This document provides an overview of marketing concepts including definitions of marketing, the marketing functions, and the marketing concept. It discusses that marketing includes advertising, product transportation, and market research. The 9 marketing functions are defined as market planning, product/service management, distribution, pricing, promotion, selling, marketing information management, financing, and risk management. The new definition of marketing is explained as the creation and maintenance of satisfying exchange relationships. The marketing concept focuses on satisfying customer needs during planning, production, pricing, distribution, and promotion.

1. Marketing Chapter 1Marketing Today and Tomorrow

2. NewslinePage 2

3. Section 1-1 What is Marketing?

4. Why Study Marketing? Where does Marketing Take Place?Marketing includes:Advertisements in all types of mediaProducts being transported by truck, train and airplaneMarket researches surveying shoppers in the mall

5. Why Study Marketing? Everyone makes marketing decisions everydayWhether to use cash or a debit cardTo buy at the store or have it shipped to your houseBring your lunch or buy at school

6. What is Marketing?The 9 Marketing Functions:Market PlanningProduct and Service ManagementDistributionPricingPromotionSellingMarketing-Information ManagementFinancingRisk Management

7. The Marketing FunctionsMarket Planning—identifying and understanding the markets a company wants to serve and developing effective marketing strategies for each marketDoes Hollister want to go after 30-45 year olds?

8. The Marketing Functions Cont…Product and Service Management—Assisting in the design and development of products and services to meet the needs of prospective customersApple combined an iPod, a cell phone and an internet browser to create the iPhone

9. The Marketing Functions Cont…Distribution—determining the best methods and procedures to be used so prospective customers are able to locate, obtain, and use the products and services of an organizationRental car companies, led by Hertz, made it so people can reserve a vehicle and pick it up when arriving at the airport

10. The Marketing Functions Cont…Pricing—Establishing and communicating the value of products and services to prospective customersInstead of cutting prices a store offers a free product when a certain amount is spent at the store

11. The Marketing Functions Cont…Promotion—Communicating information to prospective customers through advertising and other promotional methods to encourage them to purchase the organization’s products and services. (this is the most well known to most people)Companies send CDs and brochures to people at their homes to try and get them to purchase the product or service

12. The Marketing Functions Cont…Selling—Direct, personal communication with prospective customers in order to assess needs and satisfy those needs with appropriate products and servicesLawyers, accounts and banks have people who have the job of attracting new clients

13. The Marketing Functions Cont…Marketing-Information Management—Obtaining, managing and using marketing information to improve decision making and the performance of marketing activitiesA grocery store uses the bar scanner to track what has been purchased and what needs to be reordered

14. The Marketing Functions Cont…Financing—Budgeting for necessary financing and providing financial assistance to customers to assist them with purchasing products and servicesCar companies offer financing directly from the company to get people to purchase vehicles

15. The Marketing Functions Cont…Risk Management—Providing security for products, personnel, and customers and reducing the risk associated with marketing activities and activitiesThe loss control people at stores like Target and Best Buy that check bags as you leave Security Tags on clothing

16. Judgment CallPage 8

17. ActivityUsing the 9 Marketing Functions create a visual to help show all functions. See Page 8 for an exampleThis can be done using paper and crayons/markers or it can be done on the computer. Turn in when complete.

18. Define MarketingOld definition—the performance of business activities that direct the flow of goods and services from producer to consumer or user

19. New definition—the creation and maintenance of satisfying exchange relationshipsNew Definition of MarketingThe creation and maintenance of satisfying exchange relationshipsCreation—suggests that marketing is involved from the beginning as products and services are being developedMaintenance—means that marketing must continue to be used as long as a business or organization is operatingSatisfaction of both the business and the customer is an important goal of marketingExchange relationship applies the definition to any exchange where people are giving and receiving something of value

20. Section 1-2 Business Needs Marketing

21. ActivityThink of 3 things you have purchased (or services you have used ) that you were not what you expected. Why did you make the purchase in the beginning and what did you do when you were dissatisfied. How could the business do a better job satisfy customers?Email your responses to ferrer01@southredford.net

22. The Need for MarketingEver since people began exchanging things with each other there has been a need for marketing

23. The Development of Marketing in BusinessSelf-sufficient—you do not need to rely on other for the things you need to surviveThis is very difficult to do and takes a lot of hard work. Bartering—exchanging products and services with other by agreeing on their values. This was the first example of marketingA hunter would trade meat with a farmer to get grain

24. The Development of Marketing in BusinessSpecialization of Labor—concentrating on one thing or a few related activities so that they can be done wellA farmer focuses only on growing corn because they do it wellMoney system—established the use of currency as a recognized medium of exchangeAllowed people to obtain goods and services even if they do not have something to exchangeCentral market—a location where people bring products to be conveniently exchanged.Towns and cities formed at these locations

25. The Function of BusinessProduction—creates and obtains products for services and saleMerchandising—offering products produced or manufactured by others for sale to customersOperations—ongoing activities designed to support the primary function of a business and keep it operating efficientlyEquipment operated and maintained, products must be obtained, transported and store, paperwork must be kept

26. The Function of Business Cont…Accounting and Finance—plans and manages financial resources and maintains records and information related to a business’s finances.Management—involves developing, implementing and evaluating the plans and activities of a business

27. Virtual MarketingPage 16

28. Section 1-3 Understanding the Marketing Concept

29. The Marketing ConceptSatisfying Customer NeedsMarketing Concept—using the needs of customers as the primary focus during the planning, production, pricing, distribution, and promotion of a product or service.Identify the needs of customersDevelop and market products or servicesOperate a business profitablyOperate profitablyDevelop and MarketIdentify Needs

30. The Marketing Concept Cont…When Customer Needs are NOT SatisfiedIf customer needs are not met, products are not soldCar companies that do not build cars that people want/need will not sell themPoorly made products will be returned or not sold.

31. Implementing the Marketing Concept Identify the MarketMarket—a description of a unique group of prospective customers a business wants to serve and their location

32. What is the Target Market?

33. Developing a Marketing Mix4 Ps of MarketingProduct—anything offered to the market by the business to satisfy needs (products, services, ideas)Place (Distribution)—locations and methods used to make the product available to customersPrice—amount that customers pay and the methods of increasing the value of the productPromotion—methods used and information communicated to encourage customers to purchase and to increase their satisfaction

34. The Kindle

35. ActivityFind pictures for 25 different products or services (harder to find pictures though). Identify who is the main target market for each one. You have to have at least 7 different groups (you can have more).You can use images from magazines or create a collage from online images.Extra Credit—Find 2 commercials and send the links through email explaining who is the Target Market for each one.Email your project to ferrer01@southredford.net