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Marketing Chapter 1 - Marketing Essentials


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									Marketing Essentials
 Chapter 1, Section 1.1
    The Scope of Marketing
               You have already participated in the marketing
               process as a consumer. Now you need to think
marketing      like a marketer and keep up with:
The              Trends
process of       Consumer attitudes
planning,        Customer relationships
               The marketplace is the commercial
selling, and   environment in which buying and selling take
distributing   place, including:
products to
                 Shops
customers’       Internet stores
needs and        Financial institutions
               Marketing Essentials Chapter 1, Section 1.1
                                     Ideas, Goods,
                                      and Services
                            Marketing promotes
                            ideas, goods, and
                            services, such as:
                              •A candidate’s
                               political platform
                              •A public service
                      This ad promotes a healthy diet that includes dairy
Marketing Essentials Chapter 1, Section 1.1
   Ideas, Goods, and Services
                 Examples of marketed goods include:
 goods            Cars
 Tangible         Electronics
 items of
 monetary         Home furnishings
 value that       Foods
 satisfy needs
 and wants.
                 Examples of services that may be
services         marketed are:
Intangible         Automotive repair
items of
monetary           Hair styling
value that         Legal aid
satisfy needs
and wants.         Financial consulting
                 Marketing Essentials Chapter 1, Section 1.1
               Marketing Core Functions
1.   Channel Management or Distribution getting goods to
2.   Market Planning understanding concepts and strategies to
     develop and target marketing strategies to a specific market
3.   Marketing information management researching
     customers, trends, and competitors
4.   Pricing charging for goods and services to make a profit
5.   Product/service management obtaining, developing,
     maintaining, and improving a product or service
6.   Promotion informing, persuading, and reminding customers
     about a product or service
7.   Selling providing customers with goods and services
8.   Financing obtaining the money open and run a business.

                   Marketing Essentials Chapter 1, Section 1.1
The MarketingThe marketing concept focuses on
             satisfying the needs and wants of customers.
Concept      For a business to be successful, all employees
                   Understand the marketing concept
 concept           Provide the best possible service to
 Businesses         customers
 should satisfy   The move toward same-day fulfillment is
 customers’        gaining speed across the Internet as e-
 needs and         tailers compete for customers.
 wants while
 making a         Customer relationship management (CRM)
 profit.          combines:
                   Customer information
                   Marketing communications
                  The goal is to establish long-term
                  Marketing Essentials Chapter 1, Section 1.1
 Marketing Essentials
Chapter 1, Section 1.2
Economic Benefits of Marketing
Marketing’s benefits to the economy and consumers are:

1. New and improved products
    •Marketing generates competition. Some examples:
       •Food manufacturers know that parents want children to
       start the day with healthy foods. So Quaker created Fruit &
       Oatmeal Toastables® and Breakfast Squares®.
2. Lower prices
   •Marketing increases demand. When demand is high:
        Products can be produced in larger quantities
        The fixed cost per unit is lower
        As a result, a company can: Charge a lower price per
         unit, Sell more units, Make more money
        In addition, when demand for products increases: More
         companies enter the marketplace, Companies must lower
         prices to remain competitive
3. Added value
                  Marketing Essentials Chapter 1, Section 1.2
Added Value and Utility
                The value that marketing adds to a
                product or service is called utility. Five
                utilities contribute to making a product or
utility         service capable of satisfying customers’
An attribute    wants and needs:
of a product     Form -putting parts together to make a
or service        product consumers want
that makes it
capable of       Place -offering a product where
                  consumers can buy it (e.g. retail store,
                  catalog, Web site)
wants and        Time -offering a product at a convenient
                  time of day or year for consumers
                 Possession -allowing consumers to
                  take legal ownership of a product
                 Information -communicating
                  information about a product (e.g.
                  through labeling, advertising, or an
                  owners’ manual)
                 Marketing Essentials Chapter 1, Section 1.2
 Marketing Essentials
Chapter 1, Section 1.3
Market and Market Identification
              The consumer market wants products and
              services for personal use that:
                Save money
market          Make life easier
People who      Improve appearance
                Create status
similar       The industrial market X, or business-to-
needs and     business
wants and     (B-to-B or B2B) market, wants products and
              services to use in their operations that:
are capable
                Improve productivity
of buying
                Improve efficiency
                Increase sales
                Decrease expenses

               Marketing Essentials Chapter 1, Section 1.3
                Market Share
                A company’s market share
                is its percentage of total sales
A company’s
                in a given market, such as
percentage of   the video game market.
total sales
volume          Market share changes as:
generated by
all               New competitors enter the
in a given         market
                  The market’s volume
                   increases or decreases
                Marketing Essentials Chapter 1, Section 1.3
 Target Market and Market Segmentation
              Identifying a product’s target
              market is a key to success. A
              single product may have these two
              target markets:
A group of     Consumers
people         Customers
as those      EX. A nutritious breakfast food
most likely   would be targeted at:
to become
customers.    1.Children who will request it and
               eat it, the consumers
              2. Parents who will approve and
               buy it, the customers
              Marketing Essentials Chapter 1, Section 1.3
  Target Market and Market Segmentation
                 To develop a clear picture of its target
                 market, a business may create a
customer         customer profile, which lists information
                 such as:
A list of
information       Age
about a
                  Income level
market, such      Ethnic background
as age,
income level,    Customer profile lists may also include:
                  Occupation
attitudes,        Attitudes
lifestyle, and
geographic        Lifestyle
                  Geographic residence
                  Marketing Essentials Chapter 1, Section 1.3
                Marketing Mix
                The marketing mix includes four basic
marketing       marketing strategies, or tools, called the
mix             four Ps:
The four         Product - A company must choose what
                  products to develop, update, and
strategies,       improve.
called the
                 Place -A company must decide where to
four Ps:
product,          sell and distribute a product.
place, price,    Price - A company must determine what
                  price it will charge for a product.
                 Promotion - A company must decide
                  how to advertise, promote, and publicize
                  a product.
                 Marketing Essentials Chapter 1, Section 1.3
Marketing Mix

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