Marketing Today

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Marketing Today

• 1.1 What is Marketing
• 1.2 Businesses Need Marketing
• 1.3 Understanding the Marketing Concept
• 1.4 Marketings Role Today and Tomorrow

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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

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Why Study Marketing?

• Where does marketing take place?
• Visual vs. Non-Visual Activities
• Visual advertisements, transportation,
  researchers
• Non-visual manufacturers, accountants, human
  resources

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Businesses Directly Involved in Marketing

• Advertising agencies
• Marketing research firms
• Sales representatives
• Trucking companies
• Credit card companies
• Telemarketing businesses
• Travel Agencies

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Businesses with MajorMarketing Activities

• Retailers
• Manufacturers
• Banks
• Real estate agencies
• Insurance companies
• Automobile dealers
• Farmers and ranchers

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Businesses with LimitedMarketing Role

• Law Offices
• Physicians
• Accounting firms
• Government agencies
• Universities
• Construction businesses
• Public Utilities

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What is Marketing?

• Marketing Functions
• Product/service management
• Distribution
• Selling
• Marketing-information management
• Financing
• Pricing
• Promotions

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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.

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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.

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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

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Marketing Functions

• Promotion Communicating information to
  prospective customers through advertising and
  other promotional methods to encourage them to
  purchase the organizations products or services.
• Thinking Critical

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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

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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

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Journal - review

• 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.

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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

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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

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Marketing and the Development of Business

• Bartering
• Specialization of Labor
• Money Systems
• Central Markets
• Other Marketing Activities

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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

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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

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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

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Central Markets

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

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Other Marketing Activities

• Loan money to buyers and sellers
• Transportation of products

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Functions of Business

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

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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)

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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

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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

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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

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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.

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Coordination of Business Functions

• 1.
• 2.
• 3.
• 4.

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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.

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1.3 Understanding the Marketing Concept

• Goals
• Define the marketing concept
• Determine how businesses implement the marketing

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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 customers needs as they produced and
  worked to satisfy those needs as they produced
  and marketed their products or services

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Elements of the Marketing Concept

1. Businesses must be able to identify what will
   satisfy customers 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

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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

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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

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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.

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Implementing the Marketing Concept

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

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Marketing Mix

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

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Marketing Mix

• Place includes the locations and methods used to
  make the product available to customers

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Marketing Mix

• Price is the actual amount that customers pay and
  the methods of increasing the value of the
  product to the customer

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Marketing Mix

• Promotion includes the methods and information
  communicated to customers to encourage purchases
  and increase the satisfaction

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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.

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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?

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1.4 Marketings Role Today and Tomorrow

• Goals
• Describe the changing role of marketing
• Summarize how marketing is changing and why
  marketing is important

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The Changing Role of Marketing

• Product emphasis
• Sales emphasis
• Marketing department emphasis
• Marketing concept emphasis

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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

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Sales Emphasis

• Sales Era (1930s 1940s) emphasis on using
  advertising and sales people to convince
  customers to buy a companys product
• More effective and efficient at producing and
  distributing products
• Increased competition, which led to companies
  relying on sales people

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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

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Marketing Concept Emphasis

• Marketing Concept Era (1970s today) emphasis
  on satisfying customers needs with a carefully
  developed marketing mix
• Companies started listening to the consumer
• Activities were completed with customer
  satisfaction in mind.

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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?

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Why is Marketing Important?

• 1.
• 2.
• 3.
• 4.

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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?