1
CHAPTER
1
MARKETING TODAY
AND TOMORROW
1-1 What Is Marketing?
1-2 Businesses Need Marketing
1-3 Understanding the Marketing
Concept
1-4 The Changing Role of Marketing
Chapter 1
MARKETING
2
CHAPTER
1
MARKETING TODAY
AND TOMORROW - Goals
• The importance of studying marketing
• What marketing is and describe important marketing
functions
• Why businesses need marketing
• Describing the functions of business
• Understand how marketing developed as a part of
business
• Define the “marketing concept”
Chapter 1
MARKETING
3
CHAPTER
1
MARKETING TODAY
AND TOMORROW - Goals
• Determine how businesses implement the marketing concept
• Describe how businesses approach marketing differently today
than they did in the past
• Summarize how marketing is changing businesses and other
organizations
• The nature of positive customer/client relations (Explain)
• How to define each component of the marketing mix (The “4Ps
of Marketing”)
Chapter 1
MARKETING
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CHAPTER
1
MARKETING TODAY
AND TOMORROW
• What is Marketing!
Chapter 1
MARKETING
Marketing Video (Our Semester in a 6
minute video)
MARKETING
MARKETING
Movie Questions
 Marketing is: (short version) ______________________
_________________________________________
 Who is the guiding light of your business philosophy?
____________________
 S___________
 W__________
 O___________
 T____________
MARKETING
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AD PROVIDED WITH PERMISSION BY CARGILL.
©2007 CARGILL, INCORPORATED.
Focus Questions:
 What marketing activities
are being demonstrated
by Cargill in the
advertisement?
 Why do you believe a
large international
company like Cargill is
concerned about how to
get products to consumers
living in Central America?
Chapter 1
MARKETING
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1-1
WHAT IS MARKETING?
GOALS
Understand the importance of studying
marketing.
Explain what marketing is and describe
important marketing functions.
Define marketing.
Chapter 1
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10
Why Study Marketing?
Where does marketing take place?
All types of businesses use marketing
Chapter 1
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Businesses Directly
Involved in Marketing
Advertising agencies
Marketing research firms
Import/export offices
Freight companies
Finance and credit firms
Telemarketers
Travel agencies
Chapter 1
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Businesses with
Major Marketing Activities
Retailers
Manufacturers
Banks
Real estate agencies
Insurance companies
Automobile dealers
Farmers and ranchers
Chapter 1
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Businesses with
Limited Marketing Role
Law offices
Medical centers
Accounting firms
Government agencies
Universities
Construction businesses
Public utilities
Chapter 1
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What Is Marketing?
 Marketing functions
 Companies use the
marketing functions
Chapter 1
MARKETING FUNCTIONS
 Market planning
 Product/service management
 Distribution
 Pricing
 Promotion
 Selling
 Marketing-information management
 Financing
 Risk management
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9 Marketing Functions
Market Planning
 Identifying and understanding the markets
a company wants to serve and developing
effective marketing strategies for each
market.
Chapter 1
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9 Marketing Functions
Product and Service Management
 Assisting in the design and development of
products and services to meet the needs of
prospective customers.
Chapter 1
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9 Marketing Functions
Distribution
 Determining the best methods and
procedures to be used so prospective
customers are able to locate, obtain, and
use the products and services of an
organization.
Chapter 1
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9 Marketing Functions
Pricing
 Establishing and communicating the value
of products and services to prospective
customers.
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9 Marketing Functions
Promotion
 Communicating information to prospective
customers through advertising and other
promotional methods to encourage them to
purchase the organization’s products and
services.
Chapter 1
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9 Marketing Functions
Selling
 Direct, personal communications with
prospective customers in order to assess
needs and satisfy those needs with
appropriate products and services.
Chapter 1
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9 Marketing Functions
Marketing-Information Management
 Obtaining, managing and using market
information to improve decision making and
the performance of marketing activities.
Chapter 1
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9 Marketing Functions
Financing
 Budgeting for necessary financing, and
providing financial assistance to customers
to assist them with purchasing products
and services.
Chapter 1
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9 Marketing Functions
Risk Management
 Providing security for products, personnel,
and customers and reducing the risk
associated with marketing decisions and
activities.
Chapter 1
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What Is Marketing?
 Marketing functions
 Companies use the
marketing functions
Chapter 1
MARKETING FUNCTIONS
 Market planning
 Product/service management
 Distribution
 Pricing
 Promotion
 Selling
 Marketing-information management
 Financing
 Risk management
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Defining Marketing
Marketing is the creation and
maintenance of satisfying exchange
relationships.
Chapter 1
MARKETING
Why Study Marketing?
 Marketing plays an important role in business
operations
 It is essential to the success of
manufacturers, retailers, government
agencies, hospitals, law offices, schools, and
churches
 All marketing activities should be directly
related to the needs of customers.
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1-2
BUSINESSES
NEED MARKETING
GOALS
Explain why businesses need
marketing.
Understand how marketing developed
as a part of business.
Describe the functions of business.
Chapter 1
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The Need for Marketing
People believe that if a business offers
a good product, marketing is not
necessary.
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The Need for Marketing
If the customer does not know about
the product, does not know where to
purchase it, is unable to get to the place
where it is sold, cannot afford the price
being charged, or does not believe it is
a good value, the product will not be
purchased.
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The Need for Marketing
Marketing must be carefully planned.
Marketing must be coordinated with
other business activities.
Chapter 1
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The Development of
Marketing in Business
Self-Sufficient
Bartering
Specialization of Labor
Money Systems
Central Markets
Other Marketing Activities
Chapter 1
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The Development of
Marketing in Business
Self Sufficient
 You do not rely on other for the things you
need to survive.
Chapter 1
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The Development of
Marketing in Business
Bartering
 Exchanging products or services with
others by agreeing on their values.
Chapter 1
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The Development of
Marketing in Business
Specialization of Labor
 Concentrating on one thing or a few related
activities so that they can be done well.
Chapter 1
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The Development of
Marketing in Business
Money Systems
 Established the use of currency as a
recognized medium of exchange.
Chapter 1
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The Development of
Marketing in Business
Central Markets
 A location where people bring products to
be conveniently exchanged.
Chapter 1
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The Development of
Marketing in Business
Other Marketing Activities
 Business formed to purchase products from
producers and hold them for sale to
purchasers as needed.
 Loan money to buyers or sellers.
 Help with transportation of products.
 Locate products that were not available in
the market but that customers wanted.
Chapter 1
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The Functions of Business
Production
Operations
Accounting and Finance
Management and Administration
Marketing
Coordination of Business Functions
Chapter 1
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The Functions of Business
Production
 Creates or obtains products or services for
sale.






Raw Materials
Processing
Agriculture
Manufacturing
Services
Merchandising
Chapter 1
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The Functions of Business
Operations
 Ongoing activities designed to support the
primary function of a business and keep it
operating efficiently.
Chapter 1
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The Functions of Business
Accounting and Finance
 Plans and manages financial resources
and maintains records and information
related to a business’s finances.
 Capital, Budgets, Funding
Chapter 1
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The Functions of Business
Management and Administration
 Involves developing, implementing, and
evaluating the plans and activities of a
business.
Chapter 1
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The Functions of Business
Coordination of Business Functions
 Each of the functions of an effective
business depends on the other functions.
Chapter 1
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1-3
UNDERSTANDING THE
MARKETING CONCEPT
GOALS
Define the marketing concept.
Determine how businesses implement
the marketing concept.
Chapter 1
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Early Marketing…….NOT
 Early 1900s, business were mostly
concerned about producing products that the
business believed customers could afford and
would purchase.
 Businesses concentrated on production and
seldom had to worry about marketing.
 The primary challenge to the sale of more
products was to be able to deliver them to a
larger number of customers.
Chapter 1
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The Marketing Concept
Satisfying customer needs
The consequences of not satisfying
customer needs
Chapter 1
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Elements of the
Marketing Concept
Identify
needs of
customers
Chapter 1
Develop
and
market
products
or services
Operate a
business
profitably
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The Marketing Concept
Satisfying customer needs
The consequences of not satisfying
customer needs (cars, clothing)
Chapter 1
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Implementing the
Marketing Concept
Identify the market (Step 1)
Develop a marketing mix (4 P’S) (Step 2)
 Product
 Distribution or Place
 Price
 Promotion
Chapter 1
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Implementing the
Marketing Concept
Product
 Is anything offered to a market by the
business to satisfy needs, including
physical products, services, and ideas.
Chapter 1
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Implementing the
Marketing Concept
Distribution or Place
 Includes the locations and methods used to
make the product available to customers.
Chapter 1
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Implementing the
Marketing Concept
Price
 Is the amount that customers pay and the
methods of increasing the value of the
product to the customers.
Chapter 1
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Implementing the
Marketing Concept
Promotion
 Includes the methods used and information
communicated to encourage customers to
purchase and to increase their satisfaction.
Chapter 1
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Implementing the
Marketing Concept
Marketing Mix
 The blending of the four marketing
elements, product, distribution (place),
price, and promotion to product a profitable
business.
Chapter 1
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Implementing the
Marketing Concept
Identify the market (Step 1)
Develop a marketing mix (4 P’S) (Step 2)
 Product - BIKE
 Distribution or Place
 Price
 Promotion
Chapter 1
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1-4
THE CHANGING
ROLE OF MARKETING
GOALS
Describe how businesses approach
marketing differently today than they did
in the past.
Summarize how marketing is changing
in businesses and other organizations.
Chapter 1
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The Changing Approach
to Marketing
Production emphasis
Sales emphasis
Marketing department emphasis
Marketing concept emphasis
Chapter 1
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Production Era
Sales Era
1900s–1920s
1930s–1940s
• Emphasis on producing and
distributing new products
• Emphasis on using
advertising and salespeople
to convince customers to buy
a company’s products
Marketing Department Era
Marketing Concept Era
1950s–1960s
1970s–Today
• Emphasis on developing
many new marketing
activities to sell products
Chapter 1
• Emphasis on satisfying
customers’ needs with a
carefully developed
marketing mix
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Improving the Marketing Concept
Relationship Marketing
Employee Empowerment
Chapter 1
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Improving the Marketing Concept
Relationship Marketing
 Focuses on developing loyal customers
who continue to purchase from the
business for a long period of time
 People buy from people/business they trust
 Retaining customers so they continue to
purchase from you can increase profits by
20 to 50 percent.
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Improving the Marketing Concept
Employee Empowerment
 An approach to customer service that gives
employees the authority to solve many
customer problems
Chapter 1
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The Changing View of Marketing
Marketing in other organizations
Marketers’ roles today
Chapter 1
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