Marketing: Chapter 1 - Marketing and the Marketing Concept

Four Foundations of Marketing

* Business Management, entrepreneurship (basics of business) * Communication and interpersonal skills ( correct terminology to interact effectively) * Economics (basic Economic Principles) * Professional development ( continued career growth)

Industrial Market

* Business to Business * Includes all businesses that buy products for use in their operations.

Form Utility

* Changing raw materials or putting parts together to make them more useful. * Taking items of little value by themselves and putting them together to create something of more value.

Marketing Information Management

* Companies conduct research so they can be successful at marketing and selling their products. * Getting good information about customers, trends, and competing products. * Ex: products in the school store

Financing

* Getting the necessary money need to open and run the business. * What types of payment options will the business except. (store credit, VISA, Mastercard)

Pricing

* How much to charge for the goods and services in order to make a profit. * Prices are based on costs and what the competition charges. * You have to figure how much are customers willing to pay.

Economic Benefits of Marketing

* It provides the means for competition to take place. * It's impact is more dramatic when you consider how it effects the standard of living. * In a competitive marketplace businesses try to create new or improved products.

Target Market

* Marketers look for ways to offer their products or service to people who are most likely to be interested. This involves segmenting or breaking down the market. * Marketing strategies can be directed at them. * May have more than one market. * Ex children's clothes

New & Improved Products

* Marketing generates competition, which in turn fosters new and improved products. * For example computers have become smaller, lighter, more powerful and less expensive. As more people use computers this market continues to grow.

Product Service Management

* Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities. * Research guides product/service management toward what the consumer needs and wants are.

Selling

* Provides customers with the goods and services they want. * Retail environment to you * Business to business environment

Price Marketing Strategy

* Should be what customers are willing to pay. * Special pricing may also be used.

Market Segmentation

* The Process of analyzing and classifying customers in a given market to create smaller, more precise markets. * HRHS - football-softball-basketball-band

Promotion

* The effort to inform, persuade, or remind potential customers about a business's products or services. * Television and radio are also known as advertising. * Can be used to improve a company's public image.

Possession Utility

* The exchange of a product for money is possession utility. * This can be cash, checks or credit cards. Some companies even offer installment or layaway plans.

Marketing Concept

* The idea that a business should strive to satisfy customer's needs and wants while generating a profit for the Business. * The focus is on the customer and all employees must support the 7 functions to achieve customer satisfaction.

Place Marketing Strategy

* The means of getting the product into the consumers hands. * Where are they buying the orange juice?

Information Utility

* This involves communication with the customer. * Salespeople provide information to the customer through feature and benefits selling.

Customer Profile

* To develop a clear picture of the target market businesses will create a customer profile. * Age, income level, ethnic background, occupation, attitudes, lifestyle and geographic residence. * Ex: Magazines

Market Planning

* Understanding the strategies used to develop target markets. * Collecting information analyzing data to find out what customers wants and needs. * Creating a marketing plan * Essentially who is my customer going to be?

Marketing

A process which means it is ongoing and it changes.

Utilities

Add value to the product. These are attributes of a product or service that make it capable of satisfying consumers' wants and needs.

Market

All people who have similar needs and wants, have the ability to purchase a given product are called a market.

Goods

Are tangible items that have monetary value and satisfy your needs and wants such as cars, toys, furniture, television and clothing.

Services

Are tangible items that have monetary value and satisfy your needs and wants such as cars, toys, furniture, television and clothing.

Time Utility

Having a product available at a certain time of year or at a certain time of day.

Place Utility

Having the product available where consumers can buy them. Businesses study consumer shopping habits to determine the most convenient and efficient location to sell products.

Seven Core Functions of Marketing

1. Distribution: about deciding how you'll get the goods or services you want to sell to the people who want to buy them. Having an idea for a product is great, but if you aren't able to get that product to the customers you aren't going to make money. Distribution can be as easy as setting up shop in the part of a city where your target customers are -- but in an increasingly interconnected world, distribution more often than not now means that you'll need to take your products or services to the customers. 2. Financing: It takes money to make money. As a business owner, an important function of marketing a product is finding the money through investments, loans, or your personal capital to finance the creation and advertising of your goods or services. 3. Market research: about gathering information concerning your target customers. Who are the people you want to sell to? Why should they buy from you as opposed to a rival business? Answering these questions requires that you do some on-the-ground observation of the market trends and competing products. 4. Pricing: Setting the correct price for your product or service can be a challenge. If you price it too high, you might lose customers -- but if you price it too low you might be robbing yourself of profits. The "right" price normally comes through trial and error and doing some market research. 5. Product and Service Management: Once you've determined the target market and set the price of your product or service, the goal becomes to effectively manage the product or service. This involves listening to customers, responding to their wants and needs, and keeping your products and services fresh and up to date. 6. Promotion: Most business owners are familiar with the idea of promotion. Advertising your products and services is essential to attracting new customers and keeping existing customers coming back. As the marketplace changes, you'll want to respond appropriately by tailoring your promotion messages to new media (such as Facebook or Twitter), by sticking with more conventional outlets -- or by using a mix of the old and new. 7. Selling: While we tend to think of selling and marketing as being closely linked, selling is last on the list of the seven functions of marketing. This is because selling can happen only after you've determined the wants and needs of your customer base and are able to respond with the right products at the right price point and time frame.

Customer Relationship Management

A aspect of marketing that combines customer information (through database and computer technology) with customer service and marketing communications.

Product Marketing Strategy

Choosing what products to make and sell.

Marketing Mix

Comprised of 4 basic marketing strategies. 4 P's * Product * Place * Price * Promotion

Consumer Market

Consumers who purchase goods and services for personal use.

Promotion Marketing Strategy

Decisions about advertising, personal selling, sales promotion and publicity.

When does an exchange take place in the marketplace?

Every time someone sells or buys something

Scope of Marketing

Marketing is all around you. You have been a consumer for many years and you have already made decisions about products you like. As you study marketing you will study what businesses do to influence consumer's buying decisions.

Ideas

Politicians for example use marketing techniques to promote their platform or ideas.

Marketplace

The commercial environment where such trades happen. It is the world of shops, internet stores, financial institutions, catalogs, and much more.

Marketing

The process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers.

Market Share

The total sales volume generated and then taking in to consideration you portion of the sales.