products to consumers when they want them.
The role of pricing • Goals objectives of pricing. • Maximize profits • Increase sales • Maintain an image • Factors that will influence a product’s price • the quantity purchased by a customer • the level of customer service offered • whether the product is fragile or requires special handling. • the number of businesses in the channel of distribution. • The amount of advertising and communications needed to inform customers.
The role of promotion. • Selecting promotional methods and media. • Who are the prospective customers being targeted? How many? Where are they located? What information sources do they use? • What is the message? Does everyone need the same information? Is the message simple or complex? Should the information be repeated regularly? • What is the budget for the promotion? • Personal selling as a promotional activity. • Effective personal selling follows these important steps: preapproach, approach, demonstration, questioning, close and follow-up.