October 3 & 4, 2016 OBJECTIVES Explain different types of organizations (for-profit vs. non-profit Explain the nature of business activities Explain the marketing concept and its historical development Explain the components of the marketing mix Describe trends in marketing Explain the functions involved in marketing goods and services HOMEWORK None Sept. Wage and Hour sheet due 10/5 TODAY’S AGENDA A Marketing Review Marketing Concept, Target Marketing, Role of Marketing, 5 P’s and functions Target Market- Group Activity Assigned a target market Life size target market body map CLOSURE Answer the following ?’s: How does each function affect a business? What are the similarities and differences between marketing goods and marketing services? Which of the functions focus on the consumer?

A Marketing Review Marketing Co-op

Types of organizationS For-Profit Non-Profit Discuss the similarities and differences between for-profit and non-profit organizations

BUSINESS SECTORS PUBLIC SECTOR PRIVATE SECTOR Usually owned and operated by the government Federal, state, and local governments Privatly owned businesses Not considered part of government

THINK ABOUT IT: Pod Activity How might marketing efforts of a for-profit business differ from those of a non-profit business? Video Is there competition among non-profit agencies? How might marketing efforts of private sector businesses differ from those of public businesses? Increase in non-profit organizations (more competition for funds) and decrease in government funding causes non-profits to operate more like for-profits Non-profits aren’t as “proft” driven

BUSINESS ACTIVITIES Financing & Accounting: Production & Pocurement: manufacturing and operation Financing & Accounting: obtaining funds and keeping financial records Marketing: planning, pricing, promoting, & distributing Management: planning, organizing, staffing, & directing

The Marketing Concept The idea that a business should strive to satisfy customers’ needs and wants while generating a profit for a firm. Customer centered strategy Talk about the history of the marketing concept: production concept, sales concept, marketing concept. http://www.netmba.com/marketing/concept/

HISTORY OF MARKETING CONCEPT 1760s – 1920s Focus on products that can easily be produced Creation of supply of low-cost goods leads to demand Goods produced were largely basic necessity The Production Concept 1930s -1945 Increased compeition leads to focus on selling (ads & personal selling) Paid little attention to whether the product was truly needed Focus on making the sale and not customer satisfaction The Sales Concept After WWII Increased discretionary income causes leads to customers being selective Focus on customers needs and wants, as well as their overall satisfaction The Marketing Concept

Think. Pair. Share. You and your partner have two minutes to list as many benefits to marketing as you can think of! Let’s see what you can remember, go!

Benefits of Marketing Raises the standard of living Improves the quality of life Makes buying convenient Maintains reasonable prices Provides a variety of goods and services Increases production

The Marketing mix AKA “The 5 P’s”

The Marketing Mix The 5 P’s of Marketing People Product Price Place Promotion The 5 P’s of Marketing

The Marketing Mix People – the target market Product – Price – Place – Promotion – the target market what is the product – name, packaging, etc. what customers are willing and able to pay where is it sold and how it gets there how is the product marketed

Target Market

Target Market A specific group of people that a business wants to reach with their goods or services

Market Segmentation The process of dividing the total market for products into smaller, more specific groups Breaking down the market into smaller groups that have similar needs

Market Segmentation Geographics Deomgraphics Psychographics where people live Geographics personal characteristics like age, gender, income, ethnic background, education & occupation Deomgraphics lifestyle (attitudes/values) Psychographics consumer wants and needs Product Benefits

Why do you think it is important to know your target market? EXAMPLE Minivan Market Suburban Families “Thirty something” moms Multiple children Middle income families Like to travel and be active in the community Fast paced lifestyle Why do you think it is important to know your target market? Sienna Commercial

Body Map Target Market Activity Pod Activity Each group will trace one partner in the pod on the 6 ft. sheet of paper supplied by your marketing teacher After your body outline has been traced and cut out, your marketing teacher will supply you with your target market Glue your target market sheet on the back of the body map after you receive it for good keeping. Using the magazines supplied go through and identify products and services that would target your target market You must fill the body map with as many images that will fit Be prepared to share your map with the class next block

7 functions Of Marketing

The 7 Functions of Marketing Marketing Functions Pricing Promotion Selling Marketing Information Management Product & Service Management Financing Distribution

Financing Obtaining the financial resources needed to promote a business or it’s products/servic es

Marketing Information Management Process of getting and analyzing the marketing information needed to make good decisions Examples of information collected: customer’s trends, habits, attitudes, where they live This info. must be stored and analyzed

Pricing The decisions that dictate how much to charge for goods and services in order to make a profit Based on costs - what competitors are charging, and how much customers are willing to pay

Product/Service Management Obtaining, developing, maintaining, and improving a product or product mix in response to market opportunities Guides management toward what the consumer needs and wants

Promotion Any form of communication used to informing, persuading or reminding potential customers about a business’s products or services There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product.

Selling Providing customers with goods and services they want to buy Types of selling Retail Business to Business Personal

Distribution The process of deciding how to get goods into consumers’ hands