Marketing is all around us

Chapter 1

MARKETING IS ALLAROUND US

The Scope of Marketing

•Marketing is activity, set of institutions, andprocesses for creating, communicating, delivering,and exchanging offerings that have value forcustomers, clients, partners, and society at large.

Marketing professionals tracktrends and consumer attitudes tounderstand buying decisions.

Scope of Marketing

•DEFINITION: Marketing includes the process ofplanning, pricing, promoting, selling and distributingideas, goods, or services to create exchanges thatsatisfy customers.

•Marketing is a PROCESS

•The AMA reviews the definition of marketing on aregular basis to make sure it conforms to currentmarketing practices.

•Marketing is ONGOING and it changes

•Good marketers keep up with the trends andconsumer attitudes http://youtu.be/7QUSN5p2vyQ

Ideas, Goods and Services

•Ideas: ex – Politician's platforms http://creativity-online.com/work/zumba-contagious/37063

•Goods – tangible items that have monetary value and satisfyyour needs and wants

ex – cars, furniture, televisions, clothing

•Services – intangible items that have monetary value andsatisfy your needs and wants that you cannot physically touch

ex – dry cleaners, banks, accounting services

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Ideas, Goods and Services

•Every time someone sells or buys something and exchangeoccurs in the marketplace.

•The marketplace is the commercial environment whereexchanges occurs.

•Examples: stores, internet, financial institutions, catalogs andmore.

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Marketing and the Marketing Concept

Seven Marketing Core Functions

The process of deciding HOW to get goods into theconsumer hands. Also known as distribution

Marketing and the Marketing Concept

Gathering information, storing it, and analyzing data on customersand competition

Understanding the concepts and strategies used to develop &target specific marketing strategies to select an audience

Decisions that dictate how much to charge for goods andservices in order to make a profit

Obtaining, developing, maintaining, and improving aproduct or a product mix in response to marketopportunities

The effort to inform, persuade, or remind current andpotential customers about business’ products or services

Providing customers with the goods and services they want.

The Marketing Concept

•The marketing concept is the idea that a business should strive tosatisfy customers’ needs and wants while generating a profit forthe business.

Desires

Needs

Determine

Anticipate

Satisfy

Customer Relationship Management

•Customer relationship management (CRM) is an aspect ofmarketing that combines customer information (through databaseand computer technology) with customer service and marketingcommunications.

•By using CRM, companies understand their customers’ purchasingpatterns and demographics.

CustomerInformation

(Databases)

CustomerService

MarketingCommunications

Section 1.2

THE IMPORTANCE OFMARKETING

Economic Benefits of Marketing

•Marketing supports competition and offers benefits toconsumers.

Economic Utility

•Utilities are the attributes of goods or services that make themcapable of satisfying consumers’ wants and needs.

•Form Utility – changing raw materials into usable goods or puttingparts together to make them more useful

•Place Utility – having a product where customers can buy it

•Time Utility – having a product or service available at a certain timeof year or convenient time of day

•Possession Utility – the exchange of a product for money

•Information Utility – involves communication with the consumer

The Benefits of Marketing and the Five Utilities

Section 1.3

FUNDAMENTALS OFMARKETING

Market and Market Identification

•The term market refers to all the people who might buy aproduct.

•All people who share similar needs and wants and who havethe ability to purchase a given product are a market.

•Ex – you could be part of the market for video games, but notbe part of the market for an expensive car.

•You could want an expensive car, but you may not have the means to buy one

•If you liked video games and had the resources to buy them, you would be apart of thevideo game market

Consumer versus Organizational Markets

•Consumer Market - consists of consumer who purchase goods andservices for personal use

•Interested in products that will save them money, make lives easier, improve theirappearance, create status in the community or provide satisfaction

•Organizational Market - also known as business-to-business (B2B), includesall business that buy products for use in their operations

•Most goals and objectives relate to improving profits, increase productivity,increase sales, decrease expenses or increase efficiency

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Market Share

•A market is further described by the total sales in a productcategory

•A company’s market share is its percentage of the total salesvolume generated by ALL the companies that compete in a givenmarket.

U.S. Smartphone Market Share

Market Segmentation and Target Markets

•Market segmentation is the process of classifying customers byspecific characteristics

•The goal of market segmentation is to identify the group of peoplemost likely to become customers.

•The group that is identified for a specific marketing program is thetarget market.

•Target markets are very important because all marketing strategiesare directed to them

•When a business does not identify the target market, its marketingplan has no focus.

Details About Markets

Customer Profiles

•A customer profile lists information about the target market, suchas age, gender, income level, marital status, ethnic background,geographic residence, attitudes, lifestyle, and behavior

Marketing Mix

•The marketing mix includes four basic marketing strategies calledthe four Ps: product, place, price and promotion

•Product: begins with choosing what products to make and sell

•Product’s features, brand names, packaging, service, and warranty are all part ofthe development

•Price: what is exchanged for the product.

•Strategies should reflect what customers are willing and able to pay

•Place: the means of getting the product into the customer’s hands

•Knowing where one’s customers shop helps marketers make place decisions

•Promotion: refers to activities related to advertising, personalselling, sales promotion, and publicity

•Promotional strategies deal with how marketers tell potential customers about acompany’s products

Market Terms and the Fours Ps of Marketing Mix