Introduction to Business - Marketing

Marketing

Marketing

• Creating or designing a product that customers want
• Communicating product with customer
• Distributing product to customer

5ps of marketing

• price
• place
• product
• packaging
• promotion

Product

• Every product must serve a purpose to the customer
• It must have features and brig benefit to customers

Price

• Setting the right price for the product is important.
• If a product is too expensive, customers will not buy it.
• If the price is too low, you will not make enough profit.

Packaging

• Refers to physical package that protect the product
• Provide useful information to customers

Promotion

• Make customer aware of the product
• Attract more customer
• Methods for promoting

1. Advertising
2. Personal selling-talking one to one with the customer
3. Publicity-product that publish at the newspaper or magazine
4. Sales promotion-short term promotion

Place

• Making convenient for customer to buy your product
• 2 type of distribution-

1. Direct distribution-from producer to consumer
2.  Non direct-middleperson distribute the product to customer

• Direct Channels

1.   Pro: Goods are cheaper because it does not need middleperson(s).
2.   Con: This channel is not suitable for most products. E.g. Nobody drives down to the factory to buy one pack of chewing gums.

• Non-direct Channels

1.   Pro: Retail stores makes it very convenient for customers to obtain the products.*
2.   Con: Goods are more expensive (than direct channel) because the middleperson (e.g. retail stores, wholesalers) also needs to make a profit.

• Consumer buying process

1. Recognizing a problem or a need
2. Searching for information
3. Evaluating option
4. Making a purchase

Through this lecture, I learned more about marketing and the ways to do it. The 5ps play an important role in the marketing plan. Besides that, I also understands the 4 steps of consumer buying process.