Marketing and the Marketing Concept Chapter 1 Marketing Is All Around Us Marketing and the Marketing Concept Section 1.1 Marketing and the Marketing Concept Section 1.2 The Importance of Marketing Section 1.3 Fundamentals of Marketing

Marketing and the Marketing Concept Lesson 1.1

Marketing and the Marketing Concept Key Terms marketing goods services marketing concept Objectives Define marketing Explain the four foundations of marketing List the seven functions of marketing Understand the marketing concept Marketing Essentials Chapter 1, Section 1.1

Market List as many words as you can think of with the word “market” in it. Answers: What is a market?

Marketing? If a market is a place where you buy, sell or exchange something (for money or not), what is Marketing? Marketing: The process of planning, pricing, promoting, selling, and distributing products (ideas, goods, or services) to satisfy customers’ needs and wants. Note: marketing is a process = ongoing and changes

The Scope of Marketing marketing The process of planning, pricing, promoting, selling, and distributing products to satisfy customers’ needs and wants. You have already participated in the marketing X process as a consumer. By studying marketing, you will start to think like a marketer. As a marketer, you need to keep up with: Trends Consumer attitudes Customer relationships Marketing Essentials Chapter 1, Section 1.1

Marketing What three products can be marketed? Goods Services Ideas

Examples of marketed goods X include: Cars Electronics Tangible items of monetary value that satisfy customer needs and wants. Goods : tangible items of monetary value that satisfy customer needs and wants: Examples of marketed goods X include: Cars Electronics Home furnishings Food services Intangible items of monetary value that satisfy customer needs and wants. Services: Intangible (can’t touch) items of monetary value that satisfy customer needs & wants Examples of services X that may be marketed are: Automotive repair Hair styling Legal aid Financial consulting

Ideas, Goods, and Services Marketing promotes ideas, goods, and services. Examples of ideas that might be marketed are: A candidate’s political platform A public service initiative, such as don’t text and drive, don’t smoke or stay in school What idea is the ad promoting? This ad promotes the idea of a healthy diet that includes dairy products

What are examples of marketplaces: Shops (brick & mortar) The marketplace is the commercial environment in which buying and selling (or exchanges) take place. What are examples of marketplaces: Shops (brick & mortar) Internet stores Financial institutions marketplace Commercial environment where someone exchanges (sells or buys) something Marketing Essentials Chapter 1, Section 1.1

Marketing and the Marketing Concept Study Organizer Use the umbrella shape on your notes to organize the marketing concepts you will learn about in this section. Marketing Essentials Chapter 1, Section 1.1

Seven Functions of Marketing Channel Management/Distribution - process of deciding how to get goods into customer’s hands. How can you get your goods to customers? Moving - air, trains, trucks, ship Storage – Some companies store in local warehouses Computer systems - required to track inventory Market Planning understand concepts and strategies used to develop and target specific marketing strategies to a select audience Designing data-collection processes, collection analysis, and presentation of data to create a market plan Marketing Essentials Chapter 1, Section 1.1

Seven Functions of Marketing Can you just create a product, slap any old price on it, and expect everyone to buy it? 3. Marketing information management process of gathering, storing, and analyzing information on customers, trends, and competitor products to target a specific market continually conduct research and surveys on customer habits, attitudes, where live, and marketplace trends. Pricing what you charge for goods and services to make a profit (initial and sales price decisions) What should drive your decision on what to charge? What competitors are charging What are customers willing to pay continued

Seven Functions of Marketing Product/service management obtaining, developing, maintaining, and improving a product or service that customers want and need Create new products to the market Upgrade, and improve your existing products Name a product you own that has been updated with new features that you want/bought the new version? i.e. cell phones, i-pods, software, etc… Do things better, faster, and more efficiently than the competition!

Seven Functions of Marketing 6. Promotion informing, persuading, and reminding customers about a product or service What are some ways you do this? Students: Answers: TV, Radio, Social Media, Pop-up menus, phone calls, mail Selling providing customers with goods and services they want including: Customer Direct – selling to you the customers in retail markets (stores & internet) Business to Business – markets of customers that include Wholesalers, retailers, or manufactures

Seven Functions of Marketing In Marketing, you want to do things better, faster, and more efficiently than the competition! The move toward same-day fulfillment is gaining speed across the Internet as e-tailers compete for customers What has been the main focus of each of our 7 functions of Marketing? Customers What are their wants and needs!!!!

The Marketing Concept marketing concept exploring, creating, and delivering value different than competitors to satisfy the needs of a target market (customer) at a profit The marketing concept X is the idea that a business should focus on satisfying the needs and wants of customers at a profit Video (play through 1.40) For a business to be successful, all employees must: Understand the marketing concept Provide the best possible service to customers What is marketing: exploring, creating, and delivering value to satisfy the needs of a target market at a profit. What is the hidden word in the marketing definition? Competitor Marketing Essentials Chapter 1, Section 1.1

The Marketing Concept Customer Relationships is most important to businesses in the 21st Century: Customer relationship management (CRM) combines: Customer information Marketing communications CRM uses technology to organize and automate customer information to create meaningful marketing communications The goal of CRM is to establish strong, long-term relationships with customers: find, attract, and win new clients nurture and retain those the company already has entice former clients back into the fold reduce the costs of marketing and client service Use emails and social networking to communicate promotions/events

Channel Management Market Planning Market Information Management Pricing Product/Service Management Selling Promotion

Complete Discovery Project Worksheet, page 2 Marketing Madness: Lesson 1-1 Review Complete Discovery Project Worksheet, page 2 Marketing Madness: In a short paragraph, define in your own words what the three functions, pricing, promotion, and selling are and how they differ. What key component do they all have in common?