1. Marketing Indicator 1.01
Understand marketing’s role and function in business to facilitate economic exchanges with customers.

2. A. Understand marketing’s role and function in business to facilitate economic exchanges with customers.

3. What is Marketing?
Links producers to the customers who buy their goods and services
Includes ALL activities to get product from manufacturer to consumer that are guided by consumer’s wants and needs
Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

4. Sales Concept VS. Marketing Concept
SC = Product development w/o proving demand, want or need. Created regardless of whether anyone wants/needs it. This is a good product idea because we think it is, not b/c customers are asking for it.
MC = Businesses must satisfy customers needs & wants in order to make a profit.
Businesses use the needs of customers as the primary focus during the planning, production, distribution, & promotion of a product or service.

5. SWOT Analysis

6. 7 Functions of Marketing
Distribution
Financing
Marketing Information Management
Pricing
Product / Service Management
Promotion
Selling

7. Explain the purposes of each marketing function.
Channel Management (Distribution)
Transporting, storing, and handling goods from the manufacturer to the consumer. Large impact on pricing due to transportation costs.

8. Channel management (a.k.a.) Distribution
Responsible for moving, storing, locating, and/or transferring ownership of goods and services
Main goal is to move products from the producer to the consumer.
Determines who will offer products and where they will be offered
Develops relationships with channel members
Assesses quality of vendor performance

9. Explain the purposes of each marketing function.
2. Financing – Manage cash needs of a business on a daily basis for future needs. Most businesses struggle the first years

10. Explain the purposes of each marketing function.
3. MIM – (marketing information management) provides usable info. to make business decisions. Ex. Google Analytics, Surveys to determine preferences of products, develop prototype for testing, implement new process and gather info. about possible problems

11. Marketing-information management (MIM)
Provides data that can be used for business decision-making
Provides data about effectiveness of marketing efforts
Provides data about customer satisfaction, customer loyalty, needs, and wants

12. Explain the purposes of each marketing function.
4. Pricing – Determining a value to charge in order to make a profit.

13. Pricing Establishes products’ prices
Determines whether prices need to be adjusted
Sets policies and objectives for prices

14. Explain the purposes of each marketing function.
5. Product Service Management – Designing, producing, maintaining, improving, and obtaining products to meet customer’s wants and needs

15. Product/Service Management
Helps to determine which products a business will offer and in what quantities
Aids in determining and developing a company’s/product’s image
Provides direction for other marketing activities based on changes in a product’s life cycle

16. Explain the purposes of each marketing function.
6. Promotion - Communication that is used to inform, persuade, or remind customers about a business’s products. (Advertising)

17. Promotion Reminds customers about products/businesses
Informs customers about products/businesses
Persuades customers about products/businesses

18. Explain the purposes of each marketing function.
7. Selling - Determining and responding to customer’s needs and wants through personalized communication (face-to-face)

19. Selling Creates a following of loyal customers
Completes the exchange transaction
Provides services for customers

20. MARKETING MIX – 4 P’s 4 P’s Product (Planning) Price Place Promotion
Interconnected/interdependent – actions in one P effect decisions for the other P’s
Each P has countless alternatives
The better you know your target market, the easier the decisions for the 4 P’s
Successful combination = profitability
4 P’s
Product (Planning)
Price
Place
Promotion

21. What items can be marketed?
Products (Goods & Services)
Organizations
Profit vs. Nonprofit
Places - Tourist attractions, Cities
Ideas – Stand Against Bullying, Click it or Ticket
People – politicians, actors, singers
Events – concerts, sports, Olympics

22. Two categories of products
Goods (tangible items)
Durable vs. Non-durable
Consumer vs. Industrial
Services (intangible)

23. GOODS - TANGIBLE Durable (long lasting – washing machine)
Nondurable goods (consumed within a short period of time such as gasoline, toothpaste)
Consumer goods are used for personal purposes (such as a laptop to write a history paper or a cell phone to call your best friend)
Industrial goods are used for business purposes (such as a commercial oven for a bakery)
The same good could be consumer and/or industrial. The goods’ use determines which it is.
A laptop used to type a history paper is?
A laptop used to bill customers is?

24. SERVICES - INTANGIBLE Pay someone to do something for us because:
We do not have the skill (haircut) or expertise (lawyer, doctor)
We do not have the time (house cleaning)
We do not want to do it (lawn care)

25. Where does Marketing Occur?
Everyday by people, in places, with communication
Marketing occurs wherever customers are

26. Where have you recently seen an advertisement?

27. Marketing IS EVERYWHERE!

28. MARKETING CONCEPT
DEFINITION = A philosophy of conducting business that is based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals.

29. Explain the elements of the marketing concept.
CRM – (Customer Relationship Management) combines customer information via databases with customer service and marketing communication
Marketing Loyalty Programs – Rewards repeat customers
Product – business provides items that satisfy desires of consumers
Profits – Money business keeps after paying all expenses

30. What is Marketing’s Role in a Private Enterprise System?
Marketing fits into every facet of our lives, whether on a global scale or right in our own neighborhoods.
Provides benefits that make our lives better, promoting using natural resources more wisely, and encourage international trade.
Without marketing, we would all have to be self-sufficient.

31. Explain the role of marketing in a private/free enterprise system.
Create awareness of product / service
Have access to product / service
Multiple channels to purchase product / service

32. Describe ways in which consumers and businesses would be affected if marketing did not exist.
Society would remain in a self-subsistence style of living.
Less competition = Higher prices
Less choices, less improvements, less info.

33. Marketing benefits our society.
Increased competition = Lower prices
Variety of goods/services
Mass communication about items
Foreign and domestic societies benefit

34. A. Describe marketing functions and related activities
Define the following terms using 1 word:
channel management = distribution
marketing-information management = data
Pricing = price
product/service management = lifecycle
Promotion = communication
Selling = personal (1 on 1)
Financing = capital (investment, backing)