Marketing is All Around Us! How does society benefit from marketing?

What is Marketing?  Marketing is the process of planning, pricing, promoting, selling and distributing ideas, goods or services to create exchanges that satisfy customers  Products – both goods and services. –Goods – things you can touch. (pen) –Services – things you can’t touch. (dry cleaning.

Foundations of Marketing  Business/Management/Entrepreneurs hip-understanding the basics of business, common management and entrepreneurial concepts that affect business decision making  Communication and Interpersonal skills-understanding concepts, strategies and systems needed to interact effectively with others

Foundations of Marketing  Economics-understanding the economic principles and concepts that are basic to marketing  Professional Development- understanding concepts and strategies needed for career exploration, development and growth

7 Functions of Marketing How are markets used to determine a business’ marketing mix? 1. Selling – providing customers with goods and services they want to buy. Ex. Retail and industrial 2. Pricing – deciding how much to charge for goods and services in order to make a profit. Ex. How much people are willing to pay

7 Functions of Marketing Cont.. 3. Marketing Information Management – gathering, storing and analyzing information about customers, trends and competing products Ex. Research 4. Product/Service Management-obtaining, developing, maintaining, and improving a product/product mix in response to market opportunities Ex. E-commerce

Functions of Marketing cont… 5. Promotion – any form of communication used to inform, persuade, or remind potential customers about a businesses products. Give away toys at McD’s, advertisements 6. Financing – Getting the money necessary to pay for setting up and running a business Bank loans 7. Distribution-deciding how to get goods in customers hands -truck, rail, etc.

How does society benefit from marketing?  New and Improved Products  Lower Prices  Added Value and Utility

Economic Benefits  Utility – adding value to a product to make it more useful.  5 Types of Economic Utility  Form Utility – involves changing raw materials or putting parts together to make them more useful. Producing the final product. –Ex. Lead, wood, rubber, metal – pencil

Utilities Continued  Place Utility – involves having a product where customers can buy it. –Ex. Office Depot, catalogs, internet  Time Utility – having a product available a certain time of year. –Ex. Open 24 hours, holiday items  Possession Utility – value added by exchanging a product for some monetary value – Ex.variety of ways to pay for product, value added by becoming “yours”

Utilities cont…  Information Utility – involves communication with the consumer. –Ex. Salesperson, displays, packaging and labels.