1.1 Marketing and the Marketing Concept MARKETING MR. PAVONE

The Scope of Marketing  Marketing – The process of planning, pricing, promoting, selling, and distributing products to satisfy customers’ needs and wants.  Marketing is all around you and by being a consumer, you make decisions about products you like and products you do not like.  Marketing is an ongoing process and it is constantly changing; marketers and companies need to keep up with trends and consumer attitudes.

Ideas, Goods, and Services  Goods – Tangible items of monetary value that satisfy needs and wants.  Services – Intangible items of monetary value that satisfy needs and wants.  Marketing promotes ideas, goods and services; goods being tangible items of monetary value that we want and services are also of monetary value, satisfying our needs and wants.  Every time someone buys or sells something, an exchange takes place in the marketplace, which could be shops, Internet stores, financial institutions, catalogs and more.

Skills and Knowledge  The practice of marketing depends on key areas of skills and knowledge, such as: 1. Business Law8. Human Resource Management 2. Communications9. Information Management 3. Customer Relations10. Marketing 4. Economics11. Operations 5. Emotional Intelligence12. Professional Development 6. Entrepreneurship13. Strategic Management 7. Financial Analysis

Seven Marketing Core Functions  The marketing core includes the following functions:  Channel Management (Distribution): the process of deciding how to get goods into customer’s hands.  Market Planning: understanding the concepts and strategies used to develop and target specific marketing strategies to a select audience.  Marketing Information Management: conducting research to gather information, store it and then analyze it.  Pricing: decisions that dictate how much to charge for goods and services in order to make a profit.  Product/Service Management: obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunity.  Promotion: effort to inform, persuade, or remind potential customers about a business’s products or services.  Selling: providing customers with the goods and services they want.

The Marketing Concept  Marketing Concept – Businesses should satisfy customers’ needs and wants while making a profit.  The seven marketing core functions need to support the idea behind the marketing concept.  Customer Relationship Management (CRM): an aspect of marketing that combines customer information (through database and computer technology) with customer service and marketing communications.