The World of Marketing

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The World of Marketing

  1. 2. “ Everything a business does to help get a product from the producer to the consumer” Marketing
  2. 3. When did Marketing Begin? Agriculture Industrial Information/ Marketing
  3. 4. What is a Market? <ul><li>Buyer: </li></ul><ul><ul><li>Any place where goods and services are bought and sold </li></ul></ul><ul><li>Seller: </li></ul><ul><ul><li>A group of people that have: </li></ul></ul><ul><ul><ul><li>-a want or need for a product </li></ul></ul></ul><ul><ul><ul><li>-a willingness to buy </li></ul></ul></ul><ul><ul><ul><li>-financial ability </li></ul></ul></ul>
  4. 5. <ul><li>States that the customers make the decisions about what products are sold on the market </li></ul>The Marketing Concept
  5. 6. Why is does Marketing Matter? <ul><li>New and improved products generate competition </li></ul><ul><li>Lower prices – overhead </li></ul><ul><li>Added value and utility – satisfy needs/wants </li></ul>
  6. 7. Product Life Cycle ALL PRODUCTS HAVE A LIFE LIKE US! THEREFORE, ALL PRODUCTS WILL BE BORN & WILL DIE
  7. 8. PRODUCT LIFE CYCLE <ul><li>A particular firm's marketing mix usually must change during the PLC.  Customers' attitudes and needs may change over the PLC.  The product may be aimed at entirely different targets at different stages.   </li></ul><ul><li>EXAMPLE: an automobile is a product that provides personal transportation, but our choice of vehicle changes as our needs and situations change.   </li></ul>
  8. 9. Product Life Cycle
  9. 10.   FACT! Most companies experience losses during introduction because they spend a lot of money for promotion, product, and place development.  INTRODUCTION STAGE This is the time to promote your product so people begin to learn about your product.
  10. 11. GROWTH STAGE <ul><li>This is the stage where industry profits are largest, but it is also when industry profits begin to decline as increased competition creates downward pressure on prices . </li></ul>
  11. 12. MATURITY STAGE <ul><li>Market Maturity occurs when industry sales level off .  Competition gets tougher as aggressive competitors have entered the race for profits. </li></ul><ul><li>EX.) In the United States, the markets for most cars, boats, television sets, and most household appliances are in market maturity.  This stage may continue for many years -- until a new product idea comes along that makes the old product concept obsolete -- even though individual brands or models come and go. </li></ul>
  12. 13. DECLINE STAGE <ul><li>During the Sales Decline stage, new products replace the old.   Price competition from dying products becomes more vigorous, but firms with strong brands may make profits until the end because they successfully differentiated their products . </li></ul>
  13. 14. <ul><li>Channel Mgt </li></ul><ul><li>Market Planning </li></ul><ul><li>Marketing Information Mgt </li></ul><ul><li>Pricing </li></ul><ul><li>Product/Service Mgt </li></ul><ul><li>Promotion </li></ul><ul><li>Selling </li></ul>7 Core Marketing Functions
  14. 15. Channel of Distribution
  15. 16. Channel of Distribution Walmart
  16. 17. Profit Making T-Shirt @ School Store <ul><li>Cost to Manufacturer ------------------------ $1.50 </li></ul><ul><li>Sells to T-Shirt Wholesaler ----------------- $2.50 </li></ul><ul><li>Sells to Screen Print Wholesaler ---------- $4.00 </li></ul><ul><li>Sells to T Shirt Retailer ------ -------------- $7.50 </li></ul><ul><li>Sells to YOU -------------------------------- $15.00 </li></ul>
  17. 18. Profit Making T-Shirt @ School Store <ul><li>Cost to Manufacturer ------------------------ $1.50 </li></ul><ul><li>Sells to T-Shirt Wholesaler ----------------- $2.50 </li></ul><ul><li>Sells to Screen Print Wholesaler ---------- $4.00 </li></ul><ul><li>Sells to T Shirt Retailer ------ -------------- $7.50 </li></ul><ul><li>Sells to YOU -------------------------------- $15.00 </li></ul>&quot;Value Added&quot;
  18. 19. <ul><li>Pushing: </li></ul><ul><ul><li>happens when a product is on the market because a business feels it will sell -- therefore they introduce it </li></ul></ul><ul><ul><ul><li>Vending machines @ LSHS </li></ul></ul></ul><ul><li>Pulling: </li></ul><ul><ul><li>happens when a product is on the market because consumers feel they want it -- therefore a company will introduce it </li></ul></ul><ul><ul><ul><li>Restaurants in Lakeville </li></ul></ul></ul>PUSHING vs. PULLING
  19. 20. <ul><li>Form Utility </li></ul><ul><li>Ex. Jackets </li></ul><ul><li>Time Utility </li></ul><ul><li>Ex. 24 Hr Grocery </li></ul><ul><li>Place Utility </li></ul><ul><li>Ex. Store, Internet ect.. </li></ul><ul><li>Possession Utility </li></ul><ul><li>Every time legal ownership takes place </li></ul>Product Utility A.K.A...&quot;Usefullness&quot;
  20. 21. The Utility Quiz <ul><li>swimming suits in July </li></ul><ul><li>Paper sold at school store </li></ul><ul><li>24 hour delivery service </li></ul><ul><li>instant credit service </li></ul><ul><li>skis for a winter carnival </li></ul><ul><li>stores in a suburban location </li></ul><ul><li>stores open at night </li></ul><ul><li>cotton made into a shirt </li></ul><ul><li>vending machines in an airport lounge </li></ul><ul><li>Starbucks open at 6:00am </li></ul>
  21. 22. What is a MARKET? <ul><li>All people </li></ul><ul><li>who share similar needs and wants and who have the </li></ul><ul><li>ABILITY </li></ul><ul><li>to purchase a given product </li></ul>
  22. 23. Consumer Market Consists of consumers who purchase goods and services for their personal use. Industrial Market ( B2B) this market includes all businesses that buy products for use in their operations. * Most relate to improving profits Two Types of Markets…
  23. 24. HOW DO YOU DETERMINE THE MARKET?
  24. 25. Target Market A group of people who are identified for a specific marketing plan
  25. 26. Market Segmentation <ul><li>The process of classifying people who form a given market into even smaller groups </li></ul>
  26. 27. MARKET SEGMENTATION <ul><li>3 WAYS… </li></ul><ul><ul><li>Demographics ( age, income, gender, marital status, ethnic background) </li></ul></ul><ul><ul><li>Geographics (local, regional, national, or global) </li></ul></ul><ul><ul><li>Psychographics (similar lifestyles- shared attitudes, values, and opinions) </li></ul></ul><ul><ul><li>Behavioral (shopping patterns & usage rate) </li></ul></ul>
  27. 28. <ul><li>the amount of sales that </li></ul><ul><li>a company controls </li></ul><ul><li>within it’s industry </li></ul>Market Share
  28. 29. Market Share <ul><li>1 million hamburgers are wanted in Lakeville every year… </li></ul><ul><li>McDonalds 300,000 </li></ul><ul><li>Burger King 250,000 </li></ul><ul><li>Wendy’s 150,000 </li></ul><ul><li>Green Mill 100,000 </li></ul><ul><li>Applebee's 200,000 </li></ul>
  29. 30. Market share <ul><li>1 million hamburgers are wanted in Lakeville every year… </li></ul><ul><li>McDonalds 300,000 </li></ul><ul><li>Burger King 250,000 </li></ul><ul><li>Wendy’s 150,000 </li></ul><ul><li>Green Mill 100,000 </li></ul><ul><li>Applebee's 200,000 </li></ul>= 30% = 25% = 15% = 10% = 20%
  30. 31. <ul><li>1 million hamburgers are wanted in Lakeville every year… </li></ul><ul><li>McDonalds 300,000 </li></ul><ul><li>Burger King 250,000 </li></ul><ul><li>Wendy’s 150,000 </li></ul><ul><li>Green Mill 100,000 </li></ul><ul><li>Applebee's 200,000 </li></ul>= 30% = 25% = 15% = 10% = 20% Saturated Market
  31. 32. Marketing Mix Product Price Place Promotion
  32. 33. Your Turn… <ul><li>Select a product that you have recently purchased or a product that interests you. </li></ul><ul><li>Describe the 4 P’s used for the product. </li></ul><ul><li>List all the examples you can think of… </li></ul><ul><li>Do you think they were good mktg ideas? </li></ul><ul><li>Why or why not? </li></ul>
  33. 34. The Marketing Plan
  34. 35. SWOT Analysis <ul><li>S trengths </li></ul><ul><li>W eaknesses </li></ul><ul><li>O pportunities </li></ul><ul><li>T hreats </li></ul>
  35. 37. Internal Strengths/Weaknesses <ul><ul><li>Company analysis </li></ul></ul><ul><ul><ul><ul><ul><li>Staff-related ?’s </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Financial ?’s </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Production Capability ?’s </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Marketing Mix (4 P’s) ?’s </li></ul></ul></ul></ul></ul><ul><ul><li>Customer Analysis </li></ul></ul><ul><ul><li>Competitive Position </li></ul></ul>
  36. 38. External Opportunities/Threats <ul><li>Competition </li></ul><ul><li>Environmental Scan “PEST” </li></ul><ul><li>P olitical (ex. Regulations on telemarketing, music downloading) </li></ul><ul><li>E conomic (ex. Recession, unemployment) </li></ul><ul><li>S ocio-cultural (ex. Increasing diversity, obesity) </li></ul><ul><li>T echnological (ex. Computer automation, satellite technology) </li></ul>
  37. 39. Your Turn… <ul><li>Assignment: Prepare a SWOT Analysis </li></ul><ul><li>Select a company that interests you </li></ul><ul><li>Prepare a SWOT analysis </li></ul><ul><li>Then, prepare a chart that depicts the company’s internal S’s & W’s, and external O’s & T’s </li></ul>

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