Download Marketing Indicator 1.01

Marketing Indicator 1.01
Understand marketing’s role and
function in business to facilitate
economic exchanges with customers.
Warm-up
Why is it important for Marketers to
understand current trends in society?
In order to be effective in business you have to know what customers
want.
In order to be really successful you have to know what customers want
before they do.
In order to be effective in Marketing you have to know how to make
them aware of what you offer.
Agenda
Warm-up & Trends Review
Unit 1 True/False Pre-Test
Finish up trends assignment
Introduce Marketing Concept & 7 Functions
Create a foldable for notes & introduce project
for 7 functions
Unit 1:
Pre-Test
Notes
Key Terms
Marketing:
Process of planning, pricing, promoting, selling,
& distributing ideas, goods, and services to
create exchanges that satisfy customers
Links the producer to the customer
Marketing Concept:
The idea that a company strives to meet
customers wants & needs while achieving
company goals
Make the customer happy while making a profit
Marketing Activities
Planning
Write, Implement,
& Evaluate plans
so that effective
marketing can
occur.
Pricing
Promoting
Balances what a
Capture the
customer is willing
customers
to pay with what a
attention &
business wants to generate demand.
charge.
Accomplished
Making a profits is
through
#1 goal
advertising,
personal selling,
publicity and sales
promotions.
Place
Making sure the
product is
available at
locations where
customers can
acquire them
(Online and off.)
Items that are marketed
 Broad categories
Goods
 Durable – e.g., DVD player (last a long time)
 Nondurable – e.g., gasoline (typically consumed within a
short period)
Services – e.g., delivery services
Organizations – e.g., labor organization
Places – e.g., New Zealand
Ideas – e.g., “Stand” against smoking
People – e.g., “Shaq Attaq” (Shaquille O’Neal)
 Almost anything can be marketed.
Marketing Concept
“A philosophy of conducting business that
is based on the belief that all business
activities should be aimed toward
satisfying consumer wants and needs
while achieving company goals.”
Make customers happy while making a
profit
Elements of the Marketing Concept
 Customer orientation: Do it their way.
 Finding out what customers want and producing those products the way they
want them
 Door-to-Door sales versus a company surveying clients to see what they want
 Company commitment: Do it better.
 Make/price the product better than the competition’s model.
 Putting money into research & development so your products stays #1
 Company goals: Do it with success in mind.
 Maintain your firm’s purpose while you apply the marketing concept.
 Increase profits, be more socially responsible, increase market share, etc…
How Does Marketing Benefit Our Society?
 Makes our lives better
 New & Improved products are offered at lower prices
 Increases our countries standard of living
 Provides us with a variety of goods
 Products are offered in a variety of colors, sizes, styles, models, etc..
 Encourages trade between nations
 When a nation lacks resources they can usually acquire it from other
countries
7 Functions
Foldable
Complete the foldable chart
given to you.
 Step 1 – Select 4 pieces of regular copier paper
 Step 2 – Lay first sheet down, then lay each of the other sheets on top of that
one, each about ½ - ¾” above the first sheet, so that they are staggered. See
picture below.
 Step 3 – Holding papers tightly in place, take the top half of the sheets and fold
down to make 4 more staggers. Staple with two staples along the top edge to
hold in place
7 Functions: Channel Management
1.
Channel management (a.ka. Distribution): identifying,
selecting, monitoring, and evaluating sales channels.
How are you going to get the product to the customer?
 Moving/Transporting product
 Storing
 Tracking product
Channel management (a.k.a.) Distribution
 Responsible for moving, storing, locating, and/or transferring ownership of
goods and services
 Main goal is to move products from the producer to the consumer.
 Determines who will offer products and where they will be offered.
 Allows adequate supplies of products in the right place at the
right time.
 This function includes selecting methods of transporting
products.
 Some methods are less expensive than others.
 Making the right decision helps to control expenses.
Seven FUNctions
2. Financing –
How are you going to get the money to
setup & run your business?
 Allow people to invest in your company
 Take out a loan
 Offer credit to customers
Seven FUNctions of Marketing
3. Marketing Information Management:
How are you going to obtain information
about customers & current trends?
 Gather information
 Customer surveys
 Ask your zip code when you check out
 Sign up for email
 Store information
 Analyze information
Marketing-Information Management
is important to marketing because
 Allows businesses to make decisions based on
information gathered rather than making guesses
 Goal is to forecast, or predict, what will be
happening that might affect the business in the
future.
 Might lose money because they are not keeping up
with the times or selling the right products
Seven FUNctions of Marketing
7 FUNctions
4. Pricing:
What do you charge in
order to make a
profit?
 How much it costs to
create a product
 What the competition
charges
 How much are
customers willing to pay.
Seven FUNctions of Marketing
5. Product/Service Management:
 Product Development

Helps to determine which products a business will offer
and in what quantities
 Maintaining quality products

Aids in determining and developing a company’s/product’s
image
 Product Improvements
7 FUNctions
6. Promotion: A companies effort to…
 Inform – Socially Responsible Company
 Persuade – Commercials/Advertisements
 Remind
Promotion is important to marketing
because
 Can create and/or increase consumer demand for
products.
 Promotions inform customers about:




New products
Improved products
New uses for existing products
Special values on products
 Helps to create an image or impression of a
business.
 A business might want to change its image to attract a different or
expanded target market.
 Coordinated advertising and public relations will get the message
across.
Seven FUNctions of Marketing
7. Selling


Providing customers with what they want.
Builds customer loyalty & creates an exchange
Selling is important to marketing
because
 This function is important because it involves contact with customers.
 Other marketing functions pave the way for successful selling.
 Businesses work to meet customers’ needs and sell them the most appropriate
product.
 All businesses have something to sell.
 Everyone benefits from selling.
 Selling benefits businesses.
 Creates a desire for their products
 Helps get their products into the hands of consumers
 Selling benefits consumers by providing:
 Help with their buying decisions
 Information about new products
 Selling can benefit society.
 Creates employment
 Encourages economic growth
The interrelationships among marketing functions
 Can’t forget to advertise even if you have a great product
 Can’t forget to have a sufficient supply of those great
products in stock
 Can’t forget to set prices that are competitive and attract
customers
 Forgetting any of these functions means your marketing
effort won’t be as effective.
 Your competitors will have an advantage
Warm-up 08/29/13
Function
Example
1. A retail store employee puts a pair of shoes on a customer and asks how they feel
2. A retailer decides to mark down all swimsuits in August
3. A team of workers approach customers in a mall to them their opinions about the
upcoming political election and the candidates running for office
4. A television commercial stresses the benefits of buying a new protein bar
5. A small manufacturer applies for a bank loan in order to upgrade its computer network
6. A company uses information from its sales records to reduce its product line by
eliminating the products that did not sell well in the last two years
7. A manufacturer of apparel signs a contract with a company that specializes in trucking
and warehousing of imported goods
The Seven Functions of Marketing
 Channel management (a.ka. Distribution): identifying, selecting, monitoring,
and evaluating sales channels.
 Marketing-information management: gathering, accessing, synthesizing,
evaluating, and disseminating information to aid in business decisions
 Pricing: determining and adjusting of prices to maximize return and meet
customers’ perceptions of value
 Product/Service management: obtaining, developing, maintaining, and
improving a product or service mix in response to market opportunities
 Promotion: communicate information about goods, services, images, and/or
ideas to achieve a desired outcome
 Selling: determining client needs and wants and responding through planned,
personalized communication that influences purchase decisions and enhances
future business opportunities