Marketing Is All Around Us Chapter #1 Marketing Is All Around Us

List things you have Bought . Why did you buy them?

Chapter Objectives Define Marketing Explain the 4 foundations of marketing List the 7 functions of marketing Understand the marketing concept Analyze the benefits of marketing Apply the concept of utility Differentiate consumer and industrial market Describe market share Define target market List the components of the marketing mix

Ideas, Goods, and Services Tangible items Monetary Value Satisfy needs and wants Services Intangible items Monetary Value Satisfy needs and wants

Business. Management, Entrepreneurship Understanding the basics that affect business decision making Economics Understanding economic principles and concepts that are basic to marketing Communication and Interpersonal Skills Understanding the system needed to interact effectively with others Professional Development Understanding strategies needed for career exploration and growth

Functions of Marketing Distribution How to get items into the hands of customers – Physically moving items Selling Providing customers with the goods and services they want – influencing what customers buy and helping then meet their needs Marketing Information Management Gathering information about customers, trends and competition. Pricing Determine what to charge for a product based on costs, market and customers. Product Management Developing, Maintaining and improving a product. Financing Getting the money that is necessary to pay for setting up and running a business. Promotion The effort to inform, persuade, or remind potential customers about a business’s product or service.

The Marketing Concept The idea that a business should strive to satisfy customers needs and wants while generating a profit for the firm. All seven functions of marketing must include this concept and place the customer first Customer Relationship Management (CRM) Aspect of marketing that combines customer information to help build relationships.

Economic Benefits of Marketing New and Improved Products Lower Prices Added Value and Utility 5 Economic Utilities (Attributes of a product that make it capable of satisfying customers needs and wants) Form Utility Place Utility Time Utility Possession Utility Information Utility

Market and Market Identification Market -all the people who share similar needs and wants and who have the ability to purchase a given product

Consumer VS Industrial Markets Consumer Market – People who purchase the product or service for personal use. Want products that will save them money, make life easier, improve appearance, create status or provide satisfaction Industrial Market – Business to Business they buy products for use in their business’s operations. They want products to improve productivity, increase sales, or decrease expenses.

Market Share A Company’s percentage of the total sales volume generated by all companies in a given market.

Target Market The group that is identified for a specific marketing program.

Consumer VS Customer Consumer – Customer – Customer Profile – lists information about the target market, such as age, income, ethnic background, occupation, attitudes, and Geographic residence.

Marketing Mix 4 Basic Marketing Strategies (4 P’s) Product – What to make or sell, packaging, design Place – Where to sell the product Price – what to charge for the product –discounts, credit terms Promotion – Message, media, ads

Assignment Review Facts and Ideas (Pg 21)