Unit 1 The World of Marketing

1. Unit 1The World of Marketing Chapter 1 Marketing Is All Around Us Chapter 2 The Marketing Plan

2. Marketing and the Marketing Concept

3. Marketing and the Marketing Concept Objectives Define marketing Explain the four foundations of marketing List the seven functions of marketing Understand the marketing concept

4. Marketing and the Marketing Concept Study Organizer Draw an umbrella shape to organize the marketing concepts you will learn about in this section.

5. The Scope of Marketing You have already participated in the marketing X process as a consumer. By studying marketing, you will start to think like a marketer. As a marketer, you need to keep up with: Trends Consumer attitudes Customer relationships

6. Marketing promotes ideas, goods, and services. Examples of ideas that might be marketed are: A candidate�s political platform A public service initiative, such as don�t smoke or stay in school Ideas, Goods, and Services

8. The marketplace is the commercial environment in which buying and selling take place. The marketplace includes: Shops Internet stores Financial institutions

9. Foundations of Marketing

10. Seven Functions of Marketing

11. Seven Functions of Marketing

12. The Marketing Concept The marketing concept X focuses on satisfying the needs and wants of customers. For a business to be successful, all employees must: Understand the marketing concept Provide the best possible service to customers

13. The Marketing Concept Customer relationship management (CRM) combines: Customer information Marketing communications CRM uses customer information to create meaningful marketing communications. The goal of CRM is to establish strong, long-term relationships with customers.

16. The Importance of Marketing Objectives Analyze the benefits of marketing Apply the concept of utility Reproduce the figure. As you go through this section, note the benefits of marketing and list the five utilities on lines jutting out from one of the ovals.

17. Economic Benefits of Marketing Marketing�s benefits to the economy and consumers are: New and improved products Lower prices Added value

18. New and Improved Products Marketing generates competition. In a competitive marketplace, businesses try to create new and improved products to satisfy customers� wants and needs. Some examples: Food manufacturers know that on-the-go parents want their children to start the day with healthy foods. So Quaker created Fruit & Oatmeal Toastables� and Breakfast Squares�.

19. New and Improved Products Dutch Boy Paints won an award for its new container design that makes the container easy to hold and open as paint is poured.

20. Lower Prices Marketing increases demand. When demand is high: Products can be produced in larger quantities The fixed cost per unit is lower As a result, a company can: Charge a lower price per unit Sell more units Make more money

21. Lower Prices In addition, when demand for products increases: More companies enter the marketplace Companies must lower prices to remain competitive

22. Added Value and Utility The value that marketing adds to a product or service is called utility X. Five utilities contribute to making a product or service capable of satisfying customers� wants and needs: Form putting parts together to make a product consumers want Place offering a product where consumers can buy it (e.g. retail store, catalog, Web site)

23. Added Value and Utility Time offering a product at a convenient time of day or year for consumers Possession allowing consumers to take legal ownership of a product Information communicating information about a product (e.g. through labeling, advertising, or an owners� manual)

26. Fundamentals of Marketing Objectives Describe the concept of market Differentiate consumer and industrial markets Describe market share Define target market List the components of the marketing mix

27. Fundamentals of Marketing Draw two diagrams like the ones shown here. In the first diagram, record four terms about the concept of market. In the second diagram, record the four Ps of the marketing mix.

28. Market and Market Identification Try to memorize the terms in this section, because you will use them throughout your study of marketing! The first important term is market X, which refers to people who: Share similar needs and wants Have the ability to purchase a product If you like DVDs and can afford to buy or rent them, you are part of the DVD market.

29. Consumer Versus Industrial Markets There are different types of markets with different goals and objectives. The consumer market X wants products and services that: Save money Make life easier Improve appearance Create status Provide personal satisfaction

30. Consumer Versus Industrial Markets The industrial market X, or business-to-business (B-to-B) market, wants products and services that: Improve productivity Improve efficiency Increase sales Decrease expenses

31. A single product may be promoted to both the consumer and industrial markets. For example, Perdue advertises its chicken and turkey products: On television and in newspapers, to reach consumers In the publication Supermarket News, to reach professionals in the supermarket industry

32. Market Share A company�s market share X is its percentage of total sales in a given market, such as the video game market. Market share changes as: New competitors enter the market The market�s volume increases or decreases

33. Target Market and Market Segmentation Identifying a product�s target market X, or the segment of the market most likely to buy the product, is a key to success. A single product may have these two target markets: Consumers Customers For example, a nutritious breakfast food would be targeted at: Children who will request it and eat it, the consumers Parents who will approve and buy it, the customers

34. To develop a clear picture of its target market, a business may create a customer profile X, which lists such information about the target market as: Age Income level Ethnic background Occupation Attitudes Lifestyle Geographic residence

35. Marketing Mix The marketing mix X includes four basic marketing strategies, or tools, called the four Ps: product place price promotion Actions in one of these areas affect decisions in another.

37. Product A company must choose what products to develop, update, and improve.

38. Place A company must decide where to sell and distribute a product.

39. Price A company must determine what price it will charge for a product.

40. Promotion A company must decide how to advertise, promote, and publicize a product.

43. Section 1.1 Marketing is defined as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. There are four foundations and seven functions of marketing. The marketing concept is a focus on customers� needs and wants while generating a profit. continued

44. Section 1.2 Three benefits of marketing are new and improved products, lower prices, and added value (utility). Five economic utilities are form, place, time, possession, and information. continued

45. Section 1.3 A market is defined as all people who share similar needs and wants and who have the ability to purchase given products. Market share is a firm�s percentage of total sales of all competitors in a given market. The four Ps of the marketing mix are product, place, price, and promotion. Marketing decisions and strategies for the four Ps are based on the target market.

46. This chapter has helped prepare you to meet the following DECA performance indicators: Explain marketing and its importance in a global economy Describe marketing functions and related activities Determine forms of economic utility created by marketing activities Explain types of business activities Prepare simple written reports