2Objectives Define marketing Understand the difference between needs and wantsExamine the marketing functions and the related activitiesUnderstand the importance of utility in determining value
3What is Marketing?The process of developing, promoting, and distributing products in order to satisfy customers’ needs and wants.
4Marketing is. . . Products Goods Services Goods and services. Material items you can touch.ServicesA series of tasks performed for a customer.
5Marketing ... Connecting businesses to their customers. Marketing provides the means for the exchange process.An exchange takes place every time something is sold in the marketplace.
6In what ways does marketing affect you every day?
7Functions of Marketing PurchasingObtaining goods and services for use in the operation of a business or for resale.
8Functions of Marketing PricingThe determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.
9Functions of Marketing Product Service Mgt.The process of creating/changing a product in response to market opportunities.
10Functions of Marketing Marketing Information ManagementGathering, recording, analyzing and disseminating information to aid in making marketing decisions.
11Functions of Marketing PromotionCommunicates information about products, services, images or ideas to customers or clients to influence their purchase behavior.
12Functions of Marketing FinancingDetermining the need for and availability of financial resources to aid in marketing activities.
13Functions of Marketing DistributionThe physical movement or the transfer of ownership of a good or service form the producer to the consumer.
14Risk Management Preventing or reducing business loss Ex. Accountants keeping records of what has been sold and the money earned
15Selling Communicating to customers to determine need and benefit Up sellingSuggestive SellingSteps of a sale
16There are five types of utilities. . . . Added ValueUtility is the usefulness of a product. What adds valueto a product.There are five types of utilities
17Form Utility Making or producing things changing products to add value For example, how is wheat changed to a more useful product?
18Place UtilityThe product’s usefulness is increased because of its location.Where does the various types of food you eat everyday come from? Would you like to go to Florida to get an orange?
19Time UtilityMaking a product available at the right time of year or a convenient time of day.Ex. Christmas season, Valentine’s Day or stores staying open late in order to attract customers who work during the day.
20Possession Utility The ability to aid customers in owning goods. Does the store offer credit cards or take checks?
21Information UtilityUsefulness added to the product through communication.Packages, labels, advertisements, displays, signs . . .
22Why study marketing? . . . to understand business . . . to learn interpersonal skills. . . to perfect communication skills.