The Functions of Marketing

Objectives Define Marketing Identify the seven functions of marketing and give examples of each. Differentiate between Goods and Services Ask students: When I ask “What is Marketing” what do you think about? List student responses on the board. Ask students about their jobs, What do they do in their jobs that is marketing related. Ie: customer service, upselling… Discuss Ask students what aspects of marketing they have come into contact with today? What do I mean by a means of exchange? Tells you how to pay for it or how to get it

What is the purpose of Marketing? It helps connect businesses to their customers It provides a means for exchange What aspects of marketing have you come into contact with today? Ask students: When I ask “What is Marketing” what do you think about? List student responses on the board. Ask students about their jobs, What do they do in their jobs that is marketing related. Ie: customer service, upselling… Discuss Ask students what aspects of marketing they have come into contact with today? What do I mean by a means of exchange? Tells you how to pay for it or how to get it

Marketing Marketing: all business functions involved in developing, promoting, and distributing products in order to satisfy customers’ needs and wants. Products include both Goods and Services In fashion you are providing more than just the basic human need of clothing and home furnishings. Fashions fulfill a need to reflect an image of one’s self to the world. By combining the basic marketing elements, fashion marketing help s people clarify their own image and makes a profit for those engaged in the business.

Goods are tangible products Products that can be touched Services are intangible products Products that can not be touched Who can give me an example of a good in the fashion industry and a service?

Functions of Marketing All the marketing activities you see daily can be classified into seven functions of marketing. No matter what industry you are in you can break marketing down into these functions, It can be fashion, toys cars whatever, these basic functions will exsist.

Seven Functions of Marketing MIM=Marketing Information Management

Marketing Research or Marketing Information Management The process of collecting the marketing information needed to make sound business decisions. Customer Trends Which products to carry Product Packaging Labeling Branding Used to determine customer demographics, attitudes and buying habits. In many successful companies this is the beginning step of a products lifestyle. At this point companies try and decide the consumer demand for a product. How to package it. At what price will it sell etc. You can really see this in the fashion industry. You have to know who your customer is to make in the fashion industry. Because you want to have the clothes that that customer wants to buy. . Does the dress barn and Hollister have the same customer. What about Lord & Taylor? You have to be aware of the latest trends and where fashion is moving to be successful Fashion is tough because fashions change from season to season and from year to year. Determining what will sell requires fashion marketers to keep in touch with customers. They must decide far in advance on the design of the garment, acquire the fabric and other materials, produce the garment, sell I to retailers, and deliver it for customer viewing when the customer is ready to buy it.

MIM Example: When Domino’s first considered expanding operations into Japan, it used its marketing research finding to adapt its traditional pizza to Japanese tastes They added topics such as corn and tuna to the menu to meet Japanese tastes.

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 At this stage business if a business is adding a new product they may need to drop an old product. Think about that sweater we wanted to buy at the beginning of class. Are you buying the same style of sweater today as you did three years ago? If you are a manufacturer you have to decide if you are going to develop a different style you have to decide if it is going to replace something you make now or is this a whole new line. What colors? In fashion products include suits, shirts, jeans, shoes, belts, purses, and home furnishings such as rugs and chairs. See how Coca-Cola bottles have changed with the times and woith customer needs and wants

Distribution 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 Storage/Warehousing How is it going to ship to stores. How is a company going to get its product to consumers AND How are you going to get your product to your customers Distribution means having your product in the right place at the right time. Getting shipments of sweaters in Mar or April is after the peak selling period of October-January.

Financing Locating and securing monies needed to operate a business and develop new products. Includes decisions about customer credit and payment options. In most organizations these people are called buyers or purchasing agents. These purchases can be of raw materials to manufacture goods or they can be of finished goods for resale. A textile manufacturers may require payment for fabric when it is delivered to a fashion designer, which is long before the customer pays for the finished piece of clothing. The designer may need to borrow money and pay finance charges on the money borrowed. This ads to the manufacturing cost of clothing. It takes careful planning to make sure the product is priced to cover the costs of manufacturing an item.

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 How does Competition affect Price? Have students give examples How do consumers affect price> Have students give examples

Pricing Super Bowl ticket prices go through the ceiling since there are limited number of tickets and enormous demand How does Competition affect Price? Have students give examples How do consumers affect price> Have students give examples

Promotion Any form of communication used to inform, persuade, or remind people about business’s products, and improve it’s public image. Advertising Public Relations Sales Promotion Personal Selling Visual Merchandising Can you name some different types of promotion? What are some successful Ad campaigns that you can think of? Can you think of an advertisement or commercial that made you not want to buy a product?

Promotion Example Atlanta Braves Game Free baseball hats, bobble heads, t-shirts, etc are given away at a game to try to increase attendance to the game.

Selling Providing customers with goods and services they want to buy. Includes selling in the retail market to you, and in the industrial market where products are purchased for use in business operations. Ex: a sales person answers questions about the operation of a running watch.

Review What is marketing? What are the seven functions of marketing Give an example of a good and a service. Marketing is all business functions involved in developing, promoting, and distributing products in order to satisfy customers’ needs and wants. Marketing Information Management (research) Distribution Selling Purchasing Pricing Product Planning Promotion

Review Identify the appropriate marketing function: Calvin Klein decides to bring back denim bell bottom pants in the Fall of 2007. Planning Nike decides to cut its price on Air Jordan’s to combat competition. Price Christian Dior it wants to have stars wearing its latest line of clothing during the Oscars. Promotion Ralph Lauren just developed an online boutique for customers to purchase clothing direct from the designer. Selling/ Distribution? Gucci surveys customers to help make decisions about which future products it will go to market with. Research