Businesses Need Marketing

The Need for Marketing  Past View: simple set of activities that would help a business sell its products  Today’s view: businesses utilize the marketing concept which is using the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product and service

Development of Business  Self-sufficient: do not rely on anyone else to survive  Bartering: exchanging products or services with others by agreeing on their value  Specialization of Labor: concentrating on one or a few related activities so they can be done well  Money system: established the use of currency as a recognized medium of exchange  Central Markets: location where people bring products to be conveniently exchanged  Other Marketing Activities: support businesses to make the exchange process more efficient

The Functions of Business  Production: creates or obtains products or services for sale –Raw materials (mining, logging) –Processing (oil refining, paper manufacturing) –Services (hair, nail, tanning) –Merchandising (retailers, wholesalers)  Operations: on-going activities designed to support the primary function of a business and to keep it operating efficiently  Accounts and Finance: plans and manages financial resources and maintains records and information related to the business’ finances

The Functions of Business  Management and Administration: developing, implementing, and evaluating the plans and activities of a business  Marketing: all business activities to make a product or service available to consumers and to ensure effective exchanges occur

Coordination of the Functions of Business  Each function of business is dependent upon the other functions of the business –What would happen if a business was not successful in coordinating all aspects of the business operation? –Examples?