1. Chapter 1 Marketing Today

2. Objectives Understand the importance of marketing
Explain what marketing is and describe the marketing functions
Define marketing

3. Think about…. Businesses that are successful
What attracts you to that business?
Does marketing consist of multiple activities?

4. What is Marketing?
Is the creation and maintenance of satisfying exchange relationship.
‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’
The Chartered Institute of Marketing

5. Where does marketing take place?
Most visible business activity
Successful business……
Realize it or not….
You are involved in a businesses marketing activity!!!!!!!!
List 5 marketing activities you see on a daily basis, and how that business tries to reach its customers

6. 7 Functions of Marketing

7. Product/Service Management
Assisting in the design and development of products and services that will meet the needs of prospective customers

8. Distribution
Determines the best methods and procedures to be used so prospective customers are able to locate, obtain, and use the products and services of an organization.

9. Selling Direct Method Indirect Methods
Personal communications with prospective customers in order to assess needs and satisfy those needs with appropriate products and services
Indirect Methods
Third-parties to interact with prospective customers.

10. Marketing-Information Management
Obtaining managing and using market information to improve decision making and the performance of marketing activities

11. Financing
Budgeting for marketing activates, obtaining the necessary financing, and providing financial assistance to customers to assist them with purchasing the organizations products and services

12. Promotion
Generating awareness about a product and/or service to potential customers

13. Pricing
Value for purchasing a businesses products and/or services

14. Bell Ringer
Review 7 Functions of Marketing

15. Businesses Need Marketing
To inform customers about products or services they don’t know about
The success of marketing CAN NOT be determined unless the product satisfies the customers needs and wants

16. Bartering Self-Sufficient
Don’t rely on others for the things needed in order to survive.

17. Specialized Labor

18. Development of Business
Money System
Central Market

19. Pop-Tart Bell Ringer……
Discuss with your neighbor how Pop-Tart used new forms of marketing for its product.

20. Functions of Business*

21. 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)

22. 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

23. Accounting and Financing
Plans and manages financial resources and maintains records and information related to businesses’ finances
Amount of capital, budget management, borrowing of money, accounting

24. 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

25. 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.

26. Coordinating of Business Functions1. 2. 3. 4.

27. 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.

28. Marketing Concept Develop and market products or services
Identify the needs of the customer
Operate a business profitably

29. Consequences 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

30. Implementing the Marketing Concept
Identify the Market
Market (A.K.A.Target Market)
The description of prospective customers a business wants to serve and the location of those customers.

31. 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.

32. Implementing the Marketing Concepts
Develop a marketing mix (the blending of four marketing elements)
Product
Place or distribution
Price
Promotion

33. 4 “P’s” * Product Place Price Promotion What’s being offered?
Where will the product be offered?
Price
How much does it cost?
Promotion
How will your customers know about the product?

34. Showing off the 4 “P’s” + 3 More
The relation to the marketing of services have become recognized as being important. There are an additional 3 Ps that now make up what has been referred to as the '7 Ps'.

35. Marketing Mix Activity*
Below is a list of links to top companies who have a variety of brands making up their business. Choose five products and services (ensure that at least two of your choices are services) and identify the relevance of the 7 Ps to the product/service of your choice.
Unilever - range of brands covering foodstuffs, perfumes, household cleaners, ice creams, etc. (
Nestlé - again, a range of brands covering food, cereals, confectionary, drinks and dairy products (
The Mars directory (
A Mercedes dealership network (
Dell computer products (
NatWest - banks provide 'products' which also double up as services in most cases! (
South West Trains - an important service for thousands of people every day! (
BUPA private health care service

36. 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?

37. Marketing Today (Expert Topic)
Production Era: 1900s-1920s
Emphasis on producing and distributing new products
Sales Era: 1930s-1940s
Emphasis on using advertising and salespeople to convince customers to buy a company’s products
Marketing Department Era: 1950s-1960s
Emphasis on developing many new marketing activities to sell products
Marketing Concept Era: 1970s-Today
Emphasis on satisfying customers’ needs with a carefully developed marketing mix