Understanding Marketing

Understanding Marketing

Terry L. ChambersSBDC Center Manager & Entrepreneur

509-358-7894 tchambers@iel.spokane.edu

Finding a need and filling it!Finding a need and filling it!Finding a need and filling it!Finding a need and filling it!

OROR

What Is Marketing?

1. Identifying customers.2. Reaching them with your message.3. Making them want what you sell.4. Getting it to them.

Marketing MixThe “Four P’s”

(Distribution)(Distribution)

roductroductroductroduct

ricingricingricingricing

romotionromotionromotionromotion

lacelacelacelace

Relationship Relationship marketingmarketing

emphasizes lasting emphasizes lasting relationships with relationships with

customers and customers and supplierssuppliers

The Influence of MarketingPermeates Everyday Life

Identifying customers

• Who or what are you? Know thyself from your customer’s perspective.

• What exactly are you selling – is it merely a product?

• How much can you charge?• Who can afford to buy it?• What makes them buy from you?

Who will buy from you?

• Disposable income

• Lifestyle

• What influences their decisions

• What do they want

• Age, single, married, etc.

• Demographics & PsychographicsPsychographics

Identifying Market Segments

Psychographic Psychographic VariablesVariables

Geographic Geographic VariablesVariables

Demographic Demographic VariablesVariables

Attributes relating to personality, values, attitudes, interests, or lifestyles, etc.

Includes: race, age, income, mobility (number of vehicles), educational attainment, home ownership, employment status, etc.

Post purchase Evaluation

Purchase Decision

Evaluation of Alternatives

The Consumer Buying Process

Information Seeking

Problem Recognition

Psychological Personal Social Cultural

Personal & Environmental FactorsPersonal & Environmental Factors

Product Pricing Promotion Place

Marketing FactorsMarketing Factors

Product Features and Benefits

FeaturesFeatures

Tangible and intangible Tangible and intangible qualities that a company qualities that a company builds into its products.builds into its products.

BenefitsBenefits

The results of using The results of using those productsthose products

The Promotional Mix

Advertising

Personal Selling

Sales Promotions

Public Relations

Communicate with them• Face-to-face “communication” = short message

and then LISTEN• Phone calls• Email• Snailmail• Publicity – paid and unpaid• Advertising• Website • Demonstrations of the product

What is your message?

• Why should someone buy from you?• What exactly is your selling point(s)?• Is it your personality? Your looks? Your

voice? Your personal relationships? Your product? Your service?

• Is it your product’s personality, looks or voice?

What are the words THEY want to hear?

Advertising• Advertising is the most expensive marketing tool

• Are your competitors advertising? Should you try to match their budget?

• What - Where and What should you say?

• Advertising is the least efficient marketing tool• ROI can be very low • Shotgun approach is used instead of the rifle shot

• Bad advertising costs – good advertising sells• Don’t bankrupt yourself• Don’t listen to gurus – become an expert on YOUR customers• One size does NOT fit all• Trust your judgment and taste

• How to tell good from bad• What makes a good advertisement? = ROI!!!!!!!!

Why do YOUR Customers buy from you?

Where and How do you Market & Advertise Now?

Key factors

• What is it that the customer is buying?• What do they want to hear from you?• What type of marketing do they pay attention too?• Marketing must be Consistent and Long Term!• Track ROI for all marketing.• Crawl, Walk and only then can you Run!