Why do we need Marketing?

1. Why do we need Marketing?

2. All Types of Businesses Use Marketing • Direct Marketing Activities: • Advertising agencies • Market research firms • Trucking companies • Major Marketing Activities: • Retailers • Manufacturers • Real estate agents • Limited Marketing Activities: • Law offices • Physicians • Universities

3. Marketing is all around you… • You make marketing decisions everyday • Cash • Credit cards • Home delivery • Store pickup • Internet purchases • Effective advertising

4. Basic Internet Business Models • Selling businesses and services on-line • Providing access to an audience • Selling admissions

5. What is Marketing? • Product/Service Management • Distribution • Selling • Marketing-Information System • Financing • Pricing • Promotion

6. Marketing • The creation and maintenance of satisfying exchange relationships • “the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges that satisfy individual and organizational objectives” AMA • Everything that goes into getting goods, services, and ideas from the producer to the consumer

7. Marketing Mix • Product-good, service, idea • Place-where sold and how it gets there • Price-everything that goes into the amount a consumer pays and how they pay for it • Promotion-anything that is done to communicate product information to a consumer

8. The Need for Marketing • Past View: simple set of activities that would help a business sell its products • Today’s view: businesses utilize the marketing concept which is using the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product and service

9. Development of Business • Self-sufficient: do not rely on anyone else to survive • Bartering: exchanging products or services with others by agreeing on their value • Specialization of Labor: concentrating on one or a few related activities so they can be done well • Money system: established the use of currency as a recognized medium of exchange • Central Markets: location where people bring products to be conveniently exchanged • Other Marketing Activities: support businesses to make the exchange process more efficient

10. The Functions of Business • Production: creates or obtains products or services for sale • Raw materials (mining, logging) • Processing (oil refining, paper manufacturing) • Services (hair, nail, tanning) • Merchandising (retailers, wholesalers) • Operations: on-going activities designed to support the primary function of a business and to keep it operating efficiently • Accounts and Finance: plans and manages financial resources and maintains records and information related to the business’ finances

11. The Functions of Business • Management and Administration: developing, implementing, and evaluating the plans and activities of a business • Marketing: all business activities to make a product or service available to consumers and to ensure effective exchanges occur

12. Coordination of the Functions of Business • Each function of business is dependent upon the other functions of the business • What would happen if a business was not successful in coordinating all aspects of the business operation? • Examples?