1. Chapter 1: Marketing Is All Around Us

2. What is Marketing? Marketing Process of developing, promoting, and distributing products to satisfy customers’ needs and wants. Products Goods and services which have monetary value and satisfy customers’ needs and wants.

3. What is Marketing? Goods Kinds of things you can touch or hold in your hand. Examples: car, food, IPod, clothes

4. What is Marketing? Services Kinds of things you can’t physically touch; tasks performed for a customer. Examples: hair dresser, ski instructor, movie theatre, amusement park

5. What is Marketing? Exchange When something is sold in the marketplace. Occurs every time legal ownership of a product changes hands.

6. Foundations of Marketing 1.Business, Management, Entrepreneurship Understanding the basics of business, management, and entrepreneurship concepts that affect business decision making. 2. Communications and Interpersonal Skills Understanding concepts, strategies, and systems needed to interact effectively with others.

7. Foundations of Marketing 3. Economics Understanding the economic principles and concepts that are basic to marketing. 4. Professional Development Understanding concepts and strategies needed for career exploration, development, and growth.

8. Functions of Marketing 1. Distribution Delivering products to buyers, making decisions about how and where products will be moved, stored, or located. 2. Financing Getting the money needed to pay for the operation of a business.

9. Functions of Marketing 3. Marketing information management Getting information needed for making sound business decisions. 4. Pricing Deciding how much to charge for goods and services in order to maximize profits.

10. Functions of Marketing 5. Product/Services management Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities. 6. Promotion Communicating with potential customers to inform, persuade, or remind them about a business’s products.

11. Functions of Marketing 7. Selling Providing customers with goods and services they want to buy.

12. Professional Development Economics Business, Management, Entrepreneurship Communications and Interpersonal Skills Pricing Financing Distribution Promotion Selling Marketing Information Management Product/Service Management

13. Economic Benefits of Marketing What are the benefits of marketing to businesses and to you personally? 1.Added Value (Utility) 2.Lower Prices 3.New and Improved Products

14. 1. Added Value (Utility) Utility = Attributes of a product or service that make it capable of satisfying customers’ wants and needs. FormPlacePossessionInformationTime Marketing Utilities Economic Utilities ProductProduct

15. 1. Form Utility = Changing raw materials or putting parts together to make them more useful. Making or producing things.

16. 2. Place Utility = Having a product where customers can by it. Example: Catalogs, online, retailers, website.

17. 3. Time Utility = Having a product available at a certain time of year or a convenient time of day. Value increases if marketers have products available when consumers want them. Example: Toy manufacturers introduce new products at the Feb. toy fair to get in the stores for Christmas. Retailers also offer convenient store hours for shoppers. Longer hours during the holiday season.

18. 4. Possession Utility = The exchange of a product for some monetary value. Example: cash, credit cards, personal check. Installment or lay away plans

19. 5. Information Utility = Communication with the consumer. Salespeople explain the features and benefits of products. Displays Packaging & labeling Advertising Owner’s manuals

20. See Page 9 Figure 1.1 for examples of economic utilities FormPlacePossessionInformationTime Marketing Utilities Economic Utilities ProductProduct

21. 2. Lower Prices Marketing activities add value to products and increase demand. Increase demand = manufacturers can produce larger quantities  reduces unit costs of each product. Fixed costs remain the same no matter how many units you produce. When products become popular, more competitors enter the marketplace. Marketers need to find ways to lower their prices.

22. 3. New & Improved Products Businesses continue to look for ways to better satisfy customers’ wants and needs. Larger variety of goods and services Example: computers have become smaller, more powerful, less expensive.

23. Careers in Marketing Why study marketing? Learn day-to-day business functions of businesses. Learn to communicate effectively. Understand the techniques and principles of human relations help you get along well with others (Interpersonal skills). Example: supervisors, coworkers, customers, and fields. Careers in marketing include all the activities required to plan, develop, promote and distribute goods and services to consumers.

24. Employment Trends Marketing activities account for 1 in every 3 jobs in the US. Marketing jobs  while production jobs are  Businesses need to keep up with changes in the marketplace: Rise in single-parent homes Changing preferences in recreational activities Increase in foreign competition Changing gender roles

25. Benefits of a Marketing Career Benefits: Privileges, or monetary payments beyond salary or wages, that go with a job. More opportunity to advance in a marketing career than in almost any other area business due to high visibility that many marketing positions have. Examples: Constant feedback on sales figures by upper management. Present ideas in meetings with managers and executives. Many people see the ads created. Expense Account Bonuses Travel Work with people Medical Insurance Dental Insurance Company Car

26. Marketing Occupational Areas Occupational Area = a category of jobs that involves similar skills and aptitudes. 21 Accepted Areas Advertising Customer Service E-Commerce Entrepreneur Fashion Merchandising Financial Services Food Marketing Hospitality Marketing Importing/Exporting International Marketing Marketing Research Product Management Professional Sales Public Relations Real Estate Restaurant Management Retail Management Sales Management Service Marketing Sports Marketing Travel/Tourism

27. Job Levels in Marketing 5 Skill Levels 1.Entry Level = No prior experience and limited decision- making skills. Routine activities. These skills help increase job readiness and help develop business skills and learn appropriate behavior in the workplace. Example: grocery bagger or stock clerk 2. Career Sustaining = Higher level of skills and more decision-making. Allows some control over work environment and more responsibility. Example: cashier

28. 3. Marketing Specialist = Show leadership ability and make many decision on a daily basis. Long-term career goal. Strong job-related skills and good leadership skills. Example: Food buyer 4. Marketing Supervisor = Good management skills, ability to make many decision on a daily basis, and excellent marketing skills. Prestigious and income is generally quite high. Less risk than top management level. Example: Bakery Manager 5. Manager/Owner = Top level. Able to run a small business or part of a large business. Highly skilled in many areas. Responsible for any failures or problems that occur along the way. Willing to accept responsibility for both the successes and failure of the business. Example: Store Manager See Table on Page 15