Definition of Marketing
Marketing is defined as the act or process of buying and
selling in a market. It is the commercial functions involved in
transferring goods from producer to consumer
The basic understanding of marketing is found in the
The Importance of Marketing
It is greatly needed in today’s economy
It can give you an edge over your competition
Used to gain a bigger customer base
Reminds customers why they choose to use your
The Marketing Mix
The product is the physical product
or service offered to the consumer.
In the case of physical products, it
also refers to any services or
conveniences that are part of the
offering. Product decisions include
aspects such as
function, appearance, packaging, ser
vice, warranty, etc.
Pricing decisions should take into account profit margins and the probable
pricing response of competitors. Pricing includes not only the list price, but
also discounts, financing, and other options such as leasing.
Promotion decisions are those related to communicating and selling to
potential consumers. Since these costs can be large in proportion to the
product price, a break-even analysis should be performed when making
promotion decisions. It is useful to know the value of a customer in order to
determine whether additional customers are worth the cost of acquiring
them. Promotion decisions involve advertising, public relations, media
Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting
the product to the target customers. The distribution system performs transactional, logistical, and facilitating
functions. Distribution decisions include market coverage, channel member selection, logistics, and levels of service.
People decisions are those related to customer service. How do you want
your workers to appear to your customers? There are a range of service
profiles from service with a smile - McDonald's, to classier Nordstrom's, to
plain rude - Ed Debevic's. The function of people to present an
appearance, an attitude, etc.
Summary of Marketing Mix Decisions
Product Price Promotion Place People
Functionality List Price Advertising Channel- Service
Appearance Discounts Personal- Members Appearance
Quality Allowances Selling Channel- Uniforms
Packaging Financing Public- Motivation Attitude
Brand Leasing- Relations Market-
Warranty Options Message Coverage
Service/ Media Locations
Report Budget L0gistics
The Target Market
When marketing a product you must find what/ who is your
target market. Your target market is the people group/ region
you are trying to reach with your product/service
A Products Life Cycle
In the introduction stage, the firm seeks to build product awareness
and develop a market for the product.
In the growth stage, the firm seeks to build brand
preference and increase market share
At maturity, the strong growth in
sales diminishes. Competition may
Maturity appear with similar products. The
primary objective at this point is to
defend market share while
As sales decline, the firm has several options:
• Maintain the product- possibly rejuvenating it by
adding new features and finding new uses
• Harvest the product- reduce costs and continue
to offer it, possibly to a loyal niche segment
• Discontinue the product- liquidating remaining
inventory or selling it to another firm that is willing
to continue the product
The essence of marketing is to understand your customers' needs
and develop a plan that surrounds those needs. Anyone that has a
business has a desire to grow their business. The most effective
way to grow and expand your business is by focusing on expanding
your customer base.
You can increase your customer sales in four different ways.
1. Acquiring more customers
2. Persuading each customer to buy more products
3. Persuading each customer to buy more expensive products or up selling
4. Persuading each customer to buy more profitable products
All four of these increase your revenue and profit. By acquiring more customers
you increase your customer base and your revenues that come from a larger
base. Marketing is used for researching and creating a strategic marketing
plan that will increase your customer base.
A good marketing plan will:
• Guide your product development to reach out to customers you aren't
• Price your products and services competitively.
• Develop your message and materials based on solution marketing.