Ch. 1 Marketing is All Around Us

Marketing Process of developing, promoting, and distributing products in order to satisfy customer needs and wants Helps connect business with its customers and provides the means for the exchange process to occur.

Products Are goods and services Goods Services Things you can touch or hold in your hand Services Things you can’t physically touch

Functions of Marketing Purchasing Buying goods and services for a business operation Ex – Buying materials to build your product

Functions of Marketing Selling Providing goods and services that the customer wants to buy Includes selling in the retail market to you (final consumer of the product) Includes selling in the industrial market (purchased for use in business operation)

Functions of Marketing Pricing Deciding how much to charge for good or service Takes in competition and how much customers are willing to pay

Functions of Marketing Product Planning All the decisions a business makes in the production and sale of its goods and services Which product to carry is major decision Product packaging Labeling Branding

Functions of Marketing Marketing Information Management Process of getting the marketing information needed to make sound business decisions. Market Research Questionnaires

Functions of Marketing Any form of communication used to inform, persuade, or remind people about a business’s product Used to improve a firm’s public image TV and Radio commercials (advertising) Give a ways Game

Functions of Marketing Financing Getting the money needed to finance the operation of a business Bank loans Take on partners/sell stock Offering credit to customer

Functions of Marketing Distribution Involves making decisions about where to sell your product Deciding on the method of transportation How and where products are stored

Functions of Marketing Risk Management Preventing or reducing business loss New competing business in town

Economic Benefits of Marketing Bridges the gap between you and the maker or seller Makes buying easy for consumers Helps create new and improved products Lowers Prices

Economic Benefits of Marketing Added Value Make the item more useful The added value is called Utility

Five Economic Utilities Form Utility Changing Raw materials or putting parts together to make them more useful Deals with making, or producing things

Five Economic Utilities Place Utility Having a product where customers can buy it. Convenient location for customers to shop

Five Economic Utilities Time Utility Having products available at a certain time of the year or a convenient time of the day. Marketers increase the value of their products by having them available when consumers want them.

Five Economic Utilities Possession Utility How do you come into possession of the product The exchange of a product for some monetary value Alternatives to cash Credit Cards Customer Credit 30 days to pay bill Installment - Layaway Delay possession in return for gradual payment

Five Economic Utilities Information Utility Communication with the customers Salespeople providing information Displays Packaging – Labeling Advertising Owners Manuals

Economic Benefits of Marketing Lower Prices When demand is high, manufacturers can make products in larger quantity, which reduces the unit costs of each product Fixed Costs – Costs remain the same each month Ex. – Rent, Utilities, Insurance When products become more popular, more competitors enter the market Causes lower production costs

Economic Benefits of Marketing New and Improved Products Result of increased competition Companies want to be able to better satisfy customers’ wants and needs for larger variety of goods and services

Marketing Skills Understanding Business You must understand how businesses operate in order to apply marketing. Understanding how businesses function on a day-to day basis will help you develop the necessary attitude and skills required for successful employment.

Marketing Skills Learning Interpersonal Skills Learning techniques and principles of human relations How to deal with supervisors, co-workers, and customers

Marketing Skills Perfecting Communication Skills Improve oral and written communication skills

Assignment Page 12 of the packet Critical Thinking Building Academic Skills