INTRODUCTION TO
MARKETING
Introduction to Marketing
BRAINSTORM
What do you think of when
you hear the word
MARKETING?
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What is Marketing?
Marketing is the sum of all the
activities involved in planning,
pricing, promoting, distributing,
and selling of goods and services
to satisfy consumers’ needs and
wants.
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What is Marketing?
Marketing seeks to
• discover the needs and wants
of prospective customers; and
• satisfy them.
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What is Marketing?
The key to achieving these two
objectives is the idea of
exchange: the trade of things of
value between buyer and seller so
that each is better off after the
trade.
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AN EXAMPLE
ME: Hungry
McD: Needs to sell food
ME: Buy food
McD: Makes money
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Requirements for
Marketing to Occur
Requirements for Marketing
Two or more parties with
unsatisfied needs
• I need of food, McD was in
need of selling food in order to
make money
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Requirements for Marketing
Desire and ability to satisfy
those needs
• I want to curb my hunger and
have money, McD has food
and a way for me to purchase
it from them
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Requirements for Marketing
A way for the parties to
communicate
• I watch TV, McD advertises its
products on TV
• I receive mail, McD sends out
coupons
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Requirements for Marketing
Something to exchange
• I have money, McD has food
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regulatory
product
price consumer place
Marketing
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1
Controllable
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Factors
promotion
Environmental Factors:
Uncontrollable
THE EVOLUTION OF
MARKETING
How did we get here?
Evolution of Marketing
How did we get here?
• The
• The
• The
• The
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Production Era
Sales Era
Marketing Concept Era
Marketing Orientation Era
HOMEWORK
1. Handout: “Big Boxes Squeeze
Out Little Guys”
Read and answer questions,
due tomorrow.
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2. Illustrate the concept of
“requirements for marketing to
occur” with your own example.
DILBERT
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What’s wrong with the PointyHaired Boss’s suggestion?
Needs & Wants
NEEDS vs. WANTS
A need occurs when a person
feels deprived of basic necessities
(food, drink, shelter)
A want is a need that is shaped
by a person’s knowledge, culture,
and personality
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NEEDS vs. WANTS
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If you are hungry, you
NEED
have a basic desire or
food
need to eat.
Based on your past
experience with hunger,
WANT
you may want a chocolate
apple
bar or apple.
NEED or WANT?
water
warmth
sandwich
CK One
air
Tommy Hilfiger
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What is a Market?
A market is
• a group of people
• with a desire to purchase a
product
• and the ability or means to do
so.
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What is a Target Market?
A target market is
• a group of potential customers
to whom an organization
directs its marketing program
•EXAMPLES: teens, parents,
seniors, extremely wealthy, etc.
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Who Markets?
Who Markets?
All organizations, and many
individuals, including:
Manufacturers
• market their products to
potential customers
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Who Markets?
Service Businesses
• market their expertise to
potential customers
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Who Markets?
Not-for-profit Organizations
• market their cause to potential
donors
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Who Markets?
Politicians
• market their ideas to potential
voters
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Who Markets?
Job applicants
• market their skills to potential
employers
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HOMEWORK
Think of some others!
WHO MARKETS?
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List five more groups/individuals
who market, whom they market
to, and what they market
The 4 Ps and 2 Cs
or “The Marketing Mix and
the 2 Cs”
The 4 Ps and 2 Cs
product
price
place
promotion
consumer
competition
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The 4 Ps and 2 Cs
product
price
place
promotion
consumer
competition
The product is a good,
service, or idea to satisfy
the consumer’s needs.
Examples?
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The 4 Ps and 2 Cs
product
price
place
promotion
consumer
competition
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The price is what is
exchanged for the product,
usually money.
The 4 Ps and 2 Cs
product
price
place
promotion
consumer
competition
The place is a means of
getting the product into the
consumer’s hands.
Examples?
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The 4 Ps and 2 Cs
product
price
place
promotion
consumer
competition
Promotion is the means of
communica-tion used by the
seller to inform the buyer.
Examples?
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The 4 Ps and 2 Cs
product
price
place
promotion
consumer
competition
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The consumer is the
individual or group of
individuals who may
purchase your product.
The 4 Ps and 2 Cs
product
price
place
promotion
consumer
competition
The competition is other
firms that could provide a
product similar to yours.
Who competes with Nike? Pepsi?
McDonalds? Ford?
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The Marketing Mix
Worksheet
WARNING!
This video contains extreme eighties hairstyles!
Viewer discretion is advised.
VIDEO: Famous Amos
Watch the video, write
down examples of the 4 Ps
Goods & Services
The Stuff that gets sold
Goods & Services
Read pages 4 to 7 in the textbook
and create a chart defining the
key terms.
Term
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Definition
Examples
Goods & Services
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Key terms:
• industrial goods • raw materials
• processed goods • finished goods
• consumer goods • industrial service
• consumer service
When finished, take and complete
worksheet, to take up tomorrow.
Marketing Mix gets the
taste test
Newspaper article
Marketing Strategies
Marketing Strategies
A strategy is a method to carry
out an action plan to reach a goal.
A marketing strategy explains
how a company will carry out the
marketing plan, the marketing
goals, and the marketing mix
formula to achieve those goals.
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Marketing Strategies
The Marketing Plan contains:
• a section outlining marketing
goals of the business
• target market(s)
• a list of as many competitors
as possible
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Marketing Strategies
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The Marketing Plan contains:
• a research section, with a plan
for gathering and analysing
info
• how the product will be
positioned, with rationale
• pricing strategy
Marketing Strategies
The Marketing Plan contains:
• distribution channels & logistics
• promotional and advertising
proposal
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Marketing Strategies
Brand strategies
The primary goal is to
communicate the value of a
product or service to the
consumer.
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value
perceived
perceived
=
benefit
cost
Marketing Strategies
Brand strategies
see example on page 26
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attempts to position the product
or service by creating a positive
value equation in the consumer’s
mind.
Marketing Strategies
Distribution strategies
Focus on the best way to
deliver a product/service to the
target market.
MANUFACTURER
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RETAILER
CONSUMER
Marketing Strategies
Distribution strategies
• PUSH: “If the product is out
there where people will see it,
they will buy it.”
•focus on selling the good to the
retailer, importer or wholesaler
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Marketing Strategies
Distribution strategies
•incentives, promotions, product
display case offered in exchange
for product placement
•The manufacturer needs to push
the product through the chain
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Marketing Strategies
Distribution strategies
• PULL: “increase distribution by
increasing consumer demand”
•focus is on selling the good to
the consumer
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Marketing Strategies
Distribution strategies
•convince consumers that they
need the product, and that
specific brand
•requires a strong advertising and
promotions campaign
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Marketing Strategies
Distribution strategies
The pull strategy is difficult to
use alone, the push strategy
can be. Most strategies use a
combination of the two.
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How Consumers Benefit
How Consumers Benefit
Marketing creates utility, the
benefits or value the customer
receives from using the product.
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How Consumers Benefit
Form utility
• the good or service is created for
the consumer
Place utility
• the good or service is available
where the consumer needs it
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How Consumers Benefit
Time utility
• the product is available when the
user needs it
Possession utility
• the product is easily obtainable by
the consumer
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QUESTIONS
What consumer wants or benefits
are met by the following products
or services? (a) Carnation Instant
Breakfast, (b) Adidas running
shoes, (c) Hertz Rent-A-Car, and
(d) television shopping programs.
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QUESTIONS
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Each product has substitutes.
Respective examples are (a) ham
and eggs, (b) no-name running
shoes, (c) taking a bus, and (d)
department store. What benefits
might these substitutes have that
some consumers might value
more highly?