Business Today
Marketing: all the activities used to insure the effective voluntary exchange of goods/services between businesses and consumers.
Marketing Functions: groups of marketing activities that must be completed for an exchange to occur.
8 Marketing Functions
1. Product/Service Planning
Gather information & test ideas.
Design & development.
2. Purchasing
Identifies & obtains products/materials or services needed.
3. Financing
Ensuring that financing & credit are available.
4. Distribution
Getting products to customers.
5. Pricing
Set prices and payment methods.
6. Risk Management
Security & safety for products & people.
Reduces business risks.
7. Marketing Information Management
Obtain & organize information to help make marketing decisions.
8. Promotion
Communicating with consumers.
Encouraging purchases.
Marketing Impact:
Increases standard of living.
Businesses understand our needs & produce goods/services we want.
Consumers are aware of best products/prices.
Creates millions of jobs.
Marketing Concept: considering the consumer in the production & marketing of products & services.
Successful businesses must:
1. Identify customers & their needs.
2. Develop product that satisfies consumers while completing marketing activities effectively.
3. Make a profit.
Marketing Strategy: 2-step process for successfully planning & marketing products/services.
1. Target market: clearly identified group of consumers that wants & needs your product.
2. Marketing Mix: combination of marketing elements designed to meet needs of target market.
4 Ps of the Marketing Mix
Product / Place / Price / Promotion
Product: products/services offered to target market to satisfy needs.
Examples? Haircut, Banana
Place: locations product sold, and ways made available to customers.
Examples? Stores, Catalogs, Tv infomercials.
Price: what customers pay and how they pay.
Examples? Cash, check, credit card.
Promotion: methods used to communicate information.
Encourages purchases.
Increases customer satisfaction
Examples? Commercials, print advertisement, contests, coupons.
Product Development:
Marketers work with engineers & scientists.
1. Plan new product
2. Develop a model (prototype)
3. Test model product (focus group)
4. Identify likes/dislikes.
Market researchers survey customers.
What they like/dislike about current products.
What needs not currently met with available products.
Once the product is planned:
1. Establish procedures to produce.
2. Secure time/money needed to set-up.
Facility, materials, equipment obtained.
Employees hired & trained.
Buying Motive: reasons for making a purchase.
Rational - Based on facts or logic.
Example? Buying food because it is good for you.
Emotional – feeling & attitude
Example? Buying $400 caviar because you got a promotion.
Channel of Distribution: path the product travels from producer to consumer.
Direct channel of distribution: consumer buys direct from producer.
Indirect channel of distribution: 1+ middlemen or intermediaries.
Wholesaler vs. retailer
Wholesaler: middle firm that assists with distribution activities between businesses.
Retailer: business sells direct to consumer.
Effective Distribution: adjusts for differences in production & consumption.
4 major differences to consider:
1. Differences in quantity: adjusts between large quantities produced by businesses & small quantities purchased by consumers.
2. Differences in assortment: adjusts between limited type of products produced by manufacturers and variety of products needed/wanted by consumers.
3. Differences in location: brings products that are made throughout the world to one location.
4. Differences in time: allows manufacturer to maximize efficiency in production and delivers products to consumers when needed.
1. Maximize profits: increase prices when there is a high demand or limited supply.
2. Increase sales: lower prices when there is a large supply or strong competition.
3. Maintain an image: use prices to support an image of quality, service, or value
Marketing tool businesses use to communicate with consumers to persuade them to purchase its products.
Promotions can also reinforce a consumers purchase decision & remind them of how it meets their needs/wants.
To be effective:
1. Must be noticed.
2. Encourage consumers to pay attention to message.
3. Consumers must act.
Media advertising: reaches many prospective customers.
TV, radio, magazines, billboards, newspapers.
Sales promotions: intended to attract customers interest or provide a direct incentive for customers to buy
Coupons
Contests
Free samples.
Publicity: info about business, product or service, not paid for by the company.
News or Press release
New product testing results.
Consumer reports or car & driver.
Personal Selling: direct, personal communication between salesperson & customer.
Answer questions or concerns.
Encourage to buy.
Marketing: all the activities used to insure the effective voluntary exchange of goods/services between businesses and consumers.
Marketing Functions: groups of marketing activities that must be completed for an exchange to occur.
8 Marketing Functions
1. Product/Service Planning
Gather information & test ideas.
Design & development.
2. Purchasing
Identifies & obtains products/materials or services needed.
3. Financing
Ensuring that financing & credit are available.
4. Distribution
Getting products to customers.
5. Pricing
Set prices and payment methods.
6. Risk Management
Security & safety for products & people.
Reduces business risks.
7. Marketing Information Management
Obtain & organize information to help make marketing decisions.
8. Promotion
Communicating with consumers.
Encouraging purchases.
Marketing Impact:
Increases standard of living.
Businesses understand our needs & produce goods/services we want.
Consumers are aware of best products/prices.
Creates millions of jobs.
Marketing Concept: considering the consumer in the production & marketing of products & services.
Successful businesses must:
1. Identify customers & their needs.
2. Develop product that satisfies consumers while completing marketing activities effectively.
3. Make a profit.
Marketing Strategy: 2-step process for successfully planning & marketing products/services.
1. Target market: clearly identified group of consumers that wants & needs your product.
2. Marketing Mix: combination of marketing elements designed to meet needs of target market.
4 Ps of the Marketing Mix
Product / Place / Price / Promotion
Product: products/services offered to target market to satisfy needs.
Examples? Haircut, Banana
Place: locations product sold, and ways made available to customers.
Examples? Stores, Catalogs, Tv infomercials.
Price: what customers pay and how they pay.
Examples? Cash, check, credit card.
Promotion: methods used to communicate information.
Encourages purchases.
Increases customer satisfaction
Examples? Commercials, print advertisement, contests, coupons.
Product Development:
Marketers work with engineers & scientists.
1. Plan new product
2. Develop a model (prototype)
3. Test model product (focus group)
4. Identify likes/dislikes.
Market researchers survey customers.
What they like/dislike about current products.
What needs not currently met with available products.
Once the product is planned:
1. Establish procedures to produce.
2. Secure time/money needed to set-up.
Facility, materials, equipment obtained.
Employees hired & trained.
Buying Motive: reasons for making a purchase.
Rational - Based on facts or logic.
Example? Buying food because it is good for you.
Emotional – feeling & attitude
Example? Buying $400 caviar because you got a promotion.
Channel of Distribution: path the product travels from producer to consumer.
Direct channel of distribution: consumer buys direct from producer.
Indirect channel of distribution: 1+ middlemen or intermediaries.
Wholesaler vs. retailer
Wholesaler: middle firm that assists with distribution activities between businesses.
Retailer: business sells direct to consumer.
Effective Distribution: adjusts for differences in production & consumption.
4 major differences to consider:
1. Differences in quantity: adjusts between large quantities produced by businesses & small quantities purchased by consumers.
2. Differences in assortment: adjusts between limited type of products produced by manufacturers and variety of products needed/wanted by consumers.
3. Differences in location: brings products that are made throughout the world to one location.
4. Differences in time: allows manufacturer to maximize efficiency in production and delivers products to consumers when needed.
1. Maximize profits: increase prices when there is a high demand or limited supply.
2. Increase sales: lower prices when there is a large supply or strong competition.
3. Maintain an image: use prices to support an image of quality, service, or value
Marketing tool businesses use to communicate with consumers to persuade them to purchase its products.
Promotions can also reinforce a consumers purchase decision & remind them of how it meets their needs/wants.
To be effective:
1. Must be noticed.
2. Encourage consumers to pay attention to message.
3. Consumers must act.
Media advertising: reaches many prospective customers.
TV, radio, magazines, billboards, newspapers.
Sales promotions: intended to attract customers interest or provide a direct incentive for customers to buy
Coupons
Contests
Free samples.
Publicity: info about business, product or service, not paid for by the company.
News or Press release
New product testing results.
Consumer reports or car & driver.
Personal Selling: direct, personal communication between salesperson & customer.
Answer questions or concerns.
Encourage to buy.
