Chapter 1 ppt
- 1. Chapter 1Marketing Is All Around Us
- 2. What is Marketing?Marketing The process of planning, pricing, promoting, selling, and distributing ideas, goods or services to create exchanges that satisfy customersEverything that happens between the idea and the sale
- 3. Ideas, Goods, and ServicesIdeasPolitics“Living Better”GoodsTangible items that have monetary value and satisfy your needs and wantsServicesIntangible items that have monetary value and satisfy your needs and wants
- 4. The Marketing ConceptThe idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the firm.The focus is on the customerWhat they wantWhat they needWhat makes their lives easierProducts should be pulled onto the market by consumer wants, rather than pushed onto customers by companiesThere are seven functions to support this.
- 5. Seven functions of marketing
- 6. Seven Functions of MarketingThe process of deciding how to get goods in customers’ hands. Physically moving and storing the productsTruck, rail, ship or airInvolves the systems that track productsUPS CommercialGetting the money that is necessary to pay for setting up and running a business.Loans, selling stock, etc.Also involves ways that customers can payCredit cardsBilling1. Distribution2. Financing
- 7. Seven Functions of MarketingCollection of information on customers, trends, and competing productsGathering, storing and analyzingMarketing Information ManagementPricingHow much to charge for goods and servicesMust considerWhat will customers pay?How much does it cost us to produce?How much do competitors sell for?
- 8. Seven Functions of MarketingObtaining, developing, maintaining and improving a product or a product mix in response to market opportunitiesMarketing research helps you know what customers want The effort to inform or persuade customers about a business’s products or services.Product Service ManagementPromotion
- 9. Seven Functions of MarketingSellingProvides customers with the goods and services they wantIn retail storesBusiness-to-business (B-2-B)Involves:Determining client needsPersuading and influencing decisionsResponding to reactionsForming relationships
- 10. Economic Benefits of marketingCompetition fosters:New and improved productsLower PriceAdded value and utility
- 11. Types of Added Value and UtilityUtilityFunctions that add value to a productUtilities the attributes of a product or service that make it capable of satisfying consumers’ wants and needs
- 13. Types of Added Value and UtilityFormChanging raw materials or putting parts together to make them more usefulTaking things of little value and putting them together to create something of use (zipper + buttons + cloth + thread = jacket)Place Having your product in places people can easily buyTimeHaving a product available at desirable and convenient times of year or dayPossession The exchange of a product for moneyWays consumers can pay (cash, credit card, layaway, PayPal)InformationCommunicating with the consumerSalespeoplePackaging and LabelingAdvertising
- 14. Fundamentals of MarketingMarket All of the people who share similar needs and wants and who have the ability to purchase a given productAre you part of the videogame market?Are you part of the sports car market?Consumer Market vs Industrial MarketConsumer MarketConsists of consumers who purchase goods and services for personal useIndustrial market (or Business-to-business)Includes all businesses that buy products for use in their business operations
- 15. Market ShareSearch Engine Market ShareTotal marketCan also be described by the total sales in a product categoryMarket ShareA company’s percentage of the total sales volume generated by all companies that compete in a given market.
- 16. Marketanyone who has the desire and the means to buy
- 17. Marketanyone who has the desire and the means to buyMarket SegmentsSmall groups of people within the market
- 18. Marketanyone who has the desire and the means to buyMarket SegmentsSmall groups of people within the marketTarget MarketThe group chosen for a specific marketing programTarget Market:Males, Ages 14-20
- 19. Marketanyone who has the desire and the means to buyMarket SegmentsSmall groups of people within the marketTarget MarketThe group chosen for a specific marketing programTarget Market:Males, Ages 14-20
- 20. Certain products have more than one target market1. Your product might have different groups of users Men – too much hassle to make coffee Women – you will feel like working out for a changeWho is 5-hour Energy Targeting?
- 21. Certain products have more than one target market2. Your product might have different group who purchases than who consumesConsumers – the people consuming or using the productCustomers – the people who are buying the product
- 22. What features on this package target Moms and what features target kids?MomsKids
- 23. Marketing Mix (4 P’s)The activities that go into the selling of a product
- 24. Marketing MixProductProduct FeaturesPackagingBrand NameDifferent versions or flavorsPlaceWhere product is distributedPhysical locationStores sold inWhere within the storeIs it available online or direct?PriceWhat is exchanged for the productWhat do I have to sell a product for to make a profit?What psychological impacts does a low or high price have?PromotionDecisions about advertising, selling, discounts and publicity