Transcript 7 functions of Marketing!

The 7 Functions of Marketing!
Marketing
Information
Management
Financing
Selling
Distribution
Product
Service
Management
Pricing
Promotion
The Core of Marketing




The 7 Functions of marketing are
the basis for all marketing activities
Each function occurs every time a product or service is
developed and sold.
Businesses provide many of the marketing functions.
Consumers often take part in one or more of the
marketing functions when they make purchases.
Financing

Financing is budgeting for marketing
activities, obtaining the necessary funds needed for
operations, and providing financial assistance to
customer so they can purchase the business' products
and services
Requires a company to budget
for its own marketing activities.
Financing


Customers must have the
resources and methods to pay for
their purchases.
Businesses must receive timely
payments so they can continue to
operate.
Financing
Customer Financing


Customers may receive
financing in the form
of different payment
options, such as cash,
credit, and installment
payment
More options = More
purchases
Marketing Information Management


This function consists of obtaining, managing, and using
market information to improve business decision-making and
the performance of marketing activities.
It also includes marketing research (or collection information)
and the development of databases with information about
products, customers, and competitors.
(This is used to determine customer
demographics, buying habits, and
attitudes )
Marketing Information Management
Successful marketing
involves using marketing
info to predict consumer
demand and estimate the
right quantities of merchandise.
If the Texans are in the Super bowl, how many jerseys and
caps will we need to order, and in what sizes?
Marketing Information Management
When Domino’s
first considered
expanding
operations into Japan, it used its
Marketing research findings to adapt its traditional
pizza to Japanese tastes.
Did you know… They offered nontraditional topping on the
pizza in Japan such as corn and tuna because of local
preferences.
Pricing





The process of establishing and communicating to customers
the value of cost of goods and services
Customers must be able to easily identify the price of items
that interest them or they will move on to another choice.
Prices assigned to sports and entertainment events and goods
are directly related to consumer demand
Consumers want to know that they are getting a fair value
for the money they are spending.
Prices must be set low enough that
customers are willing to pay but high
enough that the business makes a profit.
Pricing

Super Bowl ticket
prices go through the
ceiling since there are
limited number of
tickets and enormous
demand
Product/Service Management




Obtaining, developing, maintaining, and improving a
product or product line to respond to customer needs/wants
Producers and manufacturers develop new products.
Other businesses are also involved in product/service
management when they obtain products for resale.
Services are created and provided by the employees of
service businesses.
*See how the CocaCola bottles have
changed with the times
and with customer’s
needs and wants! 
Promotion
Any form of communication used to inform, persuade,
or remind people about a business’s products
Nationals

Free baseball hats,
bobble heads, tshirts, etc are given
away at a baseball
game
Promotion


Promotion is
communicating
information about
products and services to
potential customers.
Advertising and other
promotional methods are
used to encourage
consumers to buy.


Advertising may occur
in a variety of ways television, newspapers,
magazines, radio, direct
mail, and the Internet.
Other methods include
contests, product
displays, sponsorships,
and public relations
activities.
Selling
Any direct and personal communication with
customers to assess and satisfy their needs and
wants is considered selling
 Selling involves not only satisfying customers but also
anticipating their future needs
 Selling is also performed using a telephone or other
technology such as instant messaging or video
conferencing to communicate directly
with a customer.

Distribution
Distribution involves determining the best ways for
customers to locate, obtain, and use the products
and services of an organization.
 Making decisions about where to sell the product
and how it gets there.
 Careful shipping, handling, and storing of products
are needed for effective distribution.

Distribution
Distribution in Entertainment

Selecting the right
location for an event
and making tickets
available through
ticket sales outlets
Distribution in Sports

Involves getting
equipment to stores
where customers buy it
Extra Credit



List the seven marketing functions (you may use your
notes for this questions)
Which of the seven functions do you understand?
List those functions with a short definition, in your
own words.
Next, list the marketing functions that you don’t
quite understand and explain why that function or
functions is confusing?