Transcript Chapter One Notes

INTRODUCTION TO
MARKETING
Explain the
concept of
marketing
MARKETING
• The process of developing, promoting, pricing and
distributing products in order to satisfy customers’
needs and wants. Marketing involves all the
activities necessary in getting a product from the
producer to the consumer.
MARKETING CONCEPT
• Businesses become successful by
directing all of their efforts to satisfying
the needs and wants of the customers.
• Businesses make a profit by offering the
goods and services that the consumer
wants.
• Recognizes the importance of the
consumer in the buying process.
1.Marketing Information Management
2.Product/Service Management
3.Financing
4.Pricing
5.Promotion
6.Selling
7.Distribution
THE SEVEN FUNCTIONS
OF MARKETING
MARKETING-INFORMATION
MANAGEMENT
Obtaining information needed to
make sound business decisions.
Example: Taste tests and surveys.
PRODUCT/SERVICE MANAGEMENT
• Concepts and
procedures
necessary to
obtain, develop,
maintain, and
improve a product
or service mix in
response to market
opportunities.
• A. Risk Management:
preventing or
reducing business loss.
• B. Purchasing: Buying
goods and services
for use in the day-today about where a
product is sold.
FINANCING
Obtaining money needed to finance the operation
of a business. This includes bank loans and offering
credit to customers.
PRICING
Determining a value to charge for goods and
services. It is important to consider competition
and what consumers are willing and able to pay.
PROMOTION
Communication used to inform or remind people
about a business’s products. Promotion also
involves persuading customers to purchase a
product.
Your AD here!
SELLING
Determining customer needs and wants through
planned, personalized communication intended to
influence purchase decisions and ensure
satisfaction.
DISTRIBUTION
The transporting, storing and handling of goods on
their way from the manufacturer to the consumer.
This includes the decisions about where to sell a
product.
EXCHANGE
• Every time something is
sold in the marketplace
FIVE ECONOMIC UTILITIES
•
•
•
•
•
Form
Place
Time
Possession
Information
UTILITY
• Economic term referring to the added value or
“usefulness” of a product.
FORM UTILITY
• Value added by changing raw materials or putting
parts together to make them more useful.
PLACE UTILITY
• Value added by having a product where
customers can buy it.
• Playing a football game at a stadium.
TIME UTILITY
• Value added by having a product at a certain time
of year or a convenient time of day.
POSSESSION UTILITY
• Value added by exchanging a product for some
monetary value.
INFORMATION UTILITY
• Value added by communicating with the
consumer.
The Four P’s of Marketing
The marketing mix, known as the four P ’s, is a
combination of decisions a business must make in
order to best reach its target market
PRODUCT
• The goods and services a business will offer to its
customers
• A. Choice of product: Will the business offer a variety of
products?
• B. Packaging: Does the packaging protect the product and
provide necessary information about the product?
PRODUCT CONTINUED . . .
• C. Level of quality: What level of quality will the business
ensure?
• D. Brand name: What brand name products will the
business offer?
• E. Warranty: Will the business offer a warranty to its
customers to ensure satisfaction?
PRICE
• The amount a business charges customers for their
products
• A. Price setting. Price will be set based on product
demand, cost, and competitors’ actions.
• B. Terms. Will the company only accept cash? Will the
company extend credit? What type of credit will the
company extend?
PRICE CONTINUED . . .
• Discounts. Will the business offer discounts to employees?
Locals? Will the business discount merchandise at certain
times of the year?
PLACE (DISTRIBUTION)
• Making products available at the right time and
location.
• A. Channels of Distribution: the path a product takes to get
from the producer to the consumer
• B. What specific stores will offer the products?
(wholesaler, retailer, department, discount,
etc.)
PLACE CONTINUED . . .
• C. What method of transportation will be used to get the
product from the producer to the consumer? (truck,
train, plane, boat, pipeline)
• D. How will inventory be handled and controlled?
(methods- physical, storing, checking, or
receiving)
PROMOTION
• Informing, reminding, and persuading customers of
the goods and services available to them.
• A. What will the message be?
• B. When will the message be delivered?
PROMOTION CONTINUED . . .
• C. Where will the message be delivered?
• D. What incentive will be used to encourage customers to
purchase the product?
• E. How will the message be delivered?