© south-western publishing the basics of marketing 4.1 4.1 changes in today’s marketing 4.2 4.2...

© South-Western Publishing

THE BASICS OF THE BASICS OF MARKETINGMARKETING

4.14.1Changes in Today’s Marketing

4.24.2Planning a Marketing Strategy

4.34.3 Deciphering Consumers and Competitors

4.44.4 Marketing’s Role in Various Businesses


Changes in Today’s Changes in Today’s MarketingMarketingGOALSGOALS for Lesson 4.1Explain how marketing today differs

from the way things were done in the past.

Show why understanding customer needs is crucial, even with a superior product.


Recognizing How Recognizing How Marketing Has ChangedMarketing Has ChangedUnderstanding the DifferencesUnderstanding the DifferencesFrom few to many

Earliest use was to move products from producer to consumer.

From independent to integratedMuch more effective

From problems to opportunitiesFrom expense to investment

Reducing Marketing efforts when faced with financial problems is the wrong answer.


Marketing FunctionsMarketing Functions

Product/Service ManagementDistributionSellingMarketing-Information managementFinancingPricingPromotion


Business FunctionsBusiness Functions

ProductionOperationsAccounting and FinanceManagement and AdministrationMarketing


Marketing ConceptMarketing Concept

Using the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service.


Coming To Grips with the Coming To Grips with the Marketing ConceptMarketing ConceptReliable Auto Service – read pg. 89Dee’s Designs – read pg. 90Focus on customer needsMust use the Marketing Concept..

Huh? …using the needs of customers as the primary focus during the Planning, Pricing, Distribution, and Promotion of a product or service. Got it?


What Went WrongWhat Went Wrong

1. They were concerned only about the product or service

2. They believed that they knew what customers would buy

3. They did not study the market

4. They failed to use a variety of marketing tools available to them


Important points to Important points to remember…remember…The primary focus of the MARKETING

CONCEPT is the needs of the customer. Businesses often fail because they don’t understand and use the MARKETING CONCEPT.

Marketers are constantly looking for new Markets.


PLANNING A MARKETING PLANNING A MARKETING STRATEGYSTRATEGY

GOALSGOALS for Lesson 4.2Understand how the marketing concept

transforms business planning.Explain the importance of market

segments and market opportunity analysis.Discuss how businesses develop the right

marketing mix.


Putting Marketing Putting Marketing Up FrontUp FrontPlanning that identifies how a company expects to achieve its goals is known as a strategystrategy.


How Does the Marketing How Does the Marketing Concept Affect Planning?Concept Affect Planning?

Without the Marketing Concept1. Develop a product.

2. Decide on marketing activities.

3. Identify potential customers.

With the Marketing Concept1. Conduct research to identify potential customers and

their needs.

2. Develop a marketing mix (product, distribution, price, promotion) that meets specific customer needs.


Understanding the Understanding the CustomerCustomerIdentifying customer needs (1st!)Satisfying customer needs


Understanding the CustomerUnderstanding the Customer

Identifying Customer NeedsMany customers are not sure of their needs

or may have conflicting needsCustomers may have needs, but they

typically have limited amounts of money available to satisfy those needs

Individuals and groups of consumers might have different perceptions on what products will meet their needs


Two Views of ConsumersTwo Views of Consumers

Customers are all alike and can be influenced to buy what a business offers.

Customers are quite different and they

select products and services

to meet their unique needs.


Understanding the CustomerUnderstanding the Customer

Satisfying Customer NeedsMarket Research leads to Market

Segments (groups of similar consumers within a larger market)

Market Opportunity Analysis – studying and prioritizing market segments to locate the best potential based on demand and competition.


Planning the OfferingPlanning the Offering

Creating the Right MixCreating the Right MixProduct developmentDistribution decisionsPricing products and servicesPlanning promotion


Product DevelopmentProduct Development

Making your brand different and better than those offered by competitors.Types of parts usedColor, size, operation, accessoriesServices that come along with the product

(guarantees or warranties)Packaging


Distribution DecisionsDistribution Decisions

Important impact on customer satisfaction by making the product available (convenience)Channels of distribution must be efficient

and effectiveMinimal exchanges between producer and

consumerManufacturers must rely on wholesalers

and retailers


Pricing Products and ServicesPricing Products and Services

Businesses must develop specific procedures to set prices that are competitive and allow the business to make a profitWhat is the pricing objective (increase sales,

maximize profit, similar pricing)Calculating the price (make sure to include all

expenses)Discounts, markdowns, coupons, rebates,

financing


Planning PromotionPlanning Promotion

Effective Promotions must have an impact on the consumerTypes of promotions – advertising,

personal selling, sales promotion, visual display, and publicity

Each method has different costs and reaches different amounts of people

Used to communicate the value and benefits of the product


Combining Parts Combining Parts of the Marketing of the Marketing MixMix

Product that offers choices

Distribution that provides convenience

Satisfied customersPrice that gives

valuePromotion that aids

decision-making

Satisfied customersSatisfied

customers

ProductProduct

PromotionPromotion

DistributionDistribution PricePrice


In GroupsIn Groups

Create an effective marketing mix for an Auto Parts Store. You should consider the four parts of the marketing mix and consider how each of those parts affect one another. Each plan should have reasons for the marketing choices that were made.


DECIPHERING CONSUMERS DECIPHERING CONSUMERS AND COMPETITORSAND COMPETITORS

GOALSGOALS for Lesson 4.3Detail the stages of consumer decision-

making.Understand how businesses should

respond to various types of competition.


Stages in Consumer Stages in Consumer Decision-MakingDecision-MakingRecognize – consumer, “a need exists”

Identify – interest leads to identifying products/services that relate

Evaluate – check your choices

Decide – select, gather more info., or do nothing

Assess – how much satisfaction?


GOOD STUFF……..GOOD STUFF……..

Most of us use this process – we don’t really choose in a unique manner.

Remember the order…R.I.E.D.A. The process causes decisions being

made to become routine.What can VALUE look like?

Higher quality, more service, lower prices…


Stages in Consumer Stages in Consumer Decision-MakingDecision-Making

Recognizing a needRecognizing a need

Identifying alternativesIdentifying alternatives

Evaluating choicesEvaluating choices

Making a decisionMaking a decision

Determining satisfactionDetermining satisfaction


Responding to Responding to CompetitionCompetition

#1 Intense competition – in a market with pure competition, or oligopolistic, how do I differentiate myself? Coke vs. Pepsi? Price? Promotion? Distribution?


Responding to comp.#2Responding to comp.#2

#2 Limited competition – monopoly? Keep competitors out, protect location, keep uniquenessCustomers of a monopoly can become

dissatisfied (due to lack of choice).Avoid dissatisfaction by using…THE

MARKETING CONCEPT!


Responding to comp.#3Responding to comp.#3

#3 Monopolistic competition- need clearly identified differences in product/service.Focus on specific groups and identify their

needs.

MARKETING’S ROLE IN MARKETING’S ROLE IN VARIOUS BUSINESSESVARIOUS BUSINESSESGOALSGOALS for Lesson 4.4Explain the various marketing roles

of different types of businesses.Examine how marketing is useful

for organizations other than businesses.

Differentiating Business Differentiating Business RolesRolesProducers and manufacturers – “Product”

and “Distribution” importantChannel members – financing, distribution,

final pricing decisions, promotionService businesses – don’t normally use

“Distribution”…why not?Hard to determine the appropriate price or to

compare services…why?

Markups and MarginsMarkups and MarginsMarkup – difference between the price a

business pays for a product and the price it plans to sell the product for.

Gross Profit Margin is the difference between the price a product sells for and the amount a business pays for it.

Retailer pays $1 for a product, and sells it for $1.50…Markup is .50/1.00 = 50%Gross Profit Margin is .50/1.50 = 33%

Marketing By Non-Marketing By Non-Business GroupsBusiness GroupsMuseumsLibrariesSymphoniesAthletic

teamsChurchesClubs

Mistakes made frequently include…1) improper development of “The Marketing Plan”

2) Emphasized Promotion3) Treat people as if they have

the same wants and needs.

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