Marketing Chapter 10. Marketing Basics Chapter 10-1.

Marketing

Chapter 10

Marketing Basics

Chapter 10-1

What is marketing?

“Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging

off erings that have value for customers, clients, partners and

society at large.

Marketing

All businesses must complete some marketing activities even if that is

not their focus.

Marketing Businesses

Marketing Functions

Product & Service Management

DesigningDevelopingMaintainingImprovingAcquiring products & services that meet consumer needs

Distribution

Determines best ways for customers to locate, obtain, and use the products and services of an organization.

Selling

Communicating directly with potential customers to determine and satisfy their needs

Marketing-information Management

Obtaining, managing, and using market information to improve business decision-making and the performance of marketing activities.

Financial Analysis

Budgeting for marketing activities

Obtaining the necessary funds needed for operations

Providing financial assistance to customers so they can purchase the business’ products and services

Pricing

Setting and communicating the value of products and services

Promotion

Communicating information about products and services to potential customers.

Marketing Strategy

Marketing activities often cost 50% or more of the selling price of a product or service.

Marketing planning is aimed at satisfying customer needs better than competitors do, resulting in sales and profits.

A company’s plan that identifies how it will use marketing to achieve its goals is called a marketing strategy.

Marketing Strategy

Developing a marketing strategy is a two-step process.Step One: Identify a target market.

Target market: a specific group of consumers who have similar wants and needs.

Step Two: Create a marketing mix. Marketing mix: the blending of four marketing elements – product, distribution, price, and promotion.

Marketing Strategy

Marketing orientation considers the needs of customers when developing a marketing mix.

No assumptions!Research will be needed to make

sure that companies know what customers want.

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