1. Unit 1 The World of Marketing
Chapter 1 Marketing Is All Around Us
Chapter 2 The Marketing Plan

2. Marketing and the Marketing Concept
Chapter 1 Marketing Is All Around Us
Marketing and the Marketing Concept
Section 1.1 Marketing and the Marketing Concept
Section 1.2 The Importance of Marketing
Section 1.3 Fundamentals of Marketing

3. Marketing and the Marketing Concept
Key Terms
marketing
goods
services
marketing concept
CRM
Objectives
Define marketing
List the seven functions of marketing
Understand the marketing concept
Marketing Essentials Chapter 1, Section 1.1

4. Ideas, Goods, and Services
marketing
The process of planning, pricing, promoting, selling, and distributing products to satisfy customers’ needs and wants.
Marketing promotes ideas, goods, and services. Examples of ideas that might be marketed are:
A candidate’s political platform
A public service initiative, such as don’t smoke or stay in school
This ad promotes the idea of a healthy diet that includes dairy products
Marketing Essentials Chapter 1, Section 1.1

5. Examples of marketed goods include: Cars Electronics Home furnishings
Foods
goods
Tangible items of monetary value that satisfy needs and wants.
services
Intangible items of monetary value that satisfy needs and wants.
Examples of services that may be marketed are:
Automotive repair
Hair styling
Legal aid
Financial consulting
Marketing Essentials Chapter 1, Section 1.1

6. Seven Functions of Marketing
Distribution getting goods to customers
Financing acquiring money to set up and run a business
Marketing information management researching customers, trends, and competitors
Pricing charging for goods and services to make a profit
continued
Marketing Essentials Chapter 1, Section 1.1

7. Seven Functions of Marketing
Product/service management obtaining, developing, maintaining, and improving a product or service
Promotion informing, persuading, and reminding customers about a product or service
Selling providing customers with goods and services
Marketing Essentials Chapter 1, Section 1.1

8. The Marketing Concept
marketing concept
Businesses should satisfy customers’ needs and wants while making a profit.
The marketing concept focuses on satisfying the needs and wants of customers. For a business to be successful, all employees must:
Understand the marketing concept
Provide the best possible service to customers
Marketing Essentials Chapter 1, Section 1.1

9. The Marketing Concept Customer relationship management (CRM) combines:
Customer information
Marketing communications
CRM uses customer information to create meaningful marketing communications. The goal of CRM is to establish strong, long-term relationships with customers.
Marketing Essentials Chapter 1, Section 1.1

10. 1. Explain two of the seven functions of marketing?
SECTION 1.1 REVIEW
1. Explain two of the seven functions of marketing?
2. Define CRM.
3. What is the marketing concept?

11. 2011 Top Ten Trends Assignment
Lets practice!
2011 Top Ten Trends Assignment
Form a group of 4 students
Select one of the top 2011 business trends
As a group, read & discuss the trend.
Identify specific existing products that could be connected with the selected trend.
Brainstorm a new product for the trend & address these questions about the product:
Identify who is the customer for this product?
What age group would provide the largest opportunity to sell your products? Why
Does your group feel this is a trend that will continue to gain market share? Why or why not?
What economic factors might influence the trend?
Report out to the class.

12. The Importance of Marketing
Key Terms
utility
Objectives
Analyze the benefits of marketing
Apply the concept of utility
As you go through this section, note the benefits of marketing and list the five utilities on your graphic organizer.
Marketing Essentials Chapter 1, Section 1.2

13. Economic Benefits of Marketing
Marketing’s benefits to the economy and consumers are:
New and improved products
Lower prices
Added value
Marketing Essentials Chapter 1, Section 1.2

14. New and Improved Products
Marketing generates competition. In a competitive marketplace, businesses try to create new and improved products to satisfy customers’ wants and needs. Some examples:
Food manufacturers know that on-the-go parents want their children to start the day with healthy foods. So Quaker created Fruit & Oatmeal Toastables® and Breakfast Squares®.
Marketing Essentials Chapter 1, Section 1.2

15. New and Improved Products
Dutch Boy Paints won an award for its new container design that makes the container easy to hold and open as paint is poured.
This ad promotes Dutch Boy Paints’ innovative paint container.
Marketing Essentials Chapter 1, Section 1.2

16. Lower Prices Marketing increases demand. When demand is high:
Products can be produced in larger quantities
The fixed cost per unit is lower
As a result, a company can:
Charge a lower price per unit
Sell more units
Make more money
In addition, when demand for products increases:
More companies enter the marketplace
Companies must lower prices to remain competitive
Marketing Essentials Chapter 1, Section 1.2

17. Added Value and Utility
An attribute of a product or service that makes it capable of satisfying consumers’ wants and needs.
The value that marketing adds to a product or service is called utility Five utilities contribute to making a product or service capable of satisfying customers’ wants and needs:
Form putting parts together to make a product consumers want
Place offering a product where consumers can buy it (e.g. retail store, catalog, Web site)
Marketing Essentials Chapter 1, Section 1.2

18. Added Value and Utility
Time offering a product at a convenient time of day or year for consumers
Possession allowing consumers to take legal ownership of a product
Information communicating information about a product (e.g. through labeling, advertising, or an owners’ manual)
Marketing Essentials Chapter 1, Section 1.2

19. 1. How does marketing help to lower prices?
SECTION 1.2 REVIEW
1. How does marketing help to lower prices?
2. What is meant by the economic concept of utility?
3. Explain two of the five economic utilities.

20. 1.2 PRACTICE APPLICATION
Lets practice!
You will now work in teams to create “Utility Lemonade”.
In your table groups:
1) Create your own lemonade (using the supplies provided).
2) Create a creative “product name” for your lemonade.
3) Record all of your product decisions including:
a) your product name
b) a list of the forms of utility & how they
relate to this product
c) your target audience for this product

21. Fundamentals of Marketing
Key Terms
market
consumer market
industrial market
market share
target market
customer profile
marketing mix
Objectives
Describe the concept of market
Differentiate consumer and industrial markets
Describe market share
Define target market
List the components of the marketing mix
Marketing Essentials Chapter 1, Section 1.3

22. Market and Market Identification
People who share similar needs and wants and are capable of buying products.
Try to memorize the terms in this section, because you will use them throughout your study of marketing! The first important term is market, which refers to people who:
Share similar needs and wants
Have the ability to purchase a product
If you like DVDs and can afford to buy or rent them, you are part of the DVD market.
Marketing Essentials Chapter 1, Section 1.3

23. Consumer Versus Industrial Markets
There are different types of markets with different goals and objectives. The consumer market wants products and services that:
Save money
Make life easier
Improve appearance
Create status
Provide personal satisfaction
consumer market
All consumers who purchase goods and services for personal use.
Marketing Essentials Chapter 1, Section 1.3

24. Consumer Versus Industrial Markets
Businesses that buy products to use in their operations; also called the business-to-business market (this can be abbreviated as B-to-B or B2B).
The industrial market, or business-to-business (B-to-B) market, wants products and services that:
Improve productivity
Improve efficiency
Increase sales
Decrease expenses
Marketing Essentials Chapter 1, Section 1.3

25. On television and in newspapers, to reach consumers
A single product may be promoted to both the consumer and industrial markets. For example, Perdue advertises its chicken and turkey products:
On television and in newspapers, to reach consumers
In the publication Supermarket News, to reach professionals in the supermarket industry
Marketing Essentials Chapter 1, Section 1.3

26. Market Share
market share
A company’s percentage of total sales volume generated by all competition in a given market.
A company’s market share is its percentage of total sales in a given market, such as the video game market. Market share changes as:
New competitors enter the market
The market’s volume increases or decreases
Marketing Essentials Chapter 1, Section 1.3

27. Target Market and Market Segmentation
A group of people identified as those most likely to become customers.
Identifying a product’s target market, or the segment of the market most likely to buy the product, is a key to success. A single product may have these two target markets:
Consumers
Customers
For example, a nutritious breakfast food would be targeted at:
Children who will request it and eat it, the consumers
Parents who will approve and buy it, the customers
Marketing Essentials Chapter 1, Section 1.3

28. To develop a clear picture of its target market, a business may create a customer profile , which lists such information about the target market as:
Age
Income level
Ethnic background
Occupation
Attitudes
Lifestyle
Geographic residence
customer profile
A list of information about a target market, such as age, income level, ethnicity, occupation, attitudes, lifestyle, and geographic residence.
Demographics Refers to segmentation of a market in terms of personal characteristics such as: age, gender, income, ethnic background, education, and occupation.
Psychographics
Refers to segmentation of a market based on lifestyle, and the attitudes and values that shape it.
Geographics Refers to segmentation of a market based on where people live
Marketing Essentials Chapter 1, Section 1.3

29. Marketing Mix
marketing mix
The four basic marketing strategies, called the four Ps: product, place, price, and promotion.
The marketing mix X includes four basic marketing strategies, or tools, called the four Ps:
product
place
price
promotion
Actions in one of these areas affect decisions in another.
Marketing Essentials Chapter 1, Section 1.3

31. A company must choose what products to develop, update, and improve.
Place
A company must decide where to sell and distribute a product.
Marketing Essentials Chapter 1, Section 1.3

32. A company must determine what it will charge for a product.
Price
A company must determine what it will charge for a product.
Promotion
A company must decide how to advertise, promote, and publicize a product.
Marketing Essentials Chapter 1, Section 1.3

33. 1. What is the key difference between consumer & industrial markets?
SECTION 1.3 REVIEW
1. What is the key difference between consumer & industrial markets?
2. Explain the relationship between market segmentation, target markets and customer profile.
3. Name the four P’s.
4. Explain the importance of a target market for two of the four P’s?

34. This chapter has helped prepare you to meet the following DECA performance indicators:
Explain marketing and its importance in a global economy
Describe marketing functions and related activities
Determine forms of economic utility created by marketing activities
Explain types of business activities
Prepare simple written reports

35. 1.3 PRACTICE APPLICATION
Lets practice!
You will now work in teams to understand the Marketing Mix.
In groups of no more than four:
1) Decide on a product that interests you.
2) Look at how it is advertised (form(s) of media used?)
3) Research your product’s price and where it is sold.
4) Identify its target market (customer profile).
5) Create a visual aid with the product name, form(s) of advertising, price & place (where it is sold), target market (customer profile – in terms of demographics, psychographics, geographics, etc).