Marketing

Marketing Activities

Buying – Obtaining a product to be resold; involves finding suppliers that can provide the right products in the right quantity at a fair price

Selling – Providing personalized and persuasive information to customers

Marketing Activities

Transporting – Moving products from where they were made to where consumers can buy them

Storing – Holding products until customers need them, such as on shelves, storage rooms, or warehouses

Marketing Activities

Financing – Providing money to pay for the various marketing activities, such as obtaining credit when buying and extending credit when selling

Researching – Studying buyer interests and needs, testing products, and gathering facts needed to make good marketing decisions

Marketing Activities

Risk Taking – Assuming the risk of losses that may occur from fire, theft, damage, etc.

Grading and Valuing – Grouping goods according to size, quality, or other characteristics, and determining an appropriate price for products and services

Role of Marketing

Production Oriented – decisions about what and how to produce receive most attention

Sales Oriented – emphasize widespread distribution and promotion to sell products

Customer Oriented – direct activities of the company toward satisfying customers

Marketing Concept Keeping the needs of the consumer

uppermost in mind during the design, production, and distribution of a product

Marketing manager is part of top management and involved in all major decisions

Market Determination

Market – types of buyers a business wishes to attract and where those buyers are located

Whom to serve???? Where to serve???? Identify target markets – groups of

customers with very similar needs

Marketing Mix

Four Elements of Marketing – 4 P’s1. Product2. Price3. Place (Distribution)4. Price

Product

All attributes, both tangible and intangible, that customers receive in exchange for the purchase price

Number of items to produce Physical features Quality Number of different models Packaging Brand Name Product guarantees & services Image to be communicated to customers

____Price Amount of money given to acquire a

product.

High enough to cover costs of producing and marketing

Consider the number of competing products and their prices

Demand for the product Sold for cash or credit Coupons, discounts, bargain for lower price,

trade in, etc….

Place (Distribution)

Product must be in a place where customers need or want it

Set of activities required to transport and store products and make them available to customers

May sell products to retailers or wholesalers

Promotion Providing information to consumers that

will assist them in making a decision and persuade them to purchase a product or service

Major methods - Advertising and Personal Selling

Marketing Plan

Detailed written description of all marketing activities that a business must accomplish in order to sell its products

Describes the goals the business wants to accomplish, the target markets, the marketing mixes, and the tactics that make up the marketing strategy

Identifies ways to evaluate to determine if successful

Written for a specific time period

The Product Life Cycle

Consists of four stages of sales and profit performance through which all brands of a product progress Introduction Growth Maturity Decline

Introduction Stage A brand new product enters the

market

The product is different from, and expected to be better than, products customers are currently using

If successfully introduced, increasing number of consumers will accept it, sales will increase, and profits will grow

Growth

Competitors will enter the market

More customers become regular purchasers

Companies attempt to improve their brand

Companies will add to their distribution

Profits are likely to increase

Maturity Product purchased by large numbers of

customers and become quite profitable

Competing with many other brands with similar features

Customers have developed loyalty to a brand

Companies focus on promotion and may look for new markets

Decline

Occurs when a new product is introduced that is much better or easier to use

Companies begin to see declines in sales and profits

Either find new uses for product or attempt to sell off any remaining inventory

Product Categories

Industrial goods – products designed for use by another business

Consumer goods – products designed for personal or home use

Some products may be both a consumer and industrial good

Consumer Products

Convenience Goods – inexpensive items that consumers purchase regularly without a great deal of thought Ex: milk, candy, soft drinks, soap

Shopping Goods – consumers purchase less frequently and usually have a higher price and requite some buying thought Ex: cars, furniture, large appliances, houses

Consumer Products

Specialty Goods – products that customers insist on having and are willing to search for until they find them. Ex: designer clothing, expensive jewelry, special

automobiles

Unsought Goods – Customers do not shop for these type of goods because they do not have a strong need for them Ex: life insurance, cemetery plots, funeral

services