1. Chapter 1 Marketing Is All Around Us

2. What is Marketing? Marketing The process of planning, pricing, promoting, selling, and distributing ideas, goods or services to create exchanges that satisfy customers Everything that happens between the idea and the sale

3. Ideas, Goods, and Services Ideas Politics “Living Better” Goods Tangible items that have monetary value and satisfy your needs and wants Services Intangible items that have monetary value and satisfy your needs and wants

4. The Marketing Concept The idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the firm. The focus is on the customer What they want What they need What makes their lives easier Products should be pulled onto the market by consumer wants, rather than pushed onto customers by companies There are seven functions to support this.

5. Seven functions of marketing

6. Seven Functions of Marketing The process of deciding how to get goods in customers’ hands. Physically moving and storing the products Truck, rail, ship or air Involves the systems that track products UPS Commercial Getting the money that is necessary to pay for setting up and running a business. Loans, selling stock, etc. Also involves ways that customers can pay Credit cards Billing 1. Distribution 2. Financing

7. Seven Functions of Marketing Collection of information on customers, trends, and competing products Gathering, storing and analyzing Marketing Information Management Pricing How much to charge for goods and services Must consider What will customers pay? How much does it cost us to produce? How much do competitors sell for?

8. Seven Functions of Marketing Obtaining, developing, maintaining and improving a product or a product mix in response to market opportunities Marketing research helps you know what customers want The effort to inform or persuade customers about a business’s products or services. Product Service Management Promotion

9. Seven Functions of Marketing Selling Provides customers with the goods and services they want In retail stores Business-to-business (B-2-B) Involves: Determining client needs Persuading and influencing decisions Responding to reactions Forming relationships

10. Economic Benefits of marketing Competition fosters: New and improved products Lower Price Added value and utility

11. Types of Added Value and Utility Utility Functions that add value to a product Utilities the attributes of a product or service that make it capable of satisfying consumers’ wants and needs

13. Types of Added Value and Utility Form Changing raw materials or putting parts together to make them more useful Taking things of little value and putting them together to create something of use (zipper + buttons + cloth + thread = jacket) Place Having your product in places people can easily buy Time Having a product available at desirable and convenient times of year or day Possession The exchange of a product for money Ways consumers can pay (cash, credit card, layaway, PayPal) Information Communicating with the consumer Salespeople Packaging and Labeling Advertising

14. Fundamentals of Marketing Market All of the people who share similar needs and wants and who have the ability to purchase a given product Are you part of the videogame market? Are you part of the sports car market? Consumer Market vs Industrial Market Consumer Market Consists of consumers who purchase goods and services for personal use Industrial market (or Business-to-business) Includes all businesses that buy products for use in their business operations

15. Market Share Search Engine Market Share Total market Can also be described by the total sales in a product category Market Share A company’s percentage of the total sales volume generated by all companies that compete in a given market.

16. Market anyone who has the desire and the means to buy

17. Market anyone who has the desire and the means to buy Market Segments Small groups of people within the market

18. Market anyone who has the desire and the means to buy Market Segments Small groups of people within the market Target Market The group chosen for a specific marketing program Target Market: Males, Ages 14-20

19. Market anyone who has the desire and the means to buy Market Segments Small groups of people within the market Target Market The group chosen for a specific marketing program Target Market: Males, Ages 14-20

20. Certain products have more than one target market 1. Your product might have different groups of users Men – too much hassle to make coffee Women – you will feel like working out for a change Who is 5-hour Energy Targeting?

21. Certain products have more than one target market 2. Your product might have different group who purchases than who consumes Consumers – the people consuming or using the product Customers – the people who are buying the product

22. What features on this package target Moms and what features target kids? Moms Kids

23. Marketing Mix (4 P’s) The activities that go into the selling of a product

24. Marketing Mix Product Product Features Packaging Brand Name Different versions or flavors Place Where product is distributed Physical location Stores sold in Where within the store Is it available online or direct? Price What is exchanged for the product What do I have to sell a product for to make a profit? What psychological impacts does a low or high price have? Promotion Decisions about advertising, selling, discounts and publicity