Marketing is Marketing is All Around UsAll Around Us

Marketing Concept

The idea that a business should strive to satisfy customer’s needs and wants while

generating a profit

What is Marketing?What is Marketing?

Marketing is a process of developing, Marketing is a process of developing, promoting, and distributing promoting, and distributing productsproducts to satisfy customers needs and to satisfy customers needs and wants.wants.

ProductsProducts include include goods and servicesgoods and services, , both of which have monetary value and both of which have monetary value and satisfy customerssatisfy customers’’ needs and wants. needs and wants.

What constitutes a goodWhat constitutes a good

Anything you can touch or hold in your Anything you can touch or hold in your hand. hand.

Examples: Examples:

• HammersHammers, ,

• AutomobilesAutomobiles, ,

• Soft drinksSoft drinks, ,

• ClothingClothing

• and Computersand Computers

So then what is a service?So then what is a service?

Services are the kinds of things you canServices are the kinds of things you can’’t t physically touch. Services are tasks physically touch. Services are tasks performed for a customer. performed for a customer.

Examples:Examples:

• DryDry cleaningcleaning

• Amusement parksAmusement parks

• Income tax preparersIncome tax preparers,,

• And MoviesAnd Movies

Can you pick which ones are Can you pick which ones are goods/services?goods/services?

Basketball GameBasketball Game G or SG or S

HaircutHaircut G or SG or S

Ski CoatSki Coat G or SG or S

SodaSoda G or SG or S

Bungee JumpingBungee Jumping G or SG or S

StaplerStapler G or SG or S

Tennis ShoesTennis Shoes G or SG or S

ManicureManicure G or SG or S

7 Functions of Marketing7 Functions of Marketing

MarketingMarketing FunctionsFunctions

MarketingMarketing

InformationInformation

ManagementManagement

PromotionPromotion

Product/ServiceProduct/ServiceManagementManagementSellingSelling

PricingPricing

DistributioDistributionn

FinancingFinancing

Product/Service Management FunctionProduct/Service Management Function

Finding, developing, maintaining and Finding, developing, maintaining and improving a product or product mix to improving a product or product mix to meet consumer needs/wantsmeet consumer needs/wants

• Market research determines new ways Market research determines new ways to use existing items or find new ones to use existing items or find new ones that will continue to interest the that will continue to interest the consumer.consumer.

Distribution FunctionDistribution Function

Methods of physically moving and storing Methods of physically moving and storing goods.goods.

• Distribution technology allows businesses to Distribution technology allows businesses to track and monitor merchandise all the way track and monitor merchandise all the way from the manufacturer to the retail outlet to from the manufacturer to the retail outlet to the customer.the customer.

Pricing FunctionPricing Function

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

• How much are customers willing to pay?How much are customers willing to pay?

Marketing-Information Management Marketing-Information Management FunctionFunction

Market Research- Gathering, storing and Market Research- Gathering, storing and analyzing information about customers and analyzing information about customers and competing productscompeting products

• QuestionnairesQuestionnaires• SurveysSurveys• Feedback formsFeedback forms

To determine habits, attitudes and trends in the To determine habits, attitudes and trends in the marketplacemarketplace

PromotionPromotion FunctionFunction

Promotion is the communication technique Promotion is the communication technique a business uses, such as advertising a business uses, such as advertising and other promotional methods, to and other promotional methods, to interest customers in buying the interest customers in buying the products.products.

SellingSelling FunctionFunction

The selling function involves the direct The selling function involves the direct personal contact that businesses have personal contact that businesses have with their customers.with their customers.

• Sales personnel must be able to Sales personnel must be able to communicate the benefits and communicate the benefits and

features of the items so that customers features of the items so that customers are willing to pay are willing to pay

higher prices.higher prices.

Financing Function $$$The financing function is how a business gets the money that is necessary to set up and run that business.

•Bank loans

•Selling shares of stock

Financing also includes decisions on how the customer will pay for

your good/service

•Payment options