Objectives

1. Explain the marketing functions. Discuss the importance of each marketing function. Objectives

2. Objective Explain the marketing functions.

3. Marketing functions are like the parts of a game. • Need to understand all parts to have a chance to win • Forgetting any function gives competitors an advantage. • Losing might be the result.

4. Marketing functionsimpact you. • Have an effect on why you buy, what you buy, and where you shop • Businesses coordinate the functions to attract you, the target customer.

5. Marketing functions are . . . interrelated activities that must work together to get goods and services from producers to consumers.

6. Product/Service Management . . . obtains, develops, maintains, and improves a product or service mix in response to market opportunities. • Responsible for a product’s life cycle • Generates ideas for new products • Improves or updates existing products • Removes products from the market

7. Marketing-Information Management Helps businesses answer questions: . . . gathers, accesses, synthesizes, evaluates, and disseminates information for use in making business decisions. • Who are our customers? • Where are they located? • What products do they want? • Why do they want them? • When will they buy?

8. Pricing . . . determines and adjusts prices to maximize return and meet customers’ perceptions of value. Decides how much to charge for products so Deciding price is not always easy. • Businesses consider many factors (supply, demand, competitors’ prices). • Adjust prices when necessary. • Customers want to buy • Business makes a profit

9. Distribution . . . moves, stores, locates, and/or transfers ownership of goods and services. Puts products in customers’ hands by • Transporting • Receiving • Storing Often the key to a business’s success

10. Promotion . . . communicates information about goods, services, images, and/or ideas to achieve a desired outcome. Businesses use various methods to communicate. • Advertising • Television, radio, newspaper, magazine • Direct mail • Out-of-home—billboards, transit ads • Publicity • News releases, special events, celebrity appearances • Sales promotion • Store displays, samples, contests, coupons, novelty items

11. Selling Provides customers with the products they want. . . . determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities. • Takes place on two levels: • Personal: between a salesperson and a customer in a store • Nonpersonal: online through the use of a computer

12. Objective Discuss the importance of each marketing function.

13. Importance ofProduct/Service Management • Helps businesses decide which products to produce or offer • Must offer products that customers want and need to be successful. In retail, must carry products that attract the targetcustomer. • Helps businesses decide the type of image they want to project • Use other marketing functions to support that image. • Example: Promotion function develops appropriateadvertising.

14. Importance of Marketing-Information Management Prevents making guesses • Conducts research to: • Predict the future • Find out if customers are satisfied • Keep upwith the times Without accurate marketing information, businesses might • Produce too much or not enough • Not know what their competitors are selling • Not know why customers are not buying • Lose money

15. Importance of Pricing • Must set a price that • Customers are willing to pay • Covers costs and makes a profit • Fine line between the right and wrong price • Raising prices to make more profit might be a mistake. • Customers might decide not to buy at that price. Must know when to adjust prices to remain competitive $15

16. Importance of Distribution • Must have products on hand to sell when consumers want to buy • Need an adequate supply on hand • If not, products cannot be sold. • Must decide on the right level of inventory to • Meet demand • Avoid tying up a lot of capital • Must select the best transportation method to • Have products at the right place on time • Control expenses

17. Importance of Promotion • Tells consumers about products • Creates and/or increases demand for products • Draws customers to a business through the use of • magazine ads for new products • discount coupons • Creates an image or impression of a business • Can do a lot to guarantee a business’s success

18. Importance of Selling • Creates a positive experience for customers by • meeting their needs so they will buy • offering the most appropriate product • Benefits businesses by • creating a desire for their products • getting products into consumers’ hands • helping them make a profit

19. Importance of Selling • Benefits consumers by • helping with their buying decisions • informing them about new products • Benefits society by • creating employment • encouraging economic growth • maintaining the free enterprise system through competition • raising the standard of living

20. Marketing impacts YOU. • Next time you buy, consider how each function affected your decision. • Did one or two marketing functions have more influence on you than others? • Ask yourself why.