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3  Advertising – A paid for announcement to promote goods and services.  Goods – Tangible items that have monetary value and satisfy needs and wants.  Services – Intangible items that have monetary value and satisfy needs and wants.  Need – Something you cannot live without.  Want – Something you would like to have but can live without.  Consumer – Someone who uses products.  Marketing – The process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers.  Marketing Concept – The idea that a business should strive to satisfy customer’s needs and wants while generating a profit for the company.  Functions of Marketing – Distribution, Financing, Marketing Information Management, Pricing, Product-Service Management, Promotion, and Selling.  Utility – Utilities are the attributes of a product or service that make it capable of satisfying the consumers wants and needs. Coyright © Texas Education Agency, All Rights Reserved

1. Recognize the marketing functions as they relate to advertising.

 Includes the business activities necessary to get goods and services from the producer to the final user. (Consumer or business)  It is a process of interrelated activities use by businesses.  All businesses use marketing

6 1. Marketing Information Management 2. Financing 3. Pricing 4. Promotion 5. Product/Service Management 6. Distribution 7. Selling

7  This is the gathering, analyzing, storing, and collecting of information. This information is used to find out who the customer is, their habits, attitudes, and trends in the market place.  Collection methods include: Surveys Focus groups Taste testing

8  Getting the money that is necessary to pay for setting up and running a business.  Financing also involves decisions such as whether to offer credit to customers or other payment options.  Budgeting to appropriate business operations, (advertising, inventory, etc)

9  Pricing decisions dictate how much to charge for goods and services in order to make a profit.  Marketers must determine how much customers are willing to pay for these products.  Too High  Too low  Mark ups and mark downs

10  Promotion is the effort to inform, persuade, or remind potential customers about a business’s products or services.  It is also used to improve a company’s brand image.  Types/Examples: Advertising Sales Promotions Publicity Personal Selling

11  Product service management is obtaining, developing, maintaining, or improving existing products. Determining what to make or sale.  Market research guides product service management toward what the customer wants and needs.  Examples- What colors, styles, brands, ingredients, product packaging, name of product, warranty information etc.

12  Distribution is the process of deciding how to get goods to the customer.  This also involves systems that track products so that they can be located at any time.  Examples: Transportation Storage inventory control

13  Selling provides customers with the good and services they want. This includes: Manufacturers,Wholesalers, and Retailers  Sales people help customers make wise buying decision.  They also assist with product knowledge and demonstration, answer customer questions and reassure the customer’s purchase.

14  The idea that a business should satisfy customers’ needs.  All seven functions of marketing need to support this idea.  All employees are an extension of this concept and must provide the best possible service.

15  Think about your favorite restaurant.  Write down the reason it is your favorite.  How have they tried to keep you as a customer?  Who is the restaurant trying to target?  Now write down one type of job at the restaurant and give a brief summary as to how they contribute to the success of the marketing concept.