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Chapter 1 Marketing Is All Around Us 1
Marketing EssentialsWith Mr. Colby
Marketing EssentialsWith Mr. Colby
Chapter 1 Marketing Is All Around Us
Section 1.1 What Is Marketing?
Chapter 1 Marketing Is All Around Us 2
SECTION 1.1SECTION 1.1What Is MarketingWhat Is Marketing
What You'll LearnWhat You'll Learn
The meaning of marketing
The foundations of marketing
The functions of marketing
Chapter 1 Marketing Is All Around Us 3
SECTION 1.1SECTION 1.1What Is MarketingWhat Is Marketing
Why It's ImportantWhy It's Important
To be successful in business requires being marketing oriented. Learning how businesses and people operate from a marketing point of view will help you in all your future endeavors. You will also get a good idea of whether marketing is a potential career for you.
Chapter 1 Marketing Is All Around Us 4
SECTION 1.1SECTION 1.1What Is MarketingWhat Is Marketing
Key TermsKey Terms
marketing
products
goods
services
exchange
Chapter 1 Marketing Is All Around Us 5
SECTION 1.1SECTION 1.1What Is MarketingWhat Is Marketing
Marketing is the process of developing, promoting, and distributing products to satisfy customers' wants and needs.
What Is Marketing
Chapter 1 Marketing Is All Around Us 6
SECTION 1.1SECTION 1.1What Is MarketingWhat Is Marketing
Goods: Hammers, automobiles, soda pop, clothing, and computers
Services: Dry cleaners, amusement parks, attorneys, and movie theaters
Exchange: Buying or selling a good or service
Products = Goods and Services
Chapter 1 Marketing Is All Around Us 7
SECTION 1.1SECTION 1.1What Is MarketingWhat Is Marketing
These functions define marketing as it is applied in business operations.
Functions of Marketing
Distribution Financing Marketing-Information Management Pricing Product/Service Management Promotion Selling
Slide 1 of 4
Chapter 1 Marketing Is All Around Us 8
SECTION 1.1SECTION 1.1What Is MarketingWhat Is Marketing
Distribution involves deciding where and to whom products need to be sold in order to reach the final users.
Financing is getting the money needed to pay for the operation of a business.
Functions of Marketing
Slide 2 of 4
Chapter 1 Marketing Is All Around Us 9
SECTION 1.1SECTION 1.1What Is MarketingWhat Is Marketing
Marketing-Information Management involves getting the necessary information to make sound business decisions.
Pricing dictates how much to charge for goods and services.
Product/Service Management is obtaining, developing, maintaining, and improving a product.
Functions of Marketing
Slide 3 of 4
Chapter 1 Marketing Is All Around Us 10
SECTION 1.1SECTION 1.1What Is MarketingWhat Is Marketing
Promotion is communicating with potential customers to inform, persuade, or remind them about a company.
Selling is providing customers with goods and services they want.
Functions of Marketing
Slide 4 of 4
Chapter 1 Marketing Is All Around Us 11
1.1 ASSESSMENTASSESSMENT
Thinking Critically
How is a presidential political campaign an example of marketing?
Chapter 1 Marketing Is All Around Us 12
1.1 Graphic OrganizerGraphic Organizer
Marketing Functions
ProducersProducers ConsumersConsumers
FinancingPricingMarketing-Information ManagementProduct/Service ManagementPromotionDistributionSelling
Chapter 1 Marketing Is All Around Us 13
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
Why It's ImportantWhy It's Important
By understanding the benefits of marketing, you will see how the functions of marketing
add value to products. You will also see how marketing activities lead to lower prices and
new and improved products.
Chapter 1 Marketing Is All Around Us 14
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
Key TermsKey Terms
utility
form utility
place utility
time utility
possession utility
information utility
Chapter 1 Marketing Is All Around Us 15
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
Bridges the gap between you and the maker or seller of an item.
Makes buying easy for customers.
Creates new and improved products at lower prices.
Economic Benefits of Marketing
Chapter 1 Marketing Is All Around Us 16
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
Economic utilities reflect the value that producers and marketers add to raw materials when they make them into products and offer
them for sale to the public.
Economic Utilities
Form utility Place utility Time utility
Possession utility Information utility
Chapter 1 Marketing Is All Around Us 17
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
Changing raw materials or putting parts together to make them more useful.
Form Utility
Example: The parts of a lounge chair— the wood frame, the fabric, the glue and nails, and the reclining mechanism—are
less useful by themselves. Putting them together adds form utility.
Chapter 1 Marketing Is All Around Us 18
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
Having a product where customers can buy it.
Example: Selling directly to the customer
through catalogs.
Place Utility
Chapter 1 Marketing Is All Around Us 19
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
Having a product available at a timeconvenient for customers.
Example: Retailers offer large supplies of backpacks in the late summer, near
the beginning of the school year.
Time Utility
Chapter 1 Marketing Is All Around Us 20
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
Exchange of a product for some monetary value.
Example: Taking credit cards and checks
rather than just cash enables customers to
buy products.
Possession Utility
Chapter 1 Marketing Is All Around Us 21
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
Providing information so the customer is comfortable buying.
Information Utility
Example: Salespeople explain features of products.
Example: Packaging explains qualities and uses.
Example: Advertising informs consumers about products.
Chapter 1 Marketing Is All Around Us 22
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
When demand is high, manufacturers can make products in larger quantities, which reduces the
unit cost of each product. Example: When fixed costs are $20,000:
Quantity Produced Fixed Cost Per Unit
10,000 $2.00
200,000 10¢
Lower Prices
Chapter 1 Marketing Is All Around Us 23
SECTION 1.2SECTION 1.2Economic UtilitiesEconomic Utilities
As businesses continue to look for opportunities to better satisfy customers' wants and needs, the result is a larger
variety of goods and services.
New and Improved Products
Example: Personal computers have become smaller, more powerful, and less expensive
through competition between makers.