marketing and the marketing concept chapter 1.1. what is marketing? the process of planning,...

Marketing and the Marketing ConceptChapter 1.1

What is Marketing?

•The process of planning, pricing, promoting, selling and distributing ideas, goods or services to create exchanges that satisfy customers.

What is Marketing?

•Marketing is everything you do to place your product or service in the hands of potential customers.

What is Marketing?

•Marketing encompasses everything you have to do in coming up with a needed product or service, making potential customers aware of it, making them want it, and then selling it to them.

What is Marketing?

•Marketing is your strategy for allocating resources (time and money) in order to achieve your objectives (a fair profit for supplying a good product or service).

What is Marketing?

•"If a young man tells his date she's intelligent, looks lovely, and is a great conversationalist, he's saying the right things to the right person and that's marketing.

What is Marketing?

•If the young man tells his date how handsome, smart and successful he is -- that's advertising.

What is Marketing?

•If someone else tells the young woman how handsome, smart and successful her date is -- that's public relations.

What is Marketing?

•The act of finding customers and keeping them happy so that they will

•Keep coming back•Tell others

Goal of Marketing

•The goal of marketing is to meet customers’ needs and wants with products that customers can and will buy.

Marketing Promotes

•Goods – tangible items that have monetary value and satisfy your needs and wants▫Cars▫Toys▫Furniture▫Clothing▫Candy

Marketing Promotes

•Services – intangible items that have monetary value and satisfy your needs and wants. Usually involve a task▫Hair cut▫Bank services▫Dry cleaners▫Amusement parks▫Movie theatre▫Accounting firm

Marketing Promotes

•Ideas – a concept, cause, issue, image or philosophy that can be marketed▫Political platforms▫“Only you can prevent forest fires”▫“Give a Hoot, don’t pollute”▫“Take a bite out of crime”▫Vince and Larry the crash test dummies▫Energy hogs▫“Feed the pig”

Needs and Wants

•A need is a basic requirement that an individual wishes to satisfy.▫Food▫Clothing▫Shelter▫Affection▫Esteem

Needs and Wants

•Needs are broad, customer wants are usually quite narrow.

•A want is a desire for a specific product or service to satisfy the underlying need.

Needs and Wants•Consumers need to eat when they are

hungry.

What they want to eat and in what kind of environment will vary enormously. For some, eating at McDonalds satisfies the need to meet hunger. For others a microwaved ready-meal meets the need. Some consumers are never satisfied unless their food comes served with a bottle of fine Chardonnay

Foundations of Marketing4 Key Areas of Knowledge•Business, Management, &

Entrepreneurship▫Understanding how the basic concepts

affect business decision making

•Communication and Interpersonal Skills▫Understanding concepts, strategies and

systems needed to interact effectively with others

Foundations of Marketing4 Key Areas of Knowledge•Economics

▫Understanding the principles and concepts that are basic to marketing

•Professional Development▫Understanding concepts and strategies

needed for career exploration, development and growth

7 Functions of Marketing

•1) Distribution – deciding how to get goods in customers’ hands. Physically moving and sorting goods

•All the organizations through which a product must pass between its point of production and consumption

Distribution

•Movement or transfer of ownership of goods

•Delivery•Helps control Expenses

Makes products available for consumer to buy

Products on hand when customer wants them


•2) Financing – getting the money that is necessary to pay for setting up and running a business.

•Also involves decisions about offering payment options to customers


•3) Marketing Information Management – collecting information about customers, trends, and competing products to make good business decisions

•Marketing Research▫Interview▫Questionnaire▫Test Market▫Focus Group

Marketing Information Management

•Gathering, analyzing, evaluating and using information to make decisions

•Forecasting

•Conducts research to gather information about customers

•Predict what customers want & what might happen in future (affect business)


•4) Pricing – decisions about how much to charge for goods and services to make a profit▫Skimming pricing▫Penetration pricing▫Cost-plus pricing▫Psychological pricing

Pricing

•How much to charge so you can cover expenses & make a profit

•Adjust to meet customer perceptions

•Affects amount of profit a business will make

•Set price customer will pay•Cover Expenses & Make a Profit


•5) Promotion – efforts to inform, persuade, or remind potential customers about a business’s products and services▫Advertising▫Endorsements▫Product placements▫Public relations

Promotion

•Communication about goods•Image

•Helps create and increase demand for products

•Inform customers about new/improved products, uses, special values

•Good impression can help a business succeed


•6) Selling – providing customers with the goods and services they want▫Retail Market▫Business-to-Business Market

Selling

•Planned, personalized communication•Influence purchase decisions

•Creates satisfied customers (unhappy customers will not buy)

•Benefits businesses, customers, and society

•Every business has something to sell•Helps increase employment


•7) Product-Service Management – obtaining, developing, maintaining and improving a product or a product mix in response to marketing opportunities.

•Relies on information provided by Marketing Research.▫Develop new products▫Change existing products

http://www2.kelloggs.com/Product/NewProducts.aspx

Product/Service Management

•New Products•Improved Products•Maintain Current Products•Phase Out Products

•Helps decide the products that a business will produce or offer (offer products customers want and need)

Product/Service Management

•Helps decide the image of the business and its products

•How customers see or think of business

Marketing Concept

•The idea that a business should strive to satisfy customers’ needs and wants while generating a profit

•1. Customer Satisfaction•2. Total Company Effort•3. Profit

Marketing Concept

•Focus on the Customer▫All personnel responsible for marketing

functions must understand the Marketing Concept

Before the Marketing Concept

Production Concept▫Industrial Revolution to early 1920’s

•Focus on products a business could product most efficiently

•Creating a supply of low-cost products would product a demand for those products▫Goods produced were basic necessities▫High level of unfulfilled demand

Before the Marketing Concept

Sales ConceptEarly 1930’s

•Mass production was commonplace•Competition had increased•Little unfulfilled demand•Focus was to try to convince customer to

buy products they produced•Little regard to customer satisfaction

The Marketing Concept▫After World War II

•What do customers want?•Can we develop it while they still want it?•How can we keep out customers satisfied?

The Marketing Concept

•Focus on customer needs BEFORE developing product

•All functions of the company focus on customer needs

•Make a profit by satisfying customer needs over the long-term

CRM

•Customer Relationship Management

•Combines customer information with customer service and marketing communications

•Goal is to create meaningful one-on-one communication with customer

Identify the Function

•Store employee helps you find a pair of shoes

•A store marks down all Christmas items

•A television commercial tells why you should buy the product

Identify the Function•An interview team stops you at the mall and

asks your opinion about the candidates running for office in the upcoming election.

•A company uses sales records to decide to eliminate a product from their product line.

•A small company applies for a bank loan to purchase new equipment.


•A company decides to use UPS to deliver all their customer’s purchases.

•A customer fills out a questionnaire about their recent stay in a hotel.

•Proctor and Gamble introduces Tide with Bleach and Tide with Downy Fabric Softener


•Store employee helps you find a pair of shoes▫Selling

•A store marks down all Christmas items▫Pricing

•A television commercial tells why you should buy the product▫Promotion

Identify the Function• An interview team stops you at the mall and asks

your opinion about the candidates running for office in the upcoming election.▫Marketing Information Management

• A company uses sales records to decide to eliminate a product from their product line.▫Product/Service Management

• A small company applies for a bank loan to purchase new equipment.▫Financing

Identify the Function• A company decides to use UPS to deliver all

their customer’s purchases.▫Distribution

• A customer fills out a questionnaire about their recent stay in a hotel.▫Marketing Information Management

• Proctor and Gamble introduces Tide with Bleach and Tide with Downy Fabric Softener▫Product/Service Management

marketing and the marketing concept chapter 1.1. what is marketing? the process of planning,...

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