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MARKETING
1
Chapter 1
MARKETING TODAYAND TOMORROW
1-1 What Is Marketing?
1-2 Businesses Need Marketing
1-3 Understanding the Marketing Concept
1-4 The Changing Role of Marketing
CHAPTER
1
MARKETING
2
Chapter 1
MARKETING TODAYAND TOMORROW - Goals
• The importance of studying marketing • What marketing is and describe important marketing
functions• Why businesses need marketing• Describing the functions of business• Understand how marketing developed as a part of
business• Define the “marketing concept”
CHAPTER
1
MARKETING
3
Chapter 1
MARKETING TODAYAND TOMORROW - Goals
• Determine how businesses implement the marketing concept• Describe how businesses approach marketing differently today
than they did in the past• Summarize how marketing is changing businesses and other
organizations• The nature of positive customer/client relations (Explain)• How to define each component of the marketing mix (The “4Ps
of Marketing”)
CHAPTER
1
MARKETING
4
Chapter 1
MARKETING TODAYAND TOMORROW
• What is Marketing!
CHAPTER
1
MARKETING
Marketing Video (Our Semester in a 6 minute video)
MARKETING
MARKETING
Movie Questions
Marketing is: (short version) ______________________ _________________________________________Who is the guiding light of your business philosophy? ____________________S___________W__________O___________T____________
MARKETINGChapter 1
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Focus Questions:What marketing activities
are being demonstrated by Cargill in the advertisement?
Why do you believe a large international company like Cargill is concerned about how to get products to consumers living in Central America?
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MARKETINGChapter 1
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1-1WHAT IS MARKETING?
GOALS Understand the importance of studying
marketing.Explain what marketing is and describe
important marketing functions.Define marketing.
MARKETINGChapter 1
10
Why Study Marketing?
Where does marketing take place?All types of businesses use marketing
MARKETINGChapter 1
11
Businesses Directly Involved in Marketing
Advertising agenciesMarketing research firmsImport/export officesFreight companiesFinance and credit firmsTelemarketersTravel agencies
MARKETINGChapter 1
12
Businesses with Major Marketing Activities
RetailersManufacturersBanksReal estate agenciesInsurance companiesAutomobile dealersFarmers and ranchers
MARKETINGChapter 1
13
Businesses with Limited Marketing Role
Law officesMedical centersAccounting firmsGovernment agenciesUniversitiesConstruction businessesPublic utilities
MARKETINGChapter 1
14
What Is Marketing?
Marketing functionsCompanies use the
marketing functions
MARKETING FUNCTIONSMarket planningProduct/service managementDistributionPricingPromotionSellingMarketing-information managementFinancingRisk management
MARKETINGChapter 1
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9 Marketing Functions
Market PlanningIdentifying and understanding the markets
a company wants to serve and developing effective marketing strategies for each market.
MARKETINGChapter 1
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9 Marketing Functions
Product and Service ManagementAssisting in the design and development of
products and services to meet the needs of prospective customers.
MARKETINGChapter 1
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9 Marketing Functions
DistributionDetermining 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.
MARKETINGChapter 1
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9 Marketing Functions
PricingEstablishing and communicating the value
of products and services to prospective customers.
MARKETINGChapter 1
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9 Marketing Functions
PromotionCommunicating information to prospective
customers through advertising and other promotional methods to encourage them to purchase the organization’s products and services.
MARKETINGChapter 1
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9 Marketing Functions
SellingDirect, personal communications with
prospective customers in order to assess needs and satisfy those needs with appropriate products and services.
MARKETINGChapter 1
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9 Marketing Functions
Marketing-Information ManagementObtaining, managing and using market
information to improve decision making and the performance of marketing activities.
MARKETINGChapter 1
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9 Marketing Functions
FinancingBudgeting for necessary financing, and
providing financial assistance to customers to assist them with purchasing products and services.
MARKETINGChapter 1
23
9 Marketing Functions
Risk ManagementProviding security for products, personnel,
and customers and reducing the risk associated with marketing decisions and activities.
MARKETINGChapter 1
24
What Is Marketing?
Marketing functionsCompanies use the
marketing functions
MARKETING FUNCTIONSMarket planningProduct/service managementDistributionPricingPromotionSellingMarketing-information managementFinancingRisk management
MARKETINGChapter 1
25
Defining Marketing
Marketing is the creation and maintenance of satisfying exchange relationships.
MARKETING
Why Study Marketing?
Marketing plays an important role in business operations
It is essential to the success of manufacturers, retailers, government agencies, hospitals, law offices, schools, and churches
All marketing activities should be directly related to the needs of customers.
MARKETINGChapter 1
27
BUSINESSES NEED MARKETING
GOALSExplain why businesses need
marketing.Understand how marketing developed
as a part of business.Describe the functions of business.
1-2
MARKETINGChapter 1
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The Need for Marketing
People believe that if a business offers a good product, marketing is not necessary.
MARKETINGChapter 1
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The Need for Marketing
If the customer does not know about the product, does not know where to purchase it, is unable to get to the place where it is sold, cannot afford the price being charged, or does not believe it is a good value, the product will not be purchased.
MARKETINGChapter 1
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The Need for Marketing
Marketing must be carefully planned.Marketing must be coordinated with
other business activities.
MARKETINGChapter 1
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The Development of Marketing in Business
Self-SufficientBarteringSpecialization of LaborMoney SystemsCentral MarketsOther Marketing Activities
MARKETINGChapter 1
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The Development of Marketing in Business
Self SufficientYou do not rely on other for the things you
need to survive.
MARKETINGChapter 1
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The Development of Marketing in Business
BarteringExchanging products or services with
others by agreeing on their values.
MARKETINGChapter 1
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The Development of Marketing in Business
Specialization of LaborConcentrating on one thing or a few related
activities so that they can be done well.
MARKETINGChapter 1
35
The Development of Marketing in Business
Money SystemsEstablished the use of currency as a
recognized medium of exchange.
MARKETINGChapter 1
36
The Development of Marketing in Business
Central MarketsA location where people bring products to
be conveniently exchanged.
MARKETINGChapter 1
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The Development of Marketing in Business
Other Marketing ActivitiesBusiness formed to purchase products from
producers and hold them for sale to purchasers as needed.
Loan money to buyers or sellers.Help with transportation of products.Locate products that were not available in
the market but that customers wanted.
MARKETINGChapter 1
38
The Functions of Business
ProductionOperationsAccounting and FinanceManagement and AdministrationMarketingCoordination of Business Functions
MARKETINGChapter 1
39
The Functions of Business
ProductionCreates or obtains products or services for
sale.Raw Materials Processing AgricultureManufacturingServicesMerchandising
MARKETINGChapter 1
40
The Functions of Business
OperationsOngoing activities designed to support the
primary function of a business and keep it operating efficiently.
MARKETINGChapter 1
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The Functions of Business
Accounting and FinancePlans and manages financial resources
and maintains records and information related to a business’s finances.
Capital, Budgets, Funding
MARKETINGChapter 1
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The Functions of Business
Management and AdministrationInvolves developing, implementing, and
evaluating the plans and activities of a business.
MARKETINGChapter 1
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The Functions of Business
Coordination of Business FunctionsEach of the functions of an effective
business depends on the other functions.
MARKETINGChapter 1
44
UNDERSTANDING THEMARKETING CONCEPT
GOALS Define the marketing concept.Determine how businesses implement
the marketing concept.
1-3
MARKETINGChapter 1
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Early Marketing…….NOT
Early 1900s, business were mostly concerned about producing products that the business believed customers could afford and would purchase.
Businesses concentrated on production and seldom had to worry about marketing.
The primary challenge to the sale of more products was to be able to deliver them to a larger number of customers.
MARKETINGChapter 1
46
The Marketing Concept
Satisfying customer needsThe consequences of not satisfying
customer needs
MARKETINGChapter 1
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Elements of the Marketing Concept
Identify needs of
customers
Develop and
market products
or services
Operate a business profitably
MARKETINGChapter 1
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The Marketing Concept
Satisfying customer needsThe consequences of not satisfying
customer needs (cars, clothing)
MARKETINGChapter 1
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Implementing the Marketing Concept
Identify the market (Step 1)
Develop a marketing mix (4 P’S) (Step 2)ProductDistribution or PlacePricePromotion
MARKETINGChapter 1
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Implementing the Marketing Concept
ProductIs anything offered to a market by the
business to satisfy needs, including physical products, services, and ideas.
MARKETINGChapter 1
51
Implementing the Marketing Concept
Distribution or PlaceIncludes the locations and methods used to
make the product available to customers.
MARKETINGChapter 1
52
Implementing the Marketing Concept
PriceIs the amount that customers pay and the
methods of increasing the value of the product to the customers.
MARKETINGChapter 1
53
Implementing the Marketing Concept
PromotionIncludes the methods used and information
communicated to encourage customers to purchase and to increase their satisfaction.
MARKETINGChapter 1
54
Implementing the Marketing Concept
Marketing MixThe blending of the four marketing
elements, product, distribution (place), price, and promotion to product a profitable business.
MARKETINGChapter 1
55
Implementing the Marketing Concept
Identify the market (Step 1)
Develop a marketing mix (4 P’S) (Step 2)Product - BIKEDistribution or PlacePricePromotion
MARKETINGChapter 1
56
THE CHANGINGROLE OF MARKETING
GOALS Describe how businesses approach
marketing differently today than they did in the past.
Summarize how marketing is changing in businesses and other organizations.
1-4
MARKETINGChapter 1
57
The Changing Approachto Marketing
Production emphasisSales emphasisMarketing department emphasisMarketing concept emphasis
MARKETINGChapter 1
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Production Era
• Emphasis on producing and distributing new products
1900s–1920s
Sales Era
• Emphasis on using advertising and salespeople to convince customers to buy a company’s products
1930s–1940s
Marketing Department Era
• Emphasis on developing many new marketing activities to sell products
1950s–1960s
Marketing Concept Era
• Emphasis on satisfying customers’ needs with a carefully developed marketing mix
1970s–Today
MARKETINGChapter 1
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Improving the Marketing Concept
Relationship MarketingEmployee Empowerment
MARKETINGChapter 1
60
Improving the Marketing Concept
Relationship MarketingFocuses on developing loyal customers
who continue to purchase from the business for a long period of time
People buy from people/business they trustRetaining customers so they continue to
purchase from you can increase profits by 20 to 50 percent.
MARKETINGChapter 1
61
Improving the Marketing Concept
Employee EmpowermentAn approach to customer service that gives
employees the authority to solve many customer problems
MARKETINGChapter 1
62
The Changing View of Marketing
Marketing in other organizationsMarketers’ roles today