REVIEW - How would consumers and businesses be affected if marketing did not exist? Our nation would have difficulty linking producers to consumers. Our own routines would be different because marketing shapes everything we do. Ex: Out of milk? Go to the store. What store? Where?

BENEFITS OF MARKETING Marketing bridges the gap between you & maker/seller of an item. Marketing makes it easy for consumers to buy what they want/need. It creates new & improved products at lower prices

BENEFITS OF MARKETING (cont.) The 7 Functions of Marketing add value to a product/service. Economic term for this: UTILITY = Added value 5 economic utilities involved w/all products – only 4 directly related to marketing

SIDE NOTE – 5 UTILITIES of MARKETING Form Involves changing raw materials, putting parts together to make them more useful – not directly related to marketing! Deals with making/producing things Place Location – having the product where customers can buy it Time Having the product available when the customer wants/needs it Possession Exchange of a product/service for some monetary value Information Communication with the consumer

BENEFITS OF MARKETING (cont.) Lower prices When Marketing activities increase demand Manufacturers can make products in larger quantities Reducing the cost of production Lower price, higher sales, higher profit

BENEFITS OF MARKETING (cont.) New & Improved Products When products/services become more popular (higher demand) More competitors enter the marketplace Increased competition, businesses look for ways to better satisfy wants & needs Thus larger variety of goods & services

REVIEW Marketing benefits our society. Increased competition = Lower prices Variety of goods/services Mass communication about items Foreign and domestic societies benefit

REVIEW MARKETING Makes our lives better Because problem solving is at the heart of marketing, each year we add some new products to our home, often at lower prices. Promotes using the earth’s resources more wisely If available resources are used sensibly, benefits can extend well into the future for the marketer, the nation, and the entire world. Encourages trade between nations Because resources are valuable to marketers, it doesn’t take them long to pinpoint where a particular resource can be found in abundance. If our nation lacks a resource, we can usually trade something to get it.

REVIEW The benefits to marketing are… “Marketing is beneficial to consumers because it brings new and improved products to the market, as well as lowering prices.”

REVIEW How Does Marketing Benefit Our Society? Marketing visibly benefits our lives, our natural surroundings, and our global trade.

B. Describe marketing functions and related activities Define the following terms using 1 word: channel management = distribution marketing-information management = data Pricing = price product/service management = lifecycle Promotion = communication Selling = personal (1 on 1) Financing = capital (investment, backing)

Explain the purposes of each marketing function. 7. Selling - Determining and responding to customer’s needs and wants through personalized communication (face-to-face)

Selling Creates a following of loyal customers Completes the exchange transaction Provides services for customers

ACTIVITY 1 Think of 1 good and 1 service that you have used in the past 24 hours & write it down. Respond to the following questions for EACH: How did you come to use these goods/services? How did you find out about these goods/services? Where did you obtain these goods/services? How much did these goods/services cost?

Short Answer Quiz Give an example of a need and a want. What is a target market? Give an example explaining who is a customer and who is a consumer. The marketing concept philosophy indicates that a business will satisfy the wants and needs of _______________ and still make a profit. List the two categories of products and explain how they are different.