Chapter 1 Marketing Today

Objectives

Understand the importance of marketing Explain what marketing is and describe the

marketing functions Define marketing

Think about….

Businesses that are successful What attracts you to that business? Does marketing consist of multiple activities?

What is Marketing?

Is the creation and maintenance of satisfying exchange relationship.

‘Marketing is the management process that identifies, anticipates and satisfies customer

requirements profitably’ The Chartered Institute of Marketing

Where does marketing take place?

Most visible business activity– Successful business……

Realize it or not….– You are involved in a businesses marketing

activity!!!!!!!!

List 5 marketing activities you see on a daily basis, and how that business tries to reach its customers

7 Functions of Marketing

Product/Service Management

Assisting in the design and development of products and services that will meet the needs of prospective customers

Distribution

Determines 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.

Selling

Direct Method– Personal communications with prospective

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

Indirect Methods– Third-parties to interact with prospective

customers.

Marketing-Information Management

Obtaining managing and using market information to improve decision making and the performance of marketing activities

Financing

Budgeting for marketing activates, obtaining the necessary financing, and providing financial assistance to customers to assist them with purchasing the organizations products and services

Promotion

Generating awareness about a product and/or service to potential customers

Pricing

Value for purchasing a businesses products and/or services

Bell Ringer

Review 7 Functions of Marketing

Businesses Need Marketing

To inform customers about products or services they don’t know about

The success of marketing CAN NOT be determined unless the product satisfies the customers needs and wants

Bartering

Self-Sufficient– Don’t rely on others for the things needed in order

to survive.

Specialized Labor

Development of Business

Pop-Tart Bell Ringer……

Discuss with your neighbor how Pop-Tart used new forms of marketing for its product.

Functions of Business*

Production

Creates or obtains products or services for sale Raw Material – obtaining raw materials for sale to

customers (mining, oil drillers) Processing – using raw materials and changing

their form through processing so they can be used in the production of other products (paper, food products)

Services – no physical product (hair cut, landscaping, merchandising)

Operations

The ongoing activities designed to support the primary function of a business and to keep a business operating efficiently.– Building and equipment must be maintained– Product and material management– Paperwork– Customer service

Accounting and Financing

Plans and manages financial resources and maintains records and information related to businesses’ finances– Amount of capital, budget management,

borrowing of money, accounting

Management and Administration

Involves developing, implementing, and evaluating the plans and activities of business.– Responsible for everything that occurs in the

business including the work of the employees– Responsible for the performance of the company

Marketing

All businesses need to complete a variety of activities in order to make their products and services available to consumers and to ensure that effective exchanges occur.

Coordinating of Business Functions

1.

2.

3.

4.

Group Discussion

Using our school to illustrate how business organizations engage in various functions that must be coordinated if the organization is to be effective, explain how the school carries out its various functions that correspond to production, operations, accounting and finance, management and administration, and marketing.

Marketing Concept

Identify the needs of

the customer

Identify the needs of

the customer

Develop and

market products

or services

Develop and

market products

or services

Operate a business profitably

Operate a business profitably

Consequences

Consequences of not satisfying customer needs– Have to rely on extensive advertising, price

reductions, rebates, pressure selling, special displays

– Reductions in profit– Reluctant to buy from that company again

Implementing the Marketing Concept

Identify the Market– Market (A.K.A.Target Market)

The description of prospective customers a business wants to serve and the location of those customers.

Group Discussion

Network marketing as practice by Avon Products, Tupperware, Amway, and other products that are sold through networks of contacts rather than through traditional retail outlets.

Explain how network marketing can help companies better understand and keep tabs on changes in the needs of their customers because there are no middlemen through which communication can be garbled.

Implementing the Marketing Concepts

Develop a marketing mix (the blending of four marketing elements)– Product– Place or distribution– Price – Promotion

4 “P’s” *

Product– What’s being offered?

Place– Where will the product be offered?

Price– How much does it cost?

Promotion– How will your customers know about the product?

Showing off the 4 “P’s” + 3 More

The relation to the marketing of services have become recognized as being important. There are an additional 3 Ps that now make up what has been referred to as the '7 Ps'.

Marketing Mix Activity*

Below is a list of links to top companies who have a variety of brands making up their business. Choose five products and services (ensure that at least two of your choices are services) and identify the relevance of the 7 Ps to the product/service of your choice.

– Unilever - range of brands covering foodstuffs, perfumes, household cleaners, ice creams, etc. (http://www.unilever.co.uk/ourbrands)

– Nestlé - again, a range of brands covering food, cereals, confectionary, drinks and dairy products (http://www.nestle.com/Our_Brands/Our+Brands.htm)

– The Mars directory (http://www.mars.com/The_Mars_directory/Brand_search_results.asp?lstCountry=134)– A Mercedes dealership network (http://www.mercedes-benzofcanterbury.co.uk)– Dell computer products (http://www1.euro.dell.com/content/products/compare.aspx?

c=uk&id=dimen&l=en&s=dhs)– NatWest - banks provide 'products' which also double up as services in most cases!

(http://www.natwest.com/index.asp)– South West Trains - an important service for thousands of people every day! (http://www.swtrains.co.uk)– BUPA private health care service

Group Activity*

Using newspaper ads or magazine ads for different brands of comparable products, for example, two car ads or two ads for a movie. Based strictly on the ads, using a Venn Diagram compare the similarities and differences of the markets these advertisers seem to have identified and the marketing mixes they have developed to appeal to those markets. Which marketing effort do you think was more effective, why?

Marketing Today (Expert Topic)

Production Era: 1900s-1920sEmphasis on producing and distributing new products

Sales Era: 1930s-1940sEmphasis on using advertising and salespeople to convince

customers to buy a company’s products

Marketing Department Era: 1950s-1960sEmphasis on developing many new marketing activities to sell

products

Marketing Concept Era: 1970s-TodayEmphasis on satisfying customers’ needs with a carefully

developed marketing mix