Honors Marketing Explaining What is Marketing Mr Sherpinsky

Honors Marketing Explaining: What is Marketing? Mr. Sherpinsky Council Rock School District

Lesson: What is Marketing Basics 1. What does a marketer do & know? 2. What potential careers are available in marketing? 3. What do I need to do to get job in the field of marketing?

Lesson: What is Marketing Basics Goals �Describe the scope of marketing. �Describe the basic concepts of marketing. �Identify types of products �Define the seven functions of marketing. �Explain the marketing mix. �Types of Markets

Lesson: What is Marketing Basics • marketing • ideas • goods • services • marketing concept

Lesson: What is Marketing Basics To be a successful marketer, you need to understand the marketing skills, marketing core functions, and basic tools of marketing.

Lesson: What is Marketing Basics • The process of developing, promoting, pricing and distributing products in order to satisfy customers’ needs and wants. • Best way to say it…the creation and maintenance of satisfying exchange relationships – Marketing involves all the activities necessary in getting a product from the producer to the consumer.

Lesson: What is Marketing Basics The Scope of Marketing professionals track trends and consumer attitudes to understand buying decisions. Marketing: As an industry, profession, and career The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (American Marketing Association)

Think About When You’ve Been Influenced by Marketing? • Remember the last purchase you made – Ask Yourself • Why did you choose to buy you last purchase? –SHARE!

Section 1. 1 Marketing and the Marketing Concept Marketing Core Functions

Channel Management: Distribution • The transporting, storing and handling of goods on their way from the manufacturer to the consumer. – This includes the decisions about where to sell a product. – Mixed methods can be used. – Best way to reach customer based on their needs & habits

Marketing Information Management • Obtaining information needed to make sound business decisions. – Example: Taste tests and surveys • Pizza Toppings Survey

Take the Survey! Go to: Mr. Sherpinsky’s Faculty Webpage Link at Bottom Of Webpage!

Marketing Planning • Understanding the concepts and strategies used to develop and target specific markets and selected audiences. – This requires an in-depth knowledge of the activities of marketing.

Pricing • Determining a value to charge for goods and services. It is important to consider competition and what consumers are willing and able to pay. – – – Cost Model Market Model Combination Model Surveys Trial and Error • Problems

ProductService Management • Concepts and procedures necessary to obtain, develop, maintain, and improve a product or service mix in response to market opportunities. Risk Management: preventing or reducing business loss. Purchasing: Buying goods and services for use in the day-to-day about where a product is sold.

Promotion • Communication used to inform, persuade or remind people about a business’s products or brand. – Promotion also involves persuading customers to purchase a product. – TV, Radio, Internet are all forms of advertising. – Image management.

Selling • Determining customer needs and wants through planned, personalized communication intended to influence purchase decisions and ensure satisfaction. – Includes influencing future purchases and decisions

Web Quest: Pick A Product • Using the “Seven Functions” of Marketing – Research your favorite product with one (1) partner and identify the 7 functions related around your product – Use MS Word and write a brief analysis! 1. Channel Management: Distribution 2. Marketing Information Management 3. Marketing Planning 4. Product/Service Management 5. Pricing 6. Promotion 7. Selling

Section 1. 1 Marketing and the Marketing Concept The Marketing Concept Desires Determine Needs Anticipate Satisfy marketing concept The idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the business.

Section 1. 1 Marketing and the Marketing Concept The Marketing Concept Customer Relationship Management (CRM) Customer Information (Databases) Customer Service helps businesses employ the marketing concept. Marketing Communications

Marketing Concept 1) Businesses become successful by directing all of their efforts to satisfying the needs and wants of the customers. 2) Businesses make a profit by offering the goods and services that the consumer wants. 3) Recognizes the importance of the consumer in the buying process.

Marketing Concept Customer Relations Management also known as “CRM” – Most important relationship in business • Combines consumer information (through database mining and technology) with customer service and communications. – Repeat customers keep companies in business more than new customers • Why? Explain?

Case Study: Johnson & Johnson

Checkpoint • Explain why the definition of marketing changes over time. – Marketing is ongoing. – Marketers must keep up with trends and consumer attitudes when trends and the customer base change over time. – The AMA revises the definition of marketing to make sure it conforms to current practices in the marketplace.

Checkpoint • Identify an example of an economic good an economic service. – Goods are tangible items that have monetary value and satisfy customers’ needs and wants. • Examples of economic goods are cars, furniture, electronics, and clothing. Services are intangible items that have monetary value and satisfy customers’ needs and wants. • Examples of economic services are banks, movie theaters, and accounting services.

Checkpoint • Describe how Customer Relationship Management – Customer Relationship Management combines customer information (through database and computer technology) with customer service and marketing communications. – Allows companies to serve their customers as efficiently as possible and makes them better able to satisfy customers’ needs and generate a profit.

Fundamentals of Marketing CONNECT What markets are you a part of? The term market refers to all the people who might buy a product. The marketing mix is a combination of elements used to sell a product to a specific target market.

Fundamentals of Marketing • Describe how marketers use knowledge of the market to sell products. • Compare and contrast consumer and organizational markets. • Explain the importance of target markets. • Explain how each component of the marketing mix contributes to successful marketing.

Fundamentals of Marketing • market • consumer market • organizational market • market share • target market • customer profile • marketing mix

Fundamentals of Marketing Market Terms and the Four Ps of the Marketing Mix

Fundamentals of Marketing Market Terms and the Four Ps of the Marketing Mix

Fundamentals of Marketing Market and Market Identification You could be part of the market for video games, but not be part of the market for an expensive car. market All people who share similar needs and wants and who have the ability to purchase a given product.

Fundamentals of Marketing Market and Market Identification Consumer Market consumer market Consumers who purchase goods and services for personal use. versus Organizational Market organizational market Also known as business-tobusiness (B 2 B), this includes all businesses that buy products for use in their operations.

Fundamentals of Marketing Market and Market Identification U. S. Smartphone Market Share market share A company’s percentage of the total sales volume generated by all companies that compete in a given market

Fundamentals of Marketing Market and Market Identification The goal of market segmentation is to identify target markets. market segmentation The process of classifying people who form a given market into even smaller groups. target market The group of people most likely to become customers, identified for a specific marketing program.

Fundamentals of Marketing Market and Market Identification Details About Markets

Fundamentals of Marketing Market and Market Identification Details About Markets . .

Fundamentals of Marketing Market and Market Identification Information in Customer Profile customer profile Information about the target market, such as age, gender, income level, marital status, ethnic background, geographic residence, attitudes, lifestyle, and behavior.

Fundamentals of Marketing Market and Market Identification Information in Customer Profile

Fundamentals of Marketing Mix Product Four Ps of the Marketing Mix marketing mix The four basic marketing strategies called the four P’s: product, place, price, and promotion. Price Place Promotion

The goods and services a business will offer to its customers Informing, reminding, and persuading customers of the goods and services available to them. The amount a business charges customers for their products Making products available at the right time and location.

THE FOUR P OF S MARKETING

The Four Ps of Marketing • The marketing mix, known as the four P’s: (Product, Price, Place, Promotion), is a combination of decisions a business must make in order to best reach its target market

Product • The goods and services a business will offer to its customers – A. Choice of product: Will the business offer a variety of products? – B. Packaging: Does the packaging protect the product and provide necessary information about the product?

Product Continued… • The goods and services a business will offer to its customers – C. Level of quality: What level of quality will the business ensure? – D. Brand name: What brand name products will the business offer? – E. Warranty: Will the business offer a warranty to its customers to ensure satisfaction?

Price • The amount a business charges customers for their products – A. Price setting. Price will be set based on product demand, cost, and competitors’ actions. – B. Terms. Will the company only accept cash? Will the company extend credit? What type of credit will the company extend?

Price Continued… – C. Discounts. Will the business offer discounts to employees? Locals? Will the business discount merchandise at certain times of the year?

Place (Distribution) • Making products available at the right time and location. – A. Channels of Distribution: the path a product takes to get from the producer to the consumer – B. What specific stores will offer the products? (wholesaler, retailer, department, discount, etc. )

Place Continued… – C. What method of transportation will be used to get the product from the producer to the consumer? (truck, train, place, boat, pipeline) – D. How will inventory be handled and controlled? (methods- physical, storing, checking, or receiving)

Promotion • Informing, reminding, and persuading customers of the goods and services available to them. – A. What will the message be? – B. When will the message be delivered? – C. Where will the message be delivered? – D. What inducements will be used to encourage customers to purchase the product? – E. How will the message be delivered?

Team Activity: Identify the 4 Ps

Marketing Information Management for COKE Data collected by the retail stores through: – Scanners • Scanners produce universal product codes, number of items purchased, price, time, and the store name and location. – Frequent shopper card programs • Track transactions to specific households and monitor purchasing patterns. – Collective observations • Help to identify shopping behaviors. – Did the customer browse or go straight to a particular product. – Did Coke's products sell better when located in the front of the store or the back? – Were sales higher for Coke's products when placed next to candy products or rival soda products?

Product Management for COKE Product Innovations: – Coke introduced more than 500 new beverages in 2012 – Continues to pack its pipeline with fresh offerings – On the equipment front, the next-generation Coca-Cola Freestyle dispenser – Accompanying mobile app are reinventing the fountain experience and driving consumer co-creation

Marketing Planning for COKE Consumer behavior & specific markets: – Targeting specific tastes • • Organic or natural Sugar vs. Diet Healthy vs. Semi-healthy Cultural impacts on preferences – Quality vs. Quantity • • Packaging Pricing Promotion Multi-labels vs. brand varieties

Pricing for COKE Pricing Deals and Offerings: – Because they have a strong competitor, they have to keep their prices in line to compete. – The will often reduce the price of their products when entering new markets. • • They do this to raise brand awareness and face the competition. Once they are established, they move the prices back up to position themselves as a premium product. ”Meet-the-competition pricing”: the Coca. Cola products pricing are set around the same level as its competitors, Coca Cola has had to remain tremendously fluent and consistent with their pricing strategy

Promotion for COKE Promotional Offerings: • Consumer Provocations: Coca-Cola is moving from promoting happiness to provoking it… • Cultural Leadership: Millennials expect companies like Coca-Cola to take a TAOS –Transparent, Authentic, Organic and Sustainable – approach to all communications. – It’s important for them, as a big brand, to lead culture and not just follow it

Selling COKE: • Coca-Cola has built its business using a universal strategy based on three timeless principles: – acceptability - through effective marketing, ensuring Coca-Cola brands are an integral part of consumers' daily lives, making Coca-Cola the preferred beverage everywhere – affordability - Coca-Cola guarantees it offers the best price in terms of value for money – availability - making sure that Coca-Cola brands are available anywhere people want refreshment, a pervasive penetration of the marketplace.

Distribution & COKE Where’s Waldo? COKE: • Coke’s distribution system is one of the most important and is very impressive compared to all other drinks in the category. – So successful that even wholesalers and distributors need the product for their business’ success. – Coke’s position on consumer’s mind makes it essential to retailers, wholesalers and awayfrom-home market. – Thanks to this high visibility, and to the availability of the products all over the world, even in remote places.

Fundamentals of Marketing Section 1. 3 1. Identify a market in which a business would consider you a potential customer. Possible answers would be: fast food chains (i. e. Mc. Donalds, Burger King), cell phones, jeans manufacturers, specific retail stores such as The GAP and Abercrombie & Fitch. These businesses carry items that appeal to teenagers, so teens are one of their target markets.

Fundamentals of Marketing Section 1. 3 2. Contrast What is the main difference between consumer and organizational markets? The consumer market consists of people who buy goods and services for personal use. In the organizational market, goods and services are purchased for use in a business operation.

Fundamentals of Marketing Section 1. 3 3. Connect How are market segmentation, target markets, and customer profiles related? Market segmentation helps marketers classify customers based on certain characteristics that can be used to develop customer profiles for a specific target market.

List of Products • • • Chap-Stick Lip balm Double-bubble chewing gum Hall’s Cough Drops Clorox Hand Sanitizer Hershey’s Chocolate Bar Ice Breakers Mints

Different 4 P Approaches! Thinking Outside the Box Can you think outside the box? Can you react fast to an opportunity?

Promotion: Natural, Healthy Cereal sales are in steady decline in the last decade. As a result, the big 3 manufacturers – Kellogg’s, Post, and General Mills – are looking to new offerings that cater to customers’ perceived needs. Keywords such as Natural, Protein, and Ancient Grains make the product sound healthier and more attractive, even if it’s not. So if you start spotting new and trendy products, don’t forget to flip them over to read the nutrition label and ingredient list. FYI…. New Ancient Grains Cheerios cereal is no healthier than the regular Cheerios in the yellow box. In fact, it has less fiber and more sugar.

Promotion: Special Places Horror and promotion aren’t new! Primal fears deepen memories!

Image: Lies & Falsehoods When immigrant Nathan Handwerker, an employee at the very successful Coney Island fast food eatery Feltman's, went out on his own and opened a competitor, he had problems. First, he tried to undercut his old boss on price, but only succeeded in making customers skeptical of the quality. Next, he either had bums dress as doctors, or offered free food to doctors and nurses in uniform. Either way, the public came to identify Nathan's Famous with medical professionals.

Celebrity Star Power Oprah Winfrey's stamp of approval may sell books, but a 2004 Pontiac giveaway on her show didn't work out as planned. General Motors promoted its Pontiac G 6 by giving one to every member of her studio audience-276 cars for a total retail value of nearly $8 million. But while Oprah basked in good press, few people noticed that the cars were Pontiacs. To make matters worse, days after the stunt, it was announced that each "winner" had to pay nearly $7000 tax on the vehicles.

Sprite Campaign for Beach Unique ads create Buzz…Talk leads to Buzz… Buzz drives sales…

Novelty: Perspective Are You Hungry? Do You Feel Cold?