Marketing Today Chapter One

What Is Marketing? To often people hear the word Marketing and think of only advertising and selling. However, many marketing activities must take place before a product is ever ready to be advertised or sold.To often people hear the word Marketing and think of only advertising and selling. However, many marketing activities must take place before a product is ever ready to be advertised or sold. Marketing by definition is the creation and maintenance of satisfying exchange relationshipsMarketing by definition is the creation and maintenance of satisfying exchange relationships

The Breakdown of the Definition The word creation suggests that marketing is involved from the very beginning as products and services are being developed.The word creation suggests that marketing is involved from the very beginning as products and services are being developed. Maintenance means that marketing must continue to be used as long as a business is operating.Maintenance means that marketing must continue to be used as long as a business is operating. Satisfaction of both the business and the customer is an important goal of marketing.Satisfaction of both the business and the customer is an important goal of marketing. Exchange relationships applies the definition to any exchange where people are giving and receiving something of value.Exchange relationships applies the definition to any exchange where people are giving and receiving something of value.

Functions of Marketing Product/Service ManagementProduct/Service Management DistributionDistribution SellingSelling Marketing-Information ManagementMarketing-Information Management FinancingFinancing PricingPricing PromotionPromotion

The Marketing Concept The Marketing Concept is using the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service.The Marketing Concept is using the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service. Identify Needs of Customers Develop and Market Products or Services Operate the Business Profitably

Implementing the Marketing Concept Companies that use the Marketing Concept follow a two-step process:Companies that use the Marketing Concept follow a two-step process: –Identifying the Market –Develop a Marketing Mix

Identify the Market The first step is to identify the market they want to serve. A market refers to the description of the prospective customers a business wants to serve and the location of those customers.The first step is to identify the market they want to serve. A market refers to the description of the prospective customers a business wants to serve and the location of those customers. ie: A potential market for a bicycle manufacturer may be people who ride bicycles for health and fitness in the mountains.ie: A potential market for a bicycle manufacturer may be people who ride bicycles for health and fitness in the mountains.

Develop a Marketing Mix The second step is to develop a marketing mix that will meet the needs of the market and that the business can provide profitably. A marketing mix is the blending of four marketing elements (product, distribution or place, price, and promotion) by the business.The second step is to develop a marketing mix that will meet the needs of the market and that the business can provide profitably. A marketing mix is the blending of four marketing elements (product, distribution or place, price, and promotion) by the business.

The Four P’s Product- is anything offered to a market by the business to satisfy needs, including physical products, services, and ideasProduct- is anything offered to a market by the business to satisfy needs, including physical products, services, and ideas Place (or distribution)- includes locations and methods used to make the product available to customersPlace (or distribution)- includes locations and methods used to make the product available to customers Price- is the actual amount that customers pay and the methods of increasing the value of the product to the customersPrice- is the actual amount that customers pay and the methods of increasing the value of the product to the customers Promotion- includes the methods and information communicated to customers to encourage purchases and increase their satisfactionPromotion- includes the methods and information communicated to customers to encourage purchases and increase their satisfaction