Download Notes for 1.01

1.00 Understand marketing, market planning, and foundation of marketinginformation management.
1.01 Understand marketing’s role and functions in business to facilitate economic
exchanges with customers.
A. Define the following terms: marketing and marketing concept.
1. Marketing:
a. Marketing matches up producers with the customers who want their
products.
b. Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large..
2. Marketing concept: a philosophy of conducting business that is based
on the belief that all business activities should be aimed toward satisfying
customer wants and needs while achieving company goals.
a. Businesses that embrace the marketing concept consider the
customer’s point of view first – before making any marketing
decisions.
b. To be successful, a business should focus its actions on fulfilling its
customers’ need and wants.
B. Identify marketing activities.
1. Planning how to carry out the marketing process.
a. Just as business owners develop business plans, marketers develop
detailed marketing plans to guide their different activities
b. Marketers write a clear plan of action for their business, implement
the plan, and evaluate the plan’s success.
c. Coordinating all of the pieces of marketing is essential for success,
so thorough planning is necessary.
2. Finding out about customers
a. Marketers are responsible for finding out who their customers are
and what their customers need.
b. Knowing this information enables marketers to take action.
c. To acquire these insights and identify the products that would satisfy
their customers, marketers conduct in-depth, detailed research.
3. Offering the products customers want.
a. After finding out who customers are and what they want, marketers
share what they’ve learned with others in the company.
b. People in operations would need to design and/or create the product,
if it’s new.
People in finance would determine whether it’s a wise financial
decision to offer the product.
d. If so, marketers take the new product for a “test drive” to determine
whether or not:
(1) What has been created meets the needs of customers
(2) Changes still need to be made before the product is mass
produced.
e. In this way, marketers ensure that the company offers the products
that customers want.
f. Some companies buy goods from manufacturers to resell to
customers.
g. Marketers at these stores need to make sure that their stores have
the latest colors, styles, models, etc., in the right amounts to satisfy
customer demand.
4. Determining how much to charge for the products
a. Marketers must consider the customers’ perception of value as well
as the business’s objectives.
b. For most companies, making a profit is the number-one goal.
c. The challenge for marketers is identifying an exchange price that
buyers and sellers both see as giving them the best value.
d. Products must be priced low enough for customers to want to buy
them, yet high enough that sellers can make a profit.
c.
5. Communicating with customers
a. To capture their customers’ attention and generate demand for their
goods and services, marketers conduct several activities, including:
1. Advertising
2. Personal selling
3. Publicity
4. Sales promotion
b. Each activity involves contact with the customer, whether in person or
not.
c. Examples of advertising:
1. Television commercials
2. Pop-up ads
3. Billboards
d. When your little sister asks you to buy Girl Scout cookies, you’re the
target of personal selling.
e. If you’ve ever participated in a charity event sponsored by a local
business or taken part in a contest to win free concert tickets, you’ve
seen publicity and sales promotion in action.
C. Categorize items that are marketed.
1. Goods
a. Durable Goods: tangible items that last a long time.
(1) Ex: Mp3 players, automobiles, laptop computers
b. Nondurable Goods: tangible items that are typically consumed within
a short period of time
(1) Ex: fruit smoothies, unleaded gasoline, lipstick
2. Services
a. Intangible activities that are performed by other people for money
(1) Ex: haircuts, dental treatments, cell phone services
3. Organizations. (Operation Smile, American Society for the Prevention of
Cruelty to Animals)
4. Events (County Fair, Olympics)
5. Places (California)
6. Ideas (“Click it or Ticket”)
7. People (LeBron James)
D. Explain where marketing occurs.
1. Marketing occurs wherever customers are present in everyday places
2. Examples:
a. Online
b. Offices
c. Stores
d. Schools
e. At home
3. Some businesses are almost entirely devoted to marketing and its
activities
a. Retail stores
b. Advertising agencies
c. Marketing-research companies
d. Travel agencies
E. Explain the elements of the marketing concept
1. Customer orientation: Do it the customer’s way.
2. Company commitment: Do it better
3. Company goals: Do it with success in mind.
F. Explain the role of marketing in a private enterprise system.
1. In our world
a. Marketing makes the world go round.
b. Everyday, people buy and sell goods and services so that they can
feed their families, increase their business profits, or further their
causes.
2. In our community
a. Ex: local restaurant signs, yard sale signs
G. Describe the ways in which consumers and businesses would be affected if
marketing did not exist.
1. Effects on our country
a. Difficulty linking producers to customers
b. Businesses would suffer and possibly close
c. Customers would have to figure out where to get certain goods and
services
d. Fewer improvements would be made to existing products
e. Fewer new products would be developed
2. Effects on you
a. Daily routines would be different
b. Products would be made, rather than bought
c. Radios, TV networks, and many web sites would not exist since the
earn their money by selling advertising space/time.
d. Marketing shapes the little things we do.
H. Explain how marketing benefits our society
1. Marketing makes our lives better.
a. Encourages competition among businesses
(1) New and improved products at lower prices
b. US has one of the highest standards of living in the world.
2. Marketing provides us with a variety of goods and services.
a. Competition helps us offer a variety of goods and services
(1) Ex: Cell phones – offered in different colors, features,
manufacturers, etc.
3. Marketing encourages trade between nations
a. Resources needed to produce their products are extremely valuable
to marketers
b. Marketers can pinpoint where specific resources can be found.
c. Marketing draws countries into the process of exchanging different
resources.