Transcript Chapter 1 - Lindbergh Schools

Marketing is All Around
Us!
How does society benefit
from marketing?
What is Marketing?
 Marketing
is the process of planning,
pricing, promoting, selling and
distributing ideas, goods or services
to create exchanges that satisfy
customers
 Products – both goods and services.
– Goods – things you can touch. (pen)
– Services – things you can’t touch. (dry
cleaning.
Foundations of Marketing
 Business/Management/Entrepreneurs
hip-understanding the basics of
business, common management and
entrepreneurial concepts that affect
business decision making
 Communication and Interpersonal
skills-understanding concepts,
strategies and systems needed to
interact effectively with others
Foundations of Marketing
 Economics-understanding
the
economic principles and concepts
that are basic to marketing
 Professional Developmentunderstanding concepts and
strategies needed for career
exploration, development and growth
7 Functions of Marketing
How are markets used to determine a
business’ marketing mix?
1. Selling – providing customers with
goods and services they want to
buy.
Ex. Retail and industrial
2. Pricing – deciding how much to
charge for goods and services in
order to make a profit.
Ex. How much people are willing to
pay
7 Functions of Marketing Cont..
3. Marketing Information Management –
gathering, storing and analyzing
information about customers, trends and
competing products
Ex. Research
4. Product/Service Management-obtaining,
developing, maintaining, and improving
a product/product mix in response to
market opportunities
Ex. E-commerce
Functions of Marketing cont…
5. Promotion – any form of communication
used to inform, persuade, or remind
potential customers about a businesses
products.
Give away toys at McD’s, advertisements
6. Financing – Getting the money necessary
to pay for setting up and running a
business
Bank loans
7. Distribution-deciding how to get goods in
customers hands
-truck, rail, etc.
How does society benefit from
marketing?
New and Improved
Products
 Lower Prices
 Added Value and
Utility

Economic Benefits
 Utility
– adding value to a product to
make it more useful.
 5 Types of Economic Utility
 Form Utility – involves changing raw
materials or putting parts together to
make them more useful. Producing
the final product.
– Ex. Lead, wood, rubber, metal – pencil
Utilities Continued

Place Utility – involves having a product
where customers can buy it.
– Ex. Office Depot, catalogs, internet

Time Utility – having a product available a
certain time of year.
– Ex. Open 24 hours, holiday items

Possession Utility – value added by
exchanging a product for some monetary
value
– Ex.variety of ways to pay for product, value
added by becoming “yours”
Utilities cont…

Information Utility
– involves
communication
with the consumer.
– Ex. Salesperson,
displays, packaging
and labels.