ObjectivesObjectives

Explain the marketing functions.Explain the marketing functions.

Discuss the importance of each marketing Discuss the importance of each marketing function.function.

Explain the marketing functions.Explain the marketing functions.

ObjectiveObjective

Marketing functions are like Marketing functions are like the parts of a game.the parts of a game.

• Need to understand all parts to Need to understand all parts to have a chance to winhave a chance to win

• Forgetting any function gives Forgetting any function gives competitors an advantage.competitors an advantage.

• Losing might be the result.Losing might be the result.

• Have an effect on why you Have an effect on why you buy, what you buy, and buy, what you buy, and where you shopwhere you shop

• Businesses coordinate Businesses coordinate the functions to attract the functions to attract you, the target customer.you, the target customer.

Marketing functionsMarketing functionsimpact you.impact you.

. . . interrelated activities that must work together to get . . . interrelated activities that must work together to get goods and services from producers to consumers.goods and services from producers to consumers.

Marketing functions areMarketing functions are

. . . obtains, develops, maintains, and improves a product . . . obtains, develops, maintains, and improves a product or service mix in response to market opportunities.or service mix in response to market opportunities.

Product/Service ManagementProduct/Service Management

• Responsible for a product’s Responsible for a product’s life cyclelife cycle

• Generates ideas for new Generates ideas for new productsproducts

• Improves or updates Improves or updates existing productsexisting products

• Removes products from Removes products from the marketthe market

. . . gathers, accesses, synthesizes, evaluates, and . . . gathers, accesses, synthesizes, evaluates, and disseminates information for use in making business disseminates information for use in making business decisions.decisions.

Marketing-Information ManagementMarketing-Information Management

• Who are our customers?Who are our customers?

• Where are they located?Where are they located?

• What products do they want?What products do they want?

• Why do they want them?Why do they want them?

• When will they buy?When will they buy?

Helps businesses answer questions:Helps businesses answer questions:

PricingPricing. . . determines and adjusts prices to maximize return . . . determines and adjusts prices to maximize return and meet customers’ perceptions of value.and meet customers’ perceptions of value.

Decides how much to charge for Decides how much to charge for products soproducts so

• Customers want to buyCustomers want to buy

• Business makes a profitBusiness makes a profit

Deciding price is not always easy.Deciding price is not always easy.

• Businesses consider many Businesses consider many factors (supply, demand, factors (supply, demand, competitors’ prices).competitors’ prices).

• Adjust prices when necessary.Adjust prices when necessary.

. . . moves, stores, locates, and/or transfers ownership . . . moves, stores, locates, and/or transfers ownership of goods and services.of goods and services.

DistributionDistribution

• TransportingTransporting

• ReceivingReceiving

• StoringStoring

Puts products in customers’ Puts products in customers’ hands byhands by

Often the key to a Often the key to a business’s successbusiness’s success

• Advertising Advertising Television, radio, Television, radio,

newspaper, magazinenewspaper, magazine Direct mailDirect mail Out-of-homeOut-of-home——billboards, billboards,

transit adstransit ads

• PublicityPublicity News releases, special events, News releases, special events,

celebrity appearancescelebrity appearances

• Sales promotionSales promotion Store displays, samples, contests, Store displays, samples, contests,

coupons, novelty itemscoupons, novelty items

PromotionPromotion. . . communicates information about goods, services, . . . communicates information about goods, services, images, and/or ideas to achieve a desired outcome.images, and/or ideas to achieve a desired outcome.Businesses use various methods to communicate.Businesses use various methods to communicate.

Takes place on two levels:Takes place on two levels:

• Personal: between a Personal: between a salesperson and a salesperson and a customer in a storecustomer in a store

• Nonpersonal: online Nonpersonal: online through the use of a through the use of a computercomputer

SellingSelling. . . determines client needs and wants and responds . . . determines client needs and wants and responds through planned, personalized communication that through planned, personalized communication that influences purchase decisions and enhances future influences purchase decisions and enhances future business opportunities.business opportunities.

Provides customers with the products they want.Provides customers with the products they want.

Discuss the importance of each Discuss the importance of each marketing function.marketing function.

ObjectiveObjective

Helps businesses decide which Helps businesses decide which products to produce or offerproducts to produce or offer

• Must offer products that customers Must offer products that customers want and need to be successful. want and need to be successful. In retail, must carry products that In retail, must carry products that

attract the targetattract the target customer.customer.

Importance ofImportance ofProduct/Service ManagementProduct/Service Management

Helps businesses decide the type of Helps businesses decide the type of image they want to projectimage they want to project

• Use other marketing functions to Use other marketing functions to support that image.support that image.

• Example: Promotion function develops Example: Promotion function develops

appropriateappropriate advertising.advertising.

Conducts research to:Conducts research to:• Predict the futurePredict the future

• Find out if customers are satisfiedFind out if customers are satisfied

• Keep upKeep up with the timeswith the times

Importance of Importance of Marketing-Information ManagementMarketing-Information Management

Prevents making guessesPrevents making guesses

Without accurate marketing Without accurate marketing information, businesses mightinformation, businesses might

• Produce too much or not enoughProduce too much or not enough

• Not know what their competitors Not know what their competitors are sellingare selling

• Not know why customers are Not know why customers are not buyingnot buying

• Lose moneyLose money

Must set a price that Must set a price that

• Customers are willing to payCustomers are willing to pay

• Covers costs and makes a profitCovers costs and makes a profit

Importance of PricingImportance of Pricing

Fine line between the right Fine line between the right and wrong priceand wrong price

• Raising prices to make more Raising prices to make more profit might be a mistake.profit might be a mistake.

• Customers might decide not to Customers might decide not to buy at that price.buy at that price.

Must know when to adjust Must know when to adjust prices to remain competitiveprices to remain competitive

Must have products Must have products on hand to sell when on hand to sell when consumers want to buyconsumers want to buy

• Need an adequate supply Need an adequate supply on handon hand

• If not, products cannot If not, products cannot be sold.be sold.

Importance of DistributionImportance of Distribution

Must select the best Must select the best transportation method totransportation method to

• Have products at the right Have products at the right place on timeplace on time

• Control expensesControl expenses

Must decide on the right Must decide on the right level of inventory tolevel of inventory to

• Meet demandMeet demand

• Avoid tying up a lot of capitalAvoid tying up a lot of capital

• Tells consumers about productsTells consumers about products

• Creates and/or increases demand Creates and/or increases demand for productsfor products

• Draws customers to a business Draws customers to a business through the use ofthrough the use of

magazine ads for new productsmagazine ads for new products discount couponsdiscount coupons

• Creates an image or impression Creates an image or impression of a businessof a business

• Can do a lot to guarantee a Can do a lot to guarantee a business’s success business’s success

Importance of PromotionImportance of Promotion

• Creates a positive experience for Creates a positive experience for customers bycustomers by

meeting their needs so they will buymeeting their needs so they will buy

offering the most appropriate productoffering the most appropriate product

• Benefits businesses byBenefits businesses by

creating a desire for their productscreating a desire for their products

getting products into consumers’ getting products into consumers’ handshands

helping them make a profithelping them make a profit

Importance of SellingImportance of Selling

• Benefits consumers byBenefits consumers by

Importance of SellingImportance of Selling

helping with their buying decisionshelping with their buying decisions

informing them about new productsinforming them about new products

• Benefits society byBenefits society by

creating employmentcreating employment

encouraging economic growthencouraging economic growth

maintaining the free enterprise maintaining the free enterprise system through competitionsystem through competition

raising the standard of livingraising the standard of living

• Next time you buy, consider how each function affected your decision.

• Did one or two marketing functions have more influence on you than others?

• Ask yourself why.

Marketing impacts YOU.