The Functions of Marketing

Marketing The process of developing, promoting, and distributing products to satisfy customers’ needs and wants.

Can Include Both Products Goods And Services

Goods are TANGIBLE products. Tangible products can be touched.

Services are INTANGIBLE products. Intangible products cannot be touched.

Marketing helps connect businesses to their customer. Marketing also provides the means for the exchange process to occur.

School? Breakfast?? TV? Radio? Newspapers? At The Mall? We Experience Marketing Daily How??? School? Breakfast?? TV? Radio? Newspapers? At The Mall?

The functions of marketing All marketing activities can be classified into one of the seven functions of marketing.

Providing customers with Goods and Services they want. Selling can take place in the retail market to you the customer and business to business to industrial users. Selling Corn Flakes

Pricing Deciding how much to charge for goods and services in order to maximize profits.

Product/Service Management Obtaining, developing, maintaining, or improving a product or a product mix in response to market opportunities. Decisions are often made on the basis of marketing research which highlights customer wants and needs.

The basis for this process is marketing research. Marketing Information Management The process of getting the marketing information needed to make sound business decisions. The basis for this process is marketing research.

Any form of communication used to inform, persuade, or remind customers about a business’s products or services. Promotion is also used to improve a firm’s public image. Promotion

Financing Getting the money needed to finance the operation of the business. Financing also involves helping customers to purchase items.

Goods can be shipped by: Truck, Rail, Boat, Airplane, Distribution Where products are sold and how the products get from the producer to the consumer. Goods can be shipped by: Truck, Rail, Boat, Airplane, Pipeline

Added Value The 7 functions of marketing add VALUE to a product or service. The added value in economics (business) terms is called UTILITY. There are 5 economics utilities involved in ALL products. They are…

Form Utility Form utility involves changing raw materials or putting parts together to make them more useful. In other words, it deals with making, or producing, things.

Place Utility Place utility involves having a product where customers can buy it. Is it online, through a catalog, on QVC, in the middle of the mall, call now!, etc.

Time Utility Time utility is having a product available at a certain time of year or a convenient time of year Also, think about the store hours as also being time utility. Is a gym opened 24 hours, a grocery store?

Possession Utility Possession utility is the exchange of a product or service for some monetary value ($$$) Cash, checks, credit cards, installments or layaways, financing, etc.

Information Utility Information utility involves communication with the consumer. Salespeople, displays, packaging, labeling, advertising, etc.

Let’s look at the 5 utilities Brainstorm a list of at least 5 products that students/and or staff at BAHS would want to buy at the school and use on a daily or weekly basis.

Let’s answer these questions using one of the products you listed Form utility: What raw materials went into the making of this product? Place utility: Where would you place this product so your customers would have access to purchasing it? Time utility: When would be the best time of day to sell this product? The best time of year? Possession utility: How would students and/or staff pay for this product? Information utility: How would you get info about this product to your potential customers?

Why Study Marketing ? Understanding Business - you must understand how a business works in order to apply marketing practices in our free enterprise society. Learning Interpersonal Skills – you must learn the techniques and principles of human relations in order to deal with supervisors, co-workers, customers, and friends. Perfecting Communications Skills – Good written and spoken communications are necessary in the job market.

Questions or comments ?

Today’s Assignment With a partner (or by yourself), answer the following questions on the 7 Marketing Functions worksheet Feel free to help out others around you! Marketing is team oriented  If you do not finish, it will be homework DUE TOMORROW.