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Chapter 2
 Marketing helps businesses find customers and sell their
products and services profitability
 Marketing is responsible for the activities leading to the
exchange of a business’s products and services for the
customers money
 The marketing functions are needed to make the exchange
 Marketing is used to identify and understand the customer
 Through research businesses are able to determine customer needs,
attitudes, likes, and dislikes
 Then the business can develop P&S that meet the needs of the
customer and earn a profit
 Marketing helps satisfy needs and wants
 Manufacturers developing a new brand of laundry detergent
will make better decisions if they are aware of what
consumers like and dislike about the current brand
 It also helps make better decisions about what to sell and
how to sell it
 EX - The manager of a clothing store will want to know what
consumers are expecting in terms of styles and prices before
purchasing new items to sell
 When customers needs and wants are met, they are more likely to
be loyal and continue to purchase from the business
 Individuals benefit from marketing because it improves
the exchange between business and customers
 Here is an example of its value
 Consider going to a supermarket to buy party supplies
 You want the store to be conveniently located, adequately supply
decorations, drinks, snacks, have easily located products, prices clearly
marked, etc…
 Each of those activities is an example of marketing, and make it easier
for you to shop
 The business benefits because you purchase the product, and you
benefit because your needs were satisfied
Businesses meet consumer needs
Consumers make better decisions
Natural resources are used more effectively
Standard of living is improved
International trade increases
Common Complaints
 If not used appropriately marketing can have negative effects
 This can/has lead to a negative image for some marketing activities
 If a consumer has a negative opinion about a business, it can affect
whether or not they will be customers
 Know the two examples we went over in class (Gerber and Toyota)
and be able to describe the incidents – ON TEST
 All marketing activities are about 50% of the price of products
 Some products % are higher – while other products % are smaller
 Promotion and selling are only 2-10% of the products price...
 Marketing actually lowers product prices in the long run (Question on
 Because of marketing, products can be sold to more customers
 This in turn creates more competition
 When consumers have more choices, they usually buy reasonably priced items
 This encourages businesses to keep prices as low as possible to be competitive
 If misused marketing can have negative results, but if used effectively it
can be positive
 Concerns about health care, crime levels, poverty etc…all require the
attention of many people if solutions are to be found
 Marketing can help in several ways
 Through communication people are more aware and informed
 Consider the # of times you have received information about seat belts,
recycling, drugs & alcohol
 Marketing is responsible for these public serve announcement
 Products & Services are not always available when
consumers need them
 Ex- if there is a drought in one part of the country, farmers
may not have enough hay and grain to feed their livestock.
At the same time, there might be excess supply in other
 An effective distribution system can move the hay and grain
quickly from one part to the other…matching supply and
 The trend today is greater expectation for businesses to be socially
responsible and to aid in solving problems facing society
 Social responsibility comes into affect
 When making decisions, business people realize that they must consider
factors beyond what their customers want
 Increasing social responsibility of a business is occurring three major
 Consumerism - Organized actions of groups of consumers seeking to
increase their influence on business practices
 Consumers have little influence alone, but when organized as a group
consumers have a much greater impact
 Septa Strike
 Teacher Strike
 Students Strike??
 Consumer bill of rights
 Right to adequate information, safe products, product choices & to communicate
ideas and opinions
Government regulation- Make laws designed to
improve social impact of business practices
Businesses must comply with consumer protection
laws or risk fines and a loss of business
 Improving business practices- Business recognize their
responsibility to consumers and to society because …
 If a social problem exists the government may increase tax
to pay for programs
 Business do not want increase regulation of taxes
 What is the definition of ethics, and why do businesses adopt a code of
ethics? (This is on your Ch. 2 TEST)
 Ethics: What you believe to be right or wrong
 Encourages honest and proper conduct
 AMA (American Marketing Association) agree on standards of conduct
to encourage this responsible behavior
 Codes can be influence by penalties by the industry
 AMA describes specific responsibilities for marketers in the 4 P’s area
Self-Regulation – Business developed procedures to
respond to consumer problems and to encourage
customers to work directly with businesses to
solve them
 Is taking personal responsibility for ones actions
 The Better Business Bureau is a consumer protection
 Businesses that use the marketing concept use marketing to
identify and understand its customers
 The Better Business Bureau is a consumer protection
organization sponsored by businesses
 The following marketing techniques often results in
consumers making unneeded purchases
 offering consumers a wide number of choices
 attractive display and packaging
 credit and special financing arrangements
Marketing should start with good products
Successful businesses value long-term relationships
with customers.
Increased sales volume and competition result in
lower prices for consumers.