1. Marketing Indicator 1.01
Understand marketing’s role and function in business to facilitate economic exchanges with customers.

2. A. Understand marketing’s role and function in business to facilitate economic exchanges with customers.

3. REVIEW - What is Marketing?
Links producers to the customers who buy their goods and services
Includes ALL activities to get product from manufacturer to consumer that are guided by consumer’s wants and needs
Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

4. REVIEW Sales Concept VS. Marketing Concept
SC = Product development w/o proving demand, want or need. Created regardless of whether anyone wants/needs it. This is a good product idea because we think it is, not b/c customers are asking for it.
MC = Businesses must satisfy customers needs & wants in order to make a profit.
Businesses use the needs of customers as the primary focus during the planning, production, distribution, & promotion of a product or service.

5. Identify Marketing Activities.
4 foundations of Marketing
7 functions of Marketing
SWOT Analysis
Marketing Mix (4 P’s)

6. 4 Foundations of Marketing
Economics - study of allocating resources to maximize their uses
Business, Management, Entrepreneurship - study of operating and managing a business & all the skills and concept necessary
Communication Skills – interacting with people and organizations
Professional Development – ongoing growth within a career path

7. 7 Functions of Marketing
Distribution
Financing
Marketing Information Management
Pricing
Product / Service Management
Promotion
Selling

8. Define 7 Functions using 1 word:
channel management = distribution
marketing-information management = data
Pricing = price
product/service management = lifecycle
Promotion = communication
Selling = personal (1 on 1)
Financing = capital (investment, backing)

9. SWOT Analysis

10. MARKETING MIX – 4 P’s 4 P’s Product (Planning) Price Place Promotion
Interconnected/interdependent – actions in one P effect decisions for the other P’s
Each P has countless alternatives
The better you know your target market, the easier the decisions for the 4 P’s
Successful combination = profitability
4 P’s
Product (Planning)
Price
Place
Promotion

11. PRODUCT PLANNING
Considers the direction in which the firm is heading and how marketing lines up with that direction
This thinking process provides the basis for all marketing goals and actions.
Analyzes who the customers are and what goods or services they need
Determines which goods or services to produce, sell, or provide
Since coordinating all of the pieces of marketing is an essential role of the marketer, thorough planning is necessary.

12. PRICE/PRICING Keeps two pricing issues in mind:
Customer’s perception of value
Selling firm’s objectives
Make a profit?
Goal is to strike the right balance.

13. PLACE
DISTRIBUTION
Figures out which steps to take to ensure a timely delivery
Download it via Internet?
Transport it? How?
Store it?

14. PROMOTION
Conducts activities to capture attention about a good or service
Each activity involves contact with a customer, whether in person or not.
Examples:
Advertising—e.g., television commercials
Personal selling—e.g., door-to-door sales, professional sales
Publicity—e.g., press releases
Sales promotion—e.g., logo-imprinted giveaways
Objectives include informing, persuading, and reminding.

15. What items can be marketed?
Products (Goods & Services)
Organizations
Profit vs. Nonprofit
Places - Tourist attractions, Cities
Ideas – Stand Against Bullying, Click it or Ticket
People – politicians, actors, singers
Events – concerts, sports, olympics

16. Two categories of products
Goods (tangible items)
Durable vs. Non-durable
Consumer vs. Industrial
Services (intangible)

17. GOODS - TANGIBLE Durable (long lasting – washing machine)
Nondurable goods (consumed within a short period of time such as gasoline, toothpaste)
Consumer goods are used for personal purposes (such as a laptop to write a history paper or a cell phone to call your best friend)
Industrial goods are used for business purposes (such as a commercial oven for a bakery)
The same good could be consumer and/or industrial. The goods’ use determines which it is.
A laptop used to type a history paper is?
A laptop used to bill customers is?

18. SERVICES - INTANGIBLE Pay someone to do something for us because:
We do not have the skill (haircut) or expertise (lawyer, doctor)
We do not have the time (house cleaning)
We do not want to do it (lawn care)

19. REVIEW categories of products
Goods – tangible purchases
Durable vs. Nondurable
Consumer vs. Industrial
Services – intangible purchases

20. Where does Marketing Occur?
Everyday by people, in places, with communication
Marketing occurs wherever customers are

21. Where have you recently seen an advertisement?

22. Marketing IS EVERYWHERE!

23. MARKETING CONCEPT
DEFINITION = A philosophy of conducting business that is based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals.

24. Explain the elements of the MARKETING CONCEPT
Customer Orientation
Business focus on building relationships w/ customers to facilitate loyal, repeat customers for life. Do it their way.
Finding out what customers want and producing those products the way they want them
Customer Satisfaction
Meet or exceed customer’s expectations
Customer Needs / Wants
Desires of the consumers that convert into purchases

25. Explain the elements of the MARKETING CONCEPT
Company Approach
Employees working together to satisfy their customers to earn profits
Company Commitment
All employees focused on the customers.
Do it better. Make/price the product better than the competition’s model.
Company Goals
Goals should be focused on satisfying customers
Do it with success in mind. Maintain your firm’s purpose while you apply the marketing concept.

26. Explain the elements of the marketing concept.
CRM – (Customer Relationship Management) combines customer information via databases with customer service and marketing communication
Marketing Loyalty Programs – Rewards repeat customers
Product – business provides items that satisfy desires of consumers
Profits – Money business keeps after paying all expenses

27. REVIEW Marketing Concept
FOCUS ON THE CUSTOMER!
WITHOUT THE CUSTOMER – NO $$$!

28. What is Marketing’s Role in a Private Enterprise System?
Marketing fits into every facet of our lives, whether on a global scale or right in our own neighborhoods.
Provides benefits that make our lives better, promoting using natural resources more wisely, and encourage international trade.
Without marketing, we would all have to be self-sufficient.

29. Explain the role of marketing in a private/free enterprise system.
Create awareness of product / service
Have access to product / service
Multiple channels to purchase product / service

30. REVIEW Role of Marketing in the Private Enterprise System
People buy and sell goods and services daily so they can feed their families, increase profits, and hopefully hire others.
Domino effect – if one is knocked down the others will follow
If a person has a job, they have money. They can spend money on goods and services and pay others using their money. This keeps others employed.

31. Describe ways in which consumers and businesses would be affected if marketing did not exist.
Society would remain self-subsistence style of living.
Less competition = Higher prices
Less choices, less improvements, less info.

32. REVIEW - How would consumers and businesses be affected if marketing did not exist?
Our nation would have difficulty linking producers to consumers.
Our own routines would be different because marketing shapes everything we do.
Ex: Out of milk? Go to the store. What store? Where?

33. BENEFITS OF MARKETING
Marketing bridges the gap between you & maker/seller of an item. Marketing makes it easy for consumers to buy what they want/need. It creates new & improved products at lower prices

34. BENEFITS OF MARKETING (cont.)
The 7 Functions of Marketing add value to a product/service.
Economic term for this: UTILITY = Added value
5 economic utilities involved w/all products – only 4 directly related to marketing

35. SIDE NOTE – 5 UTILITIES of MARKETING
Form
Involves changing raw materials, putting parts together to make them more useful – not directly related to marketing!
Deals with making/producing things
Place
Location – having the product where customers can buy it
Time
Having the product available when the customer wants/needs it
Possession
Exchange of a product/service for some monetary value
Information
Communication with the consumer

36. BENEFITS OF MARKETING (cont.)
Lower prices
When Marketing activities increase demand
Manufacturers can make products in larger quantities
Reducing the cost of production
Lower price, higher sales, higher profit

37. BENEFITS OF MARKETING (cont.)
New & Improved Products
When products/services become more popular (higher demand)
More competitors enter the marketplace
Increased competition, businesses look for ways to better satisfy wants & needs
Thus larger variety of goods & services

38. REVIEW Marketing benefits our society.
Increased competition = Lower prices
Variety of goods/services
Mass communication about items
Foreign and domestic societies benefit

39. REVIEW MARKETING Makes our lives better
Because problem solving is at the heart of marketing, each year we add some new products to our home, often at lower prices.
Promotes using the earth’s resources more wisely
If available resources are used sensibly, benefits can extend well into the future for the marketer, the nation, and the entire world.
Encourages trade between nations
Because resources are valuable to marketers, it doesn’t take them long to pinpoint where a particular resource can be found in abundance.
If our nation lacks a resource, we can usually trade something to get it.

40. REVIEW The benefits to marketing are…
“Marketing is beneficial to
consumers because it brings new
and improved products to the market, as well as lowering prices.”

41. REVIEW How Does Marketing Benefit Our Society?
Marketing visibly benefits
our lives,
our natural surroundings, and
our global trade.

42. B. Describe marketing functions and related activities
Define the following terms using 1 word:
channel management = distribution
marketing-information management = data
Pricing = price
product/service management = lifecycle
Promotion = communication
Selling = personal (1 on 1)
Financing = capital (investment, backing)

43. Explain the purposes of each marketing function.
Distribution –
Transporting, storing, and handling goods from the manufacturer to the consumer. Large impact on pricing due to transportation costs.

44. Channel management (a.k.a.) Distribution
Responsible for moving, storing, locating, and/or transferring ownership of goods and services
Main goal is to move products from the producer to the consumer.
Determines who will offer products and where they will be offered
Develops relationships with channel members
Assesses quality of vendor performance

45. Explain the purposes of each marketing function.
2. Financing – Manage cash needs of a business on a daily basis for future needs. Most businesses struggle the first years

46. Explain the purposes of each marketing function.
3. MIM – (marketing information management) provides usable info. to make business decisions. Ex. Google Analytics, Surveys to determine preferences of products, develop prototype for testing, implement new process and gather info. about possible problems

47. Marketing-information management (MIM)
Provides data that can be used for business decision-making
Provides data about effectiveness of marketing efforts
Provides data about customer satisfaction, customer loyalty, needs, and wants

48. Explain the purposes of each marketing function.
4. Pricing – Determining a value to charge in order to make a profit.

49. Pricing Establishes products’ prices
Determines whether prices need to be adjusted
Sets policies and objectives for prices

50. Explain the purposes of each marketing function.
5. Product Service Management – Designing, producing, maintaining, improving, and obtaining products to meet customer’s wants and needs

51. Product/Service Management
Helps to determine which products a business will offer and in what quantities
Aids in determining and developing a company’s/product’s image
Provides direction for other marketing activities based on changes in a product’s life cycle

52. Explain the purposes of each marketing function.
6. Promotion - Communication that is used to inform, persuade, or remind customers about a business’s products. (Advertising)

53. Promotion Reminds customers about products/businesses
Informs customers about products/businesses
Persuades customers about products/businesses

54. Explain the purposes of each marketing function.
7. Selling - Determining and responding to customer’s needs and wants through personalized communication (face-to-face)

55. Selling Creates a following of loyal customers
Completes the exchange transaction
Provides services for customers

56. Describe the importance of each marketing function to marketing.
CHANNEL MGT/Distribution is important to marketing because:
Gets products from producers to consumers so they are on hand when consumers want to buy.
Allows adequate supplies of products in the right place at the right time.
This function includes selecting methods of transporting products.
Some methods are less expensive than others.
Making the right decision helps to control expenses.

57. Describe the importance of each marketing function to marketing
FINANCING
Without money, cannot purchase goods, pay employees, pay for promotions, pay for transporting goods, pay rent for the offices/stores, cannot buy equipment or supplies, etc.

58. Describe the importance of each marketing function to marketing.
Marketing-Information Management is important to marketing because:
Allows businesses to make decisions based on information gathered rather than making guesses
Goal is to forecast, or predict, what will be happening that might affect the business in the future.
Might lose money because they are not keeping up with the times or selling the right products

59. Describe the importance of each marketing function to marketing.
Pricing is important to marketing because
Affects how well a product will sell and how much profit the business will make
Businesses need to set prices that customers are willing to pay.
Prices need to cover costs and include sufficient profit.

60. Describe the importance of each marketing function to marketing.
Product/Service Management is important to marketing because
Involves deciding on the products that a business will produce or offer
Businesses must offer the products that customers want and need to be successful.
Helps businesses decide on the type of image they want customers to have of them and their products.
Rely on the marketing-information management function to provide the necessary data.

61. Describe the importance of each marketing function to marketing.
Promotion is important to marketing because
Can create and/or increase consumer demand for products.
Promotions inform customers about:
New products
Improved products
New uses for existing products
Special values on products
Helps to create an image or impression of a business.
A business might want to change its image to attract a different or expanded target market.
Coordinated advertising and public relations will get the message across.

62. Describe the importance of each marketing function to marketing..
Selling is important to marketing because
This function is important because it involves contact with customers.
Other marketing functions pave the way for successful selling.
Businesses work to meet customers’ needs and sell them the most appropriate product.
All businesses have something to sell.

63. Describe the importance of each marketing function to marketing.
SELLING CONT.
Everyone benefits from selling.
Selling benefits businesses - Creates a desire for their products, Helps get their products into the hands of consumers
Selling benefits consumers by providing - Help with their buying decisions, Information about new products
Selling can benefit society - Creates employment. Encourages economic growth

64. Explain the interrelationships among marketing functions.
MIM PSM Pricing Distribution Promotion Selling Financing How do they work together?

65. The interrelationships among marketing functions
Can’t forget to advertise even if you have a great product
Can’t forget to have a sufficient supply of those great products in stock for an upcoming sale
Can’t forget to set prices that are competitive and attract customers
Forgetting any of these functions means your marketing effort won’t be as effective.
Your competitors will have an advantage…YIKES!

66. ACTIVITY 1
Think of 1 good and 1 service that you have used in the past 24 hours & write it down. Respond to the following questions for EACH:
How did you come to use these goods/services?
How did you find out about these goods/services?
Where did you obtain these goods/services?
How much did these goods/services cost?

67. ACTIVITY 2 Use your notes as a guide In teams of 2:
List & Define each function using 1 word and provide 2 examples for each function.
List the 4 P’s of the Marketing Mix and provide 2 examples for each
Choose one of the functions and create a QUALITY multiple choice question to share with the class
Choose one of the 4 P’s and create a QUALITY multiple choice question to share with the class

68. Short Answer Quiz Give an example of a need and a want.
What is a target market?
Give an example explaining who is a customer and who is a consumer.
The marketing concept philosophy indicates that a business will satisfy the wants and needs of _______________ and still make a profit.
List the two categories of products and explain how they are different.