Marketing:
7 Functions of Marketing:
-Distribution: Transporting and handling the goods. Making sure they get from production to the
shelves.
-Selling: Find out what the customer needs and wants.
-Marketing-Information Management: Attaining information to make sound business decisions.
-Product Service Management: Process of improving the product and/or service.
-Financing: Obtaining money to start the business or for specified project
-Pricing: Determining the value for the good or service that will both benefit the customer and your
business. Communicate the price to the customers.
-Promotion: Informing customers about your product or service.
Four Marketing Utilities-Form: How to create the most value in the product?
-Time: How to have a product ready by when the customer needs it?
-Place: How to conveniently place goods close to the customers?
-Possessions: How to get the product into the customers hands?
What does a business have to pay attention to? The customers needs and wants as well as societal
demands.
Products- Tangible
Services-Intangible
4 P’s of Marketing Mix:
-Product: What are you selling?
-Price: What are you selling it for?
-Place: Where are you selling it? Is it convenient for the customer?
-Promotion: Inform customers about the product.
Five Concepts of marketing:
-The product concept-buy product that offer most quality
-The production concept- favor products that are widely available at low cost
-The selling concept- more promotion to those that won’t buy organizations products
-The marketing concept-determine needs and wants and then deliver the satisfaction
-The societal concept-product preserves or enhances consumer and society wellbeing.
Goals of the Marketing system: increase consumption, satisfaction, choice, and quality
---->“Satisfying needs and wants through an exchange process” (Philip Kotler).
Five conditions of exchange:
1.
Two parties must be present
2.
Each party has something the other party wants
3.
Each party can communicate
4.
They can accept or reject the offer
5.
Each party thinks it is appropriate to deal with other party
Direct vs. Indirect Competition- similar goods to your own. Indirect provides alternatives.
Consumer Decision making process
1.
need recognized
2.
information search
3.
evaluate the alternatives
4.
make an informed decision
5.
post purchase behavior
Types of needs: physical (food), social (belonging and affection), individual (knowledge)
Target Market and Marketing Segmentation
Market- all of the potential customers who share a similar want and or need and are willing to
exchange for their want/need.
---->Want to create a relationship with the customer, maintain it, and make it better
Marketing segmentation: dividing market into different segments based on needs/wants
Target Market- where marketing is aimed at influencing customers. DEMOGRAPHICS, GEOGRAPHICS,
AND PSYCHOGRAPHICS.
Classification of Age Groups:
Baby Boomers- post WWII
Generation X- followed by baby boomers. From 1965-76
Generation Y- between 1977-1994
Generation Z- Post 1994
Types of Control:
1.
2.
Pure competition- many sellers with similar products
Monopolistic competition- many sellers compete with substitutable products within price
range.
3.
Oligopoly- few companies control the majority of industry
4.
Pure monopoly- one firm sells product.
Diversification- strategy of developing new products and selling them to new markets.
Strengths- What are the strengths of our company?
Weaknesses- What can we improve in our company?
Opportunities- What opportunities have been presented that will benefit our company?
Threats- What companies or products will create a threat towards our business?
SWOT Analysis are used to analyze the current state of a company.
Environmental forces- forces that marketers cant control like social eco tech competitive and regulatory
forces.
Business Cycle
Trough- The economy hits bottom and begins to grow.
Expansion- The growth and prosperity of the business.
Peak- The point in the cycle when the business starts to see a decline in consumer confidence. Peak of
economic growth rates.
Recession- consumer demand decreases and so does production and employment.
Product Cycle
Introduction- Build product awareness
Growth- Build brand and increase marketing
Maturity- Strong growth in diminishes. Competition can lead to this.
Decline- Sales decline. What to do?
1.
2.
3.
Add new features to the product
Reduce the price of the product
Discontinue the product