marketing ch. 1 marketing is all around us. marketing process of developing, promoting, and...
TRANSCRIPT
Marketing
Ch. 1 Marketing is All Around Us
Marketing
• Process of developing, promoting, and distributing products in order to satisfy customer needs and wants
• Helps connect business with its customers and provides the means for the exchange process to occur.
Products
• Are goods and services• Goods– Things you can touch or hold in your hand
• Services– Things you can’t physically touch
Functions of Marketing
1. Purchasing– Buying goods and services for a business
operation• Ex – Buying materials to build your product
Functions of Marketing
2. Selling– Providing goods and services that the customer
wants to buy• Includes selling in the retail market to you (final
consumer of the product)• Includes selling in the industrial market (purchased for
use in business operation)
Functions of Marketing
3. Pricing– Deciding how much to charge for good or service• Takes in competition and how much customers are
willing to pay
Functions of Marketing
4. Product Planning– All the decisions a business makes in the
production and sale of its goods and services• Which product to carry is major decision• Product packaging• Labeling• Branding
Functions of Marketing
5. Marketing Information Management– Process of getting the marketing information
needed to make sound business decisions.• Market Research
– Questionnaires
Functions of Marketing
6. Any form of communication used to inform, persuade, or remind people about a business’s product– Used to improve a firm’s public image– TV and Radio commercials (advertising)– Give a ways– Game
Functions of Marketing
7. Financing– Getting the money needed to finance the
operation of a business• Bank loans• Take on partners/sell stock• Offering credit to customer
Functions of Marketing
8. Distribution– Involves making decisions about where to sell
your product• Deciding on the method of transportation• How and where products are stored
Functions of Marketing
9. Risk Management– Preventing or reducing business loss• New competing business in town
Economic Benefits of Marketing
• Bridges the gap between you and the maker or seller
• Makes buying easy for consumers• Helps create new and improved products• Lowers Prices
Economic Benefits of Marketing
1. Added Value– Make the item more useful– The added value is called Utility
Five Economic Utilities
• Form Utility– Changing Raw materials or putting parts together
to make them more useful– Deals with making, or producing things
Five Economic Utilities
• Place Utility– Having a product where customers can buy it.– Convenient location for customers to shop
Five Economic Utilities
• Time Utility– Having products available at a certain time of the
year or a convenient time of the day.– Marketers increase the value of their products by
having them available when consumers want them.
Five Economic Utilities
• Possession Utility– How do you come into possession of the product– The exchange of a product for some monetary
value– Alternatives to cash• Credit Cards• Customer Credit
– 30 days to pay bill
• Installment - Layaway – Delay possession in return for gradual payment
Five Economic Utilities
• Information Utility– Communication with the customers• Salespeople providing information• Displays• Packaging – Labeling• Advertising• Owners Manuals
Economic Benefits of Marketing
2. Lower Prices• When demand is high, manufacturers can make
products in larger quantity, which reduces the unit costs of each product– Fixed Costs – Costs remain the same each month
» Ex. – Rent, Utilities, Insurance
• When products become more popular, more competitors enter the market– Causes lower production costs
Economic Benefits of Marketing
3. New and Improved Products• Result of increased competition
– Companies want to be able to better satisfy customers’ wants and needs for larger variety of goods and services
Marketing Skills
• Understanding Business– You must understand how businesses operate in
order to apply marketing.– Understanding how businesses function on a day-
to day basis will help you develop the necessary attitude and skills required for successful employment.
Marketing Skills
• Learning Interpersonal Skills– Learning techniques and principles of human
relations• How to deal with supervisors, co-workers, and
customers
Marketing Skills
• Perfecting Communication Skills– Improve oral and written communication skills
Assignment
• Page 12 of the packet– Critical Thinking– Building Academic Skills