1. Chapter 2, Section 1

2. Ways that Marketing helps People and Society… Can you think of any ways that marketing makes our lives better or easier?

3. Imagine you are going to a store to buy supplies for a party… If the store is close, you won’t have to walk/drive far There should be an adequate supply of the items you need (snacks, drinks, decorations) When you get to the store, the items you want should be easy to find Each item should have a clearly marked price and should be affordable An employee should be able to help you if you need it The store should allow you to purchase your items with cash, check, credit, or debit card. Each of these is an example of MARKETING! Both, you and the business, benefit

4. More/better products available to meet customer’s needs Higher sales volume Production becomes more efficient Costs actually can decline Example: computers Computers used to be VERY expensive, but now that more are being built, it’s cheaper to buy them, due to better technology and marketing 1. Cheaper Products

5. 2. More Job Opportunities 25%-33% of all jobs in the United States revolve around marketing Also, marketing skills can help someone: Get elected to office Prepare for a job or college Plan a fund-raising activity Start their own business

6. 3. New and Better Products Many products are beneficial to society Marketing encourages businesses to provide products and services that people want Example: People want to live in a safer/cleaner world More efficient automobiles use less gasoline and cause less pollution Biodegradable products reduce the need for landfill space Airbags and motorcycle helmets reduce # of injuries

7. 4. Better Standard of Living Marketing increases this Standard of living is based on products/services available, how easy it is to obtain these things, and the quality of life for consumers More jobs = higher wages

9. 5. International Trade Marketing encourages this Many things we buy are from other countries Without marketing, we wouldn’t be able to purchase these products or services Prices for products can be cheaper in other countries

10. Chapter 2, Section 2

11. 1. Marketing causes unneeded purchases Products today are:  Readily available  Attractively packaged  Displayed in ways that make them easy to purchase Credit is available nearly everywhere today too Advertising is used extensively In other words… it’s VERY EASY to buy a product today! A company should try to sell you anything, even if you don’t need it, just so they can make a profit… right?

12. Sometimes you later realize you don’t need that product, so you might return the item. The business has lost that sale Business might not be able to sell product if you used it Even if the product isn’t returned, the customer will be dissatisfied The business is left with the returned merchandise, an angry customer, and possibly a bad reputation… Have you ever bought something, but then later realized you didn’t need or want it? WRONG!

13. Response to this complaint: Businesses need to be sensitive to the needs and experiences of customers Products and services need to be carefully matched to customers’ needs Example: If a product isn’t selling, it’s not meeting the customer’s needs, and a business should not try to use promotion and price reductions to sell it. It will only cause dissatisfaction among the customers. Businesses should value long-term relationships with its customers

14. 2. Marketing Wastes Money Many people believe that the cost of the product would be WAY less if we got rid of some marketing activities On average, only about 50% of the cost of every item is used for marketing activities Marketing is NOT just advertising and selling (only about 2%-10%)

15. Response to this complaint: This idea is actually incorrect If a salesperson helps you select a product that better suits your needs, you should be happy and realize you spent your money efficiently Advertising can provide you information about the product In the long run, because of competition, marketing actually lowers costs If you have more choices, you will choose the one that is more reasonably priced Encourages businesses to keep price low

16. 3. Some Products Don’t Need Marketing Sometimes businesses rely a lot on marketing to sell poor- quality items. They may lie to you or not tell you the truth. Examples: cars, land This might be what the ad shows This might be what it actually looks like Cars may sometimes be “lemons” but the salesman obviously won’t tell you this.

17. What about high-quality products? Marketing is widely used on poor quality products… does that mean we don’t need to use it on high-quality products? Shouldn’t a high-quality product “sell itself?” Let’s look at an example and see if this is true: Does a high-quality product (like a TV) need marketing? What would it be like buying a TV if the functions of marketing were not used?

18. Response to this Complaint: People would have a much more difficult time buying a product without proper marketing Without marketing, the customer would have to go find out that the product exists and gather info You would need to locate it and pay cash for it Then transport it The customer would assume full risk for anything that happens to it As we can see, most products need marketing