The World of Marketing Standard 1

What you will learn What is marketing? Marketing Concept 7 Functions of Marketing Marketing Mix (4 P’s of Marketing)

What is Marketing? The process of Planning Pricing Promoting/ Selling Distributing Products to satisfy customers’ needs and wants. Development + Promotion + Distribution = Happy Customer

So what’s a product? Products – goods and services that have monetary value Goods – things you can touch or hold Services – you can’t physically touch – tasks performed for a customer

The Marketing Concept Businesses must satisfy customers’ needs and wants in order to make a profit.

When Henry Ford first created the Model T, he was the only one mass producing cars. He didn’t have to think about “The Marketing Concept.” But, as more and more producers started making cars, they had to think about what customers need and want in order to stay in business. Henry Ford’s thoughts about car color in the early 1900’s.

Imagine if, in today’s world, you could only buy black Imagine if, in today’s world, you could only buy black. Many customers would not be very happy!

Today’s buyer wants a choice!

The Marketing Concept Continued If automobile manufactures do not give their consumers a choice (what they want), they will not stay in business. That concept is true for all businesses. Companies sell what Customers want.

Functions of Marketing Market Planning Marketing Information Management Pricing Product/Service Management Promotion Channel Management Selling

Functions Defined Channel Management – Process of deciding how to get goods into customers hands. Marketing Information Management – Gathering, storing, and analyzing information, customers, trends, and competing products Marketing Planning – Understanding concepts and strategies used to develop and target specific marketing strategies to a select audience Pricing – Determine how much to charge for goods and services in order to make a profit Continued on next slide

Functions Defined Product/Service Management – Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities Promotion – The effort to inform, persuade, and remind current and potential customers about a business’s products or services. Selling – Responding to consumer needs and wants through planned, personalized communication in order to influence purchase decisions and ensure satisfaction.

Marketing Mix The marketing mix is often referred to as the 4P’s of marketing. Basic marketing strategies. Product Price Place Promotion

Product Strategies What product to make How to package it What brand name to use What image to project

Place Strategies How and where a product will be distributed.

Price Strategies Reflect what customers are willing and able to pay.

Promotion Strategies How potential customers will be told about the new product What the message will be When and where it will be delivered What inducements are there to purchase it

The Marketing Mix The elements are interconnected Product Place Price Promotion

The Marketing Mix – The 4 P’s Contains countless alternatives. Management must select a combination of marketing mix decisions that will satisfy target markets and achieve organizational goals. Product & Place & Price & Promotion = Goals =