MARKETING TODAY AND TOMORROW CHAPTER 01 4/24/2017 CHAPTER 1 MARKETING TODAY AND TOMORROW 1-1 What Is Marketing? 1-2 Businesses Need Marketing 1-3 Understanding the Marketing Concept 1-4 The Changing Role of Marketing Chapter 1 MARKETING

MARKETING TODAY AND TOMORROW - Goals CHAPTER 01 4/24/2017 CHAPTER 1 MARKETING TODAY AND TOMORROW - Goals The importance of studying marketing What marketing is and describe important marketing functions Why businesses need marketing Describing the functions of business Understand how marketing developed as a part of business Define the “marketing concept” Chapter 1 MARKETING

MARKETING TODAY AND TOMORROW - Goals CHAPTER 01 4/24/2017 CHAPTER 1 MARKETING TODAY AND TOMORROW - Goals Determine how businesses implement the marketing concept Describe how businesses approach marketing differently today than they did in the past Summarize how marketing is changing businesses and other organizations The nature of positive customer/client relations (Explain) How to define each component of the marketing mix (The “4Ps of Marketing”) Chapter 1 MARKETING

MARKETING TODAY AND TOMORROW CHAPTER 01 4/24/2017 CHAPTER 1 MARKETING TODAY AND TOMORROW What is Marketing! Chapter 1 MARKETING

Marketing Video (Our Semester in a 6 minute video)

Movie Questions Marketing is: (short version) ______________________ _________________________________________ Who is the guiding light of your business philosophy? ____________________ S___________ W__________ O___________ T____________

Chapter 1 Focus Questions: What marketing activities are being demonstrated by Cargill in the advertisement? Why do you believe a large international company like Cargill is concerned about how to get products to consumers living in Central America? AD PROVIDED WITH PERMISSION BY CARGILL. ©2007 CARGILL, INCORPORATED. Chapter 1

1-1 WHAT IS MARKETING? GOALS Understand the importance of studying marketing. Explain what marketing is and describe important marketing functions. Define marketing. Chapter 1

Why Study Marketing? Where does marketing take place? All types of businesses use marketing Chapter 1

Businesses Directly Involved in Marketing Advertising agencies Marketing research firms Import/export offices Freight companies Finance and credit firms Telemarketers Travel agencies Chapter 1

Businesses with Major Marketing Activities Retailers Manufacturers Banks Real estate agencies Insurance companies Automobile dealers Farmers and ranchers Chapter 1

Businesses with Limited Marketing Role Law offices Medical centers Accounting firms Government agencies Universities Construction businesses Public utilities Chapter 1

What Is Marketing? Marketing functions Companies use the marketing functions Market planning Product/service management Distribution Pricing Promotion Selling Marketing-information management Financing Risk management Chapter 1

9 Marketing Functions Market Planning Identifying and understanding the markets a company wants to serve and developing effective marketing strategies for each market. Chapter 1

9 Marketing Functions Product and Service Management Assisting in the design and development of products and services to meet the needs of prospective customers. Chapter 1

9 Marketing Functions Distribution Determining the best methods and procedures to be used so prospective customers are able to locate, obtain, and use the products and services of an organization. Chapter 1

9 Marketing Functions Pricing Establishing and communicating the value of products and services to prospective customers. Chapter 1

9 Marketing Functions Promotion Communicating information to prospective customers through advertising and other promotional methods to encourage them to purchase the organization’s products and services. Chapter 1

9 Marketing Functions Selling Direct, personal communications with prospective customers in order to assess needs and satisfy those needs with appropriate products and services. Chapter 1

9 Marketing Functions Marketing-Information Management Obtaining, managing and using market information to improve decision making and the performance of marketing activities. Chapter 1

9 Marketing Functions Financing Budgeting for necessary financing, and providing financial assistance to customers to assist them with purchasing products and services. Chapter 1

9 Marketing Functions Risk Management Providing security for products, personnel, and customers and reducing the risk associated with marketing decisions and activities. Chapter 1

What Is Marketing? Marketing functions Companies use the marketing functions Market planning Product/service management Distribution Pricing Promotion Selling Marketing-information management Financing Risk management Chapter 1

Defining Marketing Marketing is the creation and maintenance of satisfying exchange relationships. Chapter 1

Why Study Marketing? Marketing plays an important role in business operations It is essential to the success of manufacturers, retailers, government agencies, hospitals, law offices, schools, and churches All marketing activities should be directly related to the needs of customers.

BUSINESSES NEED MARKETING 1-2 BUSINESSES NEED MARKETING GOALS Explain why businesses need marketing. Understand how marketing developed as a part of business. Describe the functions of business. Chapter 1

The Need for Marketing People believe that if a business offers a good product, marketing is not necessary. Chapter 1

The Need for Marketing If the customer does not know about the product, does not know where to purchase it, is unable to get to the place where it is sold, cannot afford the price being charged, or does not believe it is a good value, the product will not be purchased. Chapter 1

The Need for Marketing Marketing must be carefully planned. Marketing must be coordinated with other business activities. Chapter 1

The Development of Marketing in Business Self-Sufficient Bartering Specialization of Labor Money Systems Central Markets Other Marketing Activities Chapter 1

The Development of Marketing in Business Self Sufficient You do not rely on other for the things you need to survive. Chapter 1

The Development of Marketing in Business Bartering Exchanging products or services with others by agreeing on their values. Chapter 1

The Development of Marketing in Business Specialization of Labor Concentrating on one thing or a few related activities so that they can be done well. Chapter 1

The Development of Marketing in Business Money Systems Established the use of currency as a recognized medium of exchange. Chapter 1

The Development of Marketing in Business Central Markets A location where people bring products to be conveniently exchanged. Chapter 1

The Development of Marketing in Business Other Marketing Activities Business formed to purchase products from producers and hold them for sale to purchasers as needed. Loan money to buyers or sellers. Help with transportation of products. Locate products that were not available in the market but that customers wanted. Chapter 1

The Functions of Business Production Operations Accounting and Finance Management and Administration Marketing Coordination of Business Functions Chapter 1

The Functions of Business Production Creates or obtains products or services for sale. Raw Materials Processing Agriculture Manufacturing Services Merchandising Chapter 1

The Functions of Business Operations Ongoing activities designed to support the primary function of a business and keep it operating efficiently. Chapter 1

The Functions of Business Accounting and Finance Plans and manages financial resources and maintains records and information related to a business’s finances. Capital, Budgets, Funding Chapter 1

The Functions of Business Management and Administration Involves developing, implementing, and evaluating the plans and activities of a business. Chapter 1

The Functions of Business Coordination of Business Functions Each of the functions of an effective business depends on the other functions. Chapter 1

UNDERSTANDING THE MARKETING CONCEPT 1-3 UNDERSTANDING THE MARKETING CONCEPT GOALS Define the marketing concept. Determine how businesses implement the marketing concept. Chapter 1

Early Marketing…….NOT Early 1900s, business were mostly concerned about producing products that the business believed customers could afford and would purchase. Businesses concentrated on production and seldom had to worry about marketing. The primary challenge to the sale of more products was to be able to deliver them to a larger number of customers. Chapter 1

The Marketing Concept Satisfying customer needs The consequences of not satisfying customer needs Chapter 1

Elements of the Marketing Concept Identify needs of customers Develop and market products or services Operate a business profitably Chapter 1

The Marketing Concept Satisfying customer needs The consequences of not satisfying customer needs (cars, clothing) Chapter 1

Implementing the Marketing Concept Identify the market (Step 1) Develop a marketing mix (4 P’S) (Step 2) Product Distribution or Place Price Promotion Chapter 1

Implementing the Marketing Concept Product Is anything offered to a market by the business to satisfy needs, including physical products, services, and ideas. Chapter 1

Implementing the Marketing Concept Distribution or Place Includes the locations and methods used to make the product available to customers. Chapter 1

Implementing the Marketing Concept Price Is the amount that customers pay and the methods of increasing the value of the product to the customers. Chapter 1

Implementing the Marketing Concept Promotion Includes the methods used and information communicated to encourage customers to purchase and to increase their satisfaction. Chapter 1

Implementing the Marketing Concept Marketing Mix The blending of the four marketing elements, product, distribution (place), price, and promotion to product a profitable business. Chapter 1

Implementing the Marketing Concept Identify the market (Step 1) Develop a marketing mix (4 P’S) (Step 2) Product - BIKE Distribution or Place Price Promotion Chapter 1

THE CHANGING ROLE OF MARKETING 1-4 THE CHANGING ROLE OF MARKETING GOALS Describe how businesses approach marketing differently today than they did in the past. Summarize how marketing is changing in businesses and other organizations. Chapter 1

The Changing Approach to Marketing Production emphasis Sales emphasis Marketing department emphasis Marketing concept emphasis Chapter 1

Marketing Department Era Production Era Sales Era 1900s–1920s 1930s–1940s • Emphasis on producing and distributing new products • Emphasis on using advertising and salespeople to convince customers to buy a company’s products Marketing Department Era Marketing Concept Era 1950s–1960s 1970s–Today • Emphasis on developing many new marketing activities to sell products • Emphasis on satisfying customers’ needs with a carefully developed marketing mix Chapter 1

Improving the Marketing Concept Relationship Marketing Employee Empowerment Chapter 1

Improving the Marketing Concept Relationship Marketing Focuses on developing loyal customers who continue to purchase from the business for a long period of time People buy from people/business they trust Retaining customers so they continue to purchase from you can increase profits by 20 to 50 percent. Chapter 1

Improving the Marketing Concept Employee Empowerment An approach to customer service that gives employees the authority to solve many customer problems Chapter 1

The Changing View of Marketing Marketing in other organizations Marketers’ roles today Chapter 1