Chapter 1 Marketing Is All Around Us1 Marketing Essentials With Mr. Colby Marketing Essentials With Mr. Colby Chapter 1 Marketing Is All Around Us Section 1.1 What Is Marketing?

Chapter 1 Marketing Is All Around Us2 SECTION 1.1 What Is Marketing What You'll Learn  The meaning of marketing  The foundations of marketing  The functions of marketing

Chapter 1 Marketing Is All Around Us3 SECTION 1.1 What Is Marketing Why It's Important To be successful in business requires being marketing oriented. Learning how businesses and people operate from a marketing point of view will help you in all your future endeavors. You will also get a good idea of whether marketing is a potential career for you.

Chapter 1 Marketing Is All Around Us4 SECTION 1.1 What Is Marketing Key Terms  marketing  products  goods  services  exchange

Chapter 1 Marketing Is All Around Us5 SECTION 1.1 What Is Marketing Marketing is the process of developing, promoting, and distributing products to satisfy customers' wants and needs. What Is Marketing

Chapter 1 Marketing Is All Around Us6 SECTION 1.1 What Is Marketing Goods: Hammers, automobiles, soda pop, clothing, and computers Services: Dry cleaners, amusement parks, attorneys, and movie theaters Exchange: Buying or selling a good or service Products = Goods and Services

Chapter 1 Marketing Is All Around Us7 SECTION 1.1 What Is Marketing These functions define marketing as it is applied in business operations. Functions of Marketing  Distribution  Financing  Marketing-Information Management  Pricing  Product/Service Management  Promotion  Selling Slide 1 of 4

Chapter 1 Marketing Is All Around Us8 SECTION 1.1 What Is Marketing Distribution involves deciding where and to whom products need to be sold in order to reach the final users. Financing is getting the money needed to pay for the operation of a business. Functions of Marketing Slide 2 of 4

Chapter 1 Marketing Is All Around Us9 SECTION 1.1 What Is Marketing Marketing-Information Management involves getting the necessary information to make sound business decisions. Pricing dictates how much to charge for goods and services. Product/Service Management is obtaining, developing, maintaining, and improving a product. Functions of Marketing Slide 3 of 4

Chapter 1 Marketing Is All Around Us10 SECTION 1.1 What Is Marketing Promotion is communicating with potential customers to inform, persuade, or remind them about a company. Selling is providing customers with goods and services they want. Functions of Marketing Slide 4 of 4

Chapter 1 Marketing Is All Around Us A SSESSMENT Thinking Critically How is a presidential political campaign an example of marketing?

Chapter 1 Marketing Is All Around Us Graphic Organizer Marketing Functions ProducersConsumers Financing Pricing Marketing-Information Management Product/Service Management Promotion Distribution Selling

Chapter 1 Marketing Is All Around Us13 SECTION 1.2 Economic Utilities Why It's Important By understanding the benefits of marketing, you will see how the functions of marketing add value to products. You will also see how marketing activities lead to lower prices and new and improved products.

Chapter 1 Marketing Is All Around Us14 SECTION 1.2 Economic Utilities Key Terms  utility  form utility  place utility  time utility  possession utility  information utility

Chapter 1 Marketing Is All Around Us15 SECTION 1.2 Economic Utilities Bridges the gap between you and the maker or seller of an item. Makes buying easy for customers. Creates new and improved products at lower prices. Economic Benefits of Marketing

Chapter 1 Marketing Is All Around Us16 SECTION 1.2 Economic Utilities Economic utilities reflect the value that producers and marketers add to raw materials when they make them into products and offer them for sale to the public. Economic Utilities  Form utility  Place utility  Time utility  Possession utility  Information utility

Chapter 1 Marketing Is All Around Us17 SECTION 1.2 Economic Utilities Changing raw materials or putting parts together to make them more useful. Form Utility  Example: The parts of a lounge chair — the wood frame, the fabric, the glue and nails, and the reclining mechanism — are less useful by themselves. Putting them together adds form utility.

Chapter 1 Marketing Is All Around Us18 SECTION 1.2 Economic Utilities Having a product where customers can buy it.  Example: Selling directly to the customer through catalogs. Place Utility

Chapter 1 Marketing Is All Around Us19 SECTION 1.2 Economic Utilities Having a product available at a time convenient for customers.  Example: Retailers offer large supplies of backpacks in the late summer, near the beginning of the school year. Time Utility

Chapter 1 Marketing Is All Around Us20 SECTION 1.2 Economic Utilities Exchange of a product for some monetary value.  Example: Taking credit cards and checks rather than just cash enables customers to buy products. Possession Utility

Chapter 1 Marketing Is All Around Us21 SECTION 1.2 Economic Utilities Providing information so the customer is comfortable buying. Information Utility  Example: Salespeople explain features of products.  Example: Packaging explains qualities and uses.  Example: Advertising informs consumers about products.

Chapter 1 Marketing Is All Around Us22 SECTION 1.2 Economic Utilities When demand is high, manufacturers can make products in larger quantities, which reduces the unit cost of each product.  Example: When fixed costs are $20,000: Quantity Produced Fixed Cost Per Unit 10,000 $ ,000 10¢ Lower Prices

Chapter 1 Marketing Is All Around Us23 SECTION 1.2 Economic Utilities As businesses continue to look for opportunities to better satisfy customers' wants and needs, the result is a larger variety of goods and services. New and Improved Products  Example: Personal computers have become smaller, more powerful, and less expensive through competition between makers.