Chapter 1 Marketing is All Around Us

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Chapter 1 Marketing is All Around Us
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From the time that you woke up this morning how
many products have you used?
Activity 1
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4 Ps of Marketing
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What is Marketing?

• Marketing is the process of developing,
  promoting, and distributing products in order to
  satisfy customers needs and wants.
• The Four Ps of Marketing (product, place, price,
  promotion)

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Products
Products
Goods
Services
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9 Functions of Marketing
Financing
Distribution
Risk Mgmt.
Product Planning
Selling
Information Mgmt.
Promotion
Purchasing
Pricing
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Benefits of Marketing

• Making a product more useful is called Utility.
• There are five economic utilities involved with
  all products
• Form Utility
• Place Utility
• Time Utility
• Possession Utility
• Information Utility

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Economic Utilities

• Form Utility changing raw materials to make
  them more useful.
• Place Utility offering convenient locations to
  purchase products.

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Economic Utilities

• Time Utility having a product available at a
  certain time of year or convenient time of the
  day.
• Possession Utility allowing customers to
  purchase goods easier such as using cash, credit,
  checks etc

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Economic Utilities

• Information Utility involves communicating with
  the consumer.
• Salespeople
• Advertising (magazines, newspapers, etc.)
• Packaging Labeling

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Other Benefits of Marketing

• Lower Prices since marketing encourages
  customers to purchase products it increases
  demand. When demand is high, manufacturers can
  make products in larger quantities, which reduces
  the cost of each product.
• New Improved Products as businesses continue
  to look for opportunities to better satisfy needs
  and wants, the result is a higher variety of
  goods and services.

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Activity 2 Critical Thinking

• Can you think of some products whose prices have
  dropped significantly over the years as a result
  of popularity and increasing competition in the
  marketplace?