Marketing THE ACTIVITY, SET OF INSTRUCTIONS, AND PROCESS FOR CREATING, COMMUNICATING, DELIVERING, AND EXCHANGING OFFERINGS THAT HAVE VALUE FOR CUSTOMERS,

Marketing THE ACTIVITY, SET OF INSTRUCTIONS, AND PROCESS FOR CREATING, COMMUNICATING, DELIVERING, AND EXCHANGING OFFERINGS THAT HAVE VALUE FOR CUSTOMERS, CLIENTS, PARTNERS, AND SOCIETY.

Functions of Marketing Product & Service Management

Designing, developing, maintaining, improving and acquiring products and services that meet consumer needs.

Distribution Determining the best ways for customers to locate, obtain, and use the products and services of an

organization

Selling Communicating directly with the 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 or marketing activities.

Financial Analysis Budgeting for marketing activities, obtaining the necessary funds needed for operations, and

providing financial assistance to customers (Loans).

Pricing Setting and communicating the value of products and services.

Promotion Communicating information about products and services to potential customers.

Check for Understanding

Discuss the definition of marketing and the different factors of marketing.

Marketing Strategy: How a company will use marketing to achieve its goals

Developing a Marketing Strategy is a 2 part process: Step 1: Identify a Target Market: Specific group of consumers who

have similar wants and needs

Step 2: Create a Marketing Mix: Blending of 4 marketing elements—product, distribution, price, and promotion

A successful marketing mix will fulfill the wants and needs of the target market, while providing profit to the company.

Understanding Customers

Two Types of Customers Final Consumers: Persons that buy products and services mostly for their own use

Business Consumers: Persons, companies, and organizations that buy products and services for operation of a business, for incorporation into other products ad services, or for resale to their customers.

Consumer Decision Making Process

1. Recognize a need

2. Gather information

3. Select and evaluate alternatives

4. Make a purchase decision

5. Determine the effectiveness of the decision

Buying Motives: Understanding buying motives helps a company develop a marketing mix

Emotional buying motives: Based on feelings, beliefs, attitudes

Rational buying motives: Guided by facts and logic

Describe the Consumer Decision-Making Process and the importance of understanding buying motives.

Researching the Target Market

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 Solutions

Types of Research Studies Surveys: Planned set of questions

Focus Groups: Gathering ideas, experiences and opinions from consumers

Observations: Recording the actions of consumers rather than ask them questions

Experiment: Present alternatives to consumers and observe choices

Justify the importance of Marketing Research.

Product Planning: Developing Brand Name and Packaging

Idea Development New ideas come from a number of inspirations, but more times that not a product

idea is for an improvement of a current product

Ideas Screening New ideas are evaluated to determine which ones have the best chance of success.

Strategy Development If product idea is workable, the next step is developing a full marketing strategy

Production and Financial Planning A company now needs to identify the factors and cost of production and promotion

Limited Production and Test Marketing A company testing the production, promotion, and distribution of a product on a

smaller scale before making a bigger investment.

Pricing a Product

Factors of Pricing Supply and Demand

Quality

Uniqueness

Age

Season

Complexity

Convenience

How Does a Company Decide How Much to Charge?????

A company needs to look at a few things before deciding on a final price.

1. Product Cost: How much does it cost to produce a product? Or how much did we pay the company that produces it?

2. Operating Cost: How much does it cost the company to operate? Salaries, facilities, storage, utilities, taxes, etc.

3. Desired Profit: How much does the company realistically want to make off the sale of the product?

Selling Price Formula

Product Cost + Operating Cost + Profit = Selling Price

The amount added to make a profit is call “Markup”

If a company doesn’t sell enough of a product at the desired profit margin, the may “Markdown” the price

Predict some potential causes for a markdown…..

Communication with Consumers and Promotion of Products

Justify the importance of communication in marketing.

Ways Companies Can Communicate with Consumers

Promotion: communication used to inform, persuade, or remind.

Personal Promotion is most effective and most expensive form of marketing communication Personal Selling: Direct, individualized communication with prospective

customers to assess their needs and assisting them to fill those needs

Mass Promotion is directed to many people at same time, hopefully the target market Advertising is the most known form of Mass Promotion. Other Types are

publicity, public relations and sales promotions

Merchandising includes a set of promotional activities designed to generate sales in the retail settings.

Companies will often use these in conjunction with each other. Mass promotion to draw people in, then personal promotion to make the sale.

Ways Companies Can Communicate with Consumers

Mass CommunicationMass EmailsMail Outs—Promotions, flyers, upcoming eventsSocial Media—Facebook, Twitter, other

examples????Commercials—Radio, TelevisionPrinted ads—newspapers, billboards, online

banners

Identify the describe the common types of promotion.

Marketing Group Project

You, with a group of your class mates, will develop a marketing plan for your business.