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Marketing Indicator 1.01
Understand marketing’s role and
function in business to facilitate
economic exchanges with
customers.
A. Understand marketing’s
role and function in business
to facilitate economic
exchanges with customers.
What is Marketing?
• Links producers to the customers who buy their goods
and services
• Includes ALL activities to get product from
manufacturer to consumer that are guided by
consumer’s wants and needs
• Process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy individual
and organizational objectives.
Sales Concept VS. Marketing
Concept
• SC = Product development w/o proving demand, want or
need. Created regardless of whether anyone wants/needs it.
This is a good product idea because we think it is, not b/c
customers are asking for it.
• MC = Businesses must satisfy customers needs & wants in
order to make a profit.
• Businesses use the needs of customers as the primary focus
during the planning, production, distribution, & promotion of a
product or service.
SWOT Analysis
7 Functions of Marketing
1.
2.
3.
4.
5.
6.
7.
Distribution
Financing
Marketing Information Management
Pricing
Product / Service Management
Promotion
Selling
Explain the purposes of each
marketing function.
1.Channel Management (Distribution)
Transporting, storing, and handling
goods from the manufacturer to the
consumer. Large impact on pricing due
to transportation costs.
Channel management (a.k.a.)
Distribution
• Responsible for moving, storing, locating, and/or transferring
ownership of goods and services
• Main goal is to move products from the producer to the
consumer.
• Determines who will offer products and where they will be
offered
• Develops relationships with channel members
• Assesses quality of vendor performance
Explain the purposes of each
marketing function.
2. Financing – Manage cash needs of a
business on a daily basis for future needs.
Most businesses struggle the first years
Explain the purposes of each
marketing function.
• 3. MIM – (marketing information management)
provides usable info. to make business decisions.
Ex. Google Analytics, Surveys to determine
preferences of products, develop prototype for
testing, implement new process and gather info.
about possible problems
Marketing-information
management (MIM)
• Provides data that can be used for business decision-making
• Provides data about effectiveness of marketing efforts
• Provides data about customer satisfaction, customer loyalty,
needs, and wants
Explain the purposes of each
marketing function.
4. Pricing – Determining a value to charge in
order to make a profit.
Pricing
• Establishes products’ prices
• Determines whether prices need to be adjusted
• Sets policies and objectives for prices
Explain the purposes of each
marketing function.
5. Product Service Management – Designing,
producing, maintaining, improving, and
obtaining products to meet customer’s wants
and needs
Product/Service Management
• Helps to determine which products a business will offer and in
what quantities
• Aids in determining and developing a company’s/product’s
image
• Provides direction for other marketing activities based on
changes in a product’s life cycle
Explain the purposes of each
marketing function.
6. Promotion - Communication that is
used to inform, persuade, or remind
customers about a business’s products.
(Advertising)
Promotion
• Reminds customers about products/businesses
• Informs customers about products/businesses
• Persuades customers about products/businesses
Explain the purposes of each
marketing function.
• 7. Selling - Determining and responding to
customer’s needs and wants through
personalized communication (face-to-face)
•
Selling
• Creates a following of loyal customers
• Completes the exchange transaction
• Provides services for customers
MARKETING MIX – 4 P’s
 Interconnected/interdependent – actions in one P effect
decisions for the other P’s
 Each P has countless alternatives
 The better you know your target market, the easier the
decisions for the 4 P’s
 Successful combination = profitability
• 4 P’s
•
•
•
•
Product (Planning)
Price
Place
Promotion
What items can be marketed?
• Products (Goods & Services)
• Organizations
• Profit vs. Nonprofit
• Places - Tourist attractions, Cities
• Ideas – Stand Against Bullying, Click it or Ticket
• People – politicians, actors, singers
• Events – concerts, sports, Olympics
Two categories of products
• Goods (tangible items)
• Durable vs. Non-durable
• Consumer vs. Industrial
• Services (intangible)
GOODS - TANGIBLE
• Durable (long lasting – washing machine)
• Nondurable goods (consumed within a short period of time
such as gasoline, toothpaste)
• Consumer goods are used for personal purposes (such as a
laptop to write a history paper or a cell phone to call your best
friend)
• Industrial goods are used for business purposes (such as a
commercial oven for a bakery)
• The same good could be consumer and/or industrial. The
goods’ use determines which it is.
• A laptop used to type a history paper is?
• A laptop used to bill customers is?
SERVICES - INTANGIBLE
Pay someone to do something for us
because:
• We do not have the skill (haircut) or
expertise (lawyer, doctor)
• We do not have the time (house
cleaning)
• We do not want to do it (lawn care)
Where does Marketing Occur?
• Everyday by people, in places,
with communication
• Marketing occurs wherever
customers are
Where have you
recently
seen an
advertisement?
Marketing IS EVERYWHERE!
MARKETING CONCEPT
DEFINITION = A philosophy of
conducting business that is based
on the belief that all business
activities should be aimed toward
satisfying consumer wants and
needs while achieving company
goals.
Explain the elements of the
marketing concept.
• CRM – (Customer Relationship Management)
combines customer information via databases
with customer service and marketing
communication
• Marketing Loyalty Programs – Rewards repeat
customers
• Product – business provides items that satisfy
desires of consumers
• Profits – Money business keeps after paying all
expenses
What is Marketing’s Role in a Private
Enterprise System?
• Marketing fits into every facet of our lives,
whether on a global scale or right in our own
neighborhoods.
• Provides benefits that make our lives better,
promoting using natural resources more wisely,
and encourage international trade.
• Without marketing, we would all have to be
self-sufficient.
Explain the role of marketing in a
private/free enterprise system.
• Create awareness of product / service
• Have access to product / service
• Multiple channels to purchase product / service
Describe ways in which consumers and
businesses would be affected if marketing
did not exist.
• Society would remain in a self-subsistence style of
living.
• Less competition = Higher prices
• Less choices, less improvements, less info.
Marketing benefits our society.
• Increased competition = Lower prices
• Variety of goods/services
• Mass communication about items
• Foreign and domestic societies benefit
A. Describe marketing functions
and related activities
Define the following terms using 1 word:
1. channel management = distribution
2. marketing-information management = data
3. Pricing = price
4. product/service management = lifecycle
5. Promotion = communication
6. Selling = personal (1 on 1)
7. Financing = capital (investment, backing)