Unit 3 Basic Marketing Concepts http www youtube

Unit 3 Basic Marketing Concepts

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Commercial Questionnaire FWhat is the product? FWho is the target audience? FDo you think this commercial creates a relationship with its market? If so, what is it? FWhat aspects of this commercial are memorable?

Unit 3 Vocabulary F F F F Competitive Advantage Consumers Consumer Market Customers Customer Lifetime Value Customer Profile Customer Relationship Management (CRM) Demographics Discretionary Income Disposable Income Environmental Scan Executive Summary Geographics F F F F Goods Industrial Market Share Marketing Concept Marketing Mix Market Segmentation Marketing Strategy Mass-Marketing Positioning Products Psychographics Sales Forecast Services

Unit 3 Vocabulary F F Situation Analysis SWOT Analysis Target Market Unique Value Proposition

Unit 3 Essential Question F How do the fundamental marketing concepts relate to the scope and impact of marketing on the economy?

Essential Question 1 Basic Marketing Concepts FWhat is marketing?

Marketing is. . . F The process of planning, pricing, promoting, selling and distributing products to create exchanges that satisfy customers needs and wants. F Products – Goods – Services – Information / Ideas

Essential Question 2 Basic Marketing Concepts FHow do marketing strategies relate to the marketing mix?

Target Marketing - Focuses all marketing decisions on the specific group of people you want to reach. The Marketing Mix FProduct 4 P FPlace ’s of FPrice M ark FPromotion e tin g

Product Positioning F Positioning: Getting the consumer to think about a product in a certain way. F Methods of positioning: – Playing to the competition's weaknesses. – Looking for underserved markets. – Leading with your strengths. – Targeting different market segments.

Marketing Strategies F Marketing strategy: Identification of target markets and determination of marketing mix choices that focus on those markets. F An effective marketing strategy will focus on a company’s or product’s competitive advantage: the key point of difference.

Essential Question 3 Basic Marketing Concepts FWhat are the marketing functions and their related activities?

Functions of Marketing F Distribution – The physical movement of a good or service. – Deciding where and to what extent to sell a good or service.

Functions of Marketing F Financing – Determining the need for and availability of financial resources to aid in marketing activities.

Functions of Marketing F Marketing Information Management - Gathering, recording, analyzing, and disseminating information to aid in making marketing decisions.

Functions of Marketing F Pricing – The determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.

Functions of Marketing F Product/Service Management – Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

Functions of Marketing F Promotion – Communicates information about products, services, images, or ideas to customers or clients to influence their purchase behavior.

Functions of Marketing F Selling – Responding to consumers needs and wants through planned, personalized communications intended to influence purchase decisions.

Essential Question 4 Basic Marketing Concepts FHow do the effects of various marketing activities compare and contrast?

Marketing Activities F The marketing activities associated with Distribution: – Determining mode of transportation (Motor, Plane, Rail, Air, Pipeline) – Location of business (Country, Geography, Street, etc. ) – Location of product (Front of store, back of store, top shelf, bottom shelf, etc. )

Marketing Activities F The marketing activities associated with Financing: – Budgeting: u Sources of capital u Expenditures of capital – Accounting: u Cash flow statement u Income statement u Balance sheet

Marketing Activities F The marketing activities associated with Marketing Information Management: – Surveys u Customer comment cards u Social media questionnaires u Point of Sale questions by cashier – SWOT Analysis – Customer / consumer research – Trend analysis

Marketing Activities F The marketing activities associated with Pricing: – Product cost analysis – Break-even analysis – Pricing goals, strategies, techniques – Consumer perceptions – Government regulations – Product life cycle

Marketing Activities F The marketing activities associated with Product/Service Management: – Updating / modifying products – Changing / modifying product mix – Branding, packaging, labeling – Product positioning – Product bundeling

Marketing Activities F The marketing activities associated with Promotion: – Sales / specials u Buy 1 get 1 free u 25% off – Coupons – Advertising – Publicity – Personal Selling

Marketing Activities F The marketing activities associated with Selling: – Shopping – Personal selling – Buying products – Customer buying motives – Customer decision making

Essential Question 5 Basic Marketing Concepts FHow do marketing plans interact with marketing strategies?

Marketing Plan F Marketing Plan – A formal, written document that directs a company’s activities for a specific period of time. – Elements of a Marketing Plan include: u. Marketing Strategies u. Situation Analysis u. Implementation u. Evaluation and Control

Marketing Plan F Marketing Plan – The Marketing Strategies section of the Marketing Plan focuses on: u. Product Positioning u. Marketing Mix – Product – Place – Price – Promotion

Marketing Plan F Marketing Plan – The Marketing Strategies section of the Marketing Plan focuses on: u. Competitive advantage is an advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition.

Marketing Plan F Marketing Plan – The Marketing Strategies section of the Marketing Plan focuses on: u. Unique Value Proposition is a clear statement that describes the benefit of your offer, how you solve your customer’s needs and what distinguishes you from the competition.

Essential Question 6 Basic Marketing Concepts FHow does the marketing planning process employ situational analysis?

Situational Analysis F Situational Analysis: The study of the internal and external factors that affect marketing strategies and is an element of the Marketing Plan.

Situational Analysis FA Situational Analysis includes: – SWOT Analysis: An assessment of the company’s internal Strengths and Weaknesses and external Opportunities and Threats. – Environmental Scan: An analysis of outside influences that may have an impact on the organization. It includes: u Political u Economic u Socio-Cultural u Technological

Essential Question 7 Basic Marketing Concepts FHow are the concepts of market, market segmentation, and market identification differentiated?

Market Segmentation

Identifying Your Customers F Market: A group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product. F Market Segmentation: Dividing the total market into smaller groups of people who share specific needs and characteristics.

Customers vs. Consumers Customers FBuy a product Consumers FUse the product

Consumer Market vs. Industrial Market Consumer FPersonal Use Industrial FBusiness Use

Market Segmentation Geographics F Segmentation of the market based on where people live.

Market Segmentation Demographics F Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc.

Market Segmentation Psychographics F Involves the study of customers based on lifestyle, and the attitudes and values that shape it.

Market Segmentation Product Benefits F Built in features of products in response to consumer needs and wants.

Market Identification: Identifying Your Customers Developing a Customer Profile F Combining geographic, demographic, psychographic, and product benefit data to get a complete picture of your potential customers.

Essential Question 8 Basic Marketing Concepts FHow does the marketing concept relate to customer needs and wants?

Brainstorm F What are the differences between sales-oriented and marketing-oriented companies.

The Marketing Concept F In order for a business to make a profit, it must focus all of its efforts on satisfying the needs and wants of its customers.

Customer Satisfaction F Involves creating a relationship with the customer to achieve customer loyalty – also known as Customer Relationship Management (CRM). F Customer satisfaction is directly related to the product’s perceived value.

Customer Lifetime Value F Customer Lifetime Value is a prediction of the net profit attributed to the entire future relationship with a customer. Customer lifetime value encourages firms to focus on the long -term health of their customer relationships.