Marketing Is All Around Us Chapter 1.1

The Reality…  You have been marketed to since you were very young.  You probably know a lot about marketing from the viewpoint of the potential customer.

Think/Discuss…  Think of something you have bought  Think of something that was bought for you  Discuss why you wanted these particular things

Change Your Thinking…  This class will encourage you to look at the world through a different lens…  Stop thinking like a consumer, and start thinking like a marketer!

Key terms:  marketing  goods  services  marketing concept

Marketing  Definition: Process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers.  Must keep up with trends and consumer attitudes  All functions of marketing support this effort

Goods  Definition: Tangible items that have monetary value and satisfy your needs and wants  Examples: Cars Toys Furniture Clothing

Services  Definition: Intangible items that have monetary value and satisfy your needs and wants (i.e., you cannot physically touch them)  Examples: Cooking a meal Cutting and styling hair

Exchange  Definition: Any time someone sells or buys something in the marketplace

Foundations of Marketing Business, management, entrepreneurship Communication and interpersonal skills Economics Professional development

Seven Functions of Marketing  Distribution  Financing  Marketing Information Management  Pricing  Product/Service Management  Promotion  Selling

Distribution  Process of deciding how to physically get the goods to the customer  Main methods are truck, rail, ship, air  Large retail chains store products in warehouses and distribute later  Tracking products (inventory) is also a component of the process

Financing  Getting the money that is necessary to pay for setting up and running a business Often in the form of a bank loan and/or forming a corporation and selling shares (or stock) of the business  Also includes decisions about whether or not to offer customers credit

Marketing Information Management  Process of gathering information, storing it, and analyzing it  Companies continually collect said info through market research studies  The better your information, the better decisions you can make!

Pricing  How much to charge for goods and services in order to make a profit  Based on costs and what competition charge for the same product or service  Determine how much are customers willing to pay Escort versus Lexus

Product/Service Management  Obtaining, developing, maintaining, and improving a product in response to market opportunities  Market research guides this

Promotion  Effort to inform, persuade, or remind potential customers about a business’s products or services  Examples: Radio and TV commercials (advertising = type of promotion)  Used to improve company’s public image

Selling  Provides customers with the goods and services they want  Two markets Selling to you the customer = Retail market Selling to a business = Business to Business (B2B) (i.e, wholesalers, retailers, manufacturers)

Selling, continued Needs and wants of the client determine HOW you sell (techniques & activities) Selling requires personalized, planned communication Strong selling can influence purchase decisions and enhance future business opportunities

Marketing Concept  Idea that a business should strive to satisfy customers’ needs and wants while generating a profit  Focus is on the customer!  Relationship building is key, as repeat customers keep a company in business

Customer Relationship Management (CRM)  Combines customer information (through database and computer technology) with customer service and marketing communications  Try to create more meaningful one- on-one communication

Homework: 15 points Please type  Identify a business that believes in the marketing concept  What products do they market?  Who is their competition?  What makes them stand out?  Who is the intended target market?  How do they promote? Use specific examples. 15 points

Taco Bell