Marketing A group of activities designed to expedite

Marketing [ A group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas ] Creates value by allowing individuals and organizations to obtain what they need and want FHF 12 -1

Marketing is NOT • Manipulating consumers • Just selling & advertising Marketing IS • A systematic approach to satisfying consumers FHF 12 -2

Exchange [ The act of giving up one thing (money, credit, labor, goods) in return (exchange) for something else (goods, services, or ideas) ] FHF 12 -3

The New Marketing Environment in Retail Permanent discounts (Wal-Mart’s model) Taking market share rather than focusing on growth • Some stores are differentiating through going upscale • Some are opening new stores to get greater market share Focus on value FHF 12 -4

Functions of Marketing • Buying • Selling • Transporting • Storing • Grading • Financing • Marketing research • Risk-taking FHF 12 -5

Customer-Contact Employees Must know what customers want They are not selling goods and services, but: • Ideas • Benefits • Philosophies • Experiences Customers’ perception of value= Level of success FHF 12 -6

Marketing Goals • Customer satisfaction • Achieve business objectives • Boost productivity • Reduce costs • Capture market share FHF 12 -7

Evolution of the Marketing Concept Production Orientation • 19 th Century • Manufacturing efficiency Sales Orientation • Early 20 th Century • Supply exceeds demand -need to “sell” products Marketing Orientation • 1950 s • First determine what customers want FHF 12 -8

Marketing Orientation An approach requiring organizations to gather information about customer needs, share information across firm, use information to build long-term relationships with customers [ ] FHF 12 -9

Market A group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas Target Market • A more specific group of consumers on whose needs and wants a company focuses its marketing efforts FHF 12 -10

A firm tries to appeal to all consumers and assumes that they all have similar needs • Salt, sugar, flour, white bread are all examples of products that typically are sold using a total market approach Total-Market Approach FHF 12 -11

Market Segmentation A strategy to divide the total market into groups of people with relatively similar product needs Market segment • A collection of individuals, groups or organizations sharing one or more characteristics thus having relatively similar needs and desires for products. FHF 12 -12

Segmentation Approaches Concentration Approach • A market segmentation strategy whereby a company develops one marketing strategy approach for a single market segment Multisegment Approach • A market segmentation strategy whereby a company aims its efforts at two or more segments, developing a marketing strategy for each FHF 12 -13

Bases for Market Segmentation • Demographic • Geographic • Psychographic • Behavioristic FHF 12 -14

FHF Developing the Marketing Mix 12 -15

Product [ A good, service or idea that has tangible and intangible attributes that provide satisfaction and benefits to consumers ] FHF 12 -16

Price [ A value placed on a product or service that is exchanged between a buyer and seller ] FHF 12 -17

Distribution [ Making products available to consumers in the quantities and locations desired ] FHF 12 -18

Mobile Shopping Prevalence of smart phones have led to more online shopping • Amazon paired with i. Phone to allow customers to shop for books online, and to read information about products • Sears even allows consumers to shop for refrigerators online Customers expect online shopping to be available and easy FHF 12 -19

Promotion [ A persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals and organizations to accept goods, services, and ideas ] FHF 12 -20

Marketing Research Systematic and objective process to collect information about potential customers • Guides marketing decisions FHF 12 -21

Collecting Data Primary data • Marketing information that is observed, recorded or collected directly from respondents (consumers). Secondary data • Information compiled inside or outside the organization for some purpose other than changing the current situation FHF 12 -22

Buying Behavior [ Decision processes and actions of people who purchase and use products ] FHF 12 -23

Psychological Variables for Buying Behavior Perception • Process by which a person selects, organizes, and interprets information received from one’s senses. (hearing a radio ad, touching a product) Learning • Brings changes in behavior based on information and experience Attitude • Positive or negative feelings about something Personality • Individuals distinguishing character traits, attitudes, or habits FHF 12 -24

Social Variables for Buying Behavior Social Roles • Set of expectations of individuals based on some position they occupy Reference Groups • Groups with whom buyers identify and whose values or attitudes they adopt Social Classes • Ranking of people into higher or lower positions of respect Culture • Integrated, accepted pattern of behavior including thought, speech, beliefs, actions and artifacts FHF 12 -25

The Marketing Environment External forces that directly and indirectly affect marketing strategy • Political, legal and regulatory forces • Social forces • Competitive and economic forces • Technological forces FHF 12 -26

The Marketing Mix and Marketing Environment FHF 12 -27

FHF 12 -28