Download AIM: What is marketing?

AIM:
What is marketing?
Do Now:
Create a word web for the word “marketing.”
What does this word mean to you?
Marketing
• The process of
developing, promoting,
and distributing
products to satisfy
customers’ needs and
wants
Products
•Monetary value
•Satisfy needs
and wants
Goods
Services
 Customer = the person
•Tasks performed
•Can
touch/hold
who buys the product
for a customer
(tangible)
•Can’t touch
 Consumer = the
person who uses the
Exchange = what occurs
product
every time something is
sold in the marketplace
The Ultimate Driving
Machine
The quicker picker
upper
It melts in your mouth,
not in your hand
Taste the rainbow.
15 minutes can save you
15% or more on your car
insurance
I’m Lovin it…
America runs on
___________
57 varieties
AIM:
How does marketing impact your daily life?
Do Now:
Take Out Homework
7 Functions of Marketing
•
All the marketing activities which you encounter
on a daily basis can be classified into one of the
following categories:
1.
2.
3.
4.
5.
6.
7.
Distribution
Financing
Marketing Information Management
Pricing
Product/Service Management
Promotion
Selling
1. Distribution


deciding where and to whom products need to be
sold in order to reach final users
physically moving and storing goods






Trucks
Railroads
Air
Boats
Central warehouses
Tracking products
2. Financing
• getting money that is necessary to pay for
the operation of a business
– Loans
– Sell Shares of Stock
– Will the business offer credit to customers
3. Marketing Information Management
• getting the necessary information to make
sound business decisions
– Marketing Research (surveys, focus group)
4. Pricing
• how much to charge for goods and services
in order to maximize profits
• determine how much customers are willing
to pay
• what are the company’s pricing strategies?
5. Product/Service Management
 GOAL = obtaining, developing, maintaining, and
improving a product
 decisions made on the basis of market research
6. Promotion
•
•
communicating with potential customers to
inform, persuade, or remind them about a
company
used to improve a company’s image
•Commercials
•Print
•Online
7. Selling
• Providing customers with
goods and services they
want
– How are customers provided
with what they want? How
are their questions
answered?
AIM:
Impact of Marketing
http://finance.yahoo.com/news/buffalowild-wings-ceo-disccuses-steverannazzisi-9-11-lie-183159998.html
Group Work
• Working with your group determine how the
seven functions of marketing are met for the
business you have been assigned.
• All group members must record findings.
• Be prepared to present to the class.
AIM:
What are the economic benefits of
marketing?
Do Now:
What is a utility?
Utility
• The value added to a product due to the 7
functions of marketing
• Utilities are attributes of a product/service
that make it capable of satisfying
consumers’ wants and needs
1. Form Utility
• changing raw materials or putting parts together to make
them more useful
– Cocoa
– Milk
– Sugar
– Lumber
2. Place Utility
• Having a product where customers can buy it
• Businesses study consumer shopping habits to
determine the most convenient and efficient
locations to sell their products
– Retail (supermarket)
– Online
– Catalogue
Marketing Story
3. Time Utility
• having a product available at a certain
time of year or time of day (ie/stores stay
open later at certain times of year)
– Halloween
– Summer (camps, s’mores)
4. Possession Utility
 the exchange of a product for some monetary
value
– Cash
– Credit
– Layaway
5. Information Utility
• communication with the consumers
– Salespeople provide information
– Displays
– Packaging
– Advertising (print, television, radio, online)
Results of Added Utility…
1. Higher Demand = Increased Competition
= Lower Prices
2. New and Improved Products