History and Functions of Marketing Notes Concepts to

History and Functions of Marketing Notes

Concepts to Know! • What is marketing? ▫ It is a PROCESS of creating a SATISFYING EXCHANGE RELATIONSHIP • What is the Marketing Mix (AKA the 4 P’s) ▫ Product, Price, Place, Promotion • What is a market? ▫ PEOPLE who are willing and capable!

Types of Products • Goods ▫ Material items you can touch. Car, TV, clothing, ect. • Services ▫ A series of tasks performed for a customer. Hair cut, lawn service, car repait

Marketing History

The Development of Markets • Self –Sufficient ▫ People didn’t need others • Bartering ▫ People could trade for what they needed • Specialization of Labor ▫ People did one thing and did it really well • Money Systems ▫ Established currencies to exchange products • Central Markets ▫ Town centers where people brought products to exchange

The Development of Marketing • 1900’s-1920’s Production Era ▫ Few products were available and production processes were very simple ▫ Only focused on product development and distribution • 1930’s-1940’s Sales Era ▫ Effective production, transportation and standard of living increased ▫ Increased competition=focused on sales

As Marketing Developed • 1950’s-1960’s Marketing ▫ Focused on new marketing activities ▫ Golden age of advertising ▫ Prices became competitive and customers offered credit • 1970’s-Today Marketing Concept Era ▫ Listening to consumers ▫ Marketing became a major part of all businesses

The Seven Functions of Marketing

Functions of Marketing • Product and Service Management ▫ Assisting in the design and development of products and services to meet the needs of prospective customers

Functions of Marketing • Marketing Information Management ▫ Gathering, recording, analyzing and disseminating information to aid in making marketing decisions. ▫ Market Research!

Functions of Marketing • Distribution (Channel Management) ▫ The physical movement or the transfer of ownership of a good or service from the producer to the consumer.

Functions of Marketing • Pricing ▫ The determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.

Functions of Marketing • Promotion ▫ Communicates information about products, services, images or ideas to customers or clients to influence their purchase behavior.

Functions of Marketing • Selling ▫ Direct, personal communications with prospective customers in order to assess needs and satisfy those needs with appropriate products and services

Functions of Marketing • Financing ▫ Determining the need for and availability of financial resources to aid in marketing activities.

Other Marketing Activities

• Market Planning ▫ Developing marketing strategies that will reach markets • Risk Management ▫ Providing security for products ▫ MAKING SURE PRODUCTS ARE SAFE! ▫ Try to reduce the risk associated with using it

Partner Activities • Functions of Marketing Graphic Organizer • Marketing Through the Ages Handout