MARKETING

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Chapter 1

MARKETING TODAYAND TOMORROW

1-1 What Is Marketing?

1-2 Businesses Need Marketing

1-3 Understanding the Marketing Concept

1-4 The Changing Role of Marketing

CHAPTER

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MARKETING

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Chapter 1

MARKETING TODAYAND TOMORROW - Goals

• The importance of studying marketing • What marketing is and describe important marketing

functions• Why businesses need marketing• Describing the functions of business• Understand how marketing developed as a part of

business• Define the “marketing concept”

CHAPTER

1

MARKETING

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Chapter 1

MARKETING TODAYAND TOMORROW - Goals

• Determine how businesses implement the marketing concept• Describe how businesses approach marketing differently today

than they did in the past• Summarize how marketing is changing businesses and other

organizations• The nature of positive customer/client relations (Explain)• How to define each component of the marketing mix (The “4Ps

of Marketing”)

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MARKETING

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Chapter 1

MARKETING TODAYAND TOMORROW

• What is Marketing!

CHAPTER

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MARKETING

Marketing Video (Our Semester in a 6 minute video)

MARKETING

MARKETING

Movie Questions

Marketing is: (short version) ______________________ _________________________________________Who is the guiding light of your business philosophy? ____________________S___________W__________O___________T____________

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Focus Questions:What marketing activities

are being demonstrated by Cargill in the advertisement?

Why do you believe a large international company like Cargill is concerned about how to get products to consumers living in Central America?

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1-1WHAT IS MARKETING?

GOALS Understand the importance of studying

marketing.Explain what marketing is and describe

important marketing functions.Define marketing.

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Why Study Marketing?

Where does marketing take place?All types of businesses use marketing

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Businesses Directly Involved in Marketing

Advertising agenciesMarketing research firmsImport/export officesFreight companiesFinance and credit firmsTelemarketersTravel agencies

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Businesses with Major Marketing Activities

RetailersManufacturersBanksReal estate agenciesInsurance companiesAutomobile dealersFarmers and ranchers

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Businesses with Limited Marketing Role

Law officesMedical centersAccounting firmsGovernment agenciesUniversitiesConstruction businessesPublic utilities

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What Is Marketing?

Marketing functionsCompanies use the

marketing functions

MARKETING FUNCTIONSMarket planningProduct/service managementDistributionPricingPromotionSellingMarketing-information managementFinancingRisk management

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9 Marketing Functions

Market PlanningIdentifying and understanding the markets

a company wants to serve and developing effective marketing strategies for each market.

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9 Marketing Functions

Product and Service ManagementAssisting in the design and development of

products and services to meet the needs of prospective customers.

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9 Marketing Functions

DistributionDetermining the best methods and

procedures to be used so prospective customers are able to locate, obtain, and use the products and services of an organization.

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9 Marketing Functions

PricingEstablishing and communicating the value

of products and services to prospective customers.

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9 Marketing Functions

PromotionCommunicating information to prospective

customers through advertising and other promotional methods to encourage them to purchase the organization’s products and services.

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9 Marketing Functions

SellingDirect, personal communications with

prospective customers in order to assess needs and satisfy those needs with appropriate products and services.

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9 Marketing Functions

Marketing-Information ManagementObtaining, managing and using market

information to improve decision making and the performance of marketing activities.

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9 Marketing Functions

FinancingBudgeting for necessary financing, and

providing financial assistance to customers to assist them with purchasing products and services.

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9 Marketing Functions

Risk ManagementProviding security for products, personnel,

and customers and reducing the risk associated with marketing decisions and activities.

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What Is Marketing?

Marketing functionsCompanies use the

marketing functions

MARKETING FUNCTIONSMarket planningProduct/service managementDistributionPricingPromotionSellingMarketing-information managementFinancingRisk management

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Defining Marketing

Marketing is the creation and maintenance of satisfying exchange relationships.

MARKETING

Why Study Marketing?

Marketing plays an important role in business operations

It is essential to the success of manufacturers, retailers, government agencies, hospitals, law offices, schools, and churches

All marketing activities should be directly related to the needs of customers.

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BUSINESSES NEED MARKETING

GOALSExplain why businesses need

marketing.Understand how marketing developed

as a part of business.Describe the functions of business.

1-2

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The Need for Marketing

People believe that if a business offers a good product, marketing is not necessary.

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The Need for Marketing

If the customer does not know about the product, does not know where to purchase it, is unable to get to the place where it is sold, cannot afford the price being charged, or does not believe it is a good value, the product will not be purchased.

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The Need for Marketing

Marketing must be carefully planned.Marketing must be coordinated with

other business activities.

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The Development of Marketing in Business

Self-SufficientBarteringSpecialization of LaborMoney SystemsCentral MarketsOther Marketing Activities

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The Development of Marketing in Business

Self SufficientYou do not rely on other for the things you

need to survive.

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The Development of Marketing in Business

BarteringExchanging products or services with

others by agreeing on their values.

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The Development of Marketing in Business

Specialization of LaborConcentrating on one thing or a few related

activities so that they can be done well.

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The Development of Marketing in Business

Money SystemsEstablished the use of currency as a

recognized medium of exchange.

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The Development of Marketing in Business

Central MarketsA location where people bring products to

be conveniently exchanged.

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The Development of Marketing in Business

Other Marketing ActivitiesBusiness formed to purchase products from

producers and hold them for sale to purchasers as needed.

Loan money to buyers or sellers.Help with transportation of products.Locate products that were not available in

the market but that customers wanted.

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The Functions of Business

ProductionOperationsAccounting and FinanceManagement and AdministrationMarketingCoordination of Business Functions

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The Functions of Business

ProductionCreates or obtains products or services for

sale.Raw Materials Processing AgricultureManufacturingServicesMerchandising

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The Functions of Business

OperationsOngoing activities designed to support the

primary function of a business and keep it operating efficiently.

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The Functions of Business

Accounting and FinancePlans and manages financial resources

and maintains records and information related to a business’s finances.

Capital, Budgets, Funding

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The Functions of Business

Management and AdministrationInvolves developing, implementing, and

evaluating the plans and activities of a business.

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The Functions of Business

Coordination of Business FunctionsEach of the functions of an effective

business depends on the other functions.

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UNDERSTANDING THEMARKETING CONCEPT

GOALS Define the marketing concept.Determine how businesses implement

the marketing concept.

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Early Marketing…….NOT

Early 1900s, business were mostly concerned about producing products that the business believed customers could afford and would purchase.

Businesses concentrated on production and seldom had to worry about marketing.

The primary challenge to the sale of more products was to be able to deliver them to a larger number of customers.

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The Marketing Concept

Satisfying customer needsThe consequences of not satisfying

customer needs

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Elements of the Marketing Concept

Identify needs of

customers

Develop and

market products

or services

Operate a business profitably

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The Marketing Concept

Satisfying customer needsThe consequences of not satisfying

customer needs (cars, clothing)

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Implementing the Marketing Concept

Identify the market (Step 1)

Develop a marketing mix (4 P’S) (Step 2)ProductDistribution or PlacePricePromotion

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Implementing the Marketing Concept

ProductIs anything offered to a market by the

business to satisfy needs, including physical products, services, and ideas.

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Implementing the Marketing Concept

Distribution or PlaceIncludes the locations and methods used to

make the product available to customers.

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Implementing the Marketing Concept

PriceIs the amount that customers pay and the

methods of increasing the value of the product to the customers.

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Implementing the Marketing Concept

PromotionIncludes the methods used and information

communicated to encourage customers to purchase and to increase their satisfaction.

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Implementing the Marketing Concept

Marketing MixThe blending of the four marketing

elements, product, distribution (place), price, and promotion to product a profitable business.

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Implementing the Marketing Concept

Identify the market (Step 1)

Develop a marketing mix (4 P’S) (Step 2)Product - BIKEDistribution or PlacePricePromotion

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THE CHANGINGROLE OF MARKETING

GOALS Describe how businesses approach

marketing differently today than they did in the past.

Summarize how marketing is changing in businesses and other organizations.

1-4

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The Changing Approachto Marketing

Production emphasisSales emphasisMarketing department emphasisMarketing concept emphasis

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Production Era

• Emphasis on producing and distributing new products

1900s–1920s

Sales Era

• Emphasis on using advertising and salespeople to convince customers to buy a company’s products

1930s–1940s

Marketing Department Era

• Emphasis on developing many new marketing activities to sell products

1950s–1960s

Marketing Concept Era

• Emphasis on satisfying customers’ needs with a carefully developed marketing mix

1970s–Today

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Improving the Marketing Concept

Relationship MarketingEmployee Empowerment

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Improving the Marketing Concept

Relationship MarketingFocuses on developing loyal customers

who continue to purchase from the business for a long period of time

People buy from people/business they trustRetaining customers so they continue to

purchase from you can increase profits by 20 to 50 percent.

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Improving the Marketing Concept

Employee EmpowermentAn approach to customer service that gives

employees the authority to solve many customer problems

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The Changing View of Marketing

Marketing in other organizationsMarketers’ roles today