Assignment s

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This information is proprietary to Dr. Minsun Kim. Scanning, copying, website posting, or reproducing and sharing in any form is strictly prohibited. Module 1-Lecture 2 S10 This is lecture 2. In this lecture, we will address 2 questions: What is the difference between marketing and selling? What is (traditional) marketing mix, which is known as 4Ps? S11 Question # 1. What is the difference between marketing and selling? -Many people are confused advertising and personal selling with marketing. Advertising and personal selling are merely forming of promotion, and promotion is just one component of marketing. -The difference between marketing and selling is very simple.

ᴥ Selling focuses on the organization’s desire to sell products or services for revenue, without considering consumers’ needs and wants. Salespeople heavily focus on selling an organization’s current products. Clearly, the needs and wants of the seller are very strong. -However, marketing focuses on the needs and wants of the consumers, which will benefit the seller as well.

ᴥ When a product or service is marketed in the proper manner, consumers’ needs and wants are considered from the very beginning of the new product development process. The marketing plan is designed to satisfy the consumers. Therefore, when a product or service is truly marketed, very little selling is necessary. S12 Question #2. What is (traditional) marketing mix, 4Ps? -The traditional marketing mix may be defined as ‘the mixture of controllable marketing variables that a company uses to meet its sales goals. Marketing mix consists of 4Ps: product, price, place (which is also called distribution), and promotion. These are the marketing tools. Marketers decide on the product and its characteristics, set the price, decide how to distribute their product, and choose methods to promote their product. -Here is an example of McDonalds.

ᴥ First, Product. McDonald’s has a fast-food product. It uses quality ingredients to develop the product.

ᴥ Second, price. The marketers of McDonalds set the price at which people expect to pay for fast food, something around 1 dollar to 15 dollars.

ᴥ Third, place or distribution. Most consumers will not spend more than 15 minutes to travel to a McDonald’s restaurant. As part of its distribution plan, marketers decide to locate their restaurants nearby target markets, such as near schools or near offices.

ᴥ Finally, Promotion. McDonalds appeal to different market segments and has many units throughout a city. This allows McDonald’s to make effective use of mass media, such as TV advertisement. -If marketers do a good job of identifying consumers’ needs and wants, developing a right product at a right price, and effectively distributing and promoting the product, the result will be satisfied consumers.

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S13 The Marketing mix will be discussed in detail later in this class. The product and place components are covered in Module 5, the price component is covered in Module 6, and the promotion component is covered in Module 7.