Marketing Indicator 1.01 Understand marketing’s role and function in business to facilitate economic exchanges with customers.

A. Understand marketing’s role and function in business to facilitate economic exchanges with customers.

What is Marketing? Links producers to the customers who buy their goods and services Includes ALL activities to get product from manufacturer to consumer that are guided by consumer’s wants and needs 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.

Sales Concept VS. Marketing Concept SC = Product development w/o proving demand, want or need. Created regardless of whether anyone wants/needs it. This is a good product idea because we think it is, not b/c customers are asking for it. MC = Businesses must satisfy customers needs & wants in order to make a profit. Businesses use the needs of customers as the primary focus during the planning, production, distribution, & promotion of a product or service.

SWOT Analysis

7 Functions of Marketing Distribution Financing Marketing Information Management Pricing Product / Service Management Promotion Selling

Explain the purposes of each marketing function. Channel Management (Distribution) Transporting, storing, and handling goods from the manufacturer to the consumer. Large impact on pricing due to transportation costs.

Channel management (a.k.a.) Distribution Responsible for moving, storing, locating, and/or transferring ownership of goods and services Main goal is to move products from the producer to the consumer. Determines who will offer products and where they will be offered Develops relationships with channel members Assesses quality of vendor performance

Explain the purposes of each marketing function. 2. Financing – Manage cash needs of a business on a daily basis for future needs. Most businesses struggle the first years

Explain the purposes of each marketing function. 3. MIM – (marketing information management) provides usable info. to make business decisions. Ex. Google Analytics, Surveys to determine preferences of products, develop prototype for testing, implement new process and gather info. about possible problems

Marketing-information management (MIM) Provides data that can be used for business decision-making Provides data about effectiveness of marketing efforts Provides data about customer satisfaction, customer loyalty, needs, and wants

Explain the purposes of each marketing function. 4. Pricing – Determining a value to charge in order to make a profit.

Pricing Establishes products’ prices Determines whether prices need to be adjusted Sets policies and objectives for prices

Explain the purposes of each marketing function. 5. Product Service Management – Designing, producing, maintaining, improving, and obtaining products to meet customer’s wants and needs

Product/Service Management Helps to determine which products a business will offer and in what quantities Aids in determining and developing a company’s/product’s image Provides direction for other marketing activities based on changes in a product’s life cycle

Explain the purposes of each marketing function. 6. Promotion - Communication that is used to inform, persuade, or remind customers about a business’s products. (Advertising)

Promotion Reminds customers about products/businesses Informs customers about products/businesses Persuades customers about products/businesses

Explain the purposes of each marketing function. 7. Selling - Determining and responding to customer’s needs and wants through personalized communication (face-to-face)

Selling Creates a following of loyal customers Completes the exchange transaction Provides services for customers

MARKETING MIX – 4 P’s 4 P’s Product (Planning) Price Place Promotion Interconnected/interdependent – actions in one P effect decisions for the other P’s Each P has countless alternatives The better you know your target market, the easier the decisions for the 4 P’s Successful combination = profitability 4 P’s Product (Planning) Price Place Promotion

What items can be marketed? Products (Goods & Services) Organizations Profit vs. Nonprofit Places - Tourist attractions, Cities Ideas – Stand Against Bullying, Click it or Ticket People – politicians, actors, singers Events – concerts, sports, Olympics

Two categories of products Goods (tangible items) Durable vs. Non-durable Consumer vs. Industrial Services (intangible)

GOODS - TANGIBLE Durable (long lasting – washing machine) Nondurable goods (consumed within a short period of time such as gasoline, toothpaste) Consumer goods are used for personal purposes (such as a laptop to write a history paper or a cell phone to call your best friend) Industrial goods are used for business purposes (such as a commercial oven for a bakery) The same good could be consumer and/or industrial. The goods’ use determines which it is. A laptop used to type a history paper is? A laptop used to bill customers is?

SERVICES - INTANGIBLE Pay someone to do something for us because: We do not have the skill (haircut) or expertise (lawyer, doctor) We do not have the time (house cleaning) We do not want to do it (lawn care)

Where does Marketing Occur? Everyday by people, in places, with communication Marketing occurs wherever customers are

Where have you recently seen an advertisement?

Marketing IS EVERYWHERE!

MARKETING CONCEPT DEFINITION = 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.

Explain the elements of the marketing concept. CRM – (Customer Relationship Management) combines customer information via databases with customer service and marketing communication Marketing Loyalty Programs – Rewards repeat customers Product – business provides items that satisfy desires of consumers Profits – Money business keeps after paying all expenses

What is Marketing’s Role in a Private Enterprise System? Marketing fits into every facet of our lives, whether on a global scale or right in our own neighborhoods. Provides benefits that make our lives better, promoting using natural resources more wisely, and encourage international trade. Without marketing, we would all have to be self-sufficient.

Explain the role of marketing in a private/free enterprise system. Create awareness of product / service Have access to product / service Multiple channels to purchase product / service

Describe ways in which consumers and businesses would be affected if marketing did not exist. Society would remain in a self-subsistence style of living. Less competition = Higher prices Less choices, less improvements, less info.

Marketing benefits our society. Increased competition = Lower prices Variety of goods/services Mass communication about items Foreign and domestic societies benefit

A. Describe marketing functions and related activities Define the following terms using 1 word: channel management = distribution marketing-information management = data Pricing = price product/service management = lifecycle Promotion = communication Selling = personal (1 on 1) Financing = capital (investment, backing)