Marketing Orientation Marketing Orientation

Marketing is…Marketing is…

Developing, promoting, Developing, promoting, pricing, selling, and pricing, selling, and distributing products distributing products

Needs vs. WantsNeeds vs. Wants

A target market is…A target market is…

Focusing all marketing decisions Focusing all marketing decisions on the specific group of people on the specific group of people you want to reach.you want to reach.

Customer vs. ConsumerCustomer vs. Consumer Customer buys the product,Customer buys the product, Consumer uses the product. Consumer uses the product.

Niche Marketing Niche Marketing

Narrowing markets, by Narrowing markets, by identifying very specific identifying very specific characteristics, into a more characteristics, into a more specific group of people. A specific group of people. A niche is created through market niche is created through market segmentation. segmentation. For example, East Carolina Pets For example, East Carolina Pets

offers aquariums maintenance offers aquariums maintenance and leasing to physician’s offices. and leasing to physician’s offices.

Products Products

Products are both goods and Products are both goods and services services Goods are items that are tangible, Goods are items that are tangible,

or able to touch. or able to touch. Services are performed and are Services are performed and are

considered intangible, or unable to considered intangible, or unable to touch, such as mowing grass. touch, such as mowing grass.

The marketing concept is…The marketing concept is…

A business approach that A business approach that directs all marketing efforts directs all marketing efforts towards satisfying customer’s towards satisfying customer’s wants and needs. wants and needs.

The benefits to marketing are…The benefits to marketing are…

New and improved productsNew and improved products Lower prices Lower prices

The SWOT analysis is…The SWOT analysis is…

SStrengthstrengths WWeaknesseseaknesses OOpportunitiespportunities TThreats hreats

Classify the functions of Classify the functions of marketingmarketing

Product/service managementProduct/service management PricingPricing Marketing Information Marketing Information

Management (MIM)Management (MIM) SellingSelling PromotionPromotion Distribution Distribution

Product/Service ManagementProduct/Service Management

Designing, producing, Designing, producing, maintaining, improving and maintaining, improving and obtaining products to meet obtaining products to meet customer’s wants and needs. customer’s wants and needs. For Example, redesigning the For Example, redesigning the Mazda RX-8. Mazda RX-8.

Pricing Pricing

Determining a value to charge for Determining a value to charge for products. It is important to consider products. It is important to consider what competitors are charging and what competitors are charging and the amount customers are willing the amount customers are willing and able to pay. For Example, when and able to pay. For Example, when deciding what price to charge for deciding what price to charge for their latest athletic shoe, Nike must their latest athletic shoe, Nike must take into consideration the cost of take into consideration the cost of producing, promoting, and producing, promoting, and distributing the shoe. distributing the shoe.

Marketing Information Marketing Information ManagementManagement Gathering information (such as Gathering information (such as

customer buying habits, prices customer buying habits, prices customers are willing to pay for customers are willing to pay for products, or test marketing potential products, or test marketing potential new products), analyzing new products), analyzing information, and utilizing information information, and utilizing information for use in making marketing for use in making marketing decisions. For Example, decisions. For Example, Amazon.com sends a questionnaire Amazon.com sends a questionnaire to customers who purchased the to customers who purchased the lastest lastest New York TimesNew York Times best sellers. best sellers.

SellingSelling

Determining and responding to Determining and responding to customer’s needs and wants through customer’s needs and wants through personalized communication. It is personalized communication. It is intended to influence purchase intended to influence purchase decisions and increase customer decisions and increase customer satisfaction. For example, at the satisfaction. For example, at the Limited, Taylor searches for a Limited, Taylor searches for a birthday present for her sister, when birthday present for her sister, when Gwen (a sales associate) asks if she Gwen (a sales associate) asks if she could help her find the correct size.could help her find the correct size.

Promotion Promotion

Communication used to inform, Communication used to inform, persuade, or remind customers persuade, or remind customers about a business’s products. about a business’s products. The most common form of The most common form of promotion is advertising. For promotion is advertising. For example, McDonalds decides to example, McDonalds decides to broadcast a 30 second broadcast a 30 second television commercial during the television commercial during the Super Bowl. Super Bowl.

Distribution Distribution

Transporting, storing, and Transporting, storing, and handling goods from the handling goods from the manufacturer to the consumer. manufacturer to the consumer. For example, John Deere lawn For example, John Deere lawn equipment is transported to equipment is transported to Home Depot by tractor-trailers.Home Depot by tractor-trailers.

Summarize the marketing mixSummarize the marketing mix

Marketing mix:(4 P’s) A Marketing mix:(4 P’s) A combination of decisions a combination of decisions a business makes in order to business makes in order to best reach its target market. best reach its target market. Known as the four Ps (product, Known as the four Ps (product, price, place, promotion). price, place, promotion).

Marketing Mix: ProductMarketing Mix: Product

Businesses must decide which Businesses must decide which products to offer customers. products to offer customers.

Marketing Mix: PriceMarketing Mix: Price

The amount a business The amount a business charges customers for a charges customers for a product. product.

Marketing Mix: PlaceMarketing Mix: Place Having the product available at Having the product available at

the right time and location. the right time and location. Also known as distribution. Also known as distribution.

Marketing Mix: PromotionMarketing Mix: Promotion

Informing and reminding Informing and reminding customers of the products customers of the products available to them and available to them and persuading them to purchase. persuading them to purchase.

Promotion includes Promotion includes advertising, personal selling, advertising, personal selling, sales promotion, and publicity.sales promotion, and publicity.

Market Segmentation is…Market Segmentation is…

Dividing the entire market into Dividing the entire market into smaller groups who share smaller groups who share similar characteristics. similar characteristics.

For example: Coca-Cola For example: Coca-Cola offers Diet &offers Diet &

Caffeine freeCaffeine free

Demographic segmentationDemographic segmentation is…is…

Dividing the market based Dividing the market based on personal characteristics on personal characteristics such as age, gender, such as age, gender, income, ethnic background, income, ethnic background, education, and occupationeducation, and occupation

For example, For example, Teen Vogue Teen Vogue is marketed to… is marketed to…

Geographic SegmentationGeographic Segmentation

Dividing a market based on Dividing a market based on where a person lives (local, where a person lives (local, regional, state, national, or regional, state, national, or global markets). global markets).

For example, swimwear and For example, swimwear and body boards sell best…body boards sell best…

Psychographic SegmentationPsychographic Segmentation Dividing the market based on Dividing the market based on

values (ethics, morals, values (ethics, morals, standards), attitudes standards), attitudes (personality), and lifestyles (personality), and lifestyles (how people spend their time)(how people spend their time)

For example: Schwinn BicycleFor example: Schwinn Bicycle

Behavioral Segmentation Behavioral Segmentation

Dividing the market into groups Dividing the market into groups based on what they are looking for in based on what they are looking for in a product and why they buy the a product and why they buy the product. product. For example: Shannon buys Crest For example: Shannon buys Crest

whitening toothpaste to brighten her whitening toothpaste to brighten her teeth, Amy buys Crest for cavity teeth, Amy buys Crest for cavity prevention because she eats a lot of prevention because she eats a lot of sweets, and Jamar buys Crest with sweets, and Jamar buys Crest with Scope to combat his love of onions and Scope to combat his love of onions and garlic. garlic.

MarketsMarkets

Market: The group of all Market: The group of all potential customers who have potential customers who have similar needs and wants and similar needs and wants and have the ability to buy the have the ability to buy the product. product. Consumer market –purchases for Consumer market –purchases for

personal usepersonal use Industrial market – purchases for Industrial market – purchases for

use in a businessuse in a business

Market Share Market Share

The percentage of the total The percentage of the total sales revenue acquired by a sales revenue acquired by a business within a market. business within a market.

Mass MarketingMass Marketing A single marketing plan used to A single marketing plan used to

reach all consumers. For reach all consumers. For example gum and light bulbs. example gum and light bulbs.