Chapter 10-1. What is Marketing? Marketing is the process of planning and executing the conception,...

Marketing BasicsChapter 10-1

What is Marketing?Marketing is the process of planning and

executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Obvious Marketing Activities That You Take Part In:

See or hear advertisementsSee the brand names of

productsRead product description

on websiteInteract with salespeople

Not So Obvious Marketing Activities:Storing products in warehouses Distributing productsEstablishing and accepting creditArranging for online paymentGathering of data on consumer needs

Marketing BusinessesAdvertising agenciesMarketing research firmsTransportation companiesShipping and delivery companiesFinancial services companies

Marketing Functions

Marketing Functions

Marketing Information

Management

Financing

Pricing

PromotionProduct/Service Management

Distribution

Selling

Product/Service ManagementDesigning, developing, maintaining,

improving, and acquiring products and services that meet consumer needs.

DistributionDetermining the best ways for customers to

locate, obtain, and use the products and services of an organization

Careful shipping, handling, and storing of products are needed for effective distribution

SellingCommunicating

directly with potential customers to determine and satisfy their needs.

Selling can be face to face or by using a telephone or other technology

Marketing- Information ManagementObtaining, managing, and using market

information to improve business decision-making and the performance of marketing activities.

Includes marketing research and the development of databases with information about products, customers, and competitors.

FinancingBudgeting for

marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the product.

PricingThe setting and communicating of the value

of products and services.Prices must be set low enough that

customers are willing to pay but high enough that the business makes a profit.

PromotionThe communicating of information about

products and services to potential customers.

Advertising and other promotional methods are used to encourage consumers to buy.

Advertising may occur in a variety of ways:TelevisionNewspaperMagazineRadioDirect Mailinternet

Marketing Strategy

Marketing strategy is a company’s plan that identifies how it will use marketing to satisfy customer needs better than competitors do, resulting in sales and profit.

Marketing Strategy: A 2-Step ProcessIdentify Target Market

Create a Marketing Mix

A specific group of consumers that have similar wants and needs

Focusing on a target market makes it easier to develop products and services that those customers want

A blend of four marketing elements:

1. Product2. Price3. Promotion4. Place

**A successful marketing mix satisfies the wants and needs of the target market and provides a profit for the company****

Marketing OrientationBusinesses do not assume they know what

customers want.Use research to study customers and their

needsResults in marketing mix designed to satisfy

customer needs

Two Types of CustomersFinal Customer Business Customer

Persons who buy products and services for their own use

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

Consumer Decision Making Process1. Recognize a need2. Gather information3. Select and evaluate alternatives4. Make a purchase decision5. Determine the effectiveness of the decision

Buying MotivesEmotional buying

motiveRational buying

motiveReasons to purchase

based on feelings, beliefs, and attitudes.

Ex: buying a Valentine’s Day card or a security system for you home

Guided by facts and logic

Ex: Choosing a college or buying the most cost effective car