Marketing

1.3 Fundamentals of Marketing

  • Describe how marketers use knowledge of the market to sell products.

  • Compare and contrast consumer and organizational markets

  • Explain the importance of target markets.

  • Explain how each component of the marketing mix contributes to successful marketing



The main idea

The term market refers to all the people who might buy a product. The marketing mix is a combination of elements used to sell a product to a specific target market

Marketing Mix: Product, Price, Place, Promotion



Vocab

  • Market: all people who share similar needs and wants and who have the ability to purchase a given product 

  • Consumer market: consumers who purchase goods and services for personal use

  • Organizational market: also known as business-to-business (B2B), this includes all businesses that buy products for use in their operations

  • Market share: A company’s percentage of the total sales values generated by all companies that compete in a given market

  • Market Segmentation: The process of classifying people who form a given marker into even smaller groups

  • Target market: The group of people most likely to to become customers, identified for a specific marketing program 

  • Customer profile: 

  • Marketing mix: the four basic marketing strategies called the four P’s:                          ★ Product, price, place, promotion ★

  • Forms of Promotion: Television Ads, Radio Ads, Coupons, Rebates, Internet ads, Newspaper and Magazine ads 



What Market am I apart of:

  • Teenager, teenage girl, athlete, high schooler 



Contrast What is the main difference between consumer and organizational markets

  • The consumer market consists of people who buy goods and services for personal use. 

  • Organizational goods and services are purchased for use in business operations

How are market Segmentation, Target markets and customer profiles related

  • Market segmentation helps marketers classify customers based on certain characteristics that can be used to develop customer profiles for a specific target market 



Marketing 1.2 

Describe the benefits of marketing

Main Idea:  marketing supports competition and offers benefit to consumers

Utility:  adds value to you 

5 utilities: 

  • Information, customers receive information

  • Time, product ready

  • Form, raw material into usable goods

  • Place, product to customers where they can buy it

  • Possession, exchanged for money  



Economic Benefits of Marketing

  • New and improved products : competition fosters ideas 

  • Lower Prices : increases demand

  • Economic Utility : Form, place, time, possession, information and value 



Economic forms of Marketing

  • Form utility : changing raw materials into useable goods or putting parts 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 time of year or a convenient time of day

  • Possession utility : the exchange of a product for money

  • Information utility : communication with consumers



Utility - an added value in economic terms; an attribute of of goods or services that makes them capable of satisfying consumer’ wants and needs



Marketing and the Marketing Concept - Section 1.1



Please use this document as a guide for taking notes during class. These terms will be used in projects and discussions in class.



Marketing (definition): professionals track trend and consumers attitudes to understand buying decisions



Goods - tangible items that have monetary value and satisfy one’s need and wants (cars, food, electronics, furniture)



Services -Intangible items that have monetary value and satisfy your needs and wants (healthcare, financial services, education, construction)



Seven (7) Core Functions of Marketing:



Channel Management - decides how to get goods to customers (social media, websites, selling in store)



Marketing Information Management - gathers, stotes, and analyzes customer trends and competition (email, social media, websites) 



Market Planning - targets specific marketing strategies (paid ads, affiliate marketing, social media marketing)



Pricing - based on costs and on what competitors charge for the same product or service (similar price to competitors)



Product/Service Management - maintains, and improves product mix in response to market opportunities (apple phones)



Promotion - informs current and potential customers about a business’s products or services (amazon, clothing stores)



Selling - customers receive good they want (shipping, curbside pickup)



Marketing Concept - the ideas that a business should strive to satisfy customers’ needs and wants while generating a profit got the business. (charging more than if costs to make the item)



Customer Relationship Management (CRM) (give examples)

Customer Information,  Customer Service,  Marketing Communications 

Amazon, getting money back



*Review Key Concepts from Notes & Lecture:



  1. In your own words explain why the definition of marketing changes over time.

Marketing is ongoing. Marketers have to keep up with trends and customer attitudes when trends and customer base change over time. The AMA revises the definition of marketing to make sure it conforms to current practices in the marketplace. 



  1. Identify an example of an economic good and an economic service.

Goods are tangible items that have monetary value and satisfy a customer’s needs and wants. Examples of economic goods are cars, furniture, electronics and clothing. Services are intangible items that have monetary value and satisfy customers' needs and wants. Example of economic services are banks, movie theaters and accounting services



  1. Describe how Customer Relationship Management helps businesses employ the Marketing Concept.

Customer Relationship Management combines customer information (through database and computer technology) with customer service and marketing communications. This combination allows companies to serve their customers as efficiently as possible and makes them better able to satisfy customer’s need and generate a profit 





Chapter 2 - Marketing Planning - Section 2.1



SWOT Analysis

  • An assessment of a company’s strengths and weaknesses and the opportunities and threats that surround it

  • Prepares a company for a changing marketplace

  • Provides guidance and direction for future marketing strategies 

  • S - strengths W - weaknesses O - opportunities T - threats




Three C’s 

Company Analysis

Staff Related Questions

Financial questions

Production Capability Questions

Marketing Mix (4 P’s) Questions

  • Product -  Product development, product design, product features, product improvements 

  • Price - 

  • Place - which geographic areas, which channel of distribution, sold directly or through intermediaries

  • Promotion - advertising, personal selling, sales promotions and publicity, the message and the media selected

Customer Analysis



Competitive Position



Competition




PEST ANALYSIS - Scanning of outside influences on an organization



Political - government affects business operations

Economic - recession, unemployment, currency rates, import pricing, trade restrictions

Socio Cultural - changes in attitudes, lifestyles, and opinions provide opportunities and threats 

Technology - companies must embrace technology and innovate to stay competitive



Marketing Plan - a formal written document that directs a company’s activities for a specific period of time 



Writing a Marketing Plan 

  • Marketer create a marketing plan to communicate aspects such as analysis and research, goals, objectives and strategies 



Executive Summary 

  • Provides an overview of the plan and explains costs involved in implementing the plan. 

Situation Analysis

  • Provides an examination of factors and trends that affect marketing strategies

Objectives

  • Describes what the plan will accomplish

Marketing Strategies

  • Identifies target market and marketing mix choices focused on those markets

Implementation

  • Outlines how implementation will be accomplished and provides sales forecast

Evaluation and Control

  • Explains how objectives will be measured and who will evaluate 

Performance Standards and Evaluation


Executive Summary 

  • A brief overview of the entire marketing plan (intention)



Situational analysis 

  • The study of the internal and external factors that affect marketing strategies



Marketing Strategies 

  • Strategy that identifies target markets and sets marketing mix choices that focus on those markets 



Appendix



Marketing Audit



Market segmentation - the process of classifying people who form a given market into even smaller groups.



Demographic - statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, and ethnic background.

Ex: Age, gender, income, marital status, ethnic background



psychographic - grouping people with similar attitudes, interests and opinions, as well as lifestyles and shared values. 

Ex: Attitudes, opinions, interests, activities, personality, values



Geographic - Segmentation of the market based on where people live 

Ex: local, state, regional, national, global



Behavioral - shopping patterns, decision making process



Income: Disposable Income and Discretionary Income



Disposable Income 

  • Money left after taking out taxes



Discretionary Income

  • Money left after paying for basic living necessities such as food, shelter and clothing

 

80/20

80 percent of a company’s sales are generated by 20 percent of its loyal customers 



Mass marketing

  • using a simple marketing strategy to reach all customers



Advantages - economics of scale,  simplifies marketing plan

Disadvantages - competitors can identify unmet needs and wants ands then steal customers 



Niche marketing - specific area or group of people who are want something specific 



Advantages - extremely precis, increased chance for success 

Disadvantage - cost: research, production, packaging, advertising 



Economy - The organized way a nation provides for the needs and wants of its population

 is a nation's method for making economic choices that involve how it will uses its resources to produce and distribute goods and services to meet the needs of its production 



Economic Resources - all the things used in producing goods and services; a source of aid or support that may be drawn upon when needed.



Factors of Production - resources that are comprised of land, labor, capital and entrepreneurship 



Land - Provides raw materials

Labor - Full and part time workers, managers, and professional people

Capital - Money, buildings, infrastructure

Entrepreneurship - organizing factors of production to create good and services

The skills of people who are willing to invest their time and money to run a business; the process of starting and operating your own business



Infrastructure - The physical development of a country, such as roads, ports, and utilities



Scarcity - The difference between wants and needs and available resources 

Forces nations to make economic choices 



Traditional Economy - An economic system in which habits, traditions, and rituals answer the basic questions of what, how and for whom.



Market Economy - An economic system in which there is no government involvement in economic decisions.



Command Economy -A system in which a country’s government makes all economic decisions regarding what, how and for whom. 



Mixed Economies



Capitalism - marketplace competition, private ownership business, successful employers and employees prosper, some social services 



Communism - usually authoritarian, controls factors of production, assigned jobs, goods given according to need, no financial incentive to increase productivity 



Socialism - more government involvement in economy and social services, tax rates high, government may run key industries, government makes many economic decisions. 



Understanding the Economy

An economy is the organized way a nation provides for the needs and wants of its people.

  • What goods and services should be produced?

  • How should goods and services be produced? 



Goals of a Healthy Economy

  • Increase productivity → government and business analyze labor productivity, GDP, GNP

  • Decrease unemployment → government analyzes unemployment and standard of living

  • Maintain Stable Prices → government monitors inflation 



Economic Measurements

  • Standard of living

  • Unemployment rate

  • Gross domestic product

  • Labor productivity

  • Inflation rate