UNIT 1

1. UNIT 1 The World of Marketing: Chapter 1: Marketing is All Around Us Chapter 2: The Marketing Plan

2. Class Activity Pick up your textbook & Handout(Remember your number) In groups of 4: ASSIGN DUTIES: • Task-Master • Time-Keeper • Recorder • Reporter Create & discuss a list of the 10 most popular products or services today Answer these questions: • Why are they popular? • How do people find out about them? List the names and what Each member’s duties are. Business & Marketing

3. 10 Most Popular Items: • ____ ____ ____ ____ ____ ____ ____ ____ ____ • ____ ____ ____ ____ ____ ____ ____ ____ ____ • ____ ____ ____ ____ ____ ____ ____ ____ ____ • ____ ____ ____ ____ ____ ____ ____ ____ ____ • ____ ____ ____ ____ ____ ____ ____ ____ ____ • ____ ____ ____ ____ ____ ____ ____ ____ ____ • ____ ____ ____ ____ ____ ____ ____ ____ ____ • ____ ____ ____ ____ ____ ____ ____ ____ ____ • ____ ____ ____ ____ ____ ____ ____ ____ ____ • ____ ____ ____ ____ ____ ____ ____ ____ ____

4. Section 1.1- Marketing and the Marketing ConceptStudent will be able to: • Define meaning of marketing • Explain the four foundations of marketing • List the seven functions of marketing • Understand the Marketing Concept

5. Chapter 1 Section 2The Importance of Marketing • Analyze the benefits of marketing • Apply concept of utility and describe the five economic utilities • Distinguish the four economic utilities that are related to marketing Student will be able to:

6. Section 1.3 Fundamentals of Marketing Student will be able to: • Describe the concept of market • Differentiate consumer and industrial markets • Describe market share • Define target marketing • List the four P’s of the marketing mix

7. The process of developing, promoting, and distributing products to satisfy customers’ needs and wants. What Is Marketing?

8. Products – goods and services that have monetary value

9. Goods – things you can touch or hold

10. Services – you can’t physically touch – tasks performed for a customer

11. Marketing is based on Exchange • Marketing connects business’ to their customers.

12. Exchange • An exchange takes place every time something is sold in the marketplace.

13. EXCHANGE When the producer is someone other than the consumer, some form of exchange takes place.

15. Foundations of Marketing • Business, Management, Entrepreneurship • Communication and Interpersonal Skills • Economics • Professional Development

16. 7 Functions of Marketing • Activities that work together to get goods and services from producers to consumers • Each is essential

17. Seven Functions of Marketing • Distribution Deciding where and to whom products need to be sold to reach the final users.

18. 2. FinancingGetting the money necessary to operate a business

20. 3. Marketing Information ManagementGetting information to make sound business decisions. Usually obtained through marketing research

21. For example, after a stay at a luxury hotel, you fill out a form rating the service and accommodations.

22. 4. Pricing How much to charge to maximize profits

23. 5. Product Service Management • Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

24. 6. Promotion Communicating with potential customers to inform, persuade, or remind them about a business’s products

25. 7. SellingPlanned, personalized communication that influences purchasing decisions

26. When Henry Ford first created the Model T, he was the only one mass producing cars. He didn’t have to think about “The Marketing Concept.” But, as more and more producers started making cars, they had to think about what customers need and want in order to stay in business. Click on the Model T Ford to see Henry Ford’s thoughts about car color in the early 1900’s.

27. Imagine if, in today’s world, you could only buy black. Many customers would not be very happy!

28. Today’s buyer wants a choice!

29. The Marketing Concept • If automobile manufactures do not give their customers a choice (what they want), they will not stay in business. • That concept is true for all businesses. • You must give the customer what they need and want.

30. The Marketing Concept Businesses must satisfy customers’ needs and wants in order to make a profit That is what we mean by The Marketing Concept Businesses must know their customers . . .

31. Functions of Marketing • Break up into groups of four (4) • Choose a product or service, and research and discuss each of the 7 functions of marketing for that product or service: • Distribution • Financing • Marketing information management • Pricing • Product/service management • Promotion • Selling • Be prepared to share with the class

32. Class Work - January 4, 2020 • Textbook: • Page 7, #1 – 5 • Complete on paper or a new Word document • Save to your NEW “Block-4” folder in “My Documents” as:Marketing-CW-1-1-firstinitialLastname

33. The Importance of Marketing Chapter 1.2

34. Transition - January 4, 2020 • Get your “Marketing” text today • Pull out your Chapter 1 “Note-Guide” handout, go to Section 1.2 • Get in groups of 4, and list “5 - Examples of Marketing” • One paper per group (with names)(on paper or on Word) • Assign the same duties: • Reporter (Presents) • Recorder (Writes) • Timekeeper (Keeps group on time) • Taskmaster (Keeps group on track)

35. Examples of Marketing: • Billboards • Radio and TV commercials • Print advertisements • Decals on vehicles • Banners • Sales • Customer service • Flyers • Brochures • Web advertising • Word of mouth • Budgets • Company communication • Personnel management

36. The Importance of Marketing Chapter 1.2

37. Chapter 1 Section 2The Importance of Marketing • The benefits of marketing • The meaning of economic utility • The five economic utilities and how to distinguish the four that are related to marketing What You’ll Learn

38. Economic Benefits of Marketing • Marketing bridges the gap between you and the maker or seller of an item

39. Economic Benefits of Marketing New and Improved Products --businesses look for opportunities to please the customer

40. Economic Benefits of Marketing Lower Prices – marketing activities add value and increase demand. When demand is high, manufacturers can produce at a lower price. They can sell at a lower price but increase the quantity sold. Thus, profits are higher even though prices are low.

41. Economic Benefits of Marketing • It adds VALUE

42. Added Value = Utility In economic terms, utility does not mean your closet or the electric company.

43. There are five types of Utility: Added Value = Utility Attributes of a product or service that make it capable of satisfying consumers’ wants and needs.

44. 1. Form Utility Changing raw materials or putting parts together to make them more useful – making and producing things. • Sand into glass • Wood into paper • Silk into fabric

45. 2. Place Utility Having a product where customers can buy it.

46. It Involves • Location – may be through a catalog or at a retailer (actual store) – or, Internet. • Transporting the product to the location.

47. 3. Time Utility Having a product available at a certain time of year or a convenient time of day. • Planning and ordering • Time of day and week • Time of year: holidays and seasons

48. 4. Possession Utility The exchange of a product for some monetary value.

49. Payment may be made by • Cash • Personal checks • Credit cards • Installments (layaway)

50. 5. Information Utility Involves communication with the consumer. • ads • packaging • signs • displays • owner’s manuals