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MarketingFinal ReviewCourtesy of Mrs. Whittekiend

1Define Marketing:

The process of planning, pricing, promoting, selling, and distributing products to satisfy customers needs and wants.

2What is a Market?

People who share similar needs and wants and are capable of buying products.

3What is a Market Share?

A companys percentage of total sales volume generated by all competition in a given market.

4Define Market Segmentation:

The process of analyzing and classifying customers in a given market to create smaller, more precise target markets.5Demographics include: age, gender, income, marital status, ethnic background

Geographics include: based on where people live, weather, recreation in the area

Psychographics include: activities, attitudes, personalities, values

Behavioral include: shopping patterns and purchase decision making process, benefits of the product. 6The Marketing Mix includes the four basic marketing strategies called the Four Ps. What are the Four Ps?

ProductPlacePricePromotion

7Define Promotional Mix:

The combination of strategies used to effectively promote and sell a product.

8What is the difference between a Good and a Service?

Goods: tangible items of monetary value that satisfy needs and wants

Services: intangible items of monetary value that satisfy needs and wants9Competition is described as:

The struggle between companies to attract new customers, keep existing customers, and take customers away from other companies.

10The Channel of Distribution is the path a product takes from its producer or manufacturer to the final user. 11Distribution ChannelsConsumer Products

12Distribution ChannelsIndustrial Products

13Functions of MarketingDistribution: Deciding how to get products into customers hands (truck, train, ship, air)Financing: Getting the money that is necessary for setting up and operating a businessMarketing Information Management:Gathering information about customers, storing it, and analyzing it14Functions of Marketing cont.Pricing:Deciding how much to charge for products in order to make a profitProduct/Service Management: Obtaining, developing, maintaining, and improving a product mix in response to market opportunitiesPromotion:To inform, remind, or persuade a potential customers about a businesses goods or servicesSelling:Providing customers with the goods or services they want to buy15UtilityThe attributes of a good or service that make it capable of satisfying consumers wants and needs.16UtilityFormTaking things of little value and putting them together in a way that makes them valuablePlaceHaving a product where consumers can buy itTimeHaving a product available at a certain time of year or a convenient time of dayPossessionThe exchange of $$$ for a productInformationCommunication with the customer (sales people, packaging, advertising, labels, manuals, etc.)17Seven Steps of the Sales ProcessApproachDetermining NeedsPresenting the ProductOvercoming ObjectionsClosing the SaleSuggestion SellingRelationship Building/Follow-up18Closing the SaleMethods for Closing the SaleWhichWhich one do you prefer?Standing room onlyuse when the product is in short supplyDirectuse when the buying signal is very strongServiceexplain services to overcome obstacles19Pre-ApproachThis is preparation for the first face-to-face encounter you will have with potential customers20Suggestion Selling Selling additional goods or services to the customer that will make the original purchase more enjoyable21Overcoming ObjectionsRemember objections are concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchaseNeedProductPriceSourceTime 22Law of DemandAs the price of a good increases, the quantity demanded decreases (falls)

The demand curve rises from the right to the left.23Law of SupplyAs the price of a good increases, the quantity supplied usually increases.

The supply curve rises from the left to the right.24

Equilibrium25Factors of ProductionAll of the resources used in producing goods and servicesLandLaborCapitalEntrepreneurship26Command EconomyAn economy in which the government controls the factors of production and makes all decisions about their use.27Mixed EconomyAn economy in which economic decisions are made by the government, individuals, and businesses.28Market EconomyAn economy with no government involvement in economic decisions. Decisions are made by individuals and businesses.29Traditional EconomyAn economy where economic decisions are based on cultural or religious practices and ideals.

30SWOT AnalysisStrengthsWeaknessesOpportunitiesThreats

This is everything that can foster a businesss success and also what could make it fail!31Goods and services purchased from other countries and brought in to our country are:

IMPORTS32Goods and services produced in our country and sold to other countries are :

EXPORTS33Trade DeficitWhen a country has more imports than exports34Trade SurplusWhen a country has more exports than imports35ROIReturn on InvestmentAlso known as PROFIT

A calculation that is used to determine the relative profitability of a product

ROI = Profit / Investment36PriceIs the value placed on a product (in money or its equivalent).

Example: in Newsies when the two newspapers set the price the same.

37Break-Even PointThe point at which sales revenue equals the costs and expenses of making and distributing a product38Prestige PricingSets higher-than-average prices to suggest status and high quality to the consumerMany customers assume that higher prices mean better quality

39Everyday Low PricingLow prices set on a consistent basis with no intention of raising them or offering discounts in the future.

40Price LiningSpecial pricing technique that sets a limited number of prices for specific groups or lines of merchandise. For Example: All dress shirts in a store are $25, $35, and $50 -- representing Low, Medium, and High quality items.

41Bundle PricingWhen a company offers several complementary products in a package for a single price.42Price FixingOccurs when competitors agree on certain price ranges within which they set their prices. IT IS ILLEGAL!

Example: in Newsies when the two newspapers set the price the same.

43MarkupCost + Markup = Retail PriceRetail Price Markup = CostRetail Price Cost = Markup44Marketing ResearchInvolves the process and methods used to gather information, analyze, it and report findings related to marketing goods and servicesPrimary DataObtained for the first time and used specifically for the particular problem being studied

Secondary DataAlready been collected for some other reason45EthicsGuidelines for good behaviorBased on knowing the difference between right and wrongand is doing what is right!!Ethical behavior takes into account the well-being of everyone.46Forms of Business OwnershipSole ProprietorshipPartnershipCorporationLLC (Limited Liability Company)47ImageThe way the public views or perceives a company.48Product Life Cycle

Introduction StageGrowth Stage New !!!Maturity StageDecline StageLeast profitable Offer more than competition$$ spent on fighting off competitors Product mix strategies Compare & Save

49Introduction StageCompany works to increase sales by building product awarenessLeast profitable stage50Growth StageThe product is enjoying success Increasing sales and profitsAdvertising may now focus on customer satisfaction rather than product benefitsMay introduce new models51Maturity StageSales level off or slow downMost of the target market now owns the productCompany must decide whether it can continue to improve the product to gain additional sales

52Decline StageSales fallProfits decreaseCompany must decide if it can continue to support the productDrop itUse other product mix strategiesDiscounting itModernizing itAltering it53Types of Advertising MediaPrintBroadcastSpecialty

54Print MediaNewspapersMagazinesDirect MailingsDirectoriesOutdoor (billboards)Transit55Broadcast MediaTVRadioOnline56Specialty MediaMagnetsPensLanyardsSkywritingBlimpsEtc.57

HEADLINECOPYSLOGANILLUSTRATIONSIGNATURE / LOGO58Trade PromotionsDesigned to get support for a product from manufacturers, wholesalers, and retailersPromotional AllowancesCooperative AdsSlotting AllowancesSales Force PromotionTrade Shows and Conventions59Consumer Promotion TypesEncourage consumers to buy a product or servicePoint of Purchase Displays (POP)CouponsLoyalty ProgramsPremiums (free items)Incentives (contests, drawings, sweepstakes, etc.)60Basic Management FunctionsPlanningStaffing the TeamDeveloping a PlanOrganizingDelegatingDirecting WorkEstablish RelationshipsControllingDetermine the projects effectiveness

61Credit Terms2/10 Net 302% discount if paid in full within 10 daysFull payment is expected in 30 days62