Marketing Today Marketing Chapter 1 Journals: What do you think is marketing? List all the marketing activities that take place before you buy a popular product or service that you use often. Include one activity for each of the seven functions. Why does a business need marketing if it has a good product or service? If a music store mailed out discount coupons to nearby residents, they would fall under which element(s) of the marketing mix and why? What was the key insight underlying the development of the marketing concept in the 1970’s?

Warm-Up What type of marketing activities do you see everyday? Are you involved in marketing? If so, how? If not, why not? Marketing Chapter 1 Lesson Plans Have students answer the following on a separate sheet of paper while you take attendance.

Why Study Marketing? To learn how businesses use marketing to increase their effectiveness and profits Improve personal marketing skills Marketing is a large category covering a number of different activities that provides broad benefits when used effectively Every time you make a decision to buy a product or service you are participating in marketing for that product/company How would you interview for a spot at a prestigious college? Would you use any marketing?

All Businesses Use Marketing Businesses Directly Involved in Marketing Businesses with Major Marketing Activity Businesses with Limited Marketing Roles Advertising Agencies Retailers Law Offices Sales Reps. Manufacturers Physicians Marketing Research Firms Banks Government Agencies Trucking Companies Auto dealers Universities Where does marketing take place? Most visible Advertising Sales Research Transportation Every type of business is involved in marketing…Most large companies have marketing departments. There are many types of careers in marketing ranging from selling to inventory management Many less visible activities must be completed before a product is advertised and sold

Marketing Functions Promotions Product Pricing Distribution Financing Selling Info. Mgt.

Seven Functions of Marketing Product Management Design/development of products Distribution Getting product from manufacturer to final customer Selling Direct personal communication with customer Information Management Obtaining information to improve performance Product Management: Assisting in the design and development of products and services that will meet the needs of consumers Distribution: Determining the best methods and procedures to be used so prospective customers are able to locate, obtain, and use the product Selling: Direct, personal communication with prospective customers in order to assess needs and satisfy those needs with appropriate products Marketing Information management: Obtaining, managing, and using market information to improve decision making and the performance of marketing activities

Seven Marketing Functions Financing Budgeting for marketing activities or providing financing to customers Pricing Communicating the value of products Promotion Communicating information about product to consumers through advertising or other promotional methods Financing: Budgeting for marketing activities, obtaining the necessary financing and providing financial assistance to customers to assist them with purchasing the organization’s decision Pricing: Establishing and communicating the value of products to prospective customers Promotion: Communicating information to prospective customers through advertising and other promotional methods to encourage them to purchase the product.

Warm - Up Use complete sentences to answer the following: What does it mean to be self sufficient? What is bartering? Give an example. Marketing, Lesson plans Have students answer the warm-up on a separate sheet of paper. (take attendance) Give students 5 minutes to prepare for oral presentations on their articles

What is Marketing? The creation and maintenance of satisfying exchange relationships The definition of marketing has changed many times over the years because of the many functions and activities that are a part of marketing. In 1960 the AMA described marketing as the performance of business activities that direct the flow of goods and services from producer to end user But as marketing continued to be developed it became more complex to define; it includes customer research, product development activities and applies to non profit, and organizations not considered businesses: fraternities, schools, libraries, churches, etc) It is also applied to individuals (political candidates) and to ideas (quit smoking) This definition Creation suggests that marketing is involved from the very beginning as the product is being developed; Maintenance means that marketing must continue to be used as long as a business is operating; Satisfaction of both the business and the customer is an important goal of marketing; when products are exchanged the needs of everyone involved must be met; Exchange relationships applies the definition to any exchange where people are giving and receiving something of value

The Marketing Concept Using the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product Ask students for examples how a business can focus on the customer’s needs for each of the marketing mix Product: making a product that the customer wants Price: making the product available at a price the customer is willing to pay Place: making the product available to the customer when and where they want it Promotion: providing information, placing ads where customers will see them, offering coupons, using trusted spokespersons Assignment: hand out the article research assignment. Go through the example. Take students to the library to do the assignment.

The Marketing Concept Elements of the Marketing Concept Identify customer needs Develop and market products or services Operate a business profitability

Warm-Up Read the definition of marketing on page 9, then answer the following: What is the key attribute of the exchange relationship that marketers seek to create and maintain? Marketing Lesson Plan Have students answer the warm-up on a separate sheet of paper Take attendance Answer: marketers seek to create and maintain exchange relationships that are satisfying to both the customer and the business

The Need for Marketing First businesses developed marketing to improve exchange What if a company has a great product? Is there a need for marketing? Yes – if customers do not know about the product then they cannot buy the product… If customers do not know about the product they cannot buy the product; If they cannot locate the product they cannot buy the product; If they cannot afford it…

Marketing and the Development of Business Self Sufficient Do not rely on others for the things needed in order to survive Bartering Exchanging products Specialization of Labor Concentrating on one or a few activities In history we have known people to be self sufficient…meaning that they produced and consumed their own food and products. There was also a system called bartering, when you could trade products or services. For example maybe you raise chickens and you trade a dozen eggs for a pound of flour. Then people began to realize they had a skill or interest in one or two types of activities or work, thus if they concentrated on the work they did well they were able to accomplish much more than if they tried to do a variety of things. This concentration is called specialization of labor which made it possible for people to produce larger quantities of a single product than if they were attempting to produce many different products. Have students read the Marketing Matters on page 10 – have them get into three groups and answer the question

Marketing and the Development of Business Money Systems Use of currency as a recognized medium for exchange Central Markets Location where people bring products to be conveniently exchanged As specialization of labor became more common and a greater variety and quantity of products were available a money system was established to assist with the exchange process With more people producing more types of products and with people having money to purchase products, demand increased…so central markets made it easier for people to go to one location to find what they needed Let the students finish up their articles and begin the presentations.

Warm-Up Write an example of a business implementing the marketing concept.

The Functions of Business Production Creates or obtains products for sale Raw Materials Processing Merchandising Offering products produced by others for sale to customers Wholesalers Retailers Raw materials are the products that come from the ground to make products such as logging, mining, oil, etc. Processing means that you take the raw materials and change their form so they can be used in the production of other products For example: corn is processed to fructose (sugar) to be used in making Pepsi or Coca Cola Or: the school – produces education – teachers must create lesson plans or find lesson plans to use

The Functions of Business Operations Makes sure that business is running Takes care of the facility Accounting/Finance Creates budget and maintains financial well-being of company Operations is the “behind the scenes” of the business – so for our school example this would include buying paper to use in the copy machines, maintaining the building, processing the paperwork including referrals, grades, etc. Accounting and Financing – helps keep the business in the black – budgets and invests and pays the bills. In our school example this is the annual budget that the school board agrees on, they determine what capital will be needed for a year and agree to it. When other things occur then the budget gets adjusted – If we buy items we try to order with purchase orders – this gives us more time to pay it back these are the areas that the accounting/finance function would handle

The Functions of Business Management/Administration Sets objectives and goals for business Marketing Ensures effective exchange Coordination of Business Functions You must have all functions working together to have a profitable and successful business Management/administration develop implement and evaluate the plans and activities of the business – managers are responsible for everything that occurs in the business including the work of the employees – Again in the school example, the principal and superintendent help set the objectives for the school year – they look at what’s going on in the school and what needs improvement and plan teacher institutes to address these issues and put together plans to move forward. They are also responsible for the teachers, so they evaluate each teacher’s performance Marketing – All businesses need to complete a lot of activities in order to make their products available to consumers – this is where marketing comes in to make sure the exchange is effective In our school example it uses many different ways to communicate information, the Internet, direct mail, we also have T-shirts and other RTHS wear (for promotion); We have open houses and we are conveniently located Hand out the Business function Activity – have students use the Internet or the newspapers (on the shelf in the back) to complete. (make sure you go through the examples)

Warm-Up For the following Business functions give an examples of specific businesses using each function: Production Operations Accounting/finance Marketing Chapter 1 Lesson Plans Have students write their answers to the warm-up on a separate sheet of paper. Discuss. Note to students: Test over chapter 1 will be Thursday, Jan. 29th Give students about 5 – 10 minutes to prepare for their article presentations. Have students volunteer to go. When presentations are finished have students finish their Business function (career ads) assignment

Warm-Up If a business is the sole producer of a product that its customers need, why should it bother with implementing the marketing concept? Lesson Plans Have students write their answers to the warm-up on a separate sheet of paper Discuss: (Dissatisfied customers will eventually find alternatives for any product or service, in part because competitors will eagerly exploit any opportunity to steal them away)

Implementing the Marketing Concept Identify the Market Develop a Marketing Mix Product Distribution Price Promotion Give examples of each; Product: this part of the marketing mix not only is the product but the development or improvement of the product so for example creating the cell phone to have a touch screen Distribution is not only getting the product from the factory to the store, but it is having convenient hours, or offering sales over the internet, or location of the store (example: banks being open on Sunday, or store having an online store so customers can order online) Pricing not only tells the value of the product but has to be set at a level that the customers will pay and that you can get a profit (example: bottled water for $1) Promotion provides the customers the information to the customer about the product and to persuade them to buy the product (TV commercial using humor such as Verizon) Have students look at page 29 – as a class discuss #28

Warm-Up Answer questions 1 – 8 pages 26 – 27 in the Marketing Textbook Lesson Plans Have students answer the questions on a separate sheet of paper – grade these as a class; take down each student’s score. Hand out the Chapter 1 Concept Bingo and markers for the bingo Have students place a vocabulary word in each box except 1 (they can have one free space) Go through the questions – write down who wins each round of bingo Test next class. Have students look at page 29 – as a class discuss #28

Activity In groups of 2 - 3 Select a product or service that you buy frequently (select one for your group) Write down ways to improve the product or service’s marketing mix Explain how the suggested improvements would increase the satisfaction of both the consumers and business (or businesses that market the product/service) Have students get into groups to complete this activity. Have them turn in one sheet of paper for the group with each group member’s name on it. You might give the example of High School Classes – an improvement would be to offer classes online; This way if students could not make it to class they could get the lessons online via a website. All assignments and assessments could also be online. This would be the distribution marketing mix element. This would be satisfactory to the students because they could learn at their own convenience and pace; if they are not a morning person they would not have to go to class; also it could work if the students choose to go to class they can, but if they are sick, they can go online to get the day’s lesson; It could be satisfactory to the school because it would decrease the number of failing students; more students would get their credits (potentially) and we wouldn’t have to worry as much about absent students. (Of course there are always downfalls, but we won’t discuss these here for the purposes of this assignment) Give about 15 minutes for students to complete – share and have them turn the activity in

Warm-Up Review for the test (from the test questions) Hand out the test…(No notes) When students are finished have them read and answer the questions to the case study on page 30-31