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Part 1 Marketing DynamicsChapter 1

Marketing Is Dynamic!

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Chapter Objectives

State the main goal of marketing. Describe each of the Four Ps. Distinguish among good, service, and

idea. Explain how marketers determine the

marketing mix. Summarize the key elements of a

marketing plan.

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Marketing Terms

marketing customer target market Four Ps product good service idea

place distribution price promotion marketing mix marketing plan SWOT analysis forecast

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Marketing Defined

Marketing consists of dynamic activities that focus on the customer to generate a profitable exchange

(Continued)

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Marketing Defined

Goal of marketing meet customers’

needs and wants with products that customers can and will buy

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Marketing Is Dynamic

Dynamic = constantly changing Marketing is dynamic because

customers’ needs and wants are constantly changing

Describe a want or need of yours that has changed over time.

(Continued)

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Marketing Is Dynamic

Customers’ needs and wants change because customers change the economy

changes technology changes social trends change

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Marketing Is Customer-Focused

Marketing focuses on the customer

A customer can be a person business nonprofit

organization government

(Continued)

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Marketing Is Customer-Focused

Marketers focus on customers by learning what

customers need and want

developing products to meet those needs and wants

(Continued)

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Marketing Is Customer-Focused

A target market is a specific group of customers whose needs a company will focus on satisfying by creating products that the target market wants and will buy

Teens are a popular target market

Describe a product that was designed to meet the wants and needs of teens.

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Marketing Is Relationships

The basis for marketing is the relationship between the buyer and the seller

Many businesses develop long-term relationships with their customers

Describe a long-term relationship that you have with a business.

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Marketing Is International

People can buy products from anywhere in the world

What enables people to buy products from anywhere?

Japan National Tourist Organization

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Marketing Is the Four Ps

The Four Ps are the basic elements of marketing Product Place Price Promotion

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Marketing Is the Four Ps

Product is the what What are you selling?

Place is the where Where are you selling it?

Price is the how much How much will the customer pay for it?

Promotion is communication What do you want the customers and the

public to know?

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Product

There are three types of products good

– physical item service

– action done for you idea

– concept, cause, image, issue, or philosophy

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Categorize the pictured products as good, service, or idea.

©2007 JupiterImages Corporation

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Place

Place getting products to

customers at convenient times

and locations includes distribution

Describe distribution you have seen.(Continued)

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Place

Distribution is physically getting goods to customers

Includes shipping storing inventory stocking of goods

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Price

Price is the amount of money requested for a product determined by the marketers based on

– how much they think the customer will pay

– the costs to produce the product

What might happen if you set a price too low or too high?

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Promotion

Promotion is communication

with customers telling people

about – your product– your business

Describe promotion that you have seen.(Continued)

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Promotion

Promotion includes selling, advertising, and sales promotion public relations

– creating a positive image of your company

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Marketing Is theMarketing Mix

The marketing mix is a plan of action for marketing a product consists of the

decisions made about each of the Four Ps

made with the target market in mind

(Continued)

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Marketing Is theMarketing Mix

Marketing mix decisions include answers to these questions What products do customers need or

want? Which stores will be convenient for them? What price will they pay? Where will they see ads?

Choose a product, then answer these questions for the teen target market.

(Continued)

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Marketing Is theMarketing Mix

Why is the target market in the center?

Is the customer part of the marketing mix?

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The Marketing Mix in Action

Imagine that you want to eat dinner. You hear a commercial on the radio

promoting a new value meal at a local fast-food restaurant.

The announcer says that the value meal costs $3.95. You have $5.00 in your pocket. You buy the value meal.

Identify the Four Ps in this marketing mix.

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Marketing Is the Marketing Plan

The marketing plan is a plan that guides a company so that it avoids such pitfalls as lost sales lost opportunities poor product planning

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Key Elements of a Marketing Plan

Key elements of a marketing plan include market opportunities and analysis

– a SWOT analysis helps a company determine its strengths, weaknesses, opportunities, and threats

a market strategy an action plan monitoring and evaluating the plan

– review revenue from sales to help forecast, or predict future sales and revenue

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Is Marketing in Your Future?

Marketing is an exciting field has potential for

high earnings is useful in careers

not directly related to marketing

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Is Marketing in Your Future?

Marketing skills can help you prepare for a job in marketing prepare for college studies in marketing use marketing in other fields make wise consumer decisions

How will marketing skills help you in the future?

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Review

Explain how marketing is more than advertising and selling.

List the Four Ps. Why isn’t the customer part of the

marketing mix? Name a product and describe the

marketing mix for that product.

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Glossary

customer. Individual or group who buys products.

distribution. Process of physically delivering goods to customers.

forecast. To predict future sales and revenue.

Four Ps. Product, price, place, and promotion.

Back

(Continued)

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Glossary

good. A physical item; something that you can touch.

idea. A concept, cause, issue, image, or philosophy that can be marketed.

marketing. Dynamic activities that focus on the customer to generate a profitable exchange.

Back

(Continued)

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Glossary

marketing mix. Plan of action for marketing a product; it consists of the decisions made about each of the Four Ps for that product—product, place, price, and promotion.

marketing plan. A plan that guides a company so that it avoids such pitfalls as lost sales, lost opportunities, and poor product planning.

Back

(Continued)

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Glossary

place. Marketing activities involved in making products available to customers; includes distribution.

price. Amount of money requested or exchanged for a product.

product. Anything that can be bought or sold; includes goods, services, and ideas.

Back

(Continued)

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Glossary

promotion. Process of telling people about the product and the company that offers it.

service. Action that is done for you. SWOT analysis. An analysis that includes

a company’s strengths, weaknesses, opportunities, and threats.

target market. The specific group of customers whose needs a company will focus on satisfying.

Back