Marketing
and the
Chapter
1 Marketing
Concept
Marketing Is All Around Us
• Section 1.1 Marketing and the Marketing Concept
• Section 1.2 The Importance of Marketing
• Section 1.3 Fundamentals of Marketing
Marketing and the Marketing Concept
LESSON 1.1
Key Terms
marketing
goods
services
marketing
concept
Marketing and the Marketing
Concept
Objectives




Define marketing
Explain the four foundations of marketing
List the seven functions of marketing
Understand the marketing concept
Marketing Essentials Chapter 1, Section 1.1
Market
• List as many words as you can think of with the
word “market” in it.
Answers:
• What is a market?
Answers:
Marketing?
If a market is a place where you buy, sell or exchange
something (for money or not), what is Marketing?
• Marketing: The process of planning, pricing,
promoting, selling, and distributing products
(ideas, goods, or services) to satisfy customers’
needs and wants.
– Note: marketing is a process = ongoing and changes
The Scope of Marketing
marketing
The process of
planning, pricing,
promoting,
selling, and
distributing
products to
satisfy
customers’ needs
and wants.
You have already participated in the marketing X
process as a consumer. By studying marketing,
you will start to think like a marketer. As a
marketer, you need to keep up with:
 Trends
 Consumer attitudes
 Customer relationships
Marketing Essentials Chapter 1, Section 1.1
Marketing
• What three products can be marketed?
– Goods
– Services
– Ideas
goods
Tangible items of
monetary value
that satisfy
customer needs
and wants.
services
Intangible items
of monetary
value that satisfy
customer needs
and wants.
Goods : tangible items of monetary value that
satisfy customer needs and wants:
Examples of marketed goods X include:
 Cars
 Electronics
 Home furnishings
 Food
Services: Intangible (can’t touch) items of
monetary value that satisfy customer needs &
wants
Examples of services X that may be marketed
are:
 Automotive repair
 Hair styling
 Legal aid
 Financial consulting
Ideas, Goods, and Services
Marketing promotes ideas, goods,
and services.
Examples of ideas that might be
marketed are:
• A candidate’s political platform
• A public service initiative, such as
don’t text and drive, don’t smoke
or stay in school
What idea is the ad promoting?
This ad promotes the idea of a healthy diet
that includes dairy products
The marketplace is the commercial environment in which
buying and selling (or exchanges) take place.
What are examples of marketplaces:
 Shops (brick & mortar)
 Internet stores
 Financial institutions
Marketing Essentials Chapter 1, Section 1.1
Marketing and the Marketing Concept
Study Organizer
Use the umbrella shape on your notes to organize the
marketing concepts you will learn about in this section.
Marketing Essentials Chapter 1, Section 1.1
Seven Functions of Marketing
1.
Channel Management/Distribution - process of
deciding how to get goods into customer’s hands.
How can you get your goods to customers?
•
•
•
2.
Moving - air, trains, trucks, ship
Storage – Some companies store in local warehouses
Computer systems - required to track inventory
Market Planning
understand concepts and strategies used to develop and
target specific marketing strategies to a select audience
• Designing data-collection processes, collection analysis,
and presentation of data to create a market plan
Marketing Essentials Chapter 1, Section 1.1
Seven Functions of Marketing
Can you just create a product, slap any old price on it, and
expect everyone to buy it?
3.
Marketing information management process of
gathering, storing, and analyzing information on
customers, trends, and competitor products to target
a specific market
• continually conduct research and surveys on
customer habits, attitudes, where live, and
marketplace trends.
4.
Pricing what you charge for goods and services to
make a profit (initial and sales price decisions)
What should drive your decision on what to charge?
•
•
What competitors are charging
What are customers willing to pay
Seven Functions of Marketing
5.
Product/service management obtaining,
developing, maintaining, and improving a product or
service that customers want and need
• Create new products to the market
• Upgrade, and improve your existing products
Name a product you own that has been updated with
new features that you want/bought the new version?
i.e. cell phones, i-pods, software, etc…
• Do things better, faster, and more efficiently than
the competition!
Seven Functions of Marketing
6.
Promotion informing, persuading, and reminding
customers about a product or service
What are some ways you do this?
Students:
Answers: TV, Radio, Social Media, Pop-up menus, phone calls, mail
7.
Selling providing customers with goods and
services they want including:
Customer Direct – selling to you the customers in
retail markets (stores & internet)
Business to Business – markets of customers that
include Wholesalers, retailers, or manufactures
Seven Functions of Marketing
In Marketing, you want to do things better,
faster, and more efficiently than the
competition!
• The move toward same-day fulfillment is
gaining speed across the Internet as
e-tailers compete for customers
• What has been the main focus of each
of our 7 functions of Marketing?
– Customers
– What are their wants and needs!!!!
The Marketing Concept
marketing
concept
exploring, creating,
and delivering
value different
than competitors
to satisfy the needs
of a target market
(customer) at a
profit
The marketing concept X is the idea that a
business should focus on satisfying the needs and
wants of customers at a profit
Video (play through 1.40)
For a business to be successful, all employees
must:
 Understand the marketing concept
 Provide the best possible service to customers
Marketing Essentials Chapter 1, Section 1.1
The Marketing Concept
Customer Relationships is most important to businesses in the
21st Century:
Customer relationship management (CRM) combines:
 Customer information
 Marketing communications
CRM uses technology to organize and automate customer
information to create meaningful marketing communications
The goal of CRM is to establish strong, long-term relationships
with customers:
-find, attract, and win new clients
- nurture and retain those the company already has
- entice former clients back into the fold
-reduce the costs of marketing and client service
-Use emails and social networking to communicate promotions/events
•
•
•
•
•
•
•
Channel Management
Market Planning
Market Information Management
Pricing
Product/Service Management
Selling
Promotion
Lesson 1-1 Review
Complete Discovery Project Worksheet, page 2
Marketing Madness:
In a short paragraph, define in your own words
what the three functions, pricing, promotion,
and selling are and how they differ. What key
component do they all have in common?