Objectives Explain the marketing functions. Discuss the importance of each marketing function.

Explain the marketing functions. Objective

Marketing functions are like the parts of a game. Need to understand all parts to have a chance to winNeed to understand all parts to have a chance to win Forgetting any function gives competitors an advantage.Forgetting any function gives competitors an advantage. Losing might be the result.Losing might be the result.

Have an effect on why you buy, what you buy, and where you shopHave an effect on why you buy, what you buy, and where you shop Businesses coordinate the functions to attract you, the target customer.Businesses coordinate the functions to attract you, the target customer. Marketing functions impact you.

... interrelated activities that must work together to get goods and services from producers to consumers. Marketing functions are

... obtains, develops, maintains, and improves a product or service mix in response to market opportunities. Product/Service Management Responsible for a product’s life cycleResponsible for a product’s life cycle Generates ideas for new productsGenerates ideas for new products Improves or updates existing productsImproves or updates existing products Removes products from the marketRemoves products from the market

... gathers, accesses, synthesizes, evaluates, and disseminates information for use in making business decisions. Marketing-Information Management Who are our customers?Who are our customers? Where are they located?Where are they located? What products do they want?What products do they want? Why do they want them?Why do they want them? When will they buy?When will they buy? Helps businesses answer questions:

Pricing... determines and adjusts prices to maximize return and meet customers’ perceptions of value. Decides how much to charge for products so Customers want to buyCustomers want to buy Business makes a profitBusiness makes a profit Deciding price is not always easy. Businesses consider many factors (supply, demand, competitors’ prices).Businesses consider many factors (supply, demand, competitors’ prices). Adjust prices when necessary.Adjust prices when necessary.

... moves, stores, locates, and/or transfers ownership of goods and services. Distribution TransportingTransporting ReceivingReceiving StoringStoring Puts products in customers’ hands by Often the key to a business’s success

AdvertisingAdvertising Television, radio, newspaper, magazine Television, radio, newspaper, magazine Direct mail Direct mail Out-of-home—billboards, transit ads Out-of-home—billboards, transit ads PublicityPublicity News releases, special events, celebrity appearances News releases, special events, celebrity appearances Sales promotionSales promotion Store displays, samples, contests, coupons, novelty items Store displays, samples, contests, coupons, novelty items Promotion... communicates information about goods, services, images, and/or ideas to achieve a desired outcome. Businesses use various methods to communicate.

Takes place on two levels: Personal: between a salesperson and a customer in a storePersonal: between a salesperson and a customer in a store Nonpersonal: online through the use of a computerNonpersonal: online through the use of a computer Selling... determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Provides customers with the products they want.

Discuss the importance of each marketing function. Objective

Helps businesses decide which products to produce or offer Must offer products that customers want and need to be successful. In retail, must carry products that attract the target customer.Must offer products that customers want and need to be successful. In retail, must carry products that attract the target customer. Importance of Product/Service Management Helps businesses decide the type of image they want to project Use other marketing functions to support that image.Use other marketing functions to support that image. Example: Promotion function develops appropriate advertising.Example: Promotion function develops appropriate advertising.

Conducts research to: Predict the futurePredict the future Find out if customers are satisfiedFind out if customers are satisfied Keep up with the timesKeep up with the times Importance of Marketing-Information Management Prevents making guesses Without accurate marketing information, businesses might Produce too much or not enoughProduce too much or not enough Not know what their competitors are sellingNot know what their competitors are selling Not know why customers are not buyingNot know why customers are not buying Lose moneyLose money

Must set a price that Customers are willing to payCustomers are willing to pay Covers costs and makes a profitCovers costs and makes a profit Importance of Pricing Fine line between the right and wrong price Raising prices to make more profit might be a mistake.Raising prices to make more profit might be a mistake. Customers might decide not to buy at that price.Customers might decide not to buy at that price. Must know when to adjust prices to remain competitive

Must have products on hand to sell when consumers want to buy Need an adequate supply on handNeed an adequate supply on hand If not, products cannot be sold.If not, products cannot be sold. Importance of Distribution Must select the best transportation method to Have products at the right place on timeHave products at the right place on time Control expensesControl expenses Must decide on the right level of inventory to Meet demandMeet demand Avoid tying up a lot of capitalAvoid tying up a lot of capital

Tells consumers about productsTells consumers about products Creates and/or increases demand for productsCreates and/or increases demand for products Draws customers to a business through the use ofDraws customers to a business through the use of magazine ads for new products magazine ads for new products discount coupons discount coupons Creates an image or impression of a businessCreates an image or impression of a business Can do a lot to guarantee a business’s successCan do a lot to guarantee a business’s success Importance of Promotion

Creates a positive experience for customers byCreates a positive experience for customers by meeting their needs so they will buy meeting their needs so they will buy offering the most appropriate product offering the most appropriate product Benefits businesses byBenefits businesses by creating a desire for their products creating a desire for their products getting products into consumers’ hands getting products into consumers’ hands helping them make a profit helping them make a profit Importance of Selling

Benefits consumers byBenefits consumers by Importance of Selling helping with their buying decisions helping with their buying decisions informing them about new products informing them about new products Benefits society byBenefits society by creating employment creating employment encouraging economic growth encouraging economic growth maintaining the free enterprise system through competition maintaining the free enterprise system through competition raising the standard of living raising the standard of living

Next time you buy, consider how each function affected your decision. Did one or two marketing functions have more influence on you than others? Ask yourself why. Marketing impacts YOU.