Marketing ICurriculum Guide

The World of Marketing

Standard 1

MarketingMarketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

-American Marketing Association

Functions of Marketing

Market Planning

Marketing Information Management

Pricing

Product/Service Management

Promotion

Channel Management

Selling

Functions DefinedChannel Management – Process of deciding how to get goods into customers hands.

Marketing Information Management – Gathering, storing, and analyzing information, customers, trends, and competing products

Marketing Planning – Understanding concepts and strategies used to develop and target specific marketing strategies to a select audience

Pricing – Determine how much to charge for goods and services in order to make a profit

Continued on next slide

Functions DefinedProduct/Service Management – Obtaining, developing, maintaining, and improve a product or a product mix in response to market opportunities

Promotion – The effort to inform, persuade, and remind current and potential customers about a business’s products or services.

Selling – Responding to consumer needs and wants through planned, personalized communication in order to influence purchase decisions and ensure satisfaction.

Free Enterprise System

The Free Enterprise System is an economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.

-American Heritage Dictionary

The Free Enterprise System is a political and economic philosophy often referred to as capitalism.

Four Pillars of the Free Enterprise

System• Private Property

• Price System

• Competition

• Entrepreneurship

Market Economy Circular Flow

Mixed Economy Circular Flow

All countries must answer the three basic economic questions…

What goods and services should be produced?

How should the goods and services be produced?

For whom should the goods and services be produced and distributed?

Economic SystemsTraditional – An economic system in which habits, traditions, and rituals answer the basic questions of what, how, and for whom.

Command – A system in which a country’s government makes all economic decisions regarding what, how, and for whom goods and services will be produced and distributed.

Market – In a pure market economy, there is no government involvement in economic decisions. Individuals and companies own the means of production and businesses compete for consumers. The market answers what, how, and for whom.

Mixed – An economy with elements of both command and market. Individuals, companies, and government decide what, how, and for whom goods and services will be produced and distributed.

Economic Systems• Capitalism- Positive: Right to own property,

competition, and entrepreneurship. Negative: creates classes in society, high risk of failure, monopolies.

• Socialism-Positive: removes classes, what is good for one is good for all, provides government support (i.e. health care, education, etc.) Negative: Higher taxes, lower motivation.

• Communism: Positive: removes classes, everyone is equal, no taxes. Negative: no motivation, government has the final say.