unit 1 what is marketing

STANDARD: MARKETINGBENCHMARK: The student will develop a basic understanding of the fundamentals of marketingINDICATORS:2.1 Explain marketing as a process2.2 Explain marketing as a service to the public2.3 Identify components of the marketing mix2.4 Explain the functions involved in marketing goods and services2.5 Explain the concept of branding2.6 Explain trends in marketing

• Marketing consists of dynamic activities that focus on the customer to generate a profit

• The goal of marketing: to meet the customers’ needs & wants

• Purpose of marketing: reach customers and compel them to make a purchase and use a product

• Find out what your customers want and give it to them

• Creating, communicating, & delivering value to customers

• Marketing is: Customer-Focused

• Customer: any one or any group who buys a product or service

• Marketers focus on learning what customers need and want

• Based on relationships between the buyer & the seller

• There’s short-term and long-term relationships

• Many companies focus on developing and maintaining relationships with customers

• Contact customers after the sale

• Birthday Cards

• Phone calls and emails about sales

• Reward repeat customers with discounts and free products

• The marketing mix includes: Product, Place, Price, Promotion, & People

• Product decisions include:– Naming the product– Deciding which products to

make & sell– Product Design– Products’ features, brand name,

packaging, service, and warranty are part of the development

– Deciding how to match the target markets’ needs

• Place– Getting the product into the consumers’ hands– Knowing where ones’ consumers shop– Where a product will be sold

• Price– This is what is exchanged for a product– Price strategies should reflect what customers are

willing and able to pay– Marketers must consider the price they will

charge companies (because companies will then resell the product for a higher price)

• Promotion:– Decisions about advertising, personal selling, sales

promotion, and publicity– Deal with how customers will be told about a

company, products, message, special offers– RIP: Remind, Inform, Persuade

• People AKA The Target Market– This is the group of people to become customers for a

certain product– All marketing strategies are directed to a specific

group of people– It focuses the marketing plan– Key to success– Customer Profiles are created:• Age, income level, ethnic background, occupation, attitudes,

lifestyles, & geographic residence

• Distribution:– Deciding how to get goods in customers’ hands– Physically moving and storing goods– Main methods of transportation are by truck, rail,

ship, or air

• Financing is– Getting the money that is

necessary to pay for setting up and running a business

– Business owners often obtain bank loans

– Some also form corporations– Some may sell stock– Also involves decisions to offer

credit or not to customers

• Marketing Info Management:– Obtaining good information about customers,

trends, and competing products– Gathering information, storing it, and analyzing it– Collecting information continuously– Marketers find out about customer, habits,

attitudes, where they live, trends– Examples: questionnaires, surveys, frequent

shopper cards

• Pricing:– Decisions dictate how much to

charge for goods and services in order to make a profit

– Based on costs and what competitors charge for products

– To determine price, marketers must also determine how much customers are willing to pay

• Product/Service Management:– Obtaining, developing,

maintaining, and improving a product or a product mix

– Marketing research guides what products and/or services a company puts in the market place

• Promotion:– RIP: Remind, Inform, Persuade about products

and services– TV, commercials

• Selling:– Provides customers with goods and services they

want– Selling in the retail market to the customer– Selling in the business-to-business market to

wholesalers, retailers, manufacturers– Determining client needs and wants, responding

through planned, personalized communication– Selling influences purchasing decisions and

enhances future business opportunities

• Brand: a mark or design placed on a product to distinguish it from others

• Branding & the Customer: helps customers locate the products and services they wish to buy

• Parts of a Brand:– Brand Name: Words, numbers, or letters– Logo: Picture, design, graphic image– Slogan: phrase or sentence that

summarizes some essential aspect of the product

• Viral Marketing– Fancy word for Word of Mouth

• Social Networking– Facebook, Twitter, MySpace

• Engage & Follow Customer• Give Back to Community• Green Marketing• Online Presence– Company website

STANDARD: MARKETINGBENCHMARK: The student will develop a basic understanding of the fundamentals of marketingINDICATORS:2.1 Explain marketing as a process2.2 Explain marketing as a service to the public2.3 Identify components of the marketing mix2.4 Explain the functions involved in marketing goods and services2.5 Explain the concept of branding2.6 Explain the trends in marketing