1. The World of Marketing
Marketing Basics
Part 1

2. What is Marketing? Most visible business activity YOU...Daily!
"Creation & Maintenance
of SATISFYING exchange
relationships"
YOU...Daily!

3. Product is what a business offers customers to satisfy needs...

4. Marketing is based on Exchange
Marketing connects business’ to their customers.

5. Functions of Marketing:
SELLING
FINANCING
PRICING
DISTRIBUTION
PRODUCT/SERVICE MANAGEMENT
MARKETING INFORMATION MANAGEMENT
PROMOTION

6. Functions of Marketing
Activities that work together to get goods and services from producers to consumers
Each is essential

7. Product/Service Management
Designing, developing, maintaining, improving & acquiring products or services so they meet customer needs.
EXAMPLE: Pepsi product lines

8. SELLING: Direct personal communication with customers
Involves satisfying customers but ALSO anticipating future needs
Planned, personalized communication that influences purchasing decisions

9. Pricing:
Establishing & communicating the value or cost of goods & services to prospective customers.

10. Promotion:
Using advertising & other forms of communicating information about products services, images & ideas.
Encourages them to BUY your product.
Can be ads, contests, specials, promotions

11. Distribution:
Determining the best way to get a company’s products or services to customers
Done so the customers are able to locate, obtain & use product or services.

12. Marketing Info Management:
Obtaining, managing, & using info about customers to make business decisions more effective.
EXAMPLES: Wegmans, focus groups, surveys

13. Financing :
Budgeting for marketing activities, getting loans, & offering help to customers for buying your product or service.
EXAMPLE: GM offers “GMAC” car loans, credit cards, etc.

14. So…why study marketing?
Everyone benefits!
Increases effectiveness & profits

15. Functions of Marketing Examples: Forever 21
Functions/Activity of Marketing
Example:
Product/Service Management
Girl’s and some men’s clothes
Distribution
Branches in malls and online
Selling
Sales staff, telephone sales orders, website sales
Market Information Management
Credit card records, surveys, frequent buyer cards, etc.
Financing
Cash, credit, debit, etc.
Pricing
$2.50 for tanks up to $35?
Promotion
Ads, coupons, direct mail cards

16. Now it’s your turn… In GROUPS: Activity 1:
Applying the Marketing Functions

17. 20th century inventions

18. The role of marketing has evolved dramatically over the decades
The role of marketing has evolved dramatically over the decades. It’s different today compared to when your grandparents were exposed to it.

19. Four Phases of Marketing Role
PRODUCTION ERA
Focus: on production & distribution

20. Four Phases of Marketing Role
SALES ERA
Focus: on ads & salespeople to convince us.

21. Four Phases of Marketing Role
DEPARTMENT
ERA
Focus: departments formed to find
new ways to get customers
PROMOTIONS!!!

22. Four Phases of Marketing Role
CONCEPT
ERA
today
Focus: customers were #1
& many activities started

23. When Henry Ford first created the Model T, he was the only one mass producing cars.
He didn’t have to think about “The Marketing Concept.” But, as more and more producers started making cars, they had to think about what customers need and want in order to stay in business…
What do we know about the car back then? ALLL black ones! No special features!

24. Imagine if, in today’s world, you could only buy black
Imagine if, in today’s world, you could only buy black. Many customers would not be very happy!

25. Today’s buyer wants a choice!
MUST GIVE BUYERS WHAT THEY WANT!!!!

26. The Progress of Marketing
Marketing as a variety
of Activities
Marketing as Promotion
D=,
Marketing as Selling
Marketing as Distribution

27. Airline Industry
Variety= lots of competition, many promotions, frequent flier miles, services, first class, etc.
Promotion phase= better service, advertisements, clubs, etc
Selling phase= prettier flight attendants, better airport services
Distribution phase= started out only a few major airlines- not lots of choices

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

29. Implementing the Marketing Concept
Identify the market –who’s my customer?
Develop a marketing mix
Product- what am I offering?
Place (Distribution)-how will I get it to customers
Price-what’s a fair price to charge?
Promotion-how will they know about it?

30. How does Marketing make products “useful”
Economics of Marketing and “utility”

31. ECONOMIC UTILITY

32. THE EVOLUTION OF MARKETING…
Specialization led to exchange of goods
This exchange process creates “utility”

33. There are 4 economic benefits of marketing:

34. ECONOMIC BENEFITS OF MARKETING
Marketing bridges the gap between you and the maker or seller of an item
Manufacturer
YOU

35. New and Improved Products -- businesses look for opportunities to please the customer

36. Lower Prices – marketing activities add value and increase demand
Lower Prices – marketing activities add value and increase demand. When demand is high, manufacturers can produce at a lower price. They can sell at a lower price but increase the quantity sold. Thus, profits are higher even though prices are low.

37. It adds VALUE
Added Value = Utility

38. What is utility?
Attributes/features of a product or service that make it capable of satisfying consumers’ wants and needs.
And…there are 5 types:

39. FORM UTILITY
Changing raw materials or putting parts together to make them more useful – making and producing things.
Sand into glass
Wood into paper
Silk into fabric

40. Having a product where customers can buy it.
PLACE UTILITY
Having a product where customers can buy it.

41. IT INVOLVES
Location – may be through a catalog or at a retailer (actual store) – or, Internet.
Transporting the product to the location.

42. TIME UTILITY Planning and ordering Time of day and week
Having a product available at a certain time of year or a convenient time of day.
Planning and ordering
Time of day and week
Time of year: holidays and seasons

43. Possession Utility
The exchange of a product for some monetary value.

44. PAYMENT MAY BE MADE BY Cash Personal checks Credit cards Debit cards
Installments
(layaway)

45. Involves communication with the consumer.
Information Utility
Involves communication with the consumer.
ads
packaging
signs/displays
Ingredients list
displays
owner’s manuals

46. WHICH TYPES OF UTILITY ARE RELATED TO MARKETING?
Form utility is a function of production, NOT marketing

47. THESE UTILITIES ARE DIRECTLY RELATED TO MARKETING:
Place
Time
Possession
Information
Time & Place= distribution we already talked about!
Possession: financing
Inofrmation is mkt research AND promotion functions!

48. REVIEW: SHOW ME HOW A 24-HOUR PIZZA &DELIVERY BUSINESS OFFERS ALL TYPES OF UTILITY

49. Factors affecting Demand

50. (T.i.p.S-C) Taste & preferences of customers Income Population
Availability & Price of Substitutes
Availability & Price of Compliments T I P S C

51. Take a chance and create an ad
Click here for introductory information on how to do this!

52. Click here for presentation “tips”