Marketing

  • The 7 functions of Marketing – these are the departments and jobs required to bring a product or service to market.

  • List the Four Ps of marketing.

a.       Product

b.       Place

c.       Price

d.       Promotion

  •   Identify the importance of market research.

a.       Market research is researching the market and the people that you are trying to sell to. It is important so that you understand who you are selling to and what consumers would actually buy.

  •   Explain how channels of distribution work.

a.   Marketing is the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers.

b.   A market is a group of customers who share common wants and needs, and who have the ability to purchase a particular product.

c.   Businesses want you to buy their product so they perform detailed research on markets to find and analyze potential customers in their market. This is called target marketing.

Seven Functions of Marketing

  1. Promotion: Raise awareness about your brand, product or service

  2. Selling: Getting the customer to buy what you sell

  3. Product/Service Management: Research competitors, customer feedback, etc.

  1. Marketing Information Management: Gather and evaluate data related to sales and plans

  2. Pricing: Set price based on costs and/or competition

  1. Financing: Identify costs for new products, expansion, etc.

  2. Distribution: How to get the product in the hands of customers – store, website, both?

 

  • Relationship Marketing: Strategies and processes of building long-term relationships with customers.

a.   Providing related goods and/or services.

a.   Sending out customer satisfaction surveys

The Marketing Mix: The 4 Ps

´  The four elements of marketing:

  1. Product = what are you selling?

  1.   Place = where are you selling?

  1. Price = what is the price?

  1.   Promotion = how will you advertise?

  • Product: What are you selling?

a.   Determine if there is a demand for a product.

b.   After demand is established, decide how to present a product to the customer to make it as appealing as possible.

  • Place: Where is it available?

a.   Brick-and-mortar location: Free-standing/Shopping mall/Main Street

b.   Virtual address: Main site/Partner sites/Retailers

  • Price is the amount of money customers will pay for your product or service

a.   To determine the price of a product a marketer considers three questions:

1.          How much are customers willing to pay?

2.          Is the price competitive with other products?

3.          Can the company make a profit?

  •   The break-even point is the amount of money a company has to make on a product to pay for its costs.

a.   Break-even: total costs=total revenue

  • Promotion: consists of making customers aware of a product or service. Can be paid or unpaid.

a.   Advertising is paid promotion: Coupons, rebates, and sales promotion

b.   Publicity is unpaid promotion: Public relations, unpaid endorsements

  • Market Research

a. Companies do market research to gather and study information about consumers to determine what kinds of goods and services to produce.

b.   Remember: Companies exist to meet the wants and needs of their targets

  • Market research tools

a. Survey/Questionnaires

b. Focus groups/In-depth interviews

 

 

  • Demographics are facts about the target population for a product or service:

a.   Age

b.   Gender

c.   Location

d. Income

e.   Education

  • Psychographics refers to information about a target's attitudes, aspirations, and other psychological criteria:

a. Lifestyle

b.   Hobbies

c.   Interests

d. Values

  • Channels of Distribution: a particular way to get products to consumers. How to reach to target?

  1.   Direct distribution: Goods or services are sold from the producer directly to the customer.

  2. Indirect distribution: Includes one or more intermediaries.

    • The biggest impact distribution has on marketing is how it affects the price of products.

      a. Think: Each time a product goes through another channel of distribution, the cost of marketing it increases.

  3. Intermediaries

a. Moving the product from manufacturer to the final user is a process that requires an intermediary, or a go-between.

  • Distributors: Represent manufacturer in geographic area

  • Wholesalers: Receives large shipments of products from many different producers.

a. Allocate shipments to smaller resellers

  • Retailers: Sell goods directly to the final customer

a.   The final stop in the channel of distribution

  • The internet: Sells goods to final customer

a.   From manufacturers

b.   From retailers