Transcript Marketing Is All Around Us

Marketing Essentials
n Chapter 1 Marketing Is All Around Us
Section 1.1 What Is Marketing?
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SECTION 1.1
What Is Marketing
What You'll Learn
 The meaning of marketing
 The foundations of marketing
 The functions of marketing
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SECTION 1.1
What Is Marketing
Why It's Important
To be successful in business requires being
marketing oriented. Learning how businesses
and people operate from a marketing point of
view will help you in all your future endeavors.
You will also get a good idea of whether
marketing is a potential career for you.
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SECTION 1.1
What Is Marketing
Key Terms
 marketing
 products
 goods
 services
 exchange
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SECTION 1.1
What Is Marketing
What Is Marketing
Marketing is the process of developing,
promoting, and distributing products to
satisfy customers' wants and needs.
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SECTION 1.1
What Is Marketing
Products = Goods and Services
Goods: Hammers, automobiles, soda pop,
clothing, and computers
Services: Dry cleaners, amusement parks,
attorneys, and movie theaters
Exchange: Buying or selling a good or service
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SECTION 1.1
What Is Marketing
Foundations of Marketing
Building on these four foundations helps you to
acquire marketing skills that are relevant to your
own career development.
 Business, Management, and
Entrepreneurship
 Communication and Interpersonal Skills
 Economics
 Professional Development
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SECTION 1.1
What Is Marketing
Foundations of Marketing
Business, Management, and Entrepreneurship
Understanding the basics of business,
management, and entrepreneurial concepts
that affect business decision making.
Communication and Interpersonal Skills
Understanding concepts, strategies, and
systems needed to interact effectively
with others.
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SECTION 1.1
What Is Marketing
Foundations of Marketing
Economics
Understanding the economic principles and
concepts that are basic to marketing.
Professional Development
Understanding concepts and strategies
needed for career exploration,
development, and growth.
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SECTION 1.1
What Is Marketing
Functions of Marketing
These functions define marketing as it is
applied in business operations.
 Distribution
 Financing
 Marketing-Information Management
 Pricing
 Product/Service Management
 Promotion
 Selling
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SECTION 1.1
What Is Marketing
Functions of Marketing
Distribution involves deciding where and
to whom products need to be sold in order
to reach the final users.
Financing is getting the money needed to
pay for the operation of a business.
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SECTION 1.1
What Is Marketing
Functions of Marketing
Marketing-Information Management
involves getting the necessary information
to make sound business decisions.
Pricing dictates how much to charge for
goods and services.
Product/Service Management is
obtaining, developing, maintaining, and
improving a product.
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SECTION 1.1
What Is Marketing
Functions of Marketing
Promotion is communicating with potential
customers to inform, persuade, or remind
them about a company.
Selling is providing customers with goods
and services they want.
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1.1
ASSESSMENT
Thinking Critically
How is a presidential political campaign an
example of marketing?
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1.1
Graphic Organizer
Marketing Functions
Producers
Financing
Pricing
Marketing-Information Management
Product/Service Management
Promotion
Distribution
Selling
Consumers
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Marketing Essentials
n Chapter 1 Marketing Is All Around Us
Section 1.2 Economic Utilities
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SECTION 1.2
Economic Utilities
What You'll Learn
 The benefits of marketing
 The meaning of economic utility
 The five economic utilities and how to
distinguish the four that are related
to marketing
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SECTION 1.2
Economic Utilities
Why It's Important
By understanding the benefits of marketing,
you will see how the functions of marketing
add value to products. You will also see how
marketing activities lead to lower prices and
new and improved products.
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SECTION 1.2
Economic Utilities
Key Terms
 utility
 form utility
 place utility
 time utility
 possession utility
 information utility
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SECTION 1.2
Economic Utilities
Economic Benefits of Marketing
Bridges the gap between you and the
maker or seller of an item.
Makes buying easy for customers.
Creates new and improved products at
lower prices.
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SECTION 1.2
Economic Utilities
Economic Utilities
Economic utilities reflect the value that
producers and marketers add to raw materials
when they make them into products and offer
them for sale to the public.
 Form utility
 Place utility
 Time utility
 Possession utility
 Information utility
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SECTION 1.2
Economic Utilities
Form Utility
Changing raw materials or putting parts
together to make them more useful.
 Example: The parts of a lounge chair—
the wood frame, the fabric, the glue and
nails, and the reclining mechanism—are
less useful by themselves. Putting them
together adds form utility.
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SECTION 1.2
Economic Utilities
Place Utility
Having a product where customers can buy it.
 Example: Selling directly to the customer
through catalogs.
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SECTION 1.2
Economic Utilities
Time Utility
Having a product available at a time
convenient for customers.
 Example: Retailers offer large supplies
of backpacks in the late summer, near
the beginning of the school year.
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SECTION 1.2
Economic Utilities
Possession Utility
Exchange of a product for some monetary
value.
 Example: Taking credit cards and checks
rather than just cash enables customers to
buy products.
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SECTION 1.2
Economic Utilities
Information Utility
Providing information so the customer is
comfortable buying.
 Example: Salespeople explain
features of products.
 Example: Packaging explains qualities
and uses.
 Example: Advertising informs consumers
about products.
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SECTION 1.2
Economic Utilities
Lower Prices
When demand is high, manufacturers can make
products in larger quantities, which reduces the
unit cost of each product.
 Example: When fixed costs are $20,000:
Quantity Produced Fixed Cost Per Unit
10,000
$2.00
200,000
10¢
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SECTION 1.2
Economic Utilities
New and Improved Products
As businesses continue to look for
opportunities to better satisfy customers'
wants and needs, the result is a larger
variety of goods and services.
 Example: Personal computers have become
smaller, more powerful, and less expensive
through competition between makers.
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1.2
ASSESSMENT
Reviewing Key Terms and Concepts
1. What is meant by the economic concept
of utility?
2. Which economic utility is not classified as
a marketing utility? Why?
3. Besides added value, what are two other
benefits of marketing?
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1.2
ASSESSMENT
Thinking Critically
How would you explain the following
statement?
Marketing is more than just promotion.
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Marketing Essentials
n Chapter 1 Marketing Is All Around Us
Section 1.3 Careers in Marketing
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SECTION 1.3
Careers in Marketing
What You'll Learn
 The importance of marketing careers to
the U.S. economy
 The benefits of working in marketing
 Employment opportunities for people
trained in marketing
 Examples of jobs within marketing
occupational areas and at different skill
levels
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SECTION 1.3
Careers in Marketing
Why It's Important
If you are considering a career in marketing,
you’ll want to learn about the requirements,
opportunities, rewards, and trends in this
exciting field.
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SECTION 1.3
Careers in Marketing
Key Terms
 benefits
 occupational area
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SECTION 1.3
Careers in Marketing
Why Study Marketing?
 You can evaluate marketing as a
potential career.
 The skills and knowledge you learn will
help you in school and on the job.
 You will learn how businesses function.
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SECTION 1.3
Careers in Marketing
An Overview of Marketing Careers
Marketing provides a great diversity of
opportunities.
Marketing activities account for about one in
every three jobs in the United States.
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SECTION 1.3
Careers in Marketing
Employment Trends
Employment in marketing and sales
increased 20.6 percent in the period 19922005.
Job opportunities in marketing are growing,
while those in production are decreasing.
This is because production lends itself to
automation while marketing requires
personal contact.
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SECTION 1.3
Careers in Marketing
Benefits of a Marketing Career
 The opportunity to make an above-average
income.
 Most jobs in marketing, especially those
beyond entry-level positions, are interesting
and varied.
 You will usually have more opportunities to
advance in a marketing career than in
almost any other area of business.
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SECTION 1.3
Careers in Marketing
Marketing Occupational Areas
An occupational area is a category of jobs
that involves similar skills and aptitudes.
Advertising
Customer Service
E-Commerce
Entrepreneur
Fashion Merchandising
Financial Services
Food Marketing
Hospitality Marketing
Importing/Exporting
International Marketing
Marketing Research
Product Management
Professional Sales
Public Relations
Real Estate
Restaurant Management
Retail Management
Sales Management
Service Marketing
Sports Marketing
Travel/Tourism Marketing
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SECTION 1.3
Careers in Marketing
Job Levels in Marketing
Entry-level jobs usually require no prior
experience and involve limited decision-making
skills.
Career sustaining jobs require a higher level
of skill and more decision making.
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SECTION 1.3
Careers in Marketing
Job Levels in Marketing
Marketing specialist employees must
show leadership ability and make many
decisions on a daily basis.
Marketing supervisors must have good
management skills, the ability to make
many decisions on a daily basis, and
excellent marketing skills.
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SECTION 1.3
Careers in Marketing
Job Levels in Marketing
Manager/owners are competent to run a
small business or a significant part of a large
business.
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1.3
ASSESSMENT
Reviewing Key Terms and Concepts
1. What proportion of the U.S. work force is
involved in marketing activities?
2. Name one employment trend.
3. List two major benefits of working in
marketing.
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1.3
ASSESSMENT
Reviewing Key Terms and Concepts
4. What basic skills are needed for success
in a marketing career?
5. According to the Bureau of Labor
Statistics, approximately how many new
marketing and sales jobs were created
between 1992 and 2005?
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1.3
ASSESSMENT
Thinking Critically
Discuss how the marketing skills you would
learn in a fast-food restaurant could be
transferred to an industrial sales position.
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