Marketing is All Around Us

Objectives Define marketing Understand the difference between needs and wants Examine the marketing functions and the related activities Understand the importance of utility in determining value

What is Marketing? The process of developing, promoting, and distributing products in order to satisfy customers’ needs and wants.

Marketing is. . . Products Goods Services Goods and services. Material items you can touch. Services A series of tasks performed for a customer.

Marketing ... Connecting businesses to their customers. Marketing provides the means for the exchange process. An exchange takes place every time something is sold in the marketplace.

In what ways does marketing affect you every day?

Functions of Marketing Purchasing Obtaining goods and services for use in the operation of a business or for resale.

Functions of Marketing Pricing The determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.

Functions of Marketing Product Service Mgt. The process of creating/changing a product in response to market opportunities.

Functions of Marketing Marketing Information Management Gathering, recording, analyzing and disseminating information to aid in making marketing decisions.

Functions of Marketing Promotion Communicates information about products, services, images or ideas to customers or clients to influence their purchase behavior.

Functions of Marketing Financing Determining the need for and availability of financial resources to aid in marketing activities.

Functions of Marketing Distribution The physical movement or the transfer of ownership of a good or service form the producer to the consumer.

Risk Management Preventing or reducing business loss Ex. Accountants keeping records of what has been sold and the money earned

Selling Communicating to customers to determine need and benefit Up selling Suggestive Selling Steps of a sale

There are five types of utilities. . . . Added Value Utility is the usefulness of a product. What adds value to a product. There are five types of utilities. . . .

Form Utility Making or producing things changing products to add value For example, how is wheat changed to a more useful product?

Place Utility The product’s usefulness is increased because of its location. Where does the various types of food you eat everyday come from? Would you like to go to Florida to get an orange?

Time Utility Making a product available at the right time of year or a convenient time of day. Ex. Christmas season, Valentine’s Day or stores staying open late in order to attract customers who work during the day.

Possession Utility The ability to aid customers in owning goods. Does the store offer credit cards or take checks?

Information Utility Usefulness added to the product through communication. Packages, labels, advertisements, displays, signs . . .

Why study marketing? . . . to understand business . . . to learn interpersonal skills . . . to perfect communication skills.