Marketing is All Around Us

Marketing is All Around Us Intro to Marketing

Objectives: • Describe market share • Define and analyze a target market • Explain the economic value and benefits of marketing • State the marketing concept

Marketing Is All Around Us What is marketing? Everyday we are subjective to thousands of marketing messages.

Defining Marketing Marketing is the process of developing, promoting, and distributing products to satisfy customers’ needs and wants.

Goods Things that you can touch or hold in your hand. These are tangible items. Services: Things you can’t physically touch. Services are performed for a customer. Products Include Goods & Services:

Examples of Goods: • Car • Clothes • Jewelry • Electronics • Food & Beverages • Tools • CD’s

Examples of Services: • Car Wash • Dry Cleaning • Massage • Hair Cut • Movie Theatres • Amusement Parks • Dog Walker • Gardener

Marketplace The commercial environment where exchange is made. • Examples • Stores • Internet (E bay; store sites) • Street vendors • T.V (shopping networks)

Foundations of Marketing • Business, Management, Entrepreneurship • Communication and Interpersonal Skills • Economics • Professional Development

Functions of Marketing All the activities that you encounter daily can be classified into the 7 functions of marketing: • Distribution (Channel Management) • Financing • Marketing-Information Management • Pricing • Product/Service Management • Promotion • Selling

Distribution(Channel Management) • Involves deciding where and to whom products will be sold in order to reach final users or consumers. • The logistics of physically moving and sorting the goods. • Truck • Plane • Train • Ship

Financing Getting the necessary money to pay for the operation of a business. • Cash • Loan • Credit cards • Partners

Marketing Information Management Information obtained through market research. • Surveys • Telephone interviews • Questionnaires

Pricing Deciding how much to charge for goods and services in order to maximize profits.

Product/Service Management Developing, maintaining and improving a product or product mix in response to market opportunities.

Promotion Communicating with potential customers to inform, persuade, remind them about a business’s product. Promotion

Selling Providing customers with goods and/or services they want

Marketing Functions Financing Pricing Marketing-Information Management Product/Service Management Promotion Distribution Selling Producers Consumers

Marketing-Information Management Selling Financing Professional Development Economics Distribution Business, Management, Entrepreneurship Communication, Interpersonal Skills Pricing Product/ Service Management Promotion

Marketing is All Around Us Intro to Marketing DAY 2

Economic Utilities Why It's Important By understanding the benefits of marketing, you will see how the functions of marketing add value to products. You will also see how marketing activities lead to lower prices and new and improved products.

Economic Benefits of Marketing • New & Improved Products • Lower Prices • Added Value

New & Improved Products Example: Personal computers have become smaller, more powerful, and less expensive through competition between makers.

Lower Prices Quality Fixed Cost Produced Per Unit 10,000 $2.00 ($20,000 ÷ 10,000) 20,000 .10 ($20,000 ÷ 200,000)

Added Value

Economic Utilities The functions of marketing add value to a product. That added value in economic terms is called utility.

Five Economic Utilities • Form Utility • Place Utility • Time Utility • Possession Utility • Information Utility

Form Utility Involves changing raw materials or putting parts together to make them more useful. It deals with making, or producing things. Example: The parts of a lounge chair—the wood frame, the fabric, the glue and nails, and the reclining mechanism—are less useful by themselves. Putting them together adds form utility.

Place Utility Having a product where customers can buy it. Example: Selling directly to the customer through catalogs.

Time Utility Having a product available at a certain time of the year or a convenient time of day. Example: Retailers offer large supplies of backpacks in the late summer, near the beginning of the school year.

Possession Utility The exchange of a product for some monetary value. In the sales transaction, the customer pays (with cash, check, credit card or debit card) and takes possession of it. Example: Taking credit cards and checks rather than just cash enables customers to buy products.

Information Utility Communication with the consumer. To encourage sales, retailers may feature information about products and special offers and inform potential customers through ads, signs or displays. Example: Salespeople explain features of products. Example: Packaging explains qualities and uses. Example: Advertising informs consumers about products.

Marketing is All Around Us Intro to Marketing Careers in Marketing

Careers in Marketing • Careers in Marketing include all the activities required to plan, develop, promote and distribute goods and services to consumers. • Marketing activities account for 1:3 jobs in the U.S.

Careers in Marketing Employment Trends*: Employment in Marketing & Sales is projected to increase 20.6% Employment in service-related industries is expected to increase 33.4% *Bureau of Labor Statistics

Careers in Marketing Benefits of a Marketing Career • The opportunity to make an above-average income. • Most jobs in marketing, especially those beyond entry-level positions, are interesting and varied. • You will usually have more opportunities to advance in a marketing career than in almost any other area of business.

Careers in Marketing • Benefits: privileges, or monetary payments beyond salary or wages, that go with a job: • Company Car • Expense Account • Bonuses

Careers in Marketing Occupational Area: Category or jobs that involve similar skills and aptitudes: • Advertising --International Marketing • Customer Service --Marketing Research • E-Commerce --Product Management • Entrepreneur --Professional Sales • Fashion Merchandising --Public Relations • Financial Services --Real Estate • Food Marketing --Restaurant Management • Hospitality Marketing --Sales Management • Importing/Exporting --Service Marketing • Sports Marketing --Travel/Tourism Marketing

Careers in Marketing Job Levels in Marketing Entry-level jobs usually require no prior experience and involve limited decision-making skills. Career sustaining jobs require a higher level of skill and more decision making. Slide 1 of 3

Careers in Marketing Job Levels in Marketing Marketing specialist employees must show leadership ability and make many decisions on a daily basis. Marketing supervisors must have good management skills, the ability to make many decisions on a daily basis, and excellent marketing skills. Manager/owners are competent to run a small business or a significant part of a large business.

Thinking Critically Discuss how the marketing skills you would learn in a fast-food restaurant could be transferred to an industrial sales position.

Fact and Idea Review Using a ball point pen as an example, explain the concept of form utility.

Thinking Critically When handheld calculators were introduced, they sold for $100. As they become popular, more companies introduced better and less expensive ones. Now you can purchase a handheld solar for as little as $1. Provide example of other products that were more costly when they were first put on the market than they are now.

Role Play#1: STORE MANAGER Situation: You are to assume the role of manager of a local supermarket. A disgruntled customer (judge) complains to you about how manufacturers and retailers waste money on marketing. The customer (judge) thinks retail prices could be significantly reduced if manufacturers spent less money on marketing their products.

Role Play #2: Marketing Intern Situation: You are to assume the role of intern in the marketing department of the Easy Store Corporation, a large company that produces cardboard and plastic storage containers. The company recently appointed a new CEO who was hired to reduce costs and increase profit margins. As a result, the CEO is taking a close look at all departments, including the marketing department. Your supervisor (judge) is the head of the marketing department. Your supervisor (judge) will meet with the new CEO to justify the activities of the marketing department, and has asked you to gather some ideas to aid in this endeavor.

Marketing is All Around Us