Marketing and the Marketing Concept

Marketing
the process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers
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
Seven Functions of Marketing
Distribution, Financing, Marketing Information Management, Pricing, Product Service Management, Promotion, Selling
Distribution
the process of deciding how to get goods in customer’s hands (the logistics)
Financing
getting the money that is necessary to pay for setting up and running a business
Marketing Information Management
based on good sound information about customers and trends
Pricing
decisions dictate how much to charge for goods and services in order to make a product
Product Service Management
obtaining, developing, maintaining, and improving a product or product mix in response to market opportunities
Promotion
the effort to inform, persuade, or remind potential customers about a business’s products or services
Selling
one-on-one contact with customers where you determine to meet their needs and wants
Marketing Concept
the idea that a business should strive to satisfy customer’s needs and wants while generating a profit
Average Markup
40%
Business usually go under in…
the first five years
Economic Benefits of Marketing
New and improved products, lower prices, added value and utility
The Five Utilities
Form, Place, Time, Possession, Information
Form Utility
involves changing raw material or putting parts together to make them more useful
Place Utility
involves having a product where customers can buy it
Time Utility
is having a product available at a certain time of year or a convenient time of day
Possession Utility
the exchange of product for a price
Information Utility
involves communications with the consumers
Product Mix
Product, Place, Price, Promotion
Product
decisions begin with choosing what products to make and sell
Place
getting the product into the consumer’s hands
Price
what is exchanged for the product
Pricing Strategies
arrive on a price, discount, credit terms, and payment period
Promotion Mix
refers to decisions about advertising, personal selling, sales promotion, and payment period
Market
all people who share similar needs and wants and who have the ability to purchase a given product
Consumer Market
consists of individuals who purchased goods and services (retail)
Industrial Market
Business to buy product to resale or use for their operation (wholesale)
Market Share
a company’s percentage of the total sales volume generated by all companies that compete in a given market
Target Market
the group that is identified for a specific marketing program
Customer Profile
a clear picture of a business’s target market
Customer Profiles are divided by…
Age, gender, income level. ethnic background, lifestyle, marital status, geographics, personality and values, and behaviors
Economic Resources
Land, labor, capital, entrepreneur
Five Management Functions
Planning, organizing, directing, staffing, managing
Planning
the process of setting goals and determining how these goals can be reached
Organizing
establishing time frames to achieve the goal, then picking the best people in the organization to fulfill the task
Directing
influencing people’s behavior by motivation, group dynamics, leadership, and discipline
Staffing
making sure customers are satisfied by hiring quality people, training, evaluating and compensating emloyees for a job well-done
Managing
the process of setting standards and evaluating the process
Managing is done by…
inventory, ordering, staffing, and data collection