Marketing Essentials Marketing Is All Around Us What

Marketing Essentials Marketing Is All Around Us What Is Marketing? 1 1

Think of a product or service that appeals to you. List as many reasons why you like it. How does the manufacturer or service provider know the product or service would appeal to you?

Think of a product or service that no longer appeals to you. List as many reasons why you’ve stopped consuming it. How can the manufacturer or service provider regain your loyalty?

Marketing is a process of identifying& satisfying the NEEDS of consumers.

What Is Marketing? Marketing is the process of : 1. Developing – coming up with the ideas of what to sell. 2. Promoting - getting the word out about what you sell 3. Pricing – Deciding how much to charge 4. Selling – Convincing people to buy 5. Distributing – getting what you sell to the people who need and want them *Do the five things above to satisfy customer’s wants and needs.

Wants vs. Needs

Maslow’s Hierarchy of Needs

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Maslow Activity Choose a product (any product). Design/sketch an ad that reaches one of Maslow’s Hierarchy of Needs.

Customers vs. Consumers Customers buy a product. • Sometimes for themselves • Sometimes for others Consumers use the product. = Example: Parents who buy cereal or video games from retailers are customers. The kids who play the video games or eat the cereal are the consumers.

Name 6 stores in our local area: l l Do you know if these stores would be considered goods producing businesses or service producing businesses? Lets look at the next slide before we decide…………

Satisfying Wants and Needs with products. Products = Goods and Services Goods: A tangible item you can carry away with you. Examples: Hammers, automobiles, soda pop, clothing, and computers Services: An activity you pay someone else to do for you. Examples: Dry cleaners, amusement parks, attorneys, and movie theaters Exchange: Buying or selling a good or service Now see if you can correctly label your local businesses.

The Marketing Concept This is an idea or belief system that is very important if your business is going to be successful. The marketing concept states that in order to be successful, businesses must focus all their efforts on: 1. Satisfying customers' needs and wants 2. They must do this better than the competition in order to make a profit.

Marketing brings about 2 benefits to us as customers/consumers…. . Can you guess the first one? **view Bill Cosby Commercial • What do you think Competitors (Pepsi) did in response to this ad? • How could they still get people to buy Pepsi?

The Benefits of Marketing 1. New and improved products Businesses create new products and improve existing products to maintain their current customers or attract new ones.

The Benefits of Marketing Can you guess the second one? Lower Prices

The Benefits of Marketing 2. - Lower prices l Lower prices benefit customers while businesses benefit by selling more product at the lower price.

SWOT analysis 1. SWOT analysis: The acronym for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis reviews the potential for success or failure of a business or product. 2. Strengths and weaknesses are Internal - Businesses must continually review internal strengths and weaknesses. For example, Mc. Donalds introduced the fruit cup as an alternative to fries. After one month of its introduction, Mc. Donalds evaluated the strengths and weaknesses of the product. 3. Opportunities and threats are External factors that will also affect operating the business. For example, staying informed of what current products are offered by competitors. For example, when Coke introduced its new product Vault, Pepsi suffered a decrease in sales for its existing product Mountain Dew

SWOT video

S. W. O. T Strengths: Opportunities l Advantages the business l Potential for growth already has going for them. l Potential to reach New Markets l Resources they already have. l Potential to change negative image l Brand awareness that l New trends or “fads” that would be to already exists. their advantage. l Money they have to work with l Positive economic situations l Internal things which they l External things going on that are have some control over that working for the business, but which are already in their favor. they have very little control over. Weaknesses: Threats l Things the store already has l Poor economic situations going against them. l Competitors coming up with similar l Additional costs to the products or currently having similar business products l Pre existing negative l Possibly Negative response from public perceptions of the business. l Environmental obstacles l Internal things which they l Political obstacles have some control over. l External things going on that are working against the business, but which they have very little control over.

SWOT l l l The most important aspect of the SWOT analysis is to make even the weaknesses and threats sound like positives. Team SWOT 2 nd activity