Marketing In Business Introduction to Business Basics

Marketing In Business Introduction to Business

Basics of Marketing § It all comes down to knowing your market § Behind a product is a company’s intense research, development, and marketing. § To successfully market a product, a company has to understand what people want to buy and why they want to buy it.

What is a Market? § A group of customers who: § share common wants and needs § Have the ability to purchase the product § There is more to marketing than just selling a product.

Marketing § The process of creating, promoting, and presenting a product to meet the wants and needs of consumers. § Involves a number of stages from studying what people want to buy to designing a product’s package.

Marketing Concept § Businesses need to know their customers’ wants and needs in order to make a profit.

Marketing § Creating, promoting and presenting a product to meet the wants and needs of the consumer. § Marketing involves a number of stages from studying what people want to buy to designing a product’s package.

Target marketing § Businesses want you to buy their product so they perform detailed research on markets to find analyze potential customers in their market.

What does Marketing Involve? § Involves what people want to buy to designing a products package.

Target Marketing § Detailed research § Finding and analyzing consumers to determine their wants and needs.

Marketing Functions § Marketing activities can be organized into 7 functions. § Each function occurs every time a product or service is developed and sold. § Businesses provide many of the marketing functions. § Consumers often take part in one or more of the marketing functions when they make purchases.

Marketing Functions Distribution Financial Analysis Marketing Information Management Pricing Product/Service Planning Promotion Selling Purchasing Risk Management

Distribution § Involves deciding the best ways for customers to locate, obtain, and use the products and services of an organization. § Careful shipping, handling, and storing of products are needed for effective distribution.

Financial Analysis § Financial analysis is budgeting for marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the business’ products and services. Businesses decide if customers can pay with credit or other payment options.

Marketing Information Management § Is obtaining, managing, and using market information to improve business decisionmaking and the performance of marketing activities. § Marketing information management includes marketing research and the development databases with information about products, customers, and competitors.

Pricing § Marketers have to figure out what price to charge for a product so the company makes a profit. § Marketing needs to consider the cost of distribution, because each time a product goes through another channel of distribution the price goes up.

Product/Service Management § Is designing, developing, maintaining, improving, and acquiring products and services that meet consumer needs. § Producers and manufacturers develop new products. Other businesses are also involved in product/service management when they buy products for resale.

Promotion § Communicating information about products and services to potential customers. § Advertising and other promotional methods are used to encourage consumers to buy. § Advertising may occur in a variety of ways—TV, direct mail, internet, etc.

Selling § Communicatin directly with potential customers to determine and satisfy their needs. § Selling can be face-to-face, telephone, or other technology. § A popular trend in today’s marketing world is relationship marketing.

Relationship Marketing § § § Popular today Build relationships with customers Customer relations is important

Marketing Mix § Even before a product appears o nthe marekt, marketing specialsits have to consider a number of questions. § Who will the product appeal to? § How much should it cost? § Where should it be sold? § What is the best way to tell people about it?

The four elements of marketing § Marketing mix or The four P’s § Product § Place § Price § Promotion

Product § Marketing is used first to find out if there is a demand for a product. § Packaging a product is a major element of marketing § Includes the design, color, size, and even brand name of a product. § Cover design attracts customers.

Place § Marketers must decide where to sell a product to get it to the right customer. § Marketers must consider in what kind of location to sell their product. § The placement of the product in a store is equally as important. § Featured products on display stands in the front of the store.

Price § To determine price, consider 3 things § How much will a customer pay. § Is the price competitive with other products. § Can the company make a profit? § Break-even point § The amount of money a company has to make on a product to pay for its costs.

Promotion § This is making customers aware of a product. § Most popular form of promotion: advertising.

Types of promotion § Discounts—coupons, rebates, and sales. § Publicity

Publicity § § § Public relations Kind of free advertising Microsoft and Sony benefit from news stories. § Celebrities go on talk shows.

Fast Review § § § What is marketing? What are three functions of marketing? What is the four P’s?

Market Research § Used to gather and study about consumers and o find what consumers need and want. § Marketing experts keep track of consumers using surveys, sales figures, databases, and census. § Marketers analyze and categorize their markets by demographics.

Demographics § Facts about the population in terms of: § Age § Income § Education § Gender § Location § Marketers use to develop product to fit that group.

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Product Development § § § Demand for products change constantly. Fads and fashions go in and out of style. A company’s ability to create a new product or a slight variation of an already successful one is important to increasing sales.

Product Development § 7 Steps in developing a new product § Generate Ideas § Screen Ideas § Develop business proposal § Developing the product § Test marketing the product § Introducing the product § Evaluating customer acceptance

Generating ideas § Brainstorm for creative ideas for the new product. § Employees from the development department, the market research staff, and generate ideas for a new creative products. § Collaboration is key to this step.

Screening Ideas § Once the team puts together a final list of creative ideas for the product, they are evaluated.

Developing a Business Proposal § Once the creative idea passes the screen process, then ideas are: § A business plan is created. § The written proposal provides answers about the: § Market, potential sales, costs, profit potential § Market trends, competitions products, risk

Developing the Product § A prototype is made. § This is a model of the actual product. § It is used to test ideas. § If anything needs to be changed this is the stage ot make those changes. § Government requires extensive testing during various stages of product development.

Test Marketing the Product § Once the product is fully developed, the product might be test marketed. § The goal is to collect customers’ responses.

Introducing the product § § § The product passed the market test. Now it’s ready for the market place. The costs of doing this are often high.

Evaluating Customer Acceptance § Once the product is introduced, marketers track customers’ responses. § The report answer key questions? § Who are the best customers? § What new products are customers buying? § How often do customers buy new product?

Fast Review § What’s the purpose of market research? § Name the seven steps in developing a new product.

Channels of Distribution § Marketers have to decide how and where customers will buy their goods and services. § Channel of distribution is § The way to get the products to the customer. § Producers use a specific channel to move goods to the final user.

Direct Distribution § Is when the goods or services are sold from the producer directly to the customer § An intermediary is not involved.

Indirect distribution § Involves one or more intermediaries.

Distribution and cost § Each time a product goes through another channel the cost of marketing it goes up! § Wholesalers, retailers, truck companies, and warehouses all have to cover their costs. § The costs of distributing a product must be added to the price of the product.

Channel Members § Moving the product from manufacturer to the final user is an intermediary. § Intermediaries are: § Distributors § Wholesalers § Retailers § Even the Internet

Distributors § Intermediary § A single manufacturer in a geographic area. § Cosmetics, cars, furniture, and shoes are sold through distributors.

Wholesalers § Receives large shipments of products from many different producers. § They break the shipments into smaller batches for resale.

Retailers § Sells goods directly to the customer. § This is the final stop in the channel of distribution. § The Internet encourages producers to distribute their products themselves. § A virtual business allows customers to order online.

Summary § Functions of marketing include § Distribution, financing, marketing, information management, pricing, product and service management, promotion and selling. § The Four P’s: § Market research is important to study the customers’ wants and needs. § A product goes through 7 developmental steps. § A product has to go through channels of distribution to get from producers to consumers.