Principles of Marketing

							Principles of Marketing

         Unit 1
              Marketing Vocab
   Marketing: Process of developing, promotion,
    distributing products to satisfy customers needs
    and wants
   Products: Goods/services with $ value
   Goods: Things you can hold (game)
   Services: Tasks performed for a customer (dry
    cleaning, amusement park)
   Exchange: takes place every time something is
    sold (receive payment for product)
        Marketing is Everywhere!
   There can be no business without
    marketing.
     Marketing    includes the 4 P’s!
        Product
        Price
        Place
        Promotion

   It involves all the decisions a business
    makes.
Marketing can take you to the top
   CEO’s with marketing background
     Andrea  Jung (Avon)
     Meg Whitman (eBay)
     Stephen Sanger (General Mills)
     Jack Greenberg (McDonalds)
     Paul Allaire (Xerox)
   Why do marketing employees make good
    leaders?
    Four Foundations of Marketing
 Professional development
 Business, management, entrepreneurship
 Economics
 Communication/interpersonal skills
        7 Functions of Marketing
   Financing
   Distribution
   Marketing Information
    Management
   Pricing
   Product/service
    management
   Promotion
   Selling
            Marketing and You
   Parts of marketing:
     Product  planning and packaging
     Advertising and promotion
     Selling
     Distribution
     Research
                    Economic Utility
 Economic benefits of marketing
 Utility: added value to product
           Think about the pieces to a pen by themselves (not worth
            much until made)
     Form Utility
     Place Utility
     Time Utility
     Possession Utility
     Information Utility
               Added value
   The added value from marketing can
    increase demand for a product. Higher
    demand can lower costs of production as
    companies produce larger lots.
                  Career Information
 33 million Americans work in marketing
 Approximately 2 million new jobs in the next 5
  years
 Service related jobs growing at 33.4%
 1 in 3 jobs in US involve marketing
       Sales, buying, designing ads, customer service,
        agents, inventory
            Involve planning, developing, promoting, distributing
             products to consumers
        Basic Marketing Concept
   A business must satisfy customers’ needs
    and wants in order to make a profit.

   Customer vs consumer
     Customer   buys – consumer uses
                       Markets
 Market: all potential customers who share
  a common needs or want and have the
  ability and willingness to buy the product
 Segments: pieces of the market that are
  used to create brand loyalty
     Ethnic   groups, age groups, locations
                 Target markets
   Very specific group of users whom
    marketing decisions are made for (gen
    x/y, baby boomers, tweens, etc)
        Gen X 1965 – 1980
        Boomers WWII – 1964
        Tweens (10 – 13)

   Customer profile: includes information
    about the target market (age, income,
    ethnicity, lifestyle, areas, etc.)
                  Marketing Mix
   Aka “The 4 P’s”
     Product
     Price
     Place
     Promotion

   Involves all the decisions a company must
    make
          Product Decisions
 What to make
 When to make it
 How much to make
 Level of quality
 Brand/label/packaging
Price Decisions


 Pricing methods
 Discounts
 Competition prices
 Profit margin needed/desired
             Place Decisions
 Direct/indirect distribution
 Where to sell
 Level of intensity
 Storage needs
         Promotion Decisions
 Advertising
 Sales promotions
 Public relations/publicity
 Personal selling
 Video merchandising
                        Analyze Markets
   Market segmentation (break down markets)
       Demographics (p 24)
            Physical characteristics
       Psychographics
            Attitudes/beliefs/family stage
       Geographics
            Location
       Income (disposable vs. discretionary income)
              Marketing Changes
   Technology changes shape the future and
    have huge impacts on the messages we
    hear.

     Print
     Radio
     TV
     Internet