Marketing Today

1.1 What is Marketing

1.2 Businesses Need Marketing

1.3 Understanding the Marketing Concept

1.4 Marketing’s Role Today and Tomorrow

1.1 - What is Marketing?

Goals for Lesson 1.1• Understand the importance of

studying marketing• Explain what marketing is and

describe the marketing functions• Define Marketing

Why Study Marketing? Marketing is important and profitable.

Businesses, consumers, and the economy benefit from effective marketing.

Where does marketing take place? Visual vs. Non-Visual Activities Visual – advertisements, transportation,

researchers Non-visual – manufacturers, accountants,

human resources

Businesses Directly Involved in Marketing Advertising agencies Marketing research firms Sales representatives Trucking companies Credit card companies Telemarketing businesses Travel Agencies

Businesses with MajorMarketing Activities Retailers Manufacturers Banks Real estate agencies Insurance companies Automobile dealers Farmers and ranchers

Businesses with LimitedMarketing Role Law Offices Physicians Accounting firms Government agencies Universities Construction businesses Public Utilities

What is Marketing?

Marketing Functions Product/service management Distribution Selling Marketing Information Management Financing Pricing Promotions

Marketing Functions Product/Service Management -

Assisting in the design and development of products and services that will meet the needs of prospective customers

Distribution – Determining the best methods and procedures to be used so prospective customers are able to locate, obtain, and use the products.

Marketing Functions Selling – Direct, personal communication

with prospective customers in order to assess needs and satisfy those needs with appropriate products and services

Marketing-Info Management – Obtaining, managing, and using marketing information to improve decision making and the performance of marketing activities.

Marketing Functions

Financing – Budgeting for marketing activities, obtaining the necessary financing, and providing financial assistance to customers

Pricing – Establishing and communicating the value of products and services to prospective customers

Marketing Functions

Promotion – Communicating information to prospective customers through advertising and other promotional methods to encourage them to purchase the organization’s products or services.

Thinking Critical

Defining Marketing

Old Definition – the performance of business activities that direct the flow of goods and services from producer to users

New Marketing is the creation and maintenance of satisfying exchange relationships

Understanding the Definition

Creation suggests that marketing is involved from the very beginning

Maintenance means that marketing must continue to be used as long as a business or organization is operating

Satisfaction of both the business and the customer is an important goal of marketing

Exchange Relationships applies the definition to any exchange where people are giving and receiving something of value

Review Activity

Identify and describe each of the seven marketing functions (product/service management, distribution, selling, marketing-information management, financing, pricing, promotion) and then provide real-life examples of those functions that you have experienced or read about.

1.2 – Businesses Need Marketing

Goals Explain why businesses need

marketing Understand how marketing has

developed in the business world Describe the functions of business

The Need for Marketing

Marketing must be carefully planned Marketing must be coordinated with

other business activities Good products do not need

marketing? Info about the product Where to buy it, get to where it is sold Afford the price, good value

Marketing and the Development of Business

Bartering Specialization of Labor Money Systems Central Markets Other Marketing Activities

Bartering

Exchanging products or services with others by agreeing on their values Developed so people could exchange

with others to obtain the things they needed.

Hunters and farmers One of the first examples of marketing

Specialization of Labor

Concentrating on one or a few related activities so that they can be done well. The ability to produce large quantities of

one product More of one product to exchange with

people

Money Systems

The use of currency as a recognized medium of exchange Not always possible to barter for various

reasons With money people could obtain

products Money could be used for future

purchases

Central Markets

A location where people bring products to be conveniently exchanged. Allowed for less travel Location was key to an effective market

Other Marketing Activities

Loan money to buyers and sellers Transportation of products

Functions of Business

Production Operations Accounting and Finance Management and administration Marketing Coordination of business functions

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 Finance

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.

Coordination of Business Functions

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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.

1.3 – Understanding the Marketing Concept

Goals Define the marketing concept Determine how businesses implement

the marketing

The Marketing Concept Using the needs of customers as the

primary focus during the planning, production, distribution, and promotion of a product or service

The most successful businesses are the ones that consider customer’s needs as they produced and worked to satisfy those needs as they produced and marketed their products or services

Elements of the Marketing Concept

1. Businesses must be able to identify what will satisfy customer’s needs

2. Businesses must be able to develop and market products or services that customers consider to be better than other choices

3. Businesses must be able to operate profitably

The Marketing Concept

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

Identifying the market Market refers to the description of the

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 Concept

Develop a marketing mix (the blending of four marketing elements) Product Place or distribution Price Promotion

Marketing Mix Product is anything

offered to a market by the business to satisfy needs, including physical products, services, and ideas

Marketing Mix Place includes the

locations and methods used to make the product available to customers

Marketing Mix Price is the actual

amount that customers pay and the methods of increasing the value of the product to the customer

Marketing Mix Promotion includes the

methods and information communicated to customers to encourage purchases and increase the satisfaction

Journal

What are the advantages and the disadvantages for consumers who buy from online sites rather than from stores? In what ways are the sites a response to customer needs and wants.

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?

1.4 – Marketing’s Role Today and Tomorrow

Goals• Describe the changing role of

marketing• Summarize how marketing is

changing and why marketing is important

The Changing Role of Marketing

Product emphasis Sales emphasis Marketing department emphasis Marketing concept emphasis

Product Emphasis

Production Era (1900 – 1920s) – emphasis on producing and distributing new products Production processes were very simple

and few product choices were available People had a limited amount of money Transportation systems were not

developed

Sales Emphasis

Sales Era (1930s – 1940s) – emphasis on using advertising and sales people to convince customers to buy a company’s product More effective and efficient at producing

and distributing products Increased competition, which led to

companies relying on sales people

Marketing Department Emphasis

Marketing Department Era (1950s – 1960s) – emphasis on developing many new marketing activities to sell products People had more money to spend and

companies had to provide reasons for consumers to buy their product

Catalog, airplane distribution, retail stores, credit purchases

Marketing Concept Emphasis

Marketing Concept Era (1970s – today) – emphasis on satisfying customer’s needs with a carefully developed marketing mix Companies started listening to the

consumer Activities were completed with customer

satisfaction in mind.

Marketing in Other Organizations

Due to the success of marketing it spread into other organizations – libraries, churches, government agencies, community organizations.

How do these organizations use marketing?

Why is Marketing Important?

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2.

3.

4.

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?