Marketing Business Finance and Marketing
Introduction to Marketing • What is Marketing? • The action or business of promoting and selling products or services, including market research and advertising. • Business success depends on: • Successful marketing programs • The ability to build a growing body of satisfied customers • Satisfying customer needs - at a profit
Introduction to Marketing • Successful Marketing Plans Depend On: • Determining customer needs and supplying them at a profit • Understanding of customers • Putting “the customer first” and meaning it
Managing the Marketing Mix • Managing the Marketing Mix: How owner-managers combine the four P’s into an overall marketing program. • Product • Pricing • Place • Promotion
Product • What does the customer want? • How and where will the customer use the product? • What is it to be called? • How is it different than the competition?
Price • What is the value of the product/service to the buyer? • How will your price compare to competitors? • How much does it cost to make?
Place • Where can a customer buy the good or service? • Where do buyers look for the product or service? • In what location will the product/service be sold? • Do you need a sales team? • What do your competitors do? • Can you learn from your competitors?
Promotion • All the actions a business takes to make customers aware of their product: • Advertising • Publicity • Sponsorship • Sales promotion • Personal selling • Direct Marketing • Internet Marketing
Introduction to Marketing • Keys to success • Marketing works best when programs are designed to: • solve a problem for potential customers • gain customer trust • Most business activities, including advertising, are dedicated to solving the company's problems (i.e., not enough profit, can’t find good workers, recession, etc.) • The most successful companiesfind success by dedicating themselves to solving customer's problems.
Market Research • Market Research: Good information about the market is necessary to manage marketing function successfully • Market research sources: • Questionnaire given to present customers • Surveys for prospective customers • Feedback from customers to disclose problems and areas of dissatisfaction that can be easily remedied • Ideas for new products or services from the public
Marketing Strategy • Marketing strategy: • Identifying customer groups (Target Markets) • Develop plans to serve customers better than competitors • Tailoring products, prices, distribution, promotional efforts and services towards that specific market segment • Managing the Market Mix: When a company analyzes markets and their capabilities and focuses on a target market it can serve best
Target Marketing • Target Marketing: Concentrating marketing efforts on one or a few key market segments • Geographical segmentation - developing a loyal group of consumers based on geographical location • Product segmentation - extensively promoting existing best-selling products and services • Demographic segmentation – identifying and promoting to those groups of people most likely to buy the product based on personality traits and characteristics
Managing the Marketing Mix • Successful marketing programs require answering the following: • What type of business are you in (manufacturing, merchandising or service)? • What is the nature of your good(s) or service(s)? • What market segments do you intend to serve? (Customer demographics) • What strategies will you use to attract and keep customers? • How will you manage the 4 P’s (Product, Price, Place, Promotion)? • What is your unique selling proposition (USP)? • Who is your competition, and what will you do to control your share of the market? • How are you going to build and support your product?