CONTENT/TEACHING OUTLINE COMPETENCY: 2.00 Understand marketing foundations. OBJECTIVE: 2.01 Recognize the importance of marketing. A. Recognize marketing. 1. Marketing: The process of developing, promoting, pricing, selling, and distributing products to satisfy customer’s wants and needs. Marketing involves all the activities necessary to get a product from the manufacturer to the consumer. a. Wants: Not a necessity, a desire. For example, a sports car versus an economical car. b. Needs: A necessity for living. For example, clothing, food, and shelter. 2. Target market: The group of consumers a business desires to have as customers. For example, the target market for Disney DVDs is families with children under the age of 12. a. Consumer: The person who uses the product. For example, Carrie buys denture cream toothpaste for her grandmother to use. Her grandmother is the consumer for this product, while Carrie is the customer. b. Customer: The person who purchases the product. For example, Alyssa buys chicken and steak at the grocery store this week to cook for her family’s dinner. Alyssa will not eat the chicken or steak because she is a vegetarian. Alyssa’s family is the consumer, while Alyssa is the customer. c. In many cases, the customer is also the consumer. For example, Tracey purchases and uses Tide detergent. 3. Products include both goods and services. a. Goods: Tangible items that satisfy customer’s needs and wants. For example, television, car, and clothing. b. Services: Intangible items that satisfy customer’s needs and wants. For example, admission to an amusement park, getting a haircut, and seeing a movie. B. Recognize the marketing concept. 1. Marketing concept: A business approach that directs all marketing efforts towards satisfying customer’s wants and needs. 2. By offering goods and services that consumers want, businesses will make a profit. The marketing concept recognizes the importance of establishing and maintaining relationships with consumers. C. Recognize the benefits of marketing. 1. New and improved products. a. Businesses create new products and improve existing products to maintain their current customers or attract new ones. b. For example, Oakley Sunglasses has introduced their new “Thump” glasses that are the first digital music eyewear. No more wires, the music is attached to the sunglasses. 2. Lower prices. Marketing Summer 2006 19 CONTENT/TEACHING OUTLINE COMPETENCY: 2.00 Understand marketing foundations. OBJECTIVE: 2.01 Recognize the importance of marketing. a. Lower prices benefit customers while businesses benefit by selling more product at the lower price. b. For example, when DVD players were first introduced, they were expensive and few sold. As prices dropped, more customers purchased them. D. Recognize SWOT analysis. 1. SWOT analysis: The acronym for strengths, weaknesses, opportunities, and threats. A SWOT analysis reviews the potential for success or failure of a business or product. 2. Businesses must continually review internal strengths and weaknesses. For example, McDonalds introduced the fruit cup as an alternative to fries. After one month of its introduction, McDonalds evaluated the strengths and weaknesses of the product. 3. Opportunities and threats are external factors that will also affect operating the business. For example, staying abreast of what current products are offered by competitors. For example, when Coke introduced its new product, Vault, Pepsi suffered a decrease in sales for its existing product Mountain Dew. Marketing Summer 2006 20 CONTENT/TEACHING OUTLINE COMPETENCY: 2.00 Understand marketing foundations. OBJECTIVE: 2.01 Recognize the importance of marketing. Teacher Resources Activity 1 Have students on an 8 ½ x 11 piece of white paper make a collage. Students should divide the piece of paper into six sections, labeling the sections wants, needs, consumer, customer, goods, and services. Students may either draw or obtain pictures from magazines, newspapers, the Internet, or clipart of three examples of each term. Activity 2 Teacher note: Present this thought to your students. “Children (consumers) watching television commercials during their favorite cartoons view cereals being advertised. But, it is their parents (customer) who go to the grocery store and buy the cereal.” Have students create a new cereal that would appeal to both the consumer and the customer of the cereal. Activity 3 On the overhead, board, or projector, display the following retailers and markets: Bass Pro Shop Hollister K and W cafeteria A Pea in the Pod (maternity) Toys R Us Dick’s Sporting Goods Michael’s Pregnant woman Fishing and water enthusiast Families with small children Sporting enthusiast Females who enjoy crafts Senior citizens Teenagers and college students Have students match the retailer with their target market. Next, have students identify 10 OTHER stores and their target market. KEY Bass Pro Shop Hollister K and W cafeteria A Pea in the Pod (maternity) Toys R Us Dick’s Sporting Goods Michael’s Fishing and water enthusiast Teenagers and college students Senior citizens Pregnant woman Families with small children Sporting enthusiast Females who enjoy crafts Marketing Summer 2006 21 CONTENT/TEACHING OUTLINE COMPETENCY: 2.00 Understand marketing foundations. OBJECTIVE: 2.01 Recognize the importance of marketing. Activity 4 Have students either make flashcards with the terms and/or have students draw; cut out of magazines and newspapers; or use clipart to visually represent each term. Activity 5 Teacher note: Take a sheet of paper and treating it as a jigsaw puzzle, cut it into five pieces. Label each of the five pieces as “developing, promoting, pricing, selling, distributing.” Have students select one piece of the jigsaw and illustrate their component of marketing by either drawing or obtaining pictures from magazines, newspapers, the Internet, or clipart. Next, have students find and match the other four components of marketing with classmates and put the puzzle back together using glue and a larger size piece of paper. Once put back together, students are to label the entire puzzle Marketing. Activity 6 Teacher note: The following may be placed on the board, overhead projector or projected using the LCD. Have students answer individually and be ready to present their answers to the class. Students should keep the marketing concept in mind while using the following scenarios to identify what product could solve the customer’s dilemma: Mr. Jones’ desk is very disorganized with papers, pens, paper clips, and post-it notes. He wishes his desk could be more organized. Athletes become frustrated keeping their MP3 players and their sunglasses on their head at the same time. Mary enjoys shopping at her neighborhood grocery store, but with her broken leg, it is becoming more difficult carrying her groceries to her car. Teacher note: After students have individually answered and presented their answers, ask the following, “Do you agree or disagree with the following statement and why? By offering goods and services that consumers want, businesses will make a profit. Defend your answer.” This may be completed as a group discussion or in small groups. Marketing Summer 2006 22 CONTENT/TEACHING OUTLINE COMPETENCY: 2.00 Understand marketing foundations. OBJECTIVE: 2.01 Recognize the importance of marketing. Activity 7 Teacher note: Read the following statement to the class. “Marketing is beneficial to consumers because it brings new and improved products to the market, as well as lowering prices.” Have students make a list of five products they or their family use that are new or have been improved. Also have students make a list of either five products their family uses that have lowered their price; or five stores that have lowered their prices; or any combination of the two. Teacher note: To help the students begin this activity, here are examples: Product improved: Tide with Bleach alternatives Product lowered price: Downy gets 20% more for same price Stores lowered price: Target, when Wal-Mart moved into the community Activity 8 Have students create a collage on an 8 ½ x 11 piece of white paper. Students should divide the piece of paper into four sections, labeling the sections strengths, weaknesses, opportunities, and threats. Students are to create a collage defining the four components of a SWOT analysis using illustrations only, by either drawing or obtaining pictures from magazines, newspapers, the Internet, or clipart. Other Resources 2.01 PowerPoint Presentation Marketing Summer 2006 23