1. Define and understand Marketing 2. Identify the seven functions of marketing and give examples of each. 3. Differentiate between Goods and Services 4. Identify the Marketing Mix 5. Understand Supply and Demand Objectives

What is Marketing? What do you think of? Examples? Have you come into contact with marketing today?

Marketing – Textbook Definition Marketing: all business functions involved in planning, developing, pricing, promoting, and distributing products in order to satisfy customers’ needs and wants.

What is Marketing? Definitions Video

Steve Jobs on Marketing Video Video

It is a bridge that helps connect businesses to their customers It helps businesses meet the needs of their customers Everything a business does to get and keep customers What is Marketing?

Quote: “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Peter Drucker Know your customer!

Definition of Business: “ There is only one valid definition of business purpose: to create a customer.” -Peter Drucker

Marketing Marketing: all business functions involved in planning, developing, pricing, promoting, and distributing products in order to satisfy customers’ needs and wants. Products include Goods, Services, and Ideas Products may be tangible or intangible

Goods are tangible products Products that can be touched Services and Ideas are intangible products Products that can not be touched

Marketing Ideas What kind of Ideas can be marketed? 1. “Causes” – Funding Breast Cancer Research, Anti-bullying 2. Recycling, Vegetarianism 3. Political parties, movements (e.g., gun control), candidates

Functions of Marketing – Why is marketing important? Why do we do it? All the marketing activities you see daily can be classified into seven functions of marketing.

Seven Functions of Marketing Selling Promotion PricingFinancing Distribution (Place) Product Planning Research MIM Marketing MIM=Marketing Information Management

Marketing Research or Marketing Information Management The process of collecting the marketing information needed to make sound business decisions. Trends Which products to carry Product Packaging Labeling Branding

Product Planning All the decisions a business makes in the production and sales of its goods and services. Which products to carry Product Name Product Packaging Labeling Branding

6 steps to product planning: 1.Generate an idea; 2. Screening ideas (gather research); 3. Developing the product; 4. Testing the product; 5. Introducing the product; 6. Evaluating customer acceptance

Distribution (Place) Making decisions about where to sell your product, how to get them there, and how to store them. Includes: Marketing Channels: Retail, Online, Door to Door Methods of transportation – how do you get it there? Is it perishable? Will it become outdated? Storage/Warehousing (Cold? Hot?)

Financing Locating and securing monies needed to operate a business and develop new products. Includes decisions about customer credit and payment options.

Pricing Deciding how much to charge for goods and services Price Affected by:  Competition  Customer  Costs of gathering information (Research)  Costs of financing business  Costs of design, fabric, and production of product  Costs of advertising and promotion  Distribution costs  Level of profit

Pricing Determining what a business charges for a product What is a “reasonable price?” Whatever the customer is willing to pay.

Promotion All the ways to provide information about a product Any form of communication used to inform, persuade, or remind people about business’s products, and improve its public image. Persuasive communication Advertising Public Relations Sales Promotion Personal Selling Visual Merchandising

Selling Providing customers with goods and services they want to buy. Meeting customers needs. Includes selling in the retail market to you, and in the industrial market where products are purchased for use in business operations.

Marketing Mix (the 4 P’s) Product – variety (market segments), quality, design features, brand, packaging Price – list prices, discounts, allowances, credit terms, payment periods Place – channels, coverage, assortments, location, inventory, transport Promotion – sales promotions, advertising, sales force, direct marketing

Product An item that satisfies a consumer demand (good, service, or idea) Products have life cycles (growth – maturity – decline) Product mix – the number of product lines offered to consumers What is the product mix for McDonalds?

Price The amount a customer pays for a product Price elasticity – how much does demand change in response to a change in a product’s price (gas v. toilet paper) - the more responsive, the more elastic

Promotion All the ways to provide information about a product

Place (distribution) Providing a place to purchase the product, convenient to the customer

Modern: The 4 C’s Consumer Convenience Cost Communication

Consumer Instead of focusing on the product, focus on the consumer / customer Consumer - the ultimate user of the product Customer - the person who buys the product Focus on consumer’s needs and wants

Cost Instead of focusing on the price, focus on the cost Cost to produce the product Cost to the consumer

Communication Instead of promotion, focus on communication Communication is a two-way street – listen to the consumer / customer Social media

Convenience Instead of focusing on place, focus on convenience How can you make it more convenient for your customer / consumer

4 P’s v. 4 C’s 4 C’s are more customer- oriented Use 4 C’s in conjunction with 4 P’s

How do you market? What does a business do? Marketing Analysis – SWOT or strengths, weaknesses, opportunities, and threats Marketing Segmentation – divide the market into groups of people; decide which group or groups to sell to Marketing Strategy – plan to increase sales or achieve an advantage over your competitors

Supply The amount of a product available for purchase at a particular price

Demand The amount of product consumers will want to purchase at a particular price

How Supply and Demand Interact

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Laws of Supply and Demand When the supply (quantity) goes up, price will usually go down When the supply (quantity) goes down, price will usually go up When the demand goes up, the price will usually go up When the demand goes down, the price will usually go down

How do you market? What does a business do? Marketing Analysis – SWOT or strengths, weaknesses, opportunities, and threats Marketing Segmentation – divide the market into groups of people; decide which group or groups to sell to Marketing Strategy – plan to increase sales or achieve an advantage over your competitors

Review What is marketing? What are the seven functions of marketing Give an example of a good and a service. Give an example of an idea that can be marketed How do supply and demand interact? Define market segmentation What are the 4 P’s? the 4 C’s?

Review Selling Promotion PricingFinancing Distribution (Place) Product Planning Research MIM Marketing Explain the 7 marketing function: