Marketing
BUSINESS SEMESTER 2
MISS NATALIE
Why study marketing?
 Businesses use marketing to increase their
effectiveness and the profits they make.
 Every business today is involved to some degree in
marketing (from real estate agencies, travel agencies,
retail stores, hospitals, schools, law offices, and even
governments.
 You will improve your personal marketing skills,
which can help you as you apply to universities or
jobs.
 Understanding marketing will make you a smarter
consumer.
Where does marketing take place?
Businesses directly
involved in
marketing
• Advertising
agencies
• Marketing research
firms
• Sales
representatives
• Trucking companies
• Credit card
companies
• Telemarketing
businesses
• Travel agencies
Businesses with
major marketing
activities
•
•
•
•
•
Retailers
manufacturers
Banks
Real estate agencies
Insurance
companies
• Automobile dealers
• Farmers and
ranchers
Businesses with
limited marketing
role
•
•
•
•
Law offices
Physicians/doctors
Accounting firms
Government
agencies
• Universities
• Construction
businesses
• Public utilities
companies
Your definition
Please take a minute and
write your own definition of
marketing.
Marketing and the Marketing Concept
 Marketing: the creation and maintenance
of satisfying exchange relationships.
 Marketing Concept: using the needs of
customers as the primary focus during the
planning, production, distribution, and
promotion of a product or a service
The 7 functions of Marketing
 Marketing activities can be grouped into 7 functions:
1.
2.
3.
4.
5.
6.
7.
Product/Service Management
Distribution
Selling
Marketing information management
Financing
Pricing
Promotion
1. Product/Service Management
 Assisting in the design and
development of products and services
that will meet the needs of prospective
customers.
Example: Apple developed the ipod mini to have touch screen
capabilities and high storage capacities to satisfy needs of
customers
2. 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.
Example: Coca Cola must distribute its product to many
different retailers so it can be purchased by consumers.
3. Selling
 Direct, personal communications with prospective
customers in order to assess the needs and satisfy
those needs with appropriate products and services.
Example: A salesperson helps you find different sizes of
clothing until you find the item that fits perfectly, and you
buy it!
4. Marketing-Information Management
 Obtaining, managing, and using market information
to improve decision making and the performance of
marketing activities.
Example: Your friend is starting a business tutoring
elementary kids. Before they start operating, they give
surveys to elementary students and parents about their
interest in tutoring, and which subjects most often are in
highest demand for tutoring.
5. Financing
 Budgeting for marketing activities, obtaining the
necessary financing, and providing financial
assistance to customers to assist them with
purchasing the organization’s products and services.
Example: You are reopening your café after renovations, and
celebrating by hosting a party with live music. Your finance
officer must decide how much money from the budget you
can spend on billboards and posters to have around town to
advertise this event.
6. Pricing
 Establishing and communicating the value of
products and services to prospective customers.
Example: You own a new restaurant and the items on your
menu are quite expensive. Prospective customers are
hesitant to come to your restaurant because they do not
want to pay for a meal they are not guaranteed to be
satisfied with. You must decide whether or not to lower
your prices to attract more customers.
7. Promotion
 Communicating information to prospective
customers through advertising and other
promotional methods to encourage them to purchase
the organization’s products and services.
Example: During popular sporting events broadcast on
TV like the Olympics or the American Football
Superbowl, companies will often spend ridiculous
amounts of money to buy a spot to play their
commercial to advertise their product.
Frito Lay’s Other Promotional Methods
 For the Superbowl, Frito Lay held a competition for
people to create 30 second commercials for their
popular product, Doritos.
 Once the commercials were submitted, people voted
for the best ones, and the top three were chose to be
aired during the Superbowl last weekend and won
monetary prizes.
 Frito Lay got their customers to do their advertising
for them!
QUICK CHECK!
Answer the following questions in your notebook!
1. Name 3 types of marketing activities that you see in
your everyday life.
2. What is the key attribute of the exchange
relationships that marketers seek to create and
maintain?
Keep in mind:
 Marketing cannot be successful if the product is not
what the consumer wants or is a poor quality
product.
 The consumer might be encouraged to buy a product
through advertising, selling, or a low price, but the
product MUST be seen as satisfying the needs of the
customer!
Market Development
Self
Sufficiency
Specialization
of Labor
Bartering
Other
Marketing
Activities
Central
Markets
Money
Systems
Self Sufficiency
 Being self sufficient means you do not have to rely
on others for the things you need to survive.
-Like early hunting and gathering societies
-This type of lifestyle is extremely hard work and very
risky.
People who were not successful at being self sufficient
tried to find other ways to survive- like bartering!
Bartering
 Bartering- exchanging products or services with
others by agreeing on their values
-A system of bartering was created so people could
exchange the things they needed to survive.
-Exchanging products through marketing was one of
the first examples of marketing.
*Do people still barter today?
*Think of a situation in which you bartered with
someone for something!
Specialization of Labor
 Specialization of Labor happens when someone
concentrates on one or a few related activities so that
they can be done well.
-Specialization of labor made it possible for people to
produce larger quantities of a single product.
-Therefore, more of that product would be available to
exchange with other people.
Example of Specialization
Example: Mr. Robinson is a terrible hunter, but is
great at making flower arrangements. If he only
makes flower arrangements, he can trade flower
arrangements for food and survive.
Money Systems
 A money system is the established use of currency
as a recognized medium of exchange.
- As specialization of labor became more and more
common, and a greater variety of goods became
available, it was not always possible to barter.
- Not all people needed the products the others had to
offer, or could reach an agreement on how much
each good was worth so they could be exchanged
evenly….so a money system was developed.
- This development is another example of marketing!
Central Markets
 Central Market- a location where people bring
products to be conveniently exchanged.
-With many people exchanging goods and using a
money system, the demand for products increased.
-A lot of time was spent gather the products and
traveling to sell and purchase products, so central
markets were developed- often near where rivers or
roads met.
Towns and cities developed in those locations and
became the center of trade!
Central Markets
In your notebook:
 List all the locations or areas that you
can think of that you would consider
central markets.
Central Markets
Other Marketing Activities
 As central markets expanded, other types of business
services were created to make these exchanges easier.
Examples:
-Businesses to purchase products from producers and then
sell them to consumers.
-Loaning money to both consumers and producers.
-Transportation of goods
 These other marketing activities made the exchange
process more effective!
The Functions of a Business
 REMEMBER: Marketing is an important part of
running a business, but it cannot make a business
successful on its own.
 The following activities are other essential functions
of a successful business:
Production, Operations, Accounting and Finance,
Management and Administration, Marketing,
Coordination of Business Functions.
FUNCTIONS OF BUSINESS CHALLENGE
 For each function of business I want you to
draw a symbol that represents or embodies
that function.
 Put this drawing in your notes next to each
function.
 We will share these and see who comes up
with the best symbols for each function.
Business Function 1: Production
 The primary reason for a business to exist is to provide
products or services to consumers to earn a profit.
 The Production Function creates or obtains products
or services for sale.
Production can take various forms:
-Raw materials
-Processing
-Services
Merchandising is another part of Production- even
though it is offering products already produced or
manufactured by others for sale to consumers.
Business Function 2: Operations
 Operations: the ongoing activities designed to
support the primary function of a business and keep
it running efficiently.
Examples of operations activities:
-operating and maintaining the building and
equipment
-products must be obtained, transported, and stored
-paperwork must be completed
-customer questions must be answered
-THINK OF 2 OTHER OPERATIONS ACTIVITIES!
Business Function 3: Accounting and
Finance
 Accounting and Finance: plans and manages
financial resources and maintains records and
information related to the business’ finances.
-Finance begins by determining the amount of capital
needed for the business and where that capital will be
obtained.
-Next, budgets must be developed, monitored, and
updated.
-Most businesses must borrow money for major purchases,
so determining sources for borrowing, interest rates, and
loan payback schedules are other important
responsibilities.
Business Function 4: Management and
Administration
 Management and Administration: develops,
implements, and evaluates the plans and activities of
a business.
 Someone must determine what the business will do,
how it can best meet the needs of consumers, and
how it will respond to competitors’ actions.
 Problem solving, managing employees, and
evaluating the activities of the business are all
ongoing responsibilities of managers.
 Managers are held responsible for the performance of
a company- including whether or not it is profitable.
Business Function 5: Marketing
the creation and maintenance of
satisfying exchange relationships.
 Marketing:
 Marketing includes all the activities that are done
to make products and services available and ensure
satisfying exchanges with consumers are created
and maintained.
Coordinating the Business Functions
 Each of the functions of business is dependent on the
other functions if the business is going to be effective
and successful!
 Think of a situation where some of the
functions of business might not coordinate,
and what negative consequences might
happen as a result!