Transcript Businesses Need Marketing PP 1.2

Businesses Need Marketing
The Need for Marketing
 Past View: simple set of activities that
would help a business sell its products
 Today’s view: businesses utilize the
marketing concept which is using the needs
of customers as the primary focus during
the planning, production, distribution, and
promotion of a product and service
Development of Business
 Self-sufficient: do not rely on anyone else to survive
 Bartering: exchanging products or services with
others by agreeing on their value
 Specialization of Labor: concentrating on one or a
few related activities so they can be done well
 Money system: established the use of currency as a
recognized medium of exchange
 Central Markets: location where people bring
products to be conveniently exchanged
 Other Marketing Activities: support businesses to
make the exchange process more efficient
The Functions of Business
 Production: creates or obtains products or
services for sale
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Raw materials (mining, logging)
Processing (oil refining, paper manufacturing)
Services (hair, nail, tanning)
Merchandising (retailers, wholesalers)
 Operations: on-going activities designed to
support the primary function of a business and to
keep it operating efficiently
 Accounts and Finance: plans and manages
financial resources and maintains records and
information related to the business’ finances
The Functions of Business
 Management and Administration:
developing, implementing, and evaluating
the plans and activities of a business
 Marketing: all business activities to make a
product or service available to consumers
and to ensure effective exchanges occur
Coordination of the Functions
of Business
 Each function of business is dependent
upon the other functions of the business
– What would happen if a business was not
successful in coordinating all aspects of the
business operation?
– Examples?