Marketing Indicator 1 01 Understand marketings role and

Marketing Indicator 1. 01 Understand marketing’s role and function in business to facilitate economic exchanges with customers.

Warm-up l 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 ¡You have 15 minutes to finalize Power. Point & turn in l. You will present 1 current, 1 future, & 1 go away at end ¡Introduce Marketing Concept & 7 Functions l. No Pre-test ¡Create a foldable for notes & introduce project for 7 functions

Notes

What is marketing? l The process of planning and executing the ¡Conception ¡Pricing ¡Promotion ¡Distribution of lideas, goods, and services lto create exchanges that satisfy individual and organizational objectives. Links producers to the customers who buy their goods and services

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 l Broad categories ¡ Goods l Durable – e. g. , DVD player (last a long time) l 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) l Almost anything can be marketed.

Where does Marketing Occur? l Everyday by people, in places, with communication l Marketing occurs wherever customers are

Marketing Concept l “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. ” l Make customers happy while making a profit

Elements of the Marketing Concept l Customer orientation: Do it their way. ¡ Finding out what customers want and producing those products the way they want them l Company commitment: Do it better. ¡ Make/price the product better than the competition’s model. l Company goals: Do it with success in mind. ¡ Maintain your firm’s purpose while you apply the marketing concept.

What is Marketing’s Role in a Private Enterprise System? l Marketing fits into every facet of our lives, whether on a global scale or right in our own neighborhoods. l Provides benefits that make our lives better, promoting using natural resources more wisely, and encourage international trade. l Without marketing, we would all have to be selfsufficient.

How Does Marketing Benefit Our Society? l Marketing visibly benefits our lives, our natural surroundings, and our global trade. l Makes our lives better ¡ Because problem solving is at the heart of marketing, each year we add some new products to our home, often at lower prices. l Promotes using the earth’s resources more wisely ¡ If available resources are used sensibly, benefits can extend well into the future for the marketer, the nation, and the entire world. l Encourages trade between nations ¡ Because resources are valuable to marketers, it doesn’t take them long to pinpoint where a particular resource can be found in abundance. ¡ If our nation lacks a resource, we can usually trade something to get it.

Directions for 7 Function Notes

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 l Responsible for moving, storing, locating, and/or transferring ownership of goods and services l Main goal is to move products from the producer to the consumer. l Determines who will offer products and where they will be offered l Develops relationships with channel members l Assesses quality of vendor performance

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 l Customer surveys l Ask your zip code when you check out l Sign up for email ¡ Store information ¡ Analyze information

Seven FUNctions of Marketing

7 FUNctions 4. Pricing: What do you charge in order to make a profit? l How much it costs to create a product l What the competition charges l How much are customers willing to pay.

Seven FUNctions of Marketing 5. Product/Service Management: ¡ Product Development l Helps to determine which products a business will offer and in what quantities ¡ Maintaining quality products l 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

Seven FUNctions of Marketing 7. Selling ¡ ¡ Providing customers with what they want. Builds customer loyalty & creates an exchange

Selling is important to marketing because l This function is important because it involves contact with customers. ¡ Other marketing functions pave the way for successful selling. l Businesses work to meet customers’ needs and sell them the most appropriate product. l All businesses have something to sell. l Everyone benefits from selling. ¡ Selling benefits businesses. l Creates a desire for their products l Helps get their products into the hands of consumers ¡ Selling benefits consumers by providing: l Help with their buying decisions l Information about new products ¡ Selling can benefit society. l Creates employment l Encourages economic growth

The interrelationships among marketing functions l Can’t forget to advertise even if you have a great product l Can’t forget to have a sufficient supply of those great products in stock for an upcoming sale l Can’t forget to set prices that are competitive and attract customers l Forgetting any of these functions means your marketing effort won’t be as effective. l Your competitors will have an advantage