Chapter 1 – Section 1 Marketing and the Marketing Concept

¬ What You’ll Learn – Types of Businesses – Definition of Marketing – Foundations of Marketing – Functions of Marketing – Marketing Concept

BUSINESS: An activity that satisfies economic needs by:

¬ planning, ¬ organizing, and ¬ controlling

resources ¬ to produce and

market goods and services.

• 95% of all US businesses are classified as “small” businesses.

• These small businesses employ over one-half of the private sector work force.

Profit Non-profit

Service organizations who operate without the intent of gaining a profit for the owners.

NON-PROFIT BUSINESSES

¬ Charitable institutions that operate with many of the characteristics of businesses but are not intended to earn a profit. All income remaining after expenses goes to a charitable cause.

¬ Public Sector - government agencies and services such as public schools.

¬ Private Sector - charitable organizations not government run such as United Way.

What is Marketing? ¬ Marketing is the process of planning,

pricing, promoting, selling and distributing products to create exchanges to satisfy customers’ needs and wants

¬ Process means it is ongoing and changes – Marketers need to keep up with trends and

consumer attitudes ¬ Marketing functions support the process ¬ Current Marketing practices focus on

Customer Relationship Management

Ideas, Goods and Services

¬ Products included goods, services and ideas that satisfy customers’ needs and wants –  Goods are tangible – you can touch –  Services are intangible - tasks that have monetary

value performed for a customer –  Ideas promote causes, political platforms

¬ Exchange is when something is bought or sold in the marketplace

Skills and Knowledge

¬ Business Law ¬ Communications ¬ Customer Relations ¬ Economics ¬ Emotional

Intelligence ¬ Entrepreneurship ¬ Financial Analysis

¬ Human Resource Mgmt

¬ Information Mgmt ¬ Marketing ¬ Operations ¬ Professional

Development ¬ Strategic Mgmt

Functions of Marketing ¬ Functions address marketing from the

perspective of how it is practiced. ¬ Seven functions of marketing:

– Distribution/Channel Management – Market Planning – Marketing Information Management – Pricing – Product Service Management – Promotion – Selling

What are the functions? ¬ Distribution

–  Decide where and to whom to sell –  Logistics of physically moving products (truck, rail,

ship, air) –  Storing and tracking products

¬ Market Planning –  Concepts and strategies used to develop and target

specific marketing strategies to a select audience –  Creating a marketing plan

¬ Marketing Information Management –  Getting information to make sound business decisions –  Marketing research to learn about customers and ways

to better market the products

What are the functions? ¬ Pricing

–  Decisions regarding how much to charge for products to obtain maximum profits

–  Based on competition, customers willingness to pay, gaining market share and returns on investment

¬ Product/Service Management –  Obtaining, developing, maintaining and improving

products or product mixes ¬ Promotion

–  Communicate information about products, services, images or ideas to achieve a desired outcome

¬ Selling –  Determine clients needs and wants and respond through

activities that influence purchasing decisions

The Marketing Concept

¬ The marketing concept is the idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the firm.

THE FOCUS IS ON THE CUSTOMER ¬ Customer relationship management (CRM) is an

aspect of marketing that combines customer information with customer service and marketing communications. –  Try to create more meaningful communications

Group Activity

¬ In Groups, Create a poster: – Poster must have:

•  Name of the function and definition •  A picture representing the function •  An example of the function

– Present as a group at the front of the class – Each person will do part of the presentation