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Business Administration LAP 11Business Administration LAP 11

ObjectivesObjectives

Explain the concept of marketing.Explain the concept of marketing.

Explain the nature of the marketing Explain the nature of the marketing concept.concept.

Explain how marketing affects our society.Explain how marketing affects our society.

Objective AObjective A

Explain the conceptExplain the conceptof marketing.of marketing.

• You may not think you have anything to do You may not think you have anything to do with marketing. But you do!with marketing. But you do!

If you’ve ever. . .

Planned acar-wash fund-raiser

Negotiated alower pricefor a garage

sale item

Handed outflyers for aclass-officecandidate

Delivered candyto someone

sponsoring yourathletic event

. . . then you’ve been involved in marketing.

• Marketing is all around you. You can’t get away Marketing is all around you. You can’t get away from it.from it.

Marketing is defined Marketing is defined as . . .as . . .

the process of planning the process of planning and executing the and executing the conception, pricing, conception, pricing, promotion, and promotion, and distribution of ideas, distribution of ideas, goods, and services to goods, and services to create exchanges that create exchanges that satisfy individual and satisfy individual and organizational objectives.organizational objectives.

It connects producers to the customersIt connects producers to the customerswho buy their products.who buy their products.

CustomersCustomersProducersProducers

It encompasses everything that happens before a It encompasses everything that happens before a customer makes a purchase.customer makes a purchase.

Where does marketing take place?Where does marketing take place?

Everyday placesEveryday places

Marketing occurs wherever customers are.Marketing occurs wherever customers are.

The goods and The goods and services which services which support customers’ support customers’ lifestyles and meet lifestyles and meet businesses’ needs businesses’ needs are found in the . . .are found in the . . .

schools,schools,businesses,businesses,and shops in their and shops in their neighborhood.neighborhood.As online purchases become more popular, the community As online purchases become more popular, the community

marketplaces gain eager competitors from around the marketplaces gain eager competitors from around the nationnation——even from around the world.even from around the world.

What items are marketed?What items are marketed?Broad categoriesBroad categories

GoodsGoods

DurableDurable

Nondurable Nondurable

Almost anything can be marketed.Almost anything can be marketed.

ServicesServices

OrganizationsOrganizations

PlacesPlaces

IdeasIdeas

PeoplePeople

Economic Goods & ServicesEconomic Goods & Services• Economic good:Economic good:

Physical (tangible) objectPhysical (tangible) object

Useful (able to satisfy Useful (able to satisfy human wants)human wants)

Scarce (limited)Scarce (limited)

TransferableTransferable

• Economic service:Economic service: Productive act that satisfies an Productive act that satisfies an

economic wanteconomic want

Same characteristics as Same characteristics as economic goods economic goods except except intangibleintangible

Consumer and Industrial ProductsConsumer and Industrial Products

• Consumer products—All economic Consumer products—All economic goods and services purchased and goods and services purchased and used by the ultimate consumer (final used by the ultimate consumer (final user)user)

Examples:Examples: FoodFood

GasGas

SunglassesSunglasses

Consumer and Industrial ProductsConsumer and Industrial Products

• Industrial products—All economic Industrial products—All economic goods and services purchased by goods and services purchased by producers:producers:

For resaleFor resale

To make other goods To make other goods and servicesand services

For use in business operationsFor use in business operations

Examples:Examples: BuildingsBuildings

EquipmentEquipment

Office suppliesOffice supplies

Objective BObjective B

Explain the nature of the Explain the nature of the marketing concept.marketing concept.

The Marketing ConceptThe Marketing Concept

A philosophy of conducting business that is A philosophy of conducting business that is

based on the belief that all business activities based on the belief that all business activities

should be aimed toward satisfying consumer should be aimed toward satisfying consumer

wants and needs while achieving company goalswants and needs while achieving company goals

Note the Note the customer’s point customer’s point

of view first, of view first, before making before making any marketing any marketing

decisions.decisions.

You should then have You should then have a better idea of what a better idea of what the customer wants the customer wants

and needs and needs and and a better a better idea of how to fulfill idea of how to fulfill

those needs.those needs.

Three themes of the marketing concept:Three themes of the marketing concept:

Customer orientation: Customer orientation: Do it their way.Do it their way.

Old thinkingOld thinking——Persuading Persuading the customer that s/he the customer that s/he needs a good or service needs a good or service that has already been that has already been producedproduced

Customer orientationCustomer orientation——Find out what your customers Find out what your customers want and provide them with it.want and provide them with it.

Objective CObjective C

Explain how marketing affects Explain how marketing affects our society.our society.

Marketing fits into every facet of ourMarketing fits into every facet of ourlives whether on a global scale or rightlives whether on a global scale or right

in our own neighborhoods.in our own neighborhoods.

In our communityIn our community——Every day you come Every day you come across marketing activities that can across marketing activities that can

influence your decisions.influence your decisions.

SignsSignsStoresStoresDiscount couponsDiscount couponsTrucks transporting goodsTrucks transporting goodsStorage warehousesStorage warehouses

When you run When you run out of milk,out of milk,

you go to the you go to the corner store.corner store.

When an ice-cream truck turns down your When an ice-cream truck turns down your street, you suddenly want a cool snackstreet, you suddenly want a cool snack.