Download Chapter 1 Marketing Today

Chapter 1
Marketing Today
Objectives



Understand the importance of marketing
Explain what marketing is and describe the
marketing functions
Define marketing
Think about….



Businesses that are successful
What attracts you to that business?
Does marketing consist of multiple activities?
What is Marketing?

Is the creation and maintenance of satisfying
exchange relationship.
‘Marketing is the management process that
identifies, anticipates and satisfies customer
requirements profitably’

The Chartered Institute of Marketing
Where does marketing take place?

Most visible business activity
–

Realize it or not….
–

Successful business……
You are involved in a businesses marketing
activity!!!!!!!!
List 5 marketing activities you see on a
daily basis, and how that business tries to
reach its customers
7 Functions of Marketing
Product/Service Management

Assisting in the design and development of
products and services that will meet the
needs of prospective customers
Distribution

Determines the best methods and
procedures to be used so prospective
customers are able to locate, obtain, and use
the products and services of an organization.
Selling

Direct Method
–

Personal communications with prospective
customers in order to assess needs and satisfy
those needs with appropriate products and
services
Indirect Methods
–
Third-parties to interact with prospective
customers.
Marketing-Information Management

Obtaining managing and using market
information to improve decision making and
the performance of marketing activities
Financing

Budgeting for marketing activates, obtaining
the necessary financing, and providing
financial assistance to customers to assist
them with purchasing the organizations
products and services
Promotion

Generating awareness about a product
and/or service to potential customers
Pricing

Value for purchasing a businesses products
and/or services
Bell Ringer

Review 7 Functions of Marketing
Businesses Need Marketing


To inform customers about products or
services they don’t know about
The success of marketing CAN NOT be
determined unless the product satisfies the
customers needs and wants
Bartering

Self-Sufficient
–
Don’t rely on others for the things needed in order
to survive.
Specialized Labor
Development of Business
Pop-Tart Bell Ringer……

Discuss with your neighbor how Pop-Tart
used new forms of marketing for its product.
Functions of Business*
Production

Creates or obtains products or services for
sale



Raw Material – obtaining raw materials for sale to
customers (mining, oil drillers)
Processing – using raw materials and changing
their form through processing so they can be
used in the production of other products (paper,
food products)
Services – no physical product (hair cut,
landscaping, merchandising)
Operations

The ongoing activities designed to support
the primary function of a business and to
keep a business operating efficiently.
–
–
–
–
Building and equipment must be maintained
Product and material management
Paperwork
Customer service
Accounting and Financing

Plans and manages financial resources and
maintains records and information related to
businesses’ finances
–
Amount of capital, budget management,
borrowing of money, accounting
Management and Administration

Involves developing, implementing, and
evaluating the plans and activities of
business.
–
–
Responsible for everything that occurs in the
business including the work of the employees
Responsible for the performance of the company
Marketing

All businesses need to complete a variety of
activities in order to make their products and
services available to consumers and to
ensure that effective exchanges occur.
Coordinating of Business
Functions
1.
2.
3.
4.
Group Discussion

Using our school to illustrate how business
organizations engage in various functions
that must be coordinated if the organization
is to be effective, explain how the school
carries out its various functions that
correspond to production, operations,
accounting and finance, management and
administration, and marketing.
Marketing Concept
Identify the
needs of
the
customer
Develop
and
market
products
or services
Operate a
business
profitably
Consequences

Consequences of not satisfying customer
needs
–
–
–
Have to rely on extensive advertising, price
reductions, rebates, pressure selling, special
displays
Reductions in profit
Reluctant to buy from that company again
Implementing the Marketing Concept

Identify the Market
–
Market (A.K.A.Target Market)

The description of prospective customers a business
wants to serve and the location of those customers.
Group Discussion
Network marketing as practice by Avon Products,
Tupperware, Amway, and other products that are
sold through networks of contacts rather than
through traditional retail outlets.
Explain how network marketing can help companies
better understand and keep tabs on changes in the
needs of their customers because there are no
middlemen through which communication can be
garbled.
Implementing the Marketing
Concepts

Develop a marketing mix (the blending of
four marketing elements)
–
–
–
–
Product
Place or distribution
Price
Promotion
4 “P’s” *

Product
–

Place
–

Where will the product be offered?
Price
–

What’s being offered?
How much does it cost?
Promotion
–
How will your customers know about the product?
Showing off the 4 “P’s” + 3 More

The relation to the marketing of services have become
recognized as being important. There are an additional
3 Ps that now make up what has been referred to as
the '7 Ps'.
Marketing Mix Activity*

Below is a list of links to top companies who have a variety of
brands making up their business. Choose five products and
services (ensure that at least two of your choices are services)
and identify the relevance of the 7 Ps to the product/service of
your choice.
–
–
–
–
–
–
–
–
Unilever - range of brands covering foodstuffs, perfumes, household cleaners, ice creams, etc.
(http://www.unilever.co.uk/ourbrands)
Nestlé - again, a range of brands covering food, cereals, confectionary, drinks and dairy
products (http://www.nestle.com/Our_Brands/Our+Brands.htm)
The Mars directory
(http://www.mars.com/The_Mars_directory/Brand_search_results.asp?lstCountry=134)
A Mercedes dealership network (http://www.mercedes-benzofcanterbury.co.uk)
Dell computer products
(http://www1.euro.dell.com/content/products/compare.aspx?c=uk&id=dimen&l=en&s=dhs)
NatWest - banks provide 'products' which also double up as services in most cases!
(http://www.natwest.com/index.asp)
South West Trains - an important service for thousands of people every day!
(http://www.swtrains.co.uk)
BUPA private health care service
Group Activity*
Using newspaper ads or magazine ads for
different brands of comparable products, for
example, two car ads or two ads for a movie.
Based strictly on the ads, using a Venn
Diagram compare the similarities and
differences of the markets these advertisers
seem to have identified and the marketing
mixes they have developed to appeal to
those markets. Which marketing effort do
you think was more effective, why?
Marketing Today (Expert Topic)
Production Era: 1900s-1920s
Emphasis on producing and distributing new products
Sales Era: 1930s-1940s
Emphasis on using advertising and salespeople to convince
customers to buy a company’s products
Marketing Department Era: 1950s-1960s
Emphasis on developing many new marketing activities to sell
products
Marketing Concept Era: 1970s-Today
Emphasis on satisfying customers’ needs with a carefully
developed marketing mix