Marketing I Curriculum Guide

The World of Marketing Standard 1

Marketing Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. -American Marketing Association

Functions of Marketing Market Planning Marketing Information Management Pricing Product/Service Management Promotion Channel Management Selling

Functions Defined Channel Management – Process of deciding how to get goods into customers hands. Marketing Information Management – Gathering, storing, and analyzing information, customers, trends, and competing products Marketing Planning – Understanding concepts and strategies used to develop and target specific marketing strategies to a select audience Pricing – Determine how much to charge for goods and services in order to make a profit Continued on next slide

Functions Defined Product/Service Management – Obtaining, developing, maintaining, and improve a product or a product mix in response to market opportunities Promotion – The effort to inform, persuade, and remind current and potential customers about a business’s products or services. Selling – Responding to consumer needs and wants through planned, personalized communication in order to influence purchase decisions and ensure satisfaction.

Free Enterprise System The Free Enterprise System is an economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market. -American Heritage Dictionary The Free Enterprise System is a political and economic philosophy often referred to as capitalism.

Four Pillars of the Free Enterprise System Private Property Price System Competition Entrepreneurship

Market Economy Circular Flow

Mixed Economy Circular Flow

Economic Systems Traditional – An economic system in which habits, traditions, and rituals answer the basic questions of what, how, and for whom. Command – A system in which a country’s government makes all economic decisions regarding what, how, and for whom goods and services will be produced and distributed. Market – In a pure market economy, there is no government involvement in economic decisions. Individuals and companies own the means of production and businesses compete for consumers. The market answers what, how, and for whom. Mixed – An economy with elements of both command and market. Individuals, companies, and government decide what, how, and for whom goods and services will be produced and distributed.

All countries must answer the three basic economic questions… What goods and services should be produced? How should the goods and services be produced? For whom should the goods and services be produced and distributed?

Marketing Mix Product - Strategies for deciding what products to make and sell. Also includes decisions about packaging, warranties, and branding. Price - Strategies used to price products for sale Place - Strategies used to determine how and where a product will be distributed Promotion - Strategies for communicating information about a product to customers -The marketing mix is often referred to as the 4P’s of marketing.