2. Planning Pricing Promotion Distributing Marketing Concept Business Administration LAP 11

3. Objectives Explain the concept of marketing. Explain the nature of the marketing concept. Explain how marketing affects our society.

4. Objective A Explain the concept of marketing.

5. You may not think you have anything to do with marketing. But you do!You may not think you have anything to do with marketing. But you do! If you’ve ever... Planned a car-wash fund-raiser Negotiated a lower price for a garage sale item Handed out flyers for a class-office candidate Delivered candy to someone sponsoring your athletic event... then you’ve been involved in marketing.

6. Marketing is all around you. You can’t get away from it.Marketing is all around you. You can’t get away from it.

7. Marketing is defined as... the 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.

8. It connects producers to the customers who buy their products. Customers Producers

9. It encompasses everything that happens before a customer makes a purchase.

10. Where does marketing take place? Everyday places Marketing occurs wherever customers are. The goods and services which support customers’ lifestyles and meet businesses’ needs are found in the... schools,businesses, and shops in their neighborhood. As online purchases become more popular, the community marketplaces gain eager competitors from around the nation—even from around the world.

11. What items are marketed? Broad categories Goods Durable Durable Nondurable Nondurable Almost anything can be marketed. Services Organizations Places Ideas People

12. Economic Goods & Services Economic good:Economic good:  Physical (tangible) object  Useful (able to satisfy human wants)  Scarce (limited)  Transferable Economic service:Economic service:  Productive act that satisfies an economic want  Same characteristics as economic goods except intangible

13. Consumer and Industrial Products Consumer products—All economic goods and services purchased and used by the ultimate consumer (final user)Consumer products—All economic goods and services purchased and used by the ultimate consumer (final user)  Examples:  Food  Gas  Sunglasses

14. Consumer and Industrial Products Industrial products—All economic goods and services purchased by producers:Industrial products—All economic goods and services purchased by producers:  For resale  To make other goods and services  For use in business operations  Examples:  Buildings  Equipment  Office supplies

15. Objective B Explain the nature of the marketing concept.

16. The Marketing Concept 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 Note the customer’s point of view first, before making any marketing decisions. You should then have a better idea of what the customer wants and needs and a better idea of how to fulfill those needs.

17. Three themes of the marketing concept: Customer orientation: Do it their way. Old thinking—Persuading the customer that s/he needs a good or service that has already been produced Customer orientation—Find out what your customers want and provide them with it.

18. Objective C Explain how marketing affects our society.

19. Marketing fits into every facet of our lives whether on a global scale or right in our own neighborhoods.

20. In our community—Every day you come across marketing activities that can influence your decisions. Signs Stores Discount coupons Trucks transporting goods Storage warehouses When you run out of milk, you go to the corner store. When an ice-cream truck turns down your street, you suddenly want a cool snack When an ice-cream truck turns down your street, you suddenly want a cool snack.