Transcript Unit 1 Functions

What Is Marketing ?
Chapter 1
1.1 Marketing Basics
Objectives
You will be able to describe the basic
concepts of marketing.
You will be able to describe the
seven key marketing functions.
What Is Marketing?
Marketing is planning and executing the
conception, pricing, promotion, and
distribution of ideas, goods, and
services to create exchanges that
satisfy individual and organizational
objectives.
The American Marketing Association
Marketing is the creation and management
of satisfying exchange relationships.
Marketing Mix
The Marketing Mix describes
how a business blends the
four marketing elements of
Product, Distribution, Price,
and Promotion.
The Marketing Mix
Product – What a
business offers a
customer to satisfy
needs.
Price – The amount
that customers pay
for products.
Distribution – Involves
the location and
methods used to
make products
available to
customers.
Promotion – This
describes ways to
encourage customers
to purchase products
and increase
customer satisfaction.
Satisfying Customer Needs
The most important aspect of marketing is
satisfying the customer. Customer
needs should be the primary focus
during the planning, production,
distribution, and promotion of a product
or service.
1. Identify customer needs
2. Develop products that customers consider
better than other choices
3. You must be able to operate a business
profitably
Marketing
Functions:
The Basis of All
Marketing
Activities








Please Don’t Forget My Pizza Party Saturday
Please-Promotion
Don’t-Distribution
Forget-Finance
My-Marketing Information Management
Pizza-Product/Service Management
Party-Pricing
Saturday-Selling
Product / Service
Management
The designing, developing,
maintaining, improving, and
acquiring products or services so
they meet customer needs.
**Fisher Price tests new toy ideas with
both children and parents to make
sure children will play with them and
parents will buy them.
Distribution
Determining the best way to get a a
company’s products or services to
the customer.
**Television manufacturers like Sony
sell their products through electronic
retailers like Circuit City.
Financing
This requires a company to not only
a.) budget for their own marketing activities
b.) but to provide the customer with
assistance in paying for the product.
*General Motors offers loans to customers
through its GMAC Division.
Marketing Information
Management
Gathering and using information
about customers to improve
business decision making.
**Domino’s used marketing research to
adapt to a new market in Japan.
Smaller pizza’s to be eaten as snacks
Non traditional toppings corn / tuna
Pricing
The process of establishing and
communicating the value or cost of
goods and services to customers.
**Prices to professional sports events
and concerts are often very
expensive because the demand for
them is very high.
Promotion
The use of advertising to communicate
a products, services, or images to
the customer to achieve a desired
outcome.
**Coupons on the back of tickets
promote products or services and
entice fans into trying the products
or services shown.
Selling
Direct and personal communication
with customers to asses and satisfy
their needs. Selling also includes
anticipating the customer’s future
needs.
**Today selling also includes items
purchased over the internet with no
personal communication.
**Loretta Lynn and her husband traveling to
sell radio stations on her single “Honky
Tonk Girl”
Think Critically
Think of 3 recent purchases you
have made. Identify how each
purchase involved the seven
marketing functions.