Marketing Today and Tomorrow

1. Marketing Today and Tomorrow Chapter 1

2. What is Marketing? Chapter 1 Section 1

3. Marketing • The process of developing, promoting, and distributing products in order to satisfy customer’s needs and wants. • Creates value!

4. Products and Services • Products – tangible • Cars, clothing, computers, etc. • Services – intangible • Dry cleaners, amusement parks, tax services, etc.

5. Marketing and Exchange • At the heart of marketing there is an exchange relationship • Exchange occurs when a person gives something and gets something else in return. • Service, product, idea, etc.

6. Functions of Marketing • Purchasing • Selling • Pricing • Product Planning • Information Managing • Promotion • Financing • Distribution • Risk Management

7. Economic Benefits of Marketing Chapter 1 Section 2

8. What does marketing really do? • Bridges the gap between you and the maker/seller. • Helps make the product more useful because you are able to purchase an item when you want. • Makes buying easy for consumers. • Helps create new and improved products.

9. Added Value • The functions of marketing add value to a product and lower prices. • Utility • Form • Place • Time • Possession • Information

10. Form Utility • Involves changing raw materials or putting parts together to make them more useful. • Making or producing things • Example: Trees

11. Place Utility • Involves having a product where consumers can buy it. • Businesses study consumer shopping habits. • Direct (emails, mail) or Indirect (retail stores)

12. Time Utility • Having a product available at a certain time of year or a convenient time of day. • Value increases when products are available when consumers want them. • Example: Toy Manufacturers and Retailers

13. Possession Utility • The exchange of product for some monetary value. • Cash, checks, credit cards, layaway

14. Information Utility • Involves communication with the consumer. • Salespeople provide information by explaining features and benefits. • Displays, packaging, and labeling inform consumers. • Advertising informs consumers of products and tells where to buy them and how much they cost.

15. Lower Prices • Marketing increases demand • When demand is high, manufacturers can make products in larger quantities. • Producing a larger quantity of a product, spends less per unit on fixed costs. • Reduces the cost of each product.

16. Lower Prices (continued) • Popularity creates competition in different industries • Competition forces marketers to find ways to lower their prices

17. New and Improved Products • Result of increased competition generated by marketing. • Businesses continually looking for ways to satisfy their customers. • Example: Computers

18. Why Study Marketing? • Evaluate as potential career • Explore how marketing affects you • Importance for personal success

19. Developing Marketing Skills • Useful in any career • Involve understanding business • Effectively relating and communicating with others • Top-Managers down to entry-level positions

20. Understanding Business • Function on a day-to-day basis • Understanding the role marketing plays • Realize the importance of cooperation, competition, ethics, and teamwork.

21. Learning Interpersonal Skills • Techniques and principles of human relations. • Improve your ability to get along with others. • Help dealings with supervisors, co-workers, customers, and friends.

22. Perfecting Communication Skills • Written and oral communication • Marketing is communicating • Businesspeople present their ideas to employees, customers, and others which has a direct impact on a business’s success or failure.

23. Is Marketing a Career for You? • Marketing jobs are being added everyday. • Multiple industries are impacted. • Increase in managerial, sales, and service • Department of Labor projects that managerial jobs in marketing will continue to grow.