Introduction to MarketingBBB4M

MarketingDefined: The Process of creating, delivering, and communicating value to customers.This is done through creation of a product or

service, positioning, branding, pricing, promoting, and advertising that product or service.

The ultimate goal of Marketing is to help a company earn a profit.

Market Share

The percentage of the total market that a company has control over is known as market share.

Example: suppose the shoe industry sold 100 million in 2013 in Canada. If your company had 1 million in sales, your company had 1% market share (100/1= 0.01)

Market ShareIn a monopoly the company has 100% market

share because it is the only company providing a particular good/service.

In perfect competition there are multiple companies that offer essentially the same product/service and each has a small percentage of market share. Example: Fast Food in Canada:

McDonald’s (10% market share)Wendy’s (8% market share)Burger King (6% market share)Taco Bell (5 % market share)KFC (5% market share)Subway (5% market share)

Market Segments Categories of products are often broken down into smaller

segments so that they are more manageable for marketers.

Some categories include: Books, beverages, meat, sports equipment

A category can be broken down as follows: Example: Books

Children’s Books Magazines Fiction Non-fiction Comics Cookbooks Self Help Books

Segment These Categories

1. Sports Equipment

2. Breakfast Cereal

3. Beverages

Increasing Market Share Increasing market share can be done in two ways;

1. Increase the size of the overall market

2. Take sales away from other competitors Example

Your teacher brings a cake to class. How many people want a piece? The cake is cut into 8 pieces and there are 25 in the class How do you get cake if you are not one of those 8 people?

Take it from someone OR cut the cake into smaller pieces

Supply and Demand

Supply and demand are two of the driving forces that affect consumer spending:

Supply – refers to the amount of product or availability of a service to consumers

Demand – refers to the desire by consumers to purchase goods/services

4 P’s of Marketing

Product/Services

Product/Service. They come from human invention or innovation.

Inventions are radically new products/service – never seen before.

Innovation are improvements to existing products/service.

4 P’s of Marketing

PriceWhat price are you going to sell at?

How do you determine the price?

How will the price affect product sales and image?

4 P’s of MarketingPlace

Where are you going to sell your product?

Direct sales or intermediaries? Examples?

What purpose do intermediaries serve?

What are the implications of your decision?

4 P’s of MarketingPromotion

Promotion consists of advertising, sales promotion and publicity

How are you going to convince people about your product?

What, when, where, how are you going to promote your product.

2 C’sCustomer/Consumer

The customer is the person who makes the purchase.

The consumer is the person that consumes the product

Are they the same person?

2 C’sCompetition

What products/service exists already?

Who/what is your competition?

How do you compare/differentiate your product/service from the competition?

How do you stay a step ahead of your competition?

Brainstorm Activity Brainstorm and think what a world without

advertising and marketing would be like. List how people (consumers) would benefit from a world without advertisements and marketing. Then, list all the benefits that people get from advertisements and marketing.

Benefits of No Advertising/Marketing:

Benefits OF Advertising/Marketing

Marketing Research

Marketing Research is essential to the success of a Business, particularly an International Business

Marketing Research: The systematic:CollectionAnalysis Interpretation of information used to develop a marketing

strategy or to solve a marketing problem.

Hard and Soft Data

Hard Data: Information tested and Supported

Soft Data: information not tested and supported

Primary and Secondary Research

Primary Research - Gathered ‘first-hand’ by the researcher (ie. questionnaires, surveys, focus groups, test markets, observations, experiments, interviews, and diaries)

Secondary Research- Information is taken from other people’s research (ie. Library, books, internet)

Target Market

Group of potential customers in which a Business aims its Marketing.

Includes demographics such as gender, age, income, occupation, education, household size, values, lifestyles, etc.

Helps Marketers narrow down their intended audience and aids in the Planning and Development Process

Niche MarketingNiche Markets are small, but specific and well

defined segments of the population. Niches are created by identifying and addressing needs, wants, and requirements that are not being addressed or being addressed poorly.

Sometimes it is better to dominate a niche market than simply “compete” in a big, broad market. Niche Markets still require advertising and Marketing, but it is more narrowed in and has less mass appeal.