What is Marketing?Marketing - Process of planning & executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.Marketplace – the commercial environment where we make exchanges (Buyers & Sellers) $ exchanged for goods & services Labor exchanged for wages Goods exchanged for other goods
Marketing begins with PEOPLEWith the development & marketing of any product, both the consumer & customer are in CONTROL Examples: 1. Breakfast Cereals 2. Ice Cream 3. Specialty Goods & Services 4. Others WHY????
The Market – all potential customers & consumers for a productGreat market diversity is based on product specialization & market competitionBehind these products are market researchers, product planners, warehouse and trucking companies, professional buyers & sellers, and advertising specialists
Product• Marketers ask… – What product to make? – When to make it? – What level of quality to produce? – How many to offer for sale? – How to package and label it? In order to do this…• Marketers must anticipate their customers’ present and future needs
PRICEDefinition: the price a customer is willing to pay and the price at which a marketer is willing to offer a product determines the exchangeWhat influences the PRICE? a # of suppliers b # of customers c the availability of product
PLACEMarketers look for the “ULTIMATE CONSUMERS” a. DECISION based on how product will get from producers/manufacturers to people who use them b. DECISION can be to market products directly to consumers c. DECISION can be to market through intermediaries (Wholesalers and Retailers) d. Getting product conveniently to customer (essential to the marketing mix)
PROMOTIONIncludes ALL the activities designed to bring goods and services of company to the attention of the customerMarketers educate potential customers through newspapers, radio, TV, magazines, internet advertisements, billboards, direct mail, etc….
Marketing MixSet of marketing tools Marketing Mix Enhanced firm uses to implement it’s marketing (PEOPLE) – Most important strategy!! element of any service/exp.THE 4 P’s (PHYSICAL EVIDENCE) – (PRODUCT) uniforms, facilities, livery (PRICE) -The material part of service (PLACE) (PROCESS) – the whole (PROMOTION) customer experience - A visit to Disney World
Are any of the 4 P’s moreimportant than another?
What else is INCLUDED in theMarketing Mix?1. Research & Development (R&D) the essence of product & service quality1. Market Research the key to understanding the marketing mix1. Packaging the presentation of products to enhance visibility and to highlight quality1. Pricing A key to distribution positioning1. Advertising Copy the message you want to say
6. Advertising Media The vehicle to present the message7. Selecting the Channels of Distribution Placing the product in the right venue8. Public Relations Enhancing positive awareness9. Trade Promotions Task of obtaining in-store product visibility10. Consumer Sales Promotions The addition of “borrowed value” to goods and services Examples: coupons, rebates, etc……
What is the KEY toSUCCESS? RESEARCH & REVIEW the Marketing Mix of the Competition in order to determine marketing choices of goods & services