Marketing Dynamics
The Marketing Concept
Objectives
Give examples of the five types of utility. Explain the three elements of the
marketing concept. Describe the benefits of the marketing
concept to business and customers. List the seven functions of marketing. Give an example of each marketing
function and describe how it supports the marketing concept.
Marketing Terms
utility adding value form utility place utility time utility information utility
possession utility customer satisfac
tion marketing concep
t
What's Easier?
Lets say you want cornflakes for breakfast. Which is easier, plan A or Plan B?
PLAN A Find a cornfield, pick corn, bring the corn home and
remove the kernels, grind the kernels, mix ingredients, bake then flake! Oh don’t forget to find a cow, Yikes!
PLAN B Go to the store, buy the product
and take it home.
Utility?
Basically the cornflake story best describes business using utility…..and that’s what we are going to learn about.
A business can add value to wood by converting it to furniture OR Paper
Utility
Utility is the ability of a product to satisfy human wants and needs utility also means usefulness
The process of adding utility is often called adding value
In what other wayscan businesses add value to wood?
Utility
Types of utility form place time information possession
Utility
Form utility changing the form
of a raw material or product to add usefulness.
Auto maker uses plastic, steel, glass and fabric to make a car
Utility
Place utility making products available at
convenient locations Need money, ATM’s are
banks using place utility in the best possible way.
Utility
Time utility making products available
at the time customers need or want them
This could also be businesses staying open longer to serve you
Utility
Information utility providing the customer
with information about a product
Advertising is a form of information utility…it’s about telling the customer what they need to know
Utility
Possession utility making it easier for a
customer to acquire a product. This can be done by providing loans or accepting credit.
The Five Utilities Team Assignment
Assignment: Design a presentation that illustrates the five utilities for one
consumer product.
The Marketing Concept
Customer satisfaction Developing the positive
feelings that customers get when their expectations are met or exceeded
Describe an experience ofcustomer satisfaction.
The Marketing Concept
The marketing concept is an approach to business
Three elements of the marketing concept customer satisfaction
– Done by adding utility or exceptional service total company approach
– Employees, finance, management & marketing team members must all work together
Profit– Finding the balance between providing great service
and not losing money meeting those customers needs
The Marketing Concept
Businesses that follow the marketing concept provide goods and services that meet or
exceed customers’ expectations (customer satisfaction)
encourage all four functions of business to work together to provide customer satisfaction (total company approach)
balance satisfying customers with making sales (profit)
Describe some marketing activities.
The Functions of Marketing
The activities of marketing can be organized into seven functions financing information management distribution product/service management pricing promotion selling
The Functions of Marketing
Financing managing money
for marketing activities
helping customers buy products by providing credit or financing
List some financing activities.
The Functions ofMarketing
Information management gather, analyze, and
distribute information– about markets,
competition, and customers
– Remember Wal-Mart and how they use their information?
The Functions of Marketing
Distribution activities involved in
getting products from producers to customers
List some distribution activities.
The Functions of Marketing
Product/service management developing new
products modifying
existing products deciding which
products to carry in a store
The Functions of Marketing
Pricing activities involved
in setting prices for products
This could include competitors prices
List some pricing activities.
The Functions of Marketing
Promotion nonpersonal
communication with customers– advertising– visual
merchandising
List some promotion activities.
The Functions of Marketing
Selling personal
communication with customers
List some selling activities.
The Functions and the Marketing Concept
All of the functions of marketing help a business focus
– on satisfying customers’ needs and wants
– while making a profit
Give examples of how each functionsupports the marketing concept.
Review
Give examples for each of the five types of utility.
What are the three elements of the marketing concept?
Describe the seven functions of marketing.
Glossary
adding value. Adding a feature or service that makes a product meet more customer wants and needs.
customer satisfaction. Positive feeling a customer gets when the product purchased meets or exceeds the customer’s expectations.
Back
Glossary
form utility. Type of utility added to a product when a business changes the form of something to make it more useful.
information utility. Type of utility added to a product when a business provides information about a product to a customer.
Back
Glossary
marketing concept. Approach to business that says that the way to make a profit is to focus on customer satisfaction.
place utility. Type of utility added to a product when a business makes products available at convenient places.
Back
Glossary
possession utility. Type of utility added when a business makes it easier for a customer to acquire a product.
time utility. Type of utility added to a product when a business makes products available at the times that customers want them.
utility. Ability of a product to satisfy human wants and needs.
Back
7 Functions of Marketing Assignment
Top Related