Chapter 10 - Marketing Basics
- 3. What is marketing? Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objects.
- 4. Marketing Mix The blending of four marketing elements – product, place, pric e, and promotion.
- 9. PLACE In your journal: Make a list of all the places you can purchase and iPod.
- 10. Marketing Strategy A company’s plan that identifies how it will use marketing to achieve its goals.
- 11. Target Market A specific group of customers that have similar wants and needs.
- 12. Target Market Who is the target market for…
- 13. Target Market Who is the target market for…
- 14. Target Market Who is the target market for…
- 15. Target Market Who is the target market for…
- 16. Target Market Who is the target market for…
- 17. Marketing Orientation An approach that considers the needs of customers when developing a marketing mix. • Do not assume what customers want. • Use research to study customers and their needs
- 19. Understanding Customers Final Consumers Are persons who buy products and services mostly for their own use. Business Consumers A persons, companies, and organizations that buy products for the operation of a business, for incorporation into other products and services, or for resale to their customers.
- 20. Understanding Customers Consumer Decision Making Process The specific sequence of steps consumers follow to make a purchase. 1. Recognize a need 2. Gather information 3. Select and evaluate alternatives 4. Make a purchase decision 5. Determine the effectiveness of the decision.
- 21. Understanding Customers Buying Motives The reason consumers decide what products and services to purchase. 1. Emotional buying motives love, fear, self-image 2. Rational buying motives economy, comparison in cost
- 22. What did you learn? The best definition of marketing is… A. Promotion and selling B. Producing and distributing products and services to customers C. Finding customers and convincing them to buy your products D. None of the above
- 23. What did you learn? The best definition of marketing is… A. Promotion and selling B. Producing and distributing products and services to customers C. Finding customers and convincing them to buy your products D. None of the above
- 24. What did you learn? The two steps in a marketing strategy are… A. Developing a product and promoting it to consumers B. Identifying a target market and developing a marketing mix C. Conducting marketing research and planning production D. Pricing a product and distributing it to customers
- 25. What did you learn? The two steps in a marketing strategy are… A. Developing a product and promoting it to consumers B. Identifying a target market and developing a marketing mix C. Conducting marketing research and planning production D. Pricing a product and distributing it to customers
- 26. What did you learn? Which of the following is an example of rational buying? A. B. C. D. Valentine’s Day Fear Mother’s Day Economy
- 27. What did you learn? Which of the following is an example of rational buying? A. B. C. D. Valentine’s Day Fear Mother’s Day Economy
- 28. Marketing Research What is it?
- 29. Marketing Research Finding solutions to problems though carefully designed studies involving customers.
- 30. Steps in Marketing Research 1. Define the marketing problem. 2. Study the situation. 3. Develop a data collection procedure. 4. Gather and analyze information. 5. Propose a solution.
- 31. What are different types of research studies or ways to collect data information?
- 32. PRODUCT Everything a business offers to satisfy a customer's needs. It starts with a basic product. Which is the simplest form of the product.
- 33. PRODUCT Options – when customers are offered choices of features. Brand Name – provides a unique identification of a company’s products.
- 35. Advertising Any paid form of communication through mass media directed at identified consumers to provide information and influence their actions.
- 36. Advertising Page 258 Read – Mass Promotion
- 37. Advertising Media • • • • • • • Television Radio Newspapers Magazines Mass mailings (junk mail) Outside displays Internet
- 38. Other Forms of Mass Promotion Publicity Non-paid promotional communication presented by the media rather than by the business or organization that is being promoted.
- 39. Other Forms of Mass Promotion Publicity Non-paid promotional communication presented by the media rather than by the business or organization that is being promoted.
- 40. Other Forms of Mass Promotion Public Relations An ongoing program of non-aid or paid communications. Planned to favorably influence public opinion about an organization.
- 41. Other Forms of Mass Promotion Sales Promotion Includes activities and materials designed to reinforce a company’s brand and image. Incentive to take action!
- 46. Pricing Factors • • • • • • Supply and Demand Uniqueness Age Season Complexity Convenience
- 47. Supply and Demand • A product with a ready supply will have a lower price than a product with a very limited supply. • If demand for a product is high, prices will increase.
- 48. Uniqueness • When a product has few close competitors because it is unique, the price will be higher than products that are very similar to others.
- 49. Age • When products are first introduced to the market, prices will be quite high. As products age, the price gradually decreases. • Example – flat screen TV’s
- 50. Season • High prices just before or at the beginning of a season • Low prices during other times of the year • Example – winter apparel, holiday decorations, etc.
- 51. Complexity • Highly complex and technical products have higher prices than simple products.
- 52. Convenience • People pay for convenience! • Easily available and seller provides high level of customer service, prices go up.
- 53. PRICE The money a customer must pay for a product or service. Price changes as a product moves from producer to consumer.
- 55. SELLING PRICE The price paid by the customer for the product.
- 56. Operating Expenses All expenses of operating the business that are associated with the product. • Salaries • Storage • Display equipment • Facilities • Taxes
- 57. PROFIT Amount of money available to the business after all costs and expenses have been paid.
- 58. Gross Margin Difference between the selling price and the product costs.
- 59. Do the Math… Product Costs - $39 Operating Expenses - $210 Profit - $250 What is the selling price?
- 60. Markup Amount added to the cost of a product to set the selling price. Product cost - $25 Markup - 50% What is the selling price?
- 61. Markdown Reduction from the original price. Product cost - $25 Markdown - 50% What is the selling price?
- 62. Page 254 #3 Product Name Original Price TOTAL Original Price – TOTAL Sale Price – TOTAL Saving – Sale Price Markdown ($) Markdown (%)
- 63. PLACE Also called distribution. Determining the best methods and procedures to use so customers can find, obtain, and use a product or service.
- 64. Channel of Distribution The route a product follows and the businesses involved in moving a product from the producer to the final consumer.