Transcript Unit Notes
Unit 3 Basic Marketing Concepts
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Commercial Questionnaire
What is the product?
Who is the target audience?
Do you think this commercial creates a relationship with its market? If so, what is it?
What aspects of this commercial are memorable?
Unit 3 Vocabulary
Consumers Consumer Market Customers Customer Profile Customer Relationship Management (CRM) Demographics Discretionary Income Disposable Income Environmental Scan Executive Summary Geographics Goods Industrial Market Market
Market Share Marketing Marketing Concept Marketing Mix Market Segmentation Marketing Strategy Mass-Marketing Positioning Products Psychographics Sales Forecast Services Situation Analysis SWOT Analysis Target Market
Unit 3 Essential Question
How do the fundamental marketing concepts relate to the scope and impact of marketing on the economy?
Essential Question 1 Basic Marketing Concepts
What is marketing?
Marketing is. . .
The process of planning, pricing, promoting, selling and distributing products to create exchanges that satisfy customers needs and wants.
Products
– Goods – Services – Information / Ideas
Essential Question 2 Basic Marketing Concepts
How do marketing strategies relate to the marketing mix?
Target Marketing
Focuses all marketing decisions on the specific group of people you want to reach.
The Marketing Mix
P
roduct
P
lace
P
rice
P
romotion
Product Positioning
Positioning:
Getting the consumer to think about a product in a certain way.
Methods of positioning: – Playing to the competition's weaknesses.
– Looking for underserved markets.
– Leading with your strengths.
– Targeting different market segments.
Marketing Strategies
Marketing strategy:
Identification of target markets and determination of marketing mix choices that focus on those markets.
An effective marketing strategy will focus on a company’s or product’s
competitive advantage:
the key point of difference.
Essential Question 3 Basic Marketing Concepts
What are the marketing functions and their related activities?
Functions of Marketing
Distribution
– The physical movement of a good or service.
– Deciding where and to what extent to sell a good or service.
Functions of Marketing
Financing
– Determining the need for and availability of financial resources to aid in marketing activities.
Functions of Marketing
Marketing Information Management
Gathering, recording, analyzing, and disseminating information to aid in making marketing decisions.
Functions of Marketing
Pricing
– The determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.
Functions of Marketing
Product/Service Management
– Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.
Functions of Marketing
Promotion
– Communicates information about products, services, images, or ideas to customers or clients to influence their purchase behavior.
Functions of Marketing
Selling
– Responding to consumers needs and wants through planned, personalized communications intended to influence purchase decisions.
Essential Question 4 Basic Marketing Concepts
How do the effects of various marketing activities compare and contrast?
Marketing Activities
The marketing activities associated with Distribution: – Determining mode of transportation (Motor, Plane, Rail, Air, Pipeline) – Location of business (Country, Geography, Street, etc.) – Location of product (Front of store, back of store, top shelf, bottom shelf, etc.)
Marketing Activities
The marketing activities associated with Financing: – Budgeting: Sources of capital Expenditures of capital – Accounting: Cash flow statement Income statement Balance sheet
Marketing Activities
The marketing activities associated with Marketing Information Management: – Surveys Customer comment cards Social media questionnaires Point of Sale questions by cashier – SWOT Analysis – Customer / consumer research – Trend analysis
Marketing Activities
The marketing activities associated with Pricing: – Product cost analysis – Break-even analysis – Pricing goals, strategies, techniques – Consumer perceptions – Government regulations – Product life cycle
Marketing Activities
The marketing activities associated with Product/Service Management: – Updating / modifying products – Changing / modifying product mix – Branding, packaging, labeling – Product positioning – Product bundeling
Marketing Activities
The marketing activities associated with Promotion: – Sales / specials Buy 1 get 1 free 25% off – Coupons – Advertising – Publicity – Personal Selling
Marketing Activities
The marketing activities associated with Selling: – Shopping – Personal selling – Buying products – Customer buying motives – Customer decision making
Essential Question 5 Basic Marketing Concepts
How do marketing plans interact with marketing strategies?
Marketing Plan
Marketing Plan
– A formal, written document that directs a company’s activities for a specific period of time.
– Elements of a Marketing Plan include: Marketing Strategies Situation Analysis Implementation Evaluation and Control
Marketing Plan
Marketing Plan
– The Marketing Strategies section of the Marketing Plan focuses on: Product Positioning Marketing Mix – Product – Place – Price – Promotion
Essential Question 6 Basic Marketing Concepts
How does the marketing planning process employ situational analysis?
Situational Analysis
Situational Analysis:
The study of the internal and external factors that affect marketing strategies and is an element of the Marketing Plan.
Situational Analysis
A Situational Analysis includes: –
SWOT Analysis:
An assessment of the company’s internal
S
trengths and
W
eaknesses and external
O
pportunities and
T
hreats.
–
Environmental Scan:
An analysis of outside influences that may have an impact on the organization. It includes: Political Economic Socio-Cultural Technological
Essential Question 7 Basic Marketing Concepts
How are the concepts of market, market segmentation, and market identification differentiated?
Market Segmentation
Identifying Your Customers
Market:
A group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product.
Market Segmentation:
Dividing the total market into smaller groups of people who share specific needs and characteristics.
Customers vs. Consumers
Customers
Buy a product
Consumers
Use the product
Consumer Market vs.
Industrial Market
Consumer
Personal Use
Industrial
Business Use
Market Segmentation Geographics
Segmentation of the market based on where people live.
Market Segmentation Demographics
Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc.
Market Segmentation Psychographics
Involves the study of customers based on lifestyle, and the attitudes and values that shape it.
Market Segmentation Product Benefits
Built in features of products in response to consumer needs and wants.
Market Identification: Identifying Your Customers Developing a Customer Profile
Combining geographic, demographic, psychographic, and product benefit data to get a complete picture of your potential customers.
Essential Question 8 Basic Marketing Concepts
How does the marketing concept relate to customer needs and wants?
Brainstorm
What are the differences between
sales-oriented
and
marketing-oriented
companies.
The Marketing Concept
In order for a business to make a profit, it must focus all of its efforts on satisfying the needs and wants of its customers.
Customer Satisfaction
Involves creating a relationship with the customer to achieve customer loyalty – also known as
Customer Relationship Management (CRM)
.
Customer satisfaction is directly related to the product’s perceived value.