EVOLUTION OF THE MARKETING CONCEPT EVOLUTION OF MARKETING

EVOLUTION OF THE MARKETING CONCEPT

EVOLUTION OF MARKETING The Production Era production creates demand • products will sell themselves BMI 3 C 2 • Slide (1800 s to 1920 s)

EVOLUTION OF MARKETING production is greater than demand • hire salespeople to find new markets and consumers BMI 3 C 3 • Slide The Sales Era (1920 s to 1960 s)

EVOLUTION OF MARKETING The Marketing Concept Era strive to achieve organization’s goals and satisfy consumer needs • marketing is integrated into each phase of business starting before production BMI 3 C 4 • Slide (1960 s to 1980 s)

EVOLUTION OF MARKETING The Marketing Orientation Era continuously collect information about consumers’ needs, competitors • share this information with other departments and use it to create consumer value BMI 3 C 5 • Slide (1980 s to today)

MARKETING ACTIVITIES

MARKETING ACTIVITIES 7 BMI 3 C Slide Summarize the ten marketing activities and indiciate which high school courses (besides marketing) which you would take if you wanted to get into that field.

MARKETING ACTIVITIES Research 8 BMI 3 C Slide • conduct surveys • gather information • analyse data

MARKETING ACTIVITIES Product Development 9 BMI 3 C Slide • create product to satisfy customer’s needs

MARKETING ACTIVITIES Pricing 10 BMI 3 C Slide • establish how much to charge for the product based on cost of materials, how much consumer is willing to spend

MARKETING ACTIVITIES Packaging 11 BMI 3 C Slide • develop package to attract attention, safely contain product

MARKETING ACTIVITIES Branding 12 BMI 3 C Slide • develop a name, trademark, slogan, logo—identity—for the product

MARKETING ACTIVITIES Sales 13 BMI 3 C Slide • organize or be involved in the process of getting the product into the consumers’ hands

MARKETING ACTIVITIES Physical Distribution 14 BMI 3 C Slide • getting the product from factory to where it is accessible to the consumer

MARKETING ACTIVITIES Inventory Management 15 BMI 3 C Slide • calculating how many of each product need to be stocked to satisfy consumers’ needs

MARKETING ACTIVITIES Storage 16 BMI 3 C Slide • where will you keep the product between production and retailer?

MARKETING ACTIVITIES Promotion 17 BMI 3 C Slide • making consumers aware of your product and its merits

HOMEWORK Read page 18 Answer questions 1 and 2 18 BMI 3 C Slide Read section 1. 5

Take up homework 2. Based on pg. 18, define nonprofit and not-for-profit organizations, what are the differences between the two? 3. Note BMI 3 C 19 1. Slide TODAY’S AGENDA

CONSUMER AND COMPETITIVE MARKETS

CONS & COMP MARKETS Consumer Market • the group you try to attract: target market 21 BMI 3 C Slide • everybody: aggregate market • usually a smaller group, differentiated market based on age, gender, etc.

CONS & COMP MARKETS A target market is a group of potential customers to whom a company directs its marketing program 22 BMI 3 C Slide • EXAMPLES: teens, parents, seniors, extremely wealthy, etc.

CONS & COMP MARKETS Competitive Market • all products and services that compete for consumers’ money within a category 23 BMI 3 C Slide • can be broad (toys) • can be narrow (diet colas) • unrelated (entertainment)

CONS & COMP MARKETS 24 BMI 3 C Slide A product’s marketing efforts try to influence the consumer’s decision towards spending money on that specific product.

THE 4 PS AND 2 CS OR “THE MARKETING MIX AND THE 2 CS”

regulato ry 26 Environmental Factors: Slide promotio ic ec n g on lo o n om h ic tec al i soci Marketing Mix: Controllabl e BMI 3 C price consum place er etit comp ve al product

THE 4 PS AND 2 CS product price place promotion consumer 27 BMI 3 C Slide competition

THE 4 PS AND 2 CS product price place promotion consumer The product is a good, service, idea, or event to satisfy the consumer’s needs. competition 28 BMI 3 C Slide Examples?

THE 4 PS AND 2 CS product price place promotion The price is what is exchanged for the product, usually money. consumer 29 BMI 3 C Slide competition

THE 4 PS AND 2 CS product price place promotion consumer The place is a means of getting the product into the consumer’s hands. competition 30 BMI 3 C Slide Examples?

THE 4 PS AND 2 CS product price place promotion Promotion is the means of communication used by the seller to inform the buyer. consumer 31 BMI 3 C Examples? Slide competition

THE 4 PS AND 2 CS place promotion consumer competition BMI 3 C The consumer is the individual or group of individuals who may use your product. 32 price Slide product

THE 4 PS AND 2 CS product price place promotion The competition is other firms that could provide a product similar to yours. consumer 33 BMI 3 C Who competes with Nike? Pepsi? Mc. Donalds? Ford? Slide competition

THE MARKETING MIX WORKSHEET

Marketing Mix worksheet 2. Start thinking about 4 Ps and 2 Cs assignment BMI 3 C 35 1. Slide HOMEWORK

Marketing Mix worksheet 2. Read “Future Shop”, page 20, answer questions 3. Group activity & discussion 4. Note 5. Work on assignment due Friday BMI 3 C 36 1. Slide TODAY’S AGENDA

INFORMATION TECHNOLOGY Read “Future Shop” on page 20, answer questions. At your table, compare answers to #1, list 3 advantages (benefits) and 3 disadvantages (costs). 37 BMI 3 C Slide What can Future Shop do to capitalize on the advantages or downplay the disadvantages? Compare your answers to #2

THE MARKETING MIX WORKSHEET

MARKETING STRATEGIES

MARKETING STRATEGIES 41 BMI 3 C Slide A strategy is a method to carry out an action plan to reach a goal. A marketing strategy explains how a company will carry out the marketing plan, its goals, and the marketing mix formula to achieve those goals.

MARKETING STRATEGIES The Marketing Plan contains: 42 BMI 3 C Slide • a section outlining marketing goals of the business • target market(s) • a list of as many competitors as possible

MARKETING STRATEGIES The Marketing Plan contains: 43 BMI 3 C Slide • a research section, with a plan for gathering and analysing info • how the product will be positioned, with rationale • pricing strategy

MARKETING STRATEGIES The Marketing Plan contains: 44 BMI 3 C Slide • distribution channels & logistics • promotional and advertising proposal

MARKETING STRATEGIES Brand strategies The primary goal is to communicate the value of a product or service to the consumer. perceived- - perceived benefit cost 45 BMI 3 C = Slide value

MARKETING STRATEGIES Brand strategies see example on page 26 46 BMI 3 C Slide It attempts to position the product or service by creating a positive value equation in the consumer’s mind.

THE VALUE EQUATION GROUP ACTIVITY

MARKETING STRATEGIES Distribution strategies Focus on the best way to deliver a product/service to the target market. CONSUMER 48 BMI 3 C RETAILER Slide MANUFACTURER

MARKETING STRATEGIES Distribution strategies • PUSH: “If the product is out there where people will see it, they will buy it. ” 49 BMI 3 C Slide • focus on selling the good to the retailer, importer or wholesaler

MARKETING STRATEGIES Distribution strategies 50 BMI 3 C Slide • incentives, promotions, product display case offered in exchange for product placement • The manufacturer needs to push the product through the chain

MARKETING STRATEGIES Distribution strategies • PULL: “increase distribution by increasing consumer demand” 51 BMI 3 C Slide • focus is on selling the good to the consumer

MARKETING STRATEGIES Distribution strategies 52 BMI 3 C Slide • convince consumers that they need the product, and that specific brand • requires a strong advertising and promotions campaign

MARKETING STRATEGIES Distribution strategies 53 BMI 3 C Slide The pull strategy is difficult to use alone, the push strategy can be. Most strategies use a combination of the two.

54 BMI 3 C Slide END OF UNIT 1