1. Marketing is All Around Us
Ch. 1 ME

2. Marketing and the Marketing Concept
Section 1.1
Marketing and the Marketing Concept

3. The Scope of Marketing
Marketing – is the process of planning, pricing, promotion, selling, and distributing ideas, goods, or services to create exchanges to satisfy customers.
Is a process; is ongoing and it changes
Needs to keeps up with trends and consumer attitudes

4. Ideas, Goods & Services
Ideas - is a concept or techniques that can be bough or sold
Goods - are tangible items that have monetary value and satisfy your needs and wants
Services – intangible items that have monetary value and satisfy your needs and wants
Marketplace – where the exchange takes place, every time someone sells or buys something
Usually a commercial environment

5. Foundations of Marketing
Business, management & entrepreneurship
Communication and interpersonal skills
Economics
Professional development

6. Seven Functions of Marketing
Distribution – is the process of deciding hot to get goods in customers’ hands
Main methods – truck, rail, ship or air
Also involves systems that track products
Financing – is getting the money that is necessary to pay for setting up and running a business

7. Seven Functions of Marketing
Marketing Information Management – in which all marketing decisions rely on good information about customers, trends and competing products
Must gather information, store it and analyze it
Is done on continual basis and through special marketing research studies
Pricing – dictates how much to charge for goods and services in order to make a profit
Based on costs and on what competitors charge for the same product or service
Determines how much a customer is willing to pay

8. Seven Functions of Marketing
Product/Service Management – is obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities
Promotion – is the effort to inform, persuade, and remind potential customers about a business’s products or services
Used for advertising
Also used to improve a company’s public image

9. Seven Functions of Marketing
Selling – provides customers with the goods and services they want
Includes selling in the retail market to customers, and business-to-business to wholesales, retailers, or manufacturers
Selling techniques include determining client needs and wants, and responding through planned, personalized communication

10. The Marketing Concept
Marketing Concept – is the ides that a business should strive to satisfy customers’ needs and wants while generating a profit for the firm
Responsible personnel of the firm must understand the marketing concept, and provide the best possible service to its customers
Repeat customers keep a company in business

11. Customer Relationship Management (CRM)
Customer Relationship Management (CRM)- is an aspect of the marketing that combines customer information with customer service and marketing communications

12. The Importance of Marketing
Section 1.2
The Importance of Marketing

13. Benefits of Marketing New and Improved Products Lower Prices
Marketing generates competition
Lower Prices
Marketing increases demand
Added Value and Utility
Utility – is added value in economic terms
Are the attributes of a product or service that make it capable of satisfying consumers’ needs and wants

14. Added Value and Utility
Form Utility- involves changing raw materials or putting parts together to make them more useful
Manufacturing of products involves taking things of little value by themselves and putting them together to create more value
Special features or ingredients add value and increase form utility value
Examples: zippers and electronic controls in a steering wheel

15. Added Value and Utility
Place Utility – involves having a product where customers can buy it
Customer shopping habits determine the most convenient and efficient locations
Direct approach by selling through catalogs, others business or internet
Time Utility – is having a product available at a certain time of year or a convenient time of day

16. Added Value and Utility
Possession Utility – the exchange of a product for money
Involves every time legal ownership of a product changes hands
Information Utility – involves communication with customers
Examples: sales people, displays, packaging and labeling, advertising, owners’ manuals & Web sites

17. Fundamentals of Marketing
Section 1.3
Fundamentals of Marketing

18. Market Identification
Market – all people who share similar needs and wants and who have the ability to purchase a given product

19. Consumer vs. Industrial
Consumer Market – consists of consumers who purchase goods and services for personal use
Needs and wants address lifestyle categories
Industrial Market (Business to Business) – includes all businesses that buy products for use in their operations
Most relate to improving profits

20. Market Share & Target Markets
Market Share – is its percentage of the total sales volume generated by all companies that compete in a given market
Change all the time as new competitors enter the market and as the size of the market increases or decreases in volume
Market Segmentation – is the process of clarifying customers by needs and wants
Target Market – the group that is identified for a specific marketing program
All marketing strategies are directed at the target market
Is the key to a successful marketing plan

21. Consumers vs. Consumers
A product may have more than one target market
Customer Profile – develops a clear picture of a target market
Lists information, such as: age, income level, ethnic background, occupation, attitudes, lifestyle, and geographic residence

22. Marketing Mix
Product
Place
Price
Promotion

23. Marketing Mix Product Place Decisions begin with what to make and sell
Product feature’s include: brand name, packaging, service, and warranty
What to do with current products; updating, improving or discontinue
Place
The means of getting the product into the consumer’s hands
Know where target markets shop
Determines how and where a product will be distributed, transportation methods and stock levels

24. Marketing Mix Price Promotion Is what is exchanged for the product
Should reflect what customers are willing and able to pay
Take into account prices that competition charges for comparable products
Promotion
Refers to the decisions about advertising, personal selling, sales promotion, and publicity
Deal with how customers will be told about a company’s products