Marketing Indicator 1.01

1. Marketing Indicator 1.01 Understand marketing’s role and function in business to facilitate economic exchanges with customers.

2. Warm-up • Why is it important for Marketers to understand current trends in society? In order to be effective in business you have to know what customers want. In order to be really successful you have to know what customers want before they do. In order to be effective in Marketing you have to know how to make them aware of what you offer.

3. Agenda • Warm-up & Trends Review • Unit 1 True/False Pre-Test • Finish up trends assignment • Introduce Marketing Concept & 7 Functions • Create a foldable for notes & introduce project for 7 functions

4. Unit 1:Pre-Test

5. Notes

6. Key Terms • Marketing: • Process of planning, pricing, promoting, selling, & distributing ideas, goods, and services to create exchanges that satisfy customers • Links the producer to the customer • Marketing Concept: • The idea that a company strives to meet customers wants & needs while achieving company goals • Make the customer happy while making a profit

7. Marketing Activities

8. Items that are marketed • Broad categories • Goods • Durable – e.g., DVD player (last a long time) • Nondurable – e.g., gasoline (typically consumed within a short period) • Services – e.g., delivery services • Organizations – e.g., labor organization • Places – e.g., New Zealand • Ideas – e.g., “Stand” against smoking • People – e.g., “Shaq Attaq” (Shaquille O’Neal) • Almost anything can be marketed. • Marketing occurs where customers are

9. Marketing Concept • “A philosophy of conducting business that is based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals.” • Make customers happy while making a profit

10. Elements of the Marketing Concept • Customer orientation: Do it their way. • Finding out what customers want and producing those products the way they want them • Door-to-Door sales versus a company surveying clients to see what they want • Company commitment: Do it better. • Make/price the product better than the competition’s model. • Putting money into research & development so your products stays #1 • Company goals: Do it with success in mind. • Maintain your firm’s purpose while you apply the marketing concept. • Increase profits, be more socially responsible, increase market share, etc…

11. How Does Marketing Benefit Our Society? • Makes our lives better • New & Improved products are offered at lower prices • Increases our countries standard of living • Provides us with a variety of goods • Products are offered in a variety of colors, sizes, styles, models, etc.. • Encourages trade between nations • When a nation lacks resources they can usually acquire it from other countries

12. 7 Functions Foldable

13. Complete the foldable chart given to you. • Step 1 – Select 4 pieces of regular copier paper • Step 2 – Lay first sheet down, then lay each of the other sheets on top of that one, each about ½ - ¾” above the first sheet, so that they are staggered. See picture below. • Step 3 – Holding papers tightly in place, take the top half of the sheets and fold down to make 4 more staggers. Staple with two staples along the top edge to hold in place

14. 7 Functions: Channel Management • Channel management (a.ka. Distribution): identifying, selecting, monitoring, and evaluating sales channels. How are you going to get the product to the customer? • Moving/Transporting product • Storing • Tracking product

15. Channel management (a.k.a.) Distribution • Responsible for moving, storing, locating, and/or transferring ownership of goods and services • Main goal is to move products from the producer to the consumer. • Determines who will offer products and where they will be offered. • Allows adequate supplies of products in the right place at the right time. • This function includes selecting methods of transporting products. • Some methods are less expensive than others. • Making the right decision helps to control expenses.

16. Seven FUNctions • Financing – How are you going to get the money to setup & run your business? • Allow people to invest in your company • Take out a loan • Offer credit to customers

17. Seven FUNctions of Marketing • Marketing Information Management: How are you going to obtain information about customers & current trends? • Gather information • Customer surveys • Ask your zip code when you check out • Sign up for email • Store information • Analyze information

18. Marketing-Information Management is important to marketing because • Allows businesses to make decisions based on information gathered rather than making guesses • Goal is to forecast, or predict, what will be happening that might affect the business in the future. • Might lose money because they are not keeping up with the times or selling the right products

19. Seven FUNctions of Marketing

20. 7 FUNctions • Pricing: What do you charge in order to make a profit? • How much it costs to create a product • What the competition charges • How much are customers willing to pay.

21. Seven FUNctions of Marketing • Product/Service Management: • Product Development • Helps to determine which products a business will offer and in what quantities • Maintaining quality products • Aids in determining and developing a company’s/product’s image • Product Improvements

22. 7 FUNctions • Promotion: A companies effort to… • Inform – Socially Responsible Company • Persuade – Commercials/Advertisements • Remind

23. Promotion is important to marketing because • Can create and/or increase consumer demand for products. • Promotions inform customers about: • New products • Improved products • New uses for existing products • Special values on products • Helps to create an image or impression of a business. • A business might want to change its image to attract a different or expanded target market. • Coordinated advertising and public relations will get the message across.

24. Seven FUNctions of Marketing • Selling • Providing customers with what they want. • Builds customer loyalty & creates an exchange

25. Selling is important to marketing because • This function is important because it involves contact with customers. • Other marketing functions pave the way for successful selling. • Businesses work to meet customers’ needs and sell them the most appropriate product. • All businesses have something to sell. • Everyone benefits from selling. • Selling benefits businesses. • Creates a desire for their products • Helps get their products into the hands of consumers • Selling benefits consumers by providing: • Help with their buying decisions • Information about new products • Selling can benefit society. • Creates employment • Encourages economic growth

26. The interrelationships among marketing functions • Can’t forget to advertise even if you have a great product • Can’t forget to have a sufficient supply of those great products in stock • Can’t forget to set prices that are competitive and attract customers • Forgetting any of these functions means your marketing effort won’t be as effective. • Your competitors will have an advantage

27. Warm-up 08/29/13 Selling Pricing Marketing Info. Management Promotion Financing Product/Service Management Channel Mgmt.

28. The Seven Functions of Marketing • Channel management (a.ka. Distribution): identifying, selecting, monitoring, and evaluating sales channels. • Marketing-information management: gathering, accessing, synthesizing, evaluating, and disseminating information to aid in business decisions • Pricing: determining and adjusting of prices to maximize return and meet customers’ perceptions of value • Product/Service management: obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities • Promotion: communicate information about goods, services, images, and/or ideas to achieve a desired outcome • Selling: determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities