UNIT 1 The World of Marketing Chapter 1

UNIT 1 The World of Marketing: Chapter 1: Marketing is All Around Us Chapter 2: The Marketing Plan

Class Activity Pick up your textbook & Handout (Remember your number) In groups of 4: ASSIGN DUTIES: • Task-Master List the names and what • Time-Keeper Each member’s duties are. • Recorder • Reporter Create & discuss a list of the 10 most popular products or services today Answer these questions: • Why are they popular? • How do people find out about them? Business & Marketing

Section 1. 1 - Marketing and the Marketing Concept Student will be able to: • • Define meaning of marketing Explain the four foundations of marketing List the seven functions of marketing Understand the Marketing Concept

Chapter 1 Section 2 The Importance of Marketing Student will be able to: • Analyze the benefits of marketing • Apply concept of utility and describe the five economic utilities • Distinguish the four economic utilities that are related to marketing

Section 1. 3 Fundamentals of Marketing Student will be able to: • Describe the concept of market • Differentiate consumer and industrial markets • Describe market share • Define target marketing • List the four P’s of the marketing mix

What Is Marketing? The process of developing, promoting, and distributing products to satisfy customers’ needs and wants.

• Products – goods and services that have monetary value

• Goods – things you can touch or hold

• Services – you can’t physically touch – tasks performed for a customer

Marketing is based on Exchange • Marketing connects business’ to their customers.

Exchange • An exchange takes place every time something is sold in the marketplace.

EXCHANGE When the producer is someone other than the consumer, some form of exchange takes place.

Foundations of Marketing 1. Business, Management, Entrepreneurship 2. Communication and Interpersonal Skills 3. Economics 4. Professional Development

7 Functions of Marketing • Activities that work together to get goods and services from producers to consumers • Each is essential

Seven Functions of Marketing 1. Distribution Deciding where and to whom products need to be sold to reach the final users.

2. Financing Getting the money necessary to operate a business

3. Marketing Information Management Getting information to make sound business decisions. Usually obtained through marketing research

For example, after a stay at a luxury hotel, you fill out a form rating the service and accommodations.

4. Pricing How much to charge to maximize profits

5. Product Service Management • Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

6. Promotion Communicating with potential customers to inform, persuade, or remind them about a business’s products

7. Selling Planned, personalized communication that influences purchasing decisions

When Henry Ford first created the Model T, he was the only one mass producing cars. He didn’t have to think about “The Marketing Concept. ” But, as more and more producers started making cars, they had to think about what customers need and want in order to stay in business. Click on the Model T Ford to see Henry Ford’s thoughts about car color in the early 1900’s.

Imagine if, in today’s world, you could only buy black. Many customers would not be very happy!

Today’s buyer wants a choice!

The Marketing Concept • If automobile manufactures do not give their customers a choice (what they want), they will not stay in business. • That concept is true for all businesses. • You must give the customer what they need and want.

The Marketing Concept That is what we mean by The Marketing Concept Businesses must know their customers. . . Businesses must satisfy customers’ needs and wants in order to make a profit

Functions of Marketing • Break up into groups of four (4) • Choose a product or service, and research and discuss each of the 7 functions of marketing for that product or service: 1. 2. 3. 4. 5. 6. 7. Distribution Financing Marketing information management Pricing Product/service management Promotion Selling • Be prepared to share with the class

Class Work - 29 October 2020 • Textbook: – Page 7, #1 – 5 • Complete on paper or a new Word document • Save to your NEW “Block-4” folder in “My Documents” as: Marketing-CW-1 -1 -firstinitial. Lastname

The Importance of Marketing Chapter 1. 2

Transition - 29 October 2020 • Get your “Marketing” text today • Pull out your Chapter 1 “Note-Guide” handout, go to Section 1. 2 • Get in groups of 4, and list “ 5 - Examples of Marketing” • One paper group (with names) (on paper or on Word) • Assign the same duties: – – Reporter (Presents) Recorder (Writes) Timekeeper (Keeps group on time) Taskmaster (Keeps group on track)

Examples of Marketing: • Billboards • Radio and TV commercials • Print advertisements • Decals on vehicles • Banners • Sales • Customer service • • • Flyers Brochures Web advertising Word of mouth Budgets Company communication • Personnel management

The Importance of Marketing Chapter 1. 2

Chapter 1 Section 2 The Importance of Marketing What You’ll Learn • The benefits of marketing • The meaning of economic utility • The five economic utilities and how to distinguish the four that are related to marketing

Economic Benefits of Marketing • Marketing bridges the gap between you and the maker or seller of an item

Economic Benefits of Marketing New and Improved Products -businesses look for opportunities to please the customer

Economic Benefits of Marketing Lower Prices – marketing activities add value and increase demand. When demand is high, manufacturers can produce at a lower price. They can sell at a lower price but increase the quantity sold. Thus, profits are higher even though prices are low.

Economic Benefits of Marketing • It adds VALUE

Added Value = Utility In economic terms, utility does not mean your closet or the electric company.

Added Value = Utility Attributes of a product or service that make it capable of satisfying consumers’ wants and needs. There are five types of Utility:

1. Form Utility Changing raw materials or putting parts together to make them more useful – making and producing things. • Sand into glass • Wood into paper • Silk into fabric

2. Place Utility Having a product where customers can buy it.

It Involves • Location – may be through a catalog or at a retailer (actual store) – or, Internet. • Transporting the product to the location.

3. Time Utility Having a product available at a certain time of year or a convenient time of day. • Planning and ordering • Time of day and week • Time of year: holidays and seasons

4. Possession Utility The exchange of a product for some monetary value.

Payment may be made by • Cash • Personal checks • Credit cards • Installments (layaway)

5. Information Utility Involves communication with the consumer. • ads • packaging • signs • displays • owner’s manuals

Which types of utility are related to marketing? Form utility is a function of production, NOT marketing

These utilities ARE directly related to marketing: • • Place Time Possession Information

Fundamentals of Marketing Chapter 1 Sec. 3

Section 1. 3 Fundamentals of Marketing What You’ll Learn • • • Describe the concept of market Differentiate consumer and industrial markets Describe market share What target marketing is The four P’s of the marketing mix

• Market – all potential customers who have the ability and willingness to buy

Consumer Markets • Consist of consumers who purchase goods and services for personal use.

Industrial Markets • Business-to-business (B-to B) markets include all businesses that buy products for use in their operations.

Market Share • A company’s percentage of the total sales volume generated by all companies that compete in a given market.

Target Marketing Focusing all decisions on a very specific group of people who you want to reach.

Customer Profile • To develop a clear picture of their target market, businesses create a customer profile. • It lists information about the target market, such as age, income level, occupation, attitudes, lifestyle, and geographic residence

• Customers – people who buy the product • Consumers – people who actually use the product Is mom the customer or the consumer? The kids?

Marketing Mix Basic marketing strategies – the four P’s • • Product Place Price Promotion

Product Strategies • • What product to make How to package it What brand name to use What image to project

Place Strategies • How and where a product will be distributed.

Price Strategies • Reflect what customers are willing and able to pay.

Promotion Strategies • How potential customers will be told about the new product • What the message will be • When and where it will be delivered • What inducements are there to buy

The Marketing Mix The elements are interconnected Product Place Price Promotion

The Marketing Mix – The 4 P’s • Contains countless alternatives. • Management must select a combination of marketing mix decisions that will satisfy target markets and achieve organizational goals.

Class Work - 29 October 2020 • Textbook: – Page 11, #1 - 4 – Page 19, #1 – 4 – Page 21, #11 – 19 • Complete on paper or a new Word document – Save to your NEW “Block-4” folder in “My Documents” as: Marketing-CW-1 -3 -firstinitial. Lastname

Lesson Assessment • Break up in groups of four • Each group needs to answer the following: 1. Define in your own words: “What is Marketing” 2. List the components of the marketing mix. 3. Create a fictional product, its target market, and the customer profile Save to your Block folder as: Marketing-Ch-1 -Assessment-filastname