Chapter 1 Marketing Today

Objectives Understand the importance of marketing Explain what marketing is and describe the marketing functions Define marketing

Think about…. Businesses that are successful What attracts you to that business? Does marketing consist of multiple activities?

What is Marketing? Is the creation and maintenance of satisfying exchange relationship. ‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’ The Chartered Institute of Marketing

Where does marketing take place? Most visible business activity Successful business…… Realize it or not…. You are involved in a businesses marketing activity!!!!!!!! List 5 marketing activities you see on a daily basis, and how that business tries to reach its customers

7 Functions of Marketing

Product/Service Management Assisting in the design and development of products and services that will meet the needs of prospective customers

Distribution Determines the best methods and procedures to be used so prospective customers are able to locate, obtain, and use the products and services of an organization.

Selling Direct Method Indirect Methods Personal communications with prospective customers in order to assess needs and satisfy those needs with appropriate products and services Indirect Methods Third-parties to interact with prospective customers.

Marketing-Information Management Obtaining managing and using market information to improve decision making and the performance of marketing activities

Financing Budgeting for marketing activates, obtaining the necessary financing, and providing financial assistance to customers to assist them with purchasing the organizations products and services

Promotion Generating awareness about a product and/or service to potential customers

Pricing Value for purchasing a businesses products and/or services

Bell Ringer Review 7 Functions of Marketing

Businesses Need Marketing To inform customers about products or services they don’t know about The success of marketing CAN NOT be determined unless the product satisfies the customers needs and wants

Bartering Self-Sufficient Don’t rely on others for the things needed in order to survive.

Specialized Labor

Development of Business Money System Central Market

Pop-Tart Bell Ringer…… Discuss with your neighbor how Pop-Tart used new forms of marketing for its product.

Functions of Business*

Production Creates or obtains products or services for sale Raw Material – obtaining raw materials for sale to customers (mining, oil drillers) Processing – using raw materials and changing their form through processing so they can be used in the production of other products (paper, food products) Services – no physical product (hair cut, landscaping, merchandising)

Operations The ongoing activities designed to support the primary function of a business and to keep a business operating efficiently. Building and equipment must be maintained Product and material management Paperwork Customer service

Accounting and Financing Plans and manages financial resources and maintains records and information related to businesses’ finances Amount of capital, budget management, borrowing of money, accounting

Management and Administration Involves developing, implementing, and evaluating the plans and activities of business. Responsible for everything that occurs in the business including the work of the employees Responsible for the performance of the company

Marketing All businesses need to complete a variety of activities in order to make their products and services available to consumers and to ensure that effective exchanges occur.

Coordinating of Business Functions 1. 2. 3. 4.

Group Discussion Using our school to illustrate how business organizations engage in various functions that must be coordinated if the organization is to be effective, explain how the school carries out its various functions that correspond to production, operations, accounting and finance, management and administration, and marketing.

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

Consequences Consequences of not satisfying customer needs Have to rely on extensive advertising, price reductions, rebates, pressure selling, special displays Reductions in profit Reluctant to buy from that company again

Implementing the Marketing Concept Identify the Market Market (A.K.A.Target Market) The description of prospective customers a business wants to serve and the location of those customers.

Group Discussion Network marketing as practice by Avon Products, Tupperware, Amway, and other products that are sold through networks of contacts rather than through traditional retail outlets. Explain how network marketing can help companies better understand and keep tabs on changes in the needs of their customers because there are no middlemen through which communication can be garbled.

Implementing the Marketing Concepts Develop a marketing mix (the blending of four marketing elements) Product Place or distribution Price Promotion

4 “P’s” * Product Place Price Promotion What’s being offered? Where will the product be offered? Price How much does it cost? Promotion How will your customers know about the product?

Showing off the 4 “P’s” + 3 More The relation to the marketing of services have become recognized as being important. There are an additional 3 Ps that now make up what has been referred to as the '7 Ps'.

Marketing Mix Activity* Below is a list of links to top companies who have a variety of brands making up their business. Choose five products and services (ensure that at least two of your choices are services) and identify the relevance of the 7 Ps to the product/service of your choice. Unilever - range of brands covering foodstuffs, perfumes, household cleaners, ice creams, etc. (http://www.unilever.co.uk/ourbrands) Nestlé - again, a range of brands covering food, cereals, confectionary, drinks and dairy products (http://www.nestle.com/Our_Brands/Our+Brands.htm) The Mars directory (http://www.mars.com/The_Mars_directory/Brand_search_results.asp?lstCountry=134) A Mercedes dealership network (http://www.mercedes-benzofcanterbury.co.uk) Dell computer products (http://www1.euro.dell.com/content/products/compare.aspx?c=uk&id=dimen&l=en&s=dhs) NatWest - banks provide 'products' which also double up as services in most cases! (http://www.natwest.com/index.asp) South West Trains - an important service for thousands of people every day! (http://www.swtrains.co.uk) BUPA private health care service

Group Activity* Using newspaper ads or magazine ads for different brands of comparable products, for example, two car ads or two ads for a movie. Based strictly on the ads, using a Venn Diagram compare the similarities and differences of the markets these advertisers seem to have identified and the marketing mixes they have developed to appeal to those markets. Which marketing effort do you think was more effective, why?

Marketing Today (Expert Topic) Production Era: 1900s-1920s Emphasis on producing and distributing new products Sales Era: 1930s-1940s Emphasis on using advertising and salespeople to convince customers to buy a company’s products Marketing Department Era: 1950s-1960s Emphasis on developing many new marketing activities to sell products Marketing Concept Era: 1970s-Today Emphasis on satisfying customers’ needs with a carefully developed marketing mix