Marketing Chapter 1 Review for TEST PLEASE PAY ATTENTION

Why Study Marketing?  Effective marketing leads to satisfied customers and a successful, profitable business  Businesses, individuals consumers, and our economy benefit

Where does Marketing Take Place  You see it everyday  Includes advertisements in all types of media Ex- TV, Radio, Newspaper, magazine  Ex- Lebron James and Tiger Woods commercials  You are involved in the marketing process with every purchase you make

Marketing Functions  Market Planning- Identifying and understanding the markets a company wants to serve and developing strategies for each  Product & Service Management – Assisting in the design and development of products

Marketing Functions  Distribution – determine the best methods and procedures to use so customers are able to locate and obtain products and services  Pricing – Establishing and communicating the value of products to potential customers

Marketing Functions  Promotion – Communicating information to prospective customers through advertising to encourage them to purchase your product  Selling – Direct, personal communications with customer in order to assess needs

Marketing Functions  Marketing Information Management – Obtaining information to improve decision making  Financing – Budgeting for financing and providing financial assistance to customers

Marketing Functions  Risk Management – Providing security for products and reducing the risk associated with marketing decisions and activities

Marketing Functions Examples  Apple used product/ service management by combining the i-pod, cell phone, and internet to produce the i-phone i-phone  Hertz improved airport car rentals through the distribution strategy by being able to rent through the internet or telephone Hertz  Major car companies unitize financing when they maintain their own financing organizations for loans or leases car companiescar companies

Marketing Functions HINT HINT HINT HINT  List all of the marketing activities that take place before you buy a popular product or service that you use often. You must include at least one activity from each of the 9 marketing functions

Elements of the Marketing Concept  Marketing Concept- Using the needs of customers as the primary focus during the planning, production, pricing, distribution, and promotion of a product of service

Elements of the Marketing Concept (On your test)  3 Elements of the marketing concept  1. Identify the needs of customers  2. Develop & market products  3. Operate a business profitably

Implementing the Marketing Concept  There are 2 Steps  First step-  Identify the market the company wants to serve.  Second Step-  Developing a marketing mix that will meet the needs of the market and be profitable

4 P’s (On your test) Product- anything offered to a market by the business to satisfy needs Distribution- or place includes the locations and methods used

4 P’s  Price- Is the amount that customers pay and the methods of increasing the value of the product to the customers  Promotion- Includes the methods used and information communicated to encourage customers to purchase and to increase their satisfaction

HINT HINT HINT HINT  With a partner create your own product, use the four p’s and determine who your target market is

Miscellaneous  Marketing has changed drastically over the last 100 years  Every time a product or service is developed or purchased each of the nine marketing functions has occurred