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Marketing Today 1.1 What is Marketing 1.2 Businesses Need Marketing

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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 Concept 1.4 Marketing’s Role Today and Tomorrow

2 1.1 - What is Marketing? Goals for Lesson 1.1
Understand the importance of studying marketing Explain what marketing is and describe the marketing functions Define 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 Activities Visual – advertisements, transportation, researchers Non-visual – manufacturers, accountants, human resources

4 Businesses Directly Involved in Marketing
Advertising agencies Marketing research firms Sales representatives Trucking companies Credit card companies Telemarketing businesses Travel Agencies

5 Businesses with Major Marketing Activities
Retailers Manufacturers Banks Real estate agencies Insurance companies Automobile dealers Farmers and ranchers

6 Businesses with Limited Marketing Role
Law Offices Physicians Accounting firms Government agencies Universities Construction businesses Public Utilities

7 What is Marketing? Marketing Functions Product/service management
Distribution Selling Marketing Information Management Financing Pricing Promotions

8 Marketing Functions Product/Service Management - Assisting in the design and development of products and services that will meet the needs of prospective customers Distribution – Determining the best methods and procedures to be used so prospective customers are able to locate, obtain, and use the products.

9 Marketing Functions Selling – Direct, personal communication with prospective customers in order to assess needs and satisfy those needs with appropriate products and services Marketing-Info Management – Obtaining, managing, and using marketing information to improve decision making and the performance of marketing activities.

10 Marketing Functions Financing – Budgeting for marketing activities, obtaining the necessary financing, and providing financial assistance to customers Pricing – Establishing and communicating the value of products and services to prospective customers

11 Marketing Functions Promotion – 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 Marketing Old Definition – the performance of business activities that direct the flow of goods and services from producer to users New Marketing is the creation and maintenance of satisfying exchange relationships

13 Understanding the Definition
Creation suggests that marketing is involved from the very beginning Maintenance means that marketing must continue to be used as long as a business or organization is operating Satisfaction of both the business and the customer is an important goal of marketing Exchange Relationships applies the definition to any exchange where people are giving and receiving something of value

14 Review Activity Identify 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
Goals Explain why businesses need marketing Understand how marketing has developed in the business world Describe the functions of business

16 The Need for Marketing Marketing must be carefully planned
Marketing must be coordinated with other business activities Good products do not need marketing? Info about the product Where to buy it, get to where it is sold Afford the price, good value

17 Marketing and the Development of Business
Bartering Specialization of Labor Money Systems Central Markets Other Marketing Activities

18 Bartering Exchanging products or services with others by agreeing on their values Developed so people could exchange with others to obtain the things they needed. Hunters and farmers One 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 product More 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 reasons With money people could obtain products Money could be used for future purchases

21 Central Markets A location where people bring products to be conveniently exchanged. Allowed for less travel Location was key to an effective market

22 Other Marketing Activities
Loan money to buyers and sellers Transportation of products

23 Functions of Business Production Operations Accounting and Finance
Management and administration Marketing Coordination 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 Operations The ongoing activities designed to support the primary function of a business and to keep a business operating efficiently. Building and equipment must be maintained Product and material management Paperwork Customer service

26 Accounting and Finance
Plans and manages financial resources and maintains records and information related to businesses’ finances Amount 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 employees Responsible for the performance of the company

28 Marketing All 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.

29 Coordination of Business Functions
1. 2. 3. 4.

30 Group Discussion Using 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
Goals Define the marketing concept Determine how businesses implement the marketing

32 The Marketing Concept Using the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service The 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 needs Businesses must be able to develop and market products or services that customers consider to be better than other choices Businesses 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 displays Reductions in profit Reluctant to buy from that company again

35 Implementing the Marketing Concept
Identifying the market Market refers to the description of the prospective customers a business wants to serve and the location of those customers

36 Group Discussion Network 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) Product Place or distribution Price Promotion

38 Marketing Mix Product is anything offered to a market by the business to satisfy needs, including physical products, services, and ideas

39 Marketing Mix Place includes the locations and methods used to make the product available to customers

40 Marketing Mix Price is the actual amount that customers pay and the methods of increasing the value of the product to the customer

41 Marketing Mix Promotion includes the methods and information communicated to customers to encourage purchases and increase the satisfaction

42 Journal What 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 Activity Using 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
Goals Describe the changing role of marketing Summarize how marketing is changing and why marketing is important

45 The Changing Role of Marketing
Product emphasis Sales emphasis Marketing department emphasis Marketing concept emphasis

46 Product Emphasis Production Era (1900 – 1920s) – emphasis on producing and distributing new products Production processes were very simple and few product choices were available People had a limited amount of money Transportation systems were not developed

47 Sales Emphasis Sales Era (1930s – 1940s) – emphasis on using advertising and sales people to convince customers to buy a company’s product More effective and efficient at producing and distributing products Increased 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 products People had more money to spend and companies had to provide reasons for consumers to buy their product Catalog, 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 mix Companies started listening to the consumer Activities 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?

51 Why is Marketing Important?
1. 2. 3. 4.

52 Group Activity Using 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?

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