Marketing is All Around Us Intro to Marketing. Objectives: Describe market share Define and analyze a target market Explain the economic value and benefits.

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.

Products Include Goods & Services:

• 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.

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

ProducersProducers ConsumersConsumers

FinancingPricingMarketing-Information ManagementProduct/Service ManagementPromotionDistributionSelling

Professional Development Economics

Business, Management, Entrepreneurship

Communication, Interpersonal Skills

Marketing-Information Management

Financing

Pricing

Promotion

Product/ Service Management

Distribution

Selling

Marketing is All Around Us

Intro to Marketing

DAY 2

Economic UtilitiesEconomic Utilities

Why It's ImportantWhy 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

1. Form Utility

2. Place Utility

3. Time Utility

4. Possession Utility

5. 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 UtilityCommunication 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 MarketingCareers in Marketing

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.

Benefits of a Marketing Career

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 MarketingCareers 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.

Job Levels in Marketing

Slide 1 of 3

Careers in MarketingCareers 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.

Job Levels in Marketing

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.