Marketing Is Everywhere!! What is Marketing? Marketing Is Everywhere!!

Section 1.1 ~Objectives The meaning of marketing The foundations of marketing The functions of marketing Learning how business & people operate from a marketing point of view will help in all your future actions!

Section 1 Defining Marketing Marketing is the process of: Developing Promoting Distributing Products to satisfy customers’ needs and wants

Products Include both goods and services that have monetary value and satisfy customers’ needs and wants Goods ~ The kinds of things you can physically touch Services ~ The kinds of things you can’t physically touch – Tasks that are performed for a customer

Defining Marketing Marketing helps to connect businesses to their customers After goods are created, their sent to the marketplace where their made available to cosumers Marketplace ~ The commercial environment where exchanges are made Exchange – Every time something is sold in the marketplace

You experience marketing Everyday! Think of everything you do everyday!!!

Foundations of Marketing Business, Management, Entrepreneurship Communication and Interpersonal Skills Economics Professional Development

7 Functions of Marketing 1.Distribution ~ Where and to whom the products will be sold to reach the final consumer 2. Financing ~ Getting the money that is necessary to pay for the operation of the business. It also involves whether to offer credit to customers 3. Marketing Information Management ~ Getting the necessary information to make educated business decisions

7 Functions of Marketing 4. Pricing Decisions ~ Determining how much to charge for goods and services to maximize profits 5. Product/Service Management ~ Obtaining, developing, maintaining and improving a product or product mix in response to marketing opportunities

Functions Continued…….. 6. Promotion ~ Communicating with potential customers to inform, persuade, or remind them about a business’s products 7. Selling ~ Provides customers with the goods and services they want; retail and business to business

Section 1.2 ~ Economic Utilities The functions of marketing add value to a product ~ the added value in economic terms is called utility. Utilities are the attributes of a product or service that make it capable of satisfying consumers’ wants and needs

Objectives 1. The benefits of marketing 2. The meaning of economic utility 3. The five economic utilities and how to distinguish the four that are related to marketing

5 Economic Utilities 1. Form Utility ~ Making or producing things, changing raw materials to make them more useful. The only utility that is not directly related to marketing 2. Place utility ~ Having a product where customers can buy it The most convenient and efficient locations to sell products Direct sales, E-Commerce, Catalogs and Retailers

Economic Utilities Continued.. 3. Time Utility ~ Having a product available at a certain time of year or convenient time of day This increases the value of a product by having them available when consumers want them Store hours ~ 24/7 etc. 4. Possession Utility ~ The exchange of a product/service for some monetary value Retailers that accept alternatives to using cash such as checks or installment plans

Economic Utilities Continued.. These options add value to products, without them, customers may not be able to purchase products they want or need 5. Information Utility ~ Communication with customers Salespeople provide information about features and benefits Displays, packaging, labels and advertising all add value to a product

Economic Utilities Continued.. By using the economic utilities, businesses’ hope to have successful sales by adding value to their products Lower Prices Marketing activities add value to products and increase demand Demand is high ~ manufacturers can produce more product at lower prices ~ This reduces the cost of each unit but fixed costs stay the same

Economic Utilities Continued.. New and Improved Products Increased competition among businesses also adds value to products/services As businesses continue to look for opportunities to better customer needs and wants, the result for customers is a larger variety of goods and services

Section 1.3 Careers in Marketing Marketing is communicating A businessperson’s ability to present ideas to employees, customers and others has a direct impact on the business’s success or failure Interpersonal Skills are also an important part of marketing; being able to understand human relations will help you to understand and get along with others The techniques in marketing will help you to influence others throughout your life!!