What Is Marketing?

Why It's Important To be successful in business requires being marketing oriented.

Key Terms  marketing  products  goods  services  exchange

What Is Marketing Marketing is the process of developing, promoting, and distributing products to satisfy customers' wants and needs.

What Is Marketing Products = Goods and Services Goods: Hammers, automobiles, soda pop, clothing, and computers Services: Dry cleaners, amusement parks, attorneys, and movie theaters Exchange: Buying or selling a good or service

Foundations of Marketing Building on these four foundations helps you to acquire marketing skills that are relevant to your own career development.  Business, Management, and Entrepreneurship Understanding the basics of business, 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 Building on these four foundations helps you to acquire marketing skills that are relevant to your own career development.  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.

Functions of Marketing These functions define marketing as it is applied in business operations. ProducersConsumers Financing Pricing Marketing-Information Management Product/Service Management Promotion Distribution Selling

Functions of Marketing  Distribution involves deciding where and to whom products need to be sold in order to reach the final users.  Financing is getting the money needed to pay for the operation of a business.  Marketing-Information Management involves getting the necessary information to make sound business decisions.

Functions of Marketing  Pricing dictates how much to charge for goods and services.  Product/Service Management obtaining, developing, maintaining, and improving a product.  Promotion is communicating with potential customers to inform, persuade, or remind them about a company.  Selling is providing customers with goods and services they want.

Economic Utilities By understanding the benefits of marketing, you will see how the functions of marketing add value to products. You will also see how marketing activities lead to lower prices and new and improved products. Economic Utilities  The benefits of marketing  The meaning of economic utility  The five economic utilities and how to distinguish the four that are related to marketing

Economic Utilities Economic Benefits of Marketing o Bridges the gap between you and the maker or seller of an item. o Makes buying easy for customers. o Creates new and improved products at lower prices.

Economic Utilities Economic utilities reflect the value that producers and marketers add to raw materials when they make them into products and offer them for sale to the public.  Form utility Changing raw materials or putting parts together to make them more useful. Example: The parts of a lounge chair — the wood frame, the fabric, the glue and nails, and the reclining mechanism — are less useful by themselves. Putting them together adds form utility.

Economic Utilities  Place utility Having a product where customers can buy it. Example: Selling directly to the customer through catalogs.  Time utility Having a product available at a time convenient for customers. Example: Retailers offer large supplies of backpacks in the late summer, near the beginning of the school year.

Economic Utilities  Possession utility Exchange of a product for some monetary value. Example: Taking credit cards and checks rather than just cash enables customers to buy products.  Information utility Providing information so the customer is comfortable buying Example: Salespeople explain features of products. Example: Packaging explains qualities and uses. Example: Advertising informs consumers about products.

Economic Utilities Lower Prices When demand is high, manufacturers can make products in larger quantities, which reduces the unit cost of each product. Example: When fixed costs are $20,000: Quantity Produced Fixed Cost Per Unit 10,000 $ ,000 10¢

Economic Utilities New and Improved Products  As businesses continue to look for opportunities to better satisfy customers' wants and needs, the result is a larger variety of goods and services. Example: Personal computers have become smaller, more powerful, and less expensive through competition between makers.

The Marketing Concept  Marketing concept states that businesses must satisfy customers ' needs and wants in order to make a profit.  Customer vs. Consumer Customers buy a product. Consumers use the product. Example: Parents who buy video games from retailers are customers. The kids who play the video games are the consumers.

The Marketing Concept  Market is all potential customers who share common needs and wants and who have the ability and willingness to buy the product. A market can be described as the people who are potential customers of a product, as well as by the classification of a product in a category. Would you be considered part of the market for game consoles? Why or why not? What other markets are you part of?

The Marketing Concept  Target marketing is focusing all marketing mix decisions on the specific group of people you want to reach. The Marketing Concept Consumers Marketing ResearchMarketing Segmentation ProductPricePlacePromotion

The Marketing Concept  Marketing mix The marketing mix comprises four basic marketing strategies known as the four Ps:  Product strategies include what product to make, how to package it, what brand name to use, and what image to project.  Place strategies deal with how and where a product will be distributed.  Price strategies should reflect what customers are willing and able to pay.  Promotion strategies deal with how potential customers will be told about the new product, what the message will be, when and where it will be delivered, and with what inducements to buy.