Marketing Chapter 1

Marketing Chapter 1

Marketing Today and Tomorrow

Newsline

Page 2

Section 1-1

What is Marketing?

Why Study Marketing?

Where does Marketing Take Place?Marketing includes:Advertisements in all types of mediaProducts being transported by truck, train and airplaneMarket researches surveying shoppers in the mall

Why Study Marketing?

Everyone makes marketing decisions everydayWhether to use cash or a debit cardTo buy at the store or have it shipped to your houseBring your lunch or buy at school

What is Marketing?

The 9 Marketing Functions:Market PlanningProduct and Service ManagementDistributionPricingPromotionSellingMarketing-Information ManagementFinancingRisk Management

The Marketing Functions

Market Planningidentifying and understanding the markets a company wants to serve and developing effective marketing strategies for each marketDoes Hollister want to go after 30-45 year olds?

The Marketing Functions Cont

Product and Service ManagementAssisting in the design and development of products and services to meet the needs of prospective customersApple combined an iPod, a cell phone and an internet browser to create the iPhone

The Marketing Functions Cont

Distributiondetermining the best methods and procedures to be used so prospective customers are able to locate, obtain, and use the products and services of an organizationRental car companies, led by Hertz, made it so people can reserve a vehicle and pick it up when arriving at the airport

The Marketing Functions Cont

PricingEstablishing and communicating the value of products and services to prospective customersInstead of cutting prices a store offers a free product when a certain amount is spent at the store

The Marketing Functions Cont

PromotionCommunicating information to prospective customers through advertising and other promotional methods to encourage them to purchase the organizations products and services. (this is the most well known to most people)Companies send CDs and brochures to people at their homes to try and get them to purchase the product or service

The Marketing Functions Cont

SellingDirect, personal communication with prospective customers in order to assess needs and satisfy those needs with appropriate products and servicesLawyers, accounts and banks have people who have the job of attracting new clients

The Marketing Functions Cont

Marketing-Information ManagementObtaining, managing and using marketing information to improve decision making and the performance of marketing activitiesA grocery store uses the bar scanner to track what has been purchased and what needs to be reordered

The Marketing Functions Cont

FinancingBudgeting for necessary financing and providing financial assistance to customers to assist them with purchasing products and servicesCar companies offer financing directly from the company to get people to purchase vehicles

The Marketing Functions Cont

Risk ManagementProviding security for products, personnel, and customers and reducing the risk associated with marketing activities and activitiesThe loss control people at stores like Target and Best Buy that check bags as you leave Security Tags on clothing

Judgment Call

Page 8

Using the 9 Marketing Functions create a visual to help show all functions.See Page 8 for an example

Activity

This can be done using paper and crayons/markers or it can be done on the computer. Turn in when complete.

Define Marketing

Old definitionthe performance of business activities that direct the flow of goods and services from producer to consumer or userNew definitionthe creation and maintenance of satisfying exchange relationships

New Definition of Marketing

The creation and maintenance of satisfying exchange relationshipsCreationsuggests that marketing is involved from the beginning as products and services are being developedMaintenancemeans 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 relationship applies the definition to any exchange where people are giving and receiving something of value

Section 1-2

Business Needs Marketing

Think of 3 things you have purchased (or services you have used ) that you were not what you expected. Why did you make the purchase in the beginning and what did you do when you were dissatisfied. How could the business do a better job satisfy customers?

Activity

Email your responses to ferrer01@southredford.net

The Need for Marketing

Ever since people began exchanging things with each other there has been a need for marketing

The Development of Marketing in Business

Self-sufficientyou do not need to rely on other for the things you need to surviveThis is very difficult to do and takes a lot of hard work. Barteringexchanging products and services with other by agreeing on their values. This was the first example of marketingA hunter would trade meat with a farmer to get grain

The Development of Marketing in Business

Specialization of Laborconcentrating on one thing or a few related activities so that they can be done wellA farmer focuses only on growing corn because they do it wellMoney systemestablished the use of currency as a recognized medium of exchangeAllowed people to obtain goods and services even if they do not have something to exchangeCentral marketa location where people bring products to be conveniently exchanged.Towns and cities formed at these locations

The Function of Business

Productioncreates and obtains products for services and saleMerchandisingoffering products produced or manufactured by others for sale to customersOperationsongoing activities designed to support the primary function of a business and keep it operating efficientlyEquipment operated and maintained, products must be obtained, transported and store, paperwork must be kept

The Function of Business Cont

Accounting and Financeplans and manages financial resources and maintains records and information related to a businesss finances.Managementinvolves developing, implementing and evaluating the plans and activities of a business

Virtual Marketing

Page 16

Section 1-3

Understanding the Marketing Concept

The Marketing Concept

Satisfying Customer NeedsMarketing Conceptusing the needs of customers as the primary focus during the planning, production, pricing, distribution, and promotion of a product or service.Identify the needs of customersDevelop and market products or servicesOperate a business profitably

Operate profitably

Develop and Market

Identify Needs

The Marketing Concept Cont

When Customer Needs are NOT SatisfiedIf customer needs are not met, products are not soldCar companies that do not build cars that people want/need will not sell themPoorly made products will be returned or not sold.

Implementing the Marketing Concept

Identify the MarketMarketa description of a unique group of prospective customers a business wants to serve and their location

What is the Target Market?

Developing a Marketing Mix

4 Ps of MarketingProductanything offered to the market by the business to satisfy needs (products, services, ideas)Place (Distribution)locations and methods used to make the product available to customersPriceamount that customers pay and the methods of increasing the value of the productPromotionmethods used and information communicated to encourage customers to purchase and to increase their satisfaction

The Kindle

Find pictures for 25 different products or services (harder to find pictures though). Identify who is the main target market for each one. You have to have at least 7 different groups (you can have more).

You can use images from magazines or create a collage from online images.

Extra CreditFind 2 commercials and send the links through email explaining who is the Target Market for each one.

Activity

Email your project to ferrer01@southredford.net