Presentation on theme: "Marketing Today 1.1 What is Marketing 1.2 Businesses Need Marketing"— Presentation transcript:
1 Marketing Today 1.1 What is Marketing 1.2 Businesses Need Marketing 1.3 Understanding the Marketing Concept1.4 Marketing’s Role Today and Tomorrow
2 1.1 - What is Marketing? Goals for Lesson 1.1 Understand the importance of studying marketingExplain what marketing is and describe the marketing functionsDefine Marketing
3 Why Study Marketing? Where does marketing take place? Marketing is important and profitable. Businesses, consumers, and the economy benefit from effective marketing.Where does marketing take place?Visual vs. Non-Visual ActivitiesVisual – advertisements, transportation, researchersNon-visual – manufacturers, accountants, human resources
4 Businesses Directly Involved in Marketing Advertising agenciesMarketing research firmsSales representativesTrucking companiesCredit card companiesTelemarketing businessesTravel Agencies
5 Businesses with Major Marketing Activities RetailersManufacturersBanksReal estate agenciesInsurance companiesAutomobile dealersFarmers and ranchers
6 Businesses with Limited Marketing Role Law OfficesPhysiciansAccounting firmsGovernment agenciesUniversitiesConstruction businessesPublic Utilities
7 What is Marketing? Marketing Functions Product/service management DistributionSellingMarketing Information ManagementFinancingPricingPromotions
8 Marketing FunctionsProduct/Service Management - Assisting in the design and development of products and services that will meet the needs of prospective customersDistribution – Determining the best methods and procedures to be used so prospective customers are able to locate, obtain, and use the products.
9 Marketing FunctionsSelling – Direct, personal communication with prospective customers in order to assess needs and satisfy those needs with appropriate products and servicesMarketing-Info Management – Obtaining, managing, and using marketing information to improve decision making and the performance of marketing activities.
10 Marketing FunctionsFinancing – Budgeting for marketing activities, obtaining the necessary financing, and providing financial assistance to customersPricing – Establishing and communicating the value of products and services to prospective customers
11 Marketing FunctionsPromotion – Communicating information to prospective customers through advertising and other promotional methods to encourage them to purchase the organization’s products or services.Thinking Critical
12 Defining MarketingOld Definition – the performance of business activities that direct the flow of goods and services from producer to usersNew Marketing is the creation and maintenance of satisfying exchange relationships
13 Understanding the Definition Creation suggests that marketing is involved from the very beginningMaintenance means that marketing must continue to be used as long as a business or organization is operatingSatisfaction of both the business and the customer is an important goal of marketingExchange Relationships applies the definition to any exchange where people are giving and receiving something of value
14 Review ActivityIdentify and describe each of the seven marketing functions (product/service management, distribution, selling, marketing-information management, financing, pricing, promotion) and then provide real-life examples of those functions that you have experienced or read about.
15 1.2 – Businesses Need Marketing GoalsExplain why businesses need marketingUnderstand how marketing has developed in the business worldDescribe the functions of business
16 The Need for Marketing Marketing must be carefully planned Marketing must be coordinated with other business activitiesGood products do not need marketing?Info about the productWhere to buy it, get to where it is soldAfford the price, good value
17 Marketing and the Development of Business BarteringSpecialization of LaborMoney SystemsCentral MarketsOther Marketing Activities
18 BarteringExchanging products or services with others by agreeing on their valuesDeveloped so people could exchange with others to obtain the things they needed.Hunters and farmersOne of the first examples of marketing
19 Specialization of Labor Concentrating on one or a few related activities so that they can be done well.The ability to produce large quantities of one productMore of one product to exchange with people
20 Money Systems The use of currency as a recognized medium of exchange Not always possible to barter for various reasonsWith money people could obtain productsMoney could be used for future purchases
21 Central MarketsA location where people bring products to be conveniently exchanged.Allowed for less travelLocation was key to an effective market
22 Other Marketing Activities Loan money to buyers and sellersTransportation of products
23 Functions of Business Production Operations Accounting and Finance Management and administrationMarketingCoordination of business functions
24 Production Creates or obtains products or services for sale Raw Material – obtaining raw materials for sale to customers (mining, oil drillers)Processing – using raw materials and changing their form through processing so they can be used in the production of other products (paper, food products)Services – no physical product (hair cut, landscaping, merchandising)
25 OperationsThe ongoing activities designed to support the primary function of a business and to keep a business operating efficiently.Building and equipment must be maintainedProduct and material managementPaperworkCustomer service
26 Accounting and Finance Plans and manages financial resources and maintains records and information related to businesses’ financesAmount of capital, budget management, borrowing of money, accounting
27 Management and Administration Involves developing, implementing, and evaluating the plans and activities of business.Responsible for everything that occurs in the business including the work of the employeesResponsible for the performance of the company
28 MarketingAll businesses need to complete a variety of activities in order to make their products and services available to consumers and to ensure that effective exchanges occur.
30 Group DiscussionUsing our school to illustrate how business organizations engage in various functions that must be coordinated if the organization is to be effective, explain how the school carries out its various functions that correspond to production, operations, accounting and finance, management and administration, and marketing.
31 1.3 – Understanding the Marketing Concept GoalsDefine the marketing conceptDetermine how businesses implement the marketing
32 The Marketing ConceptUsing the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or serviceThe most successful businesses are the ones that consider customer’s needs as they produced and worked to satisfy those needs as they produced and marketed their products or services
33 Elements of the Marketing Concept Businesses must be able to identify what will satisfy customer’s needsBusinesses must be able to develop and market products or services that customers consider to be better than other choicesBusinesses must be able to operate profitably
34 The Marketing Concept Consequences of not satisfying customer needs Have to rely on extensive advertising, price reductions, rebates, pressure selling, special displaysReductions in profitReluctant to buy from that company again
35 Implementing the Marketing Concept Identifying the marketMarket refers to the description of the prospective customers a business wants to serve and the location of those customers
36 Group DiscussionNetwork marketing as practice by Avon Products, Tupperware, Amway, and other products that are sold through networks of contacts rather than through traditional retail outlets.Explain how network marketing can help companies better understand and keep tabs on changes in the needs of their customers because there are no middlemen through which communication can be garbled.
37 Implementing the Marketing Concept Develop a marketing mix (the blending of four marketing elements)ProductPlace or distributionPricePromotion
38 Marketing MixProduct is anything offered to a market by the business to satisfy needs, including physical products, services, and ideas
39 Marketing MixPlace includes the locations and methods used to make the product available to customers
40 Marketing MixPrice is the actual amount that customers pay and the methods of increasing the value of the product to the customer
41 Marketing MixPromotion includes the methods and information communicated to customers to encourage purchases and increase the satisfaction
42 JournalWhat are the advantages and the disadvantages for consumers who buy from online sites rather than from stores? In what ways are the sites a response to customer needs and wants.
43 Group ActivityUsing newspaper ads or magazine ads for different brands of comparable products, for example, two car ads or two ads for a movie. Based strictly on the ads, using a Venn Diagram compare the similarities and differences of the markets these advertisers seem to have identified and the marketing mixes they have developed to appeal to those markets. Which marketing effort do you think was more effective, why?
44 1.4 – Marketing’s Role Today and Tomorrow GoalsDescribe the changing role of marketingSummarize how marketing is changing and why marketing is important
45 The Changing Role of Marketing Product emphasisSales emphasisMarketing department emphasisMarketing concept emphasis
46 Product EmphasisProduction Era (1900 – 1920s) – emphasis on producing and distributing new productsProduction processes were very simple and few product choices were availablePeople had a limited amount of moneyTransportation systems were not developed
47 Sales EmphasisSales Era (1930s – 1940s) – emphasis on using advertising and sales people to convince customers to buy a company’s productMore effective and efficient at producing and distributing productsIncreased competition, which led to companies relying on sales people
48 Marketing Department Emphasis Marketing Department Era (1950s – 1960s) – emphasis on developing many new marketing activities to sell productsPeople had more money to spend and companies had to provide reasons for consumers to buy their productCatalog, airplane distribution, retail stores, credit purchases
49 Marketing Concept Emphasis Marketing Concept Era (1970s – today) – emphasis on satisfying customer’s needs with a carefully developed marketing mixCompanies started listening to the consumerActivities were completed with customer satisfaction in mind.
50 Marketing in Other Organizations Due to the success of marketing it spread into other organizations – libraries, churches, government agencies, community organizations.How do these organizations use marketing?
52 Group ActivityUsing newspaper ads or magazine ads for different brands of comparable products, for example, two car ads or two ads for a movie. Based strictly on the ads, using a Venn Diagram compare the similarities and differences of the markets these advertisers seem to have identified and the marketing mixes they have developed to appeal to those markets. Which marketing effort do you think was more effective, why?