2. Definition of Marketing Many definitions, but all boil down to these points: l Create products based on market needs. l Informing target markets of product benefits. l Distribution of products to customers.

3. Businesses have evolved from: Production Operation-- How we can produce more. Sales Operation-- How to sell more of what we currently produce. Marketing-- What products to produce based on customer needs.

4. Market Planning l Requires a lot of time. l Takes resources away from production. l Lack of staff to complete a plan. l Lack of objective evaluation tool. l Lock a company into a course of action.

5. Budgets for Marketing l Percentage of sales are typically 4% - 8%. l Any excess amounts not used in operations. l Best is objective approach-- State: objective, purpose, activities and the specific cost for each action

6. l What does market oriented mean? Vs. l A company that is product oriented?

7. Do you agree? Businesses are profit oriented.

8. What would you do? A local hotel booked a wedding into its ballroom 9 months earlier for 300 individuals at $75/each = $22,500 + $2,500 = $25,000. Two months before the date, Texaco, a prime customer of the hotel wanted the ballroom for that day and time for 400 people at $100/each = $40,000 + $2,500 = $42,500. There was no contract signed with the wedding party. What should the hotel do?

9. Differences Between l Sales-Oriented Company l Market-Oriented Company

10. Sales-Oriented l Volume - first time buyer only. l Short term. l To sell the product as it is, after it is made.

11. Market-Oriented l Profit oriented - repeat buyer. l Long term. l Design a product that customers want based on needs, before it is made.

12. l Create a customer, that wants your product more than your competitors. l Keep customers - especially in the hospitality field. What should marketing do?

13. Will it create and/or keep customers? Marketing decisions should always answer “yes” to the following question:

14. Sale of a Membership at a Country Club