Chapter 1 – Section 1 Defining Marketing What You’ll Learn Types of Businesses Definition of Marketing Foundations of Marketing Functions of Marketing Marketing Concept

BUSINESS: An activity that satisfies economic needs by: planning organizing controlling resources to produce and market goods and services. List 5 businesses that are service oriented. List 5 businesses that are manufacturing oriented. List 5 businesses that are retail oriented. WHAT MAKE EACH VALUABLE TO THE COMMUNITY-- satisfies different needs and wants contributes to the economic well being of the community provided taxes provides wages profit for the owners Chapter 4 will establish roles in business--production, marketing, management and the social responsibility of business.

95% of all US businesses are classified as “small” businesses. These small businesses employ over one-half of the private sector work force.

Profit Non-profit What’s the difference between profit and non-profit organizations? Who gets the profit in each? List some local non-profit businesses. Service organizations who operate without the intent of gaining a profit for the owners.

NON-PROFIT BUSINESSES Charitable institutions that operate with many of the characteristics of businesses but are not intended to earn a profit. All income remaining after expenses goes to a charitable cause. Public Sector - government agencies and services such as public schools. Private Sector - charitable organizations not government run such as United Way.

What is Marketing? Marketing is the process of planning, pricing, promoting, selling and distributing products to create exchanges to satisfy customers’ needs and wants Process means it is ongoing and changes Marketers need to keep up with trends and consumer attitudes Marketing functions support the process Current Marketing practices focus on Customer Relationship Management

Ideas, Goods and Services Products include goods, services and ideas that satisfy customers’ needs and wants Goods are tangible – you can touch Services are intangible - tasks that have monetary value performed for a customer Ideas promote causes, political platforms Exchange is when something is bought or sold in the marketplace

Foundations of Marketing Professional Development Economics Business, Management, Entrepreneurship Communication, Interpersonal Skills

Foundations of Marketing Professional Development Concepts and strategies for career exploration, development and growth Economics The economic principles and concepts that are basic to marketing Business, Management and Entrepreneurship The basics of business, management and entrepreneurship concepts that affect business decision making Communication and Interpersonal Skills The concepts, strategies and systems needed to interact effectively with others

Functions of Marketing Functions address marketing from the perspective of how it is practiced. Seven functions of marketing: Distribution Financing Marketing Information Management Pricing Product Service Management Promotion Selling

What are the functions? Distribution Financing Decide where and to whom to sell Logistics of physically moving products (truck, rail, ship, air) Storing and tracking products Financing Getting money to pay for the operation of the business Offering credit and other payment options to customers Marketing Information Management Getting information to make sound business decisions Marketing research to learn about customers and ways to better market the products

What are the functions? Pricing Product/Service Management Promotion Decisions regarding how much to charge for products to obtain maximum profits Based on competition, customers willingness to pay, gaining market share and returns on investment Product/Service Management Obtaining, developing, maintaining and improving products or product mixes Promotion Communicate information about products, services, images or ideas to achieve a desired outcome Selling Determine clients needs and wants and respond through activities that influence purchasing decisions

THE FOCUS IS ON THE CUSTOMER The Marketing Concept The marketing concept is the idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the firm. THE FOCUS IS ON THE CUSTOMER Customer relationship management (CRM) is an aspect of marketing that combines customer information with customer service and marketing communications. Try to create more meaningful communications

Group Activity In Groups of 3 or 4, Create a Powerpoint: Slides must have: Name of the function and definition An image representing the function An example of the function