Honors Marketing Explaining: What is Marketing?

1. Honors MarketingExplaining:What is Marketing? Mr. Sherpinsky Council Rock School District

2. Lesson: What is MarketingMarketing Basics • What does a marketer do & know? • What potential careers are available in marketing? • What do I need to do to get job in the field of marketing?

3. Lesson: What is MarketingMarketing Basics Goals • Describe the scope of marketing. • Describe the basic concepts of marketing. • Identify types of products • Define the seven functions of marketing. • Explain the marketing mix. • Types of Markets

4. Lesson: What is MarketingMarketing Basics • marketing • ideas • goods • services • marketing concept

5. Lesson: What is MarketingMarketing Basics To be a successful marketer, you need to understand the marketing skills, marketing core functions, and basic tools of marketing.

6. Lesson: What is MarketingMarketing Basics • The process of developing, promoting, pricing and distributing products in order to satisfy customers’ needs and wants. • Best way to say it…the creation and maintenance of satisfying exchange relationships • Marketing involves all the activities necessary in getting a product from the producer to the consumer.

7. Lesson: What is MarketingMarketing Basics The Scope of Marketing Marketing professionals track trends and consumer attitudes to understand buying decisions. Marketing: As an industry, profession, and career The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (American Marketing Association)

8. Think About When You’ve Been Influenced by Marketing? • Remember the last purchase you made • Ask Yourself • Why did you choose to buy you last purchase? • SHARE!

9. Marketing and the Marketing Concept Section 1.1 Marketing Core Functions

10. Channel Management: Distribution • The transporting, storing and handling of goods on their way from the manufacturer to the consumer. • This includes the decisions about where to sell a product. • Mixed methods can be used. • Best way to reach customer based on their needs & habits

11. Marketing Information Management • Obtaining information needed to make sound business decisions. • Example: Taste tests and surveys • Pizza Toppings Survey

12. Take the Survey! Go to: Mr. Sherpinsky’s Faculty Webpage Link at Bottom Of Webpage!

13. Marketing Planning • Understanding the concepts and strategies used to develop and target specific markets and selected audiences. • This requires an in-depth knowledge of the activities of marketing.

14. Pricing • Determining a value to charge for goods and services. It is important to consider competition and what consumers are willing and able to pay. • Cost Model • Market Model • Combination Model • Surveys • Trial and Error • Problems

15. Product\Service Management • Concepts and procedures necessary to obtain, develop, maintain, and improve a product or servicemixin response to market opportunities. Risk Management: preventing or reducing business loss. Purchasing: Buying goods and services for use in the day-to-day about where a product is sold.

16. Promotion • Communication used to inform, persuade or remind people about a business’s products or brand. • Promotion also involves persuading customers to purchase a product. • TV, Radio, Internet are all forms of advertising. • Image management.

17. Selling • Determining customer needs and wants through planned, personalized communication intended to influence purchase decisions and ensure satisfaction. • Includes influencing future purchases and decisions

18. Web Quest: Pick A Product • Using the “Seven Functions” of Marketing • Research your favorite product with one (1) partner and identify the 7 functions related around your product • Use MS Word and write a brief analysis! • Channel Management: Distribution • Marketing Information Management • Marketing Planning • Product/Service Management • Pricing • Promotion • Selling

19. Marketing and the Marketing Concept Section 1.1 The Marketing Concept Desires Needs Determine Anticipate Satisfy marketing concept The idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the business.

20. Marketing and the Marketing Concept Section 1.1 The Marketing Concept Customer Relationship Management (CRM) CustomerInformation (Databases) CustomerService MarketingCommunications helps businesses employ the marketing concept.

21. Marketing Concept • Businesses become successful by directing all of their efforts to satisfying the needs and wants of the customers. • Businesses make a profit by offering the goods and services that the consumer wants. • Recognizes the importance of the consumer in the buying process.

22. Marketing Concept Customer Relations Management also known as “CRM” • Most important relationship in business • Combines consumer information (through database mining and technology) with customer service and communications. • Repeat customers keep companies in business more than new customers • Why? Explain?

23. Case Study: Johnson & Johnson

24. Checkpoint • Explain why the definition of marketing changes over time. • Marketing is ongoing. • Marketers must keep up with trends and consumer attitudes when trends and the customer base change over time. • The AMA revises the definition of marketing to make sure it conforms to current practices in the marketplace.

25. Checkpoint • Identifyan example of an economic good and an economic service. • Goods are tangible items that have monetary value and satisfy customers’ 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. • Examples of economic services are banks, movie theaters, and accounting services.

26. Checkpoint • Describe how Customer Relationship Management • Customer Relationship Management combines customer information (through database and computer technology) with customer service and marketing communications. • Allows companies to serve their customers as efficiently as possible and makes them better able to satisfy customers’ needs and generate a profit.

27. Fundamentals of Marketing CONNECT What markets are you a part of? 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.

28. 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.

29. Fundamentals of Marketing • market • consumer market • organizational market • market share • target market • customer profile • marketing mix

30. Fundamentals of Marketing Market Terms and the Four Ps of the Marketing Mix

31. Fundamentals of Marketing Market Terms and the Four Ps of the Marketing Mix

32. Fundamentals of Marketing Market and Market Identification You could be part of the market for video games, but not be part of the market for an expensive car. market All people who share similar needs and wants and who have the ability to purchase a given product.

33. Fundamentals of Marketing Market and Market Identification ConsumerMarket OrganizationalMarket versus 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.

34. Fundamentals of Marketing Market and Market Identification U.S. Smartphone Market Share market share A company’s percentage of the total sales volume generated by all companies that compete in a given market

35. Fundamentals of Marketing Market and Market Identification The goal of market segmentation is to identify target markets. market segmentation The process of classifying people who form a given market into even smaller groups. target market The group of people most likely to become customers, identified for a specific marketing program.

36. Fundamentals of Marketing Market and Market Identification Details About Markets

37. Fundamentals of Marketing Market and Market Identification Details About Markets . .

38. Fundamentals of Marketing Market and Market Identification Information in Customer Profile customer profile Information about the target market, such as age, gender, income level, marital status, ethnic background, geographic residence, attitudes, lifestyle, and behavior.

39. Fundamentals of Marketing Market and Market Identification Information in Customer Profile

40. Product Price Place Promotion Fundamentals of Marketing Marketing Mix Four Ps of the Marketing Mix marketing mix The four basic marketing strategies called the four P’s: product, place, price, and promotion.

41. Informing, reminding, and persuading customers of the goods and services available to them. The amount a business charges customers for their products Making products available at the right time and location. The goods and services a business will offer to its customers

42. The fourps of marketing

43. The Four Ps of Marketing • The marketing mix, known as the four P’s: (Product, Price, Place, Promotion), is a combination of decisions a business must make in order to best reach its target market

44. Product • The goods and services a business will offer to its customers • A. Choice of product: Will the business offer a variety of products? • B. Packaging:Does the packaging protect the product and provide necessary information about the product?

45. Product Continued… • The goods and services a business will offer to its customers • C. Level of quality: What level of quality will the business ensure? • D. Brand name: What brand name products will the business offer? • E. Warranty: Will the business offer a warranty to its customers to ensure satisfaction?

46. Price • The amount a business charges customers for their products • A. Price setting. Price will be set based on product demand, cost, and competitors’ actions. • B. Terms. Will the company only accept cash? Will the company extend credit? What type of credit will the company extend?

47. Price Continued… • C. Discounts. Will the business offer discounts to employees? Locals? Will the business discount merchandise at certain times of the year?

48. Place (Distribution) • Making products available at the right time and location. • A. Channels of Distribution:the path a product takes to get from the producer to the consumer • B. What specific stores will offer the products?(wholesaler, retailer, department, discount, etc.)

49. Place Continued… • C. What method of transportation will be used to get the product from the producer to the consumer? (truck, train, place, boat, pipeline) • D. How will inventory be handled and controlled? (methods- physical, storing, checking, or receiving)

50. Promotion • Informing, reminding, and persuading customers of the goods and services available to them. • A. What will the message be? • B. When will the message be delivered? • C. Where will the message be delivered? • D. What inducements will be used to encourage customers to purchase the product? • E. How will the message be delivered?