+ Chapter 1.1 Marketing and the Marketing Concept

Transcription

1 + Chapter 1.1 Marketing and the Marketing Concept n What You ll Learn: n Types of Businesses n Definition of Marketing n Foundations of Marketing n Functions of Marketing n Marketing Concept

2 + What is Business? n Business: An activity that satisfies economic needs by n Planning n Organizing n Controlling resources n Providing goods and/or services n Marketing goods/services n Satisfying customer needs and wants

3 + Profit vs. Non-Profit Organizations n For-Profit Organizations: n Businesses that are intended to make a profit for owners/ shareholders n Examples? n Non-Profit Organizations: n Operate like a business but are not intended to earn a profit n Income after expenses goes to a charitable cause or back into the organization n Examples?

4 + What is Marketing? n Marketing: n Process of planning, pricing, promoting, selling and distributing products to create exchanges to satisfy customers needs and wants n Process means it is ongoing and changes n Marketers need to keep up with trends and consumer attitudes n Marketing functions support the process n Focus on customer relationship management

5 + Ideas, Goods & Services n Products include goods, services and ideas that satisfy customers needs and wants n Goods are tangible you can touch n Services are intangible - tasks that have monetary value performed for a customer n Ideas promote causes, political platforms n Exchange is when something is bought or sold in the marketplace

6 + Foundations of Marketing n Key areas of knowledge for marketing: 1. Business, Management, & Entrepreneurship n Understand business decision making 2. Communication and interpersonal skills n Understand how to interact effectively with others 3. Economics n Understand basics and how it relates to marketing 4. Professional Development n Career exploration, development, and growth

7 + Functions of Marketing n 7 functions of marketing: 1. Distribution 2. Financing 3. Marketing Information Management 4. Pricing 5. Product/Service Management 6. Promotion 7. Selling

8 + 1. Distribution Distribution: n Deciding how to get goods to consumers n Logistics of physically moving products (truck, rail, ship, air) n Storing and tracking products (warehouses?)

9 + 2. Financing Financing: n How to get the money that is necessary to pay for setting up and running a business n Bank loans? Sell shares of stock (investors)? n Payment options (cash, credit, check, layaway)

10 + 3. Marketing Information Management Marketing Information Management: n Getting information to make sound business decisions n Rely on information about: n Customers n Trends n Competing products n Continually collect information though market research n Learn about customers and ways to better market the products

11 + 4. Pricing Pricing: n Decisions regarding how much to charge for products to obtain maximum profits n Based on the following: n Costs n How much competitors are charging n Determine how much customers are willing to pay

12 + 5. Product/Service Management Product/Service Management: n Obtaining, developing, maintaining and improving products or product mixes n Respond to changes in: n Trends n Attitudes n Technology n Opportunities

13 + 6. Promotion Promotion: n Effort to inform, persuade, or remind potential customers about a businesses' products or services (advertising) n Communicates information n Used to: n Improve a company s image n Achieve success in the marketplace

14 + 7. Selling Selling: n Provides customers with the goods and services they want n Determine clients needs/wants and respond through planned, personalized communication n The selling process: n Influences purchasing decisions n Enhances future business opportunities

15 + The Marketing Concept n The marketing concept is the idea that a business should strive to satisfy customers needs and wants while generating a profit for the firm THE FOCUS IS ON THE CUSTOMER!! n Customer Relationship Management (CRM): n Aspect of marketing that combines customer information (buying habits, demographics, etc.) with customer service and marketing communications n Goal: Try to create more meaningful communications!

16 + Group Activity (2-4 people): n Choose a current product and research each function of marketing for that product. Create a poster with the following information: n Overview of product (name & description) n Information found regarding each function of marketing n Ex. Product/Service Management (How has the product developed over time? Updates? New versions?) Must reflect RESEARCH! n Present poster to the class Each person MUST participate!