What Is Marketing?REVIEW

Objectives Explain why marketing is the business function that identifies customer needs

Use marketing to establish your brand

Apply the four elements of a marketing plan

Create a marketing plan for your business

Identifying and Responding to Customer Needs

Marketing◦ Satisfying the customer at a profit◦ Business function that identifies customer needs and responds to it

◦ Art of getting the customer to come to the product◦ Through marketing the name of your business should come to mean something clear and concrete in

the consumer’s mind

Meet Your Customers’ Needs to Gain Their Loyalty

Market◦ Current and future customers◦ Use marketing to communicate you are committed to meeting their needs

◦ Builds a loyal customer base

Marketing Explain the Benefits of a product

Figure out what benefits the customers in your market will need to get from your product or service

The Marketing Vision Drives All Business Decisions

To market a product or service successfully, ask yourself:◦ Who are my customers?◦ What do they need my product or service to do for them?

◦ The answers will help form your Marketing Vision

Marketing Vision◦ The benefit you want to show customers that your product or service provides

Marketing Establishes Your Brand

Brand◦ The name that distinguishes a business from its competition.◦ Instantly communicates the business’s competitive advantage to the consumer

◦ Televison ads◦ Print ads◦ Other marketing efforts

Focus Your Brand The key to building a successful brand is to focus tightly on the one benefit you want to make sure customers associate with your business

Even entertainers can become a brand◦ Develop consistent image and sound

◦ Toys ◦ Clothing◦ Posters◦ etc

Failure to Success Ford

◦ Edsel◦ Had every gadget that would appeal to everyone◦ Lacked focus◦ Spent over $350 million in advertising◦ No one wanted the car◦ Forced to pull the plug on production of this vehicle

◦ Mustang◦ Had a clear target market of 20 to 30 year olds

◦ “For The Young At Heart”

How To Build Your Brand Step-by-Step process:

1. Choose a business name that is easy to remember, describes your business, and establishes “mind share.”◦ The degree to which your business comes to mind when a consumer needs something

2. Create a logo that symbolizes your business to the customer◦ Distinctive company trademark, or sign

3. Develop a good reputation◦ Make sure your product or service is of the highest quality you can afford to offer◦ Always treat your customers like gold

4. Create a brand personality◦ Customers respond to brand personality and develop a relationship with it◦ Personality will reinforce your name and logo

5. Communicate your brand personality to your target market◦ What type of advertising will best reach your target market?◦ Where should you put flyers?◦ What newspapers or magazines does your target market read?

You Represent Your Brand Always present yourself and your business in such a way that people will have confidence in your product or service

◦ Anything that harms your reputation will damage your sales and profits◦ Anything that boosts your reputation will have a positive impact on your business

Eight things you can do to build your brand and its reputation:1. Provide high-quality product or service2. Maintain the highest ethical standards3. Define your product or service clearly – FOCUS!!!!!!4. Treat your employees well5. Make all your ads positive and informative6. Associate your company with a charity7. Become actively involved in your community8. Make sure your business does not pollute the environment

Mind Share vs. Market Share Mind Share

◦ Advertising

Market Share◦ Portion of the total possible market a company has in relation to its competitors

After your advertising gains mind share, you will still need marketing to get the consumer to make a purchase. Only then can you take market share from your competitors

The Four P’s Every marketing plan has four elements

◦ Product◦ Meets or creates a consumer need

◦ Place◦ Place your product where customers who need it do their shopping

◦ Price ◦ The product has to be priced low enough so the public will buy it, and high enough for the business to make a profit◦ Should reflect your marketing vision

◦ Promotion◦ Consists of advertising, publicity, and promotional items

◦ Business cards◦ T-shirts, caps, clothing, etc.◦ Freebies or discounts

How Can You Tell If Your Promotions Are Working?

Ask your customers◦ Survey◦ Ask new customers for e-mail address, phone number, etc.

Philanthropy Can Bring Positive Publicity

You have a responsibility to help the community you serve◦ Will bring positive publicity◦ Cause-Related Marketing

◦ Marketing inspired by a commitment to a social, environmental, or political cause◦ Donate fixed percentage of its revenue to a particular charity and then publicize this in marketing◦ Donate something your business produces