Download Marketing Is All Around Us

Marketing Essentials
With Mr. Colby
n Chapter 1 Marketing Is All Around Us
Section 1.1 What Is Marketing?
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SECTION 1.1
What Is Marketing
What You'll Learn
 The meaning of marketing
 The foundations of marketing
 The functions of marketing
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SECTION 1.1
What Is Marketing
Why It's Important
To be successful in business requires being
marketing oriented. Learning how businesses
and people operate from a marketing point of
view will help you in all your future endeavors.
You will also get a good idea of whether
marketing is a potential career for you.
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SECTION 1.1
What Is Marketing
Key Terms
 marketing
 products
 goods
 services
 exchange
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SECTION 1.1
What Is Marketing
What Is Marketing
Marketing is the process of developing,
promoting, and distributing products to
satisfy customers' wants and needs.
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SECTION 1.1
What Is Marketing
Products = Goods and Services
Goods: Hammers, automobiles, soda pop,
clothing, and computers
Services: Dry cleaners, amusement parks,
attorneys, and movie theaters
Exchange: Buying or selling a good or service
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SECTION 1.1
What Is Marketing
Functions of Marketing
These functions define marketing as it is
applied in business operations.
 Distribution
 Financing
 Marketing-Information Management
 Pricing
 Product/Service Management
 Promotion
 Selling
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SECTION 1.1
What Is Marketing
Functions of Marketing
Distribution involves deciding where and
to whom products need to be sold in order
to reach the final users.
Financing is getting the money needed to
pay for the operation of a business.
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SECTION 1.1
What Is Marketing
Functions of Marketing
Marketing-Information Management
involves getting the necessary information
to make sound business decisions.
Pricing dictates how much to charge for
goods and services.
Product/Service Management is
obtaining, developing, maintaining, and
improving a product.
Slide 3 of 4
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SECTION 1.1
What Is Marketing
Functions of Marketing
Promotion is communicating with potential
customers to inform, persuade, or remind
them about a company.
Selling is providing customers with goods
and services they want.
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1.1
ASSESSMENT
Thinking Critically
How is a presidential political campaign an
example of marketing?
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1.1
Graphic Organizer
Marketing Functions
Producers
Financing
Pricing
Marketing-Information Management
Product/Service Management
Promotion
Distribution
Selling
Consumers
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SECTION 1.2
Economic Utilities
Why It's Important
By understanding the benefits of marketing,
you will see how the functions of marketing
add value to products. You will also see how
marketing activities lead to lower prices and
new and improved products.
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SECTION 1.2
Economic Utilities
Key Terms
 utility
 form utility
 place utility
 time utility
 possession utility
 information utility
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SECTION 1.2
Economic Utilities
Economic Benefits of Marketing
Bridges the gap between you and the
maker or seller of an item.
Makes buying easy for customers.
Creates new and improved products at
lower prices.
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SECTION 1.2
Economic Utilities
Economic Utilities
Economic utilities reflect the value that
producers and marketers add to raw materials
when they make them into products and offer
them for sale to the public.
 Form utility
 Place utility
 Time utility
 Possession utility
 Information utility
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SECTION 1.2
Economic Utilities
Form Utility
Changing raw materials or putting parts
together to make them more useful.
 Example: The parts of a lounge chair—
the wood frame, the fabric, the glue and
nails, and the reclining mechanism—are
less useful by themselves. Putting them
together adds form utility.
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SECTION 1.2
Economic Utilities
Place Utility
Having a product where customers can buy it.
 Example: Selling directly to the customer
through catalogs.
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SECTION 1.2
Economic Utilities
Time Utility
Having a product available at a time
convenient for customers.
 Example: Retailers offer large supplies
of backpacks in the late summer, near
the beginning of the school year.
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SECTION 1.2
Economic Utilities
Possession Utility
Exchange of a product for some monetary
value.
 Example: Taking credit cards and checks
rather than just cash enables customers to
buy products.
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SECTION 1.2
Economic Utilities
Information Utility
Providing information so the customer is
comfortable buying.
 Example: Salespeople explain
features of products.
 Example: Packaging explains qualities
and uses.
 Example: Advertising informs consumers
about products.
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SECTION 1.2
Economic Utilities
Lower Prices
When demand is high, manufacturers can make
products in larger quantities, which reduces the
unit cost of each product.
 Example: When fixed costs are $20,000:
Quantity Produced Fixed Cost Per Unit
10,000
$2.00
200,000
10¢
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SECTION 1.2
Economic Utilities
New and Improved Products
As businesses continue to look for
opportunities to better satisfy customers'
wants and needs, the result is a larger
variety of goods and services.
 Example: Personal computers have become
smaller, more powerful, and less expensive
through competition between makers.
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