Download Marketing is All Around Us

Marketing is All Around Us
Intro to Marketing
Objectives:
• Describe market share
• Define and analyze a target
market
• Explain the economic value
and benefits of marketing
• State the marketing concept
Marketing
Is All
Around Us
What is
marketing?
Everyday we are
subjective to
thousands of
marketing
messages.
Defining Marketing
Marketing is the process of
developing, promoting, and
distributing products to
satisfy customers’ needs
and wants.
Products Include Goods &
Services:
• Goods
– Things that you
can touch or hold
in your hand.
These are
tangible items.
• Services:
– Things you can’t
physically touch.
Services are
performed for a
customer.
Examples of Goods:
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Car
Clothes
Jewelry
Electronics
Food & Beverages
Tools
CD’s
Examples of Services:
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Car Wash
Dry Cleaning
Massage
Hair Cut
Movie Theatres
Amusement Parks
Dog Walker
Gardener
Marketplace
The commercial environment where
exchange is made.
– Examples
• Stores
• Internet (E bay; store sites)
• Street vendors
• T.V (shopping networks)
Foundations of Marketing
• Business, Management,
Entrepreneurship
• Communication and
Interpersonal Skills
• Economics
• Professional
Development
Functions of Marketing
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All the activities that you encounter daily can
be classified into the 7 functions of marketing:
Distribution (Channel Management)
Financing
Marketing-Information Management
Pricing
Product/Service Management
Promotion
Selling
Distribution
(Channel Management)
• Involves deciding where and to
whom products will be sold in order
to reach final users or consumers.
• The logistics of physically moving
and sorting the goods.
– Truck
– Plane
– Train
– Ship
Financing
Getting the necessary money to
pay for the operation of a business.
– Cash
– Loan
– Credit cards
– Partners
Marketing Information
Management
Information obtained through
market research.
– Surveys
– Telephone interviews
– Questionnaires
Pricing
Deciding how much to charge for
goods and services in order to
maximize profits.
Product/Service
Management
Developing, maintaining and
improving a product or product mix
in response to market opportunities.
Promotion
Communicating with potential
customers to inform, persuade,
remind them about a business’s
product.
Promotion
Selling
Providing customers with goods
and/or services they want
Marketing Functions
Producers
Financing
Pricing
Marketing-Information Management
Product/Service Management
Promotion
Distribution
Selling
Consumers
MarketingInformation
Management
Selling
Financing
Professional
Development
Economics
Distribution
Business,
Management,
Entrepreneurship
Communication,
Interpersonal
Skills
Pricing
Product/
Service
Management
Promotion
Marketing is All Around Us
Intro to Marketing
DAY 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.
Economic Benefits of
Marketing
• New & Improved
Products
• Lower Prices
• Added Value
New & Improved Products
Example:
Personal
computers have
become
smaller, more
powerful, and
less expensive
through
competition
between
makers.
Lower Prices
Quality
Produced
Fixed Cost
Per Unit
10,000
$2.00
($20,000 ÷ 10,000)
20,000
.10
($20,000 ÷ 200,000)
Added Value
Economic Utilities
The functions of marketing
add value to a product. That
added value in economic
terms is called utility.
Five Economic Utilities
1.
2.
3.
4.
Form Utility
Place Utility
Time Utility
Possession
Utility
5. Information
Utility
Form Utility
Involves changing raw materials
or putting parts together to make
them more useful. It deals with
making, or producing things.
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.
Place Utility
Having a product where
customers can buy it.
Example: Selling directly to the
customer
through catalogs.
Time Utility
Having a product available
at a certain time of the year
or a convenient time of day.
Example: Retailers offer large supplies of
backpacks in the late summer, near the
beginning of the school year.
Possession Utility
The exchange of a product for some
monetary value. In the sales
transaction, the customer pays (with
cash, check, credit card or debit
card) and takes possession of it.
Example: Taking credit cards and checks
rather than just cash enables
customers to buy products.
Information Utility
Communication with the consumer.
To encourage sales, retailers may
feature information about products and
special offers and inform potential
customers through ads, signs or
displays.
Example: Salespeople explain features of
products.
Example: Packaging explains qualities and uses.
Example: Advertising informs consumers about
products.
Marketing is All Around Us
Intro to Marketing
Careers in Marketing
Careers in Marketing
• Careers in Marketing include all the
activities required to plan, develop,
promote and distribute goods and
services to consumers.
• Marketing activities account for 1:3
jobs in the U.S.
Careers in Marketing
Employment Trends*:
Employment in Marketing
& Sales is projected to
increase 20.6%
Employment in servicerelated industries is
expected to increase
33.4%
*Bureau of Labor Statistics
Careers in Marketing
Benefits of a Marketing Career
 The opportunity to make an above-average
income.
 Most jobs in marketing, especially those
beyond entry-level positions, are interesting
and varied.
 You will usually have more opportunities to
advance in a marketing career than in
almost any other area of business.
Careers in Marketing
• Benefits:
privileges, or
monetary
payments beyond
salary or wages,
that go with a job:
– Company Car
– Expense Account
– Bonuses
Careers in Marketing
Occupational Area:
Category or jobs that involve similar skills and
aptitudes:
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Advertising
Customer Service
E-Commerce
Entrepreneur
Fashion Merchandising
Financial Services
Food Marketing
Hospitality Marketing
Importing/Exporting
Sports Marketing
--International Marketing
--Marketing Research
--Product Management
--Professional Sales
--Public Relations
--Real Estate
--Restaurant Management
--Sales Management
--Service Marketing
--Travel/Tourism Marketing
Careers in Marketing
Job Levels in Marketing
Entry-level jobs usually require no
prior experience and involve limited
decision-making skills.
Career sustaining jobs require a
higher level
of skill and more decision making.
Slide 1 of 3
Careers in Marketing
Job Levels in Marketing
Marketing specialist employees must show
leadership ability and make many decisions on
a daily basis.
Marketing supervisors must have good
management skills, the ability to make many
decisions on a daily basis, and excellent
marketing skills.
Manager/owners are competent to run a small
business or a significant part of a large business.
Thinking Critically
Discuss how the
marketing skills
you would learn
in a fast-food
restaurant could
be transferred to
an industrial
sales position.
Fact and Idea Review
Using a ball point pen as an
example, explain the concept of
form utility.
Thinking Critically
When handheld calculators were
introduced, they sold for $100. As
they become popular, more
companies introduced better and
less expensive ones. Now you can
purchase a handheld solar for as
little as $1. Provide example of
other products that were more
costly when they were first put on
the market than they are now.
Role Play#1: STORE
MANAGER
Situation: You are to assume the role of
manager of a local supermarket. A
disgruntled customer (judge) complains
to you about how manufacturers and
retailers waste money on marketing.
The customer (judge) thinks retail prices
could be significantly reduced if
manufacturers spent less money on
marketing their products.
Role Play #2: Marketing Intern
Situation: You are to assume the role of
intern in the marketing department of the Easy
Store Corporation, a large company that
produces cardboard and plastic storage
containers. The company recently appointed
a new CEO who was hired to reduce costs
and increase profit margins. As a result, the
CEO is taking a close look at all departments,
including the marketing department. Your
supervisor (judge) is the head of the
marketing department. Your supervisor
(judge) will meet with the new CEO to justify
the activities of the marketing department, and
has asked you to gather some ideas to aid in
this endeavor.