MP4 Businesses Need Marketing PP 1.1 1.2

Why do we need Marketing?
All Types of Businesses Use
 Direct Marketing Activities:
– Advertising agencies
– Market research firms
– Trucking companies
 Major Marketing Activities:
– Retailers
– Manufacturers
– Real estate agents
 Limited Marketing Activities:
– Law offices
– Physicians
– Universities
Marketing is all around you…
 You make marketing decisions everyday
– Cash
– Credit cards
– Home delivery
– Store pickup
– Internet purchases
– Effective advertising
Basic Internet Business
 Selling businesses and services on-line
 Providing access to an audience
 Selling admissions
What is Marketing?
 Product/Service Management
 Distribution
 Selling
 Marketing-Information System
 Financing
 Pricing
 Promotion
Marketing an Automobile
 The creation and maintenance of satisfying
exchange relationships
 “the process of planning and executing the
conception, pricing, promotion, and distribution of
goods, services, and ideas to create exchanges that
satisfy individual and organizational objectives”
 Everything that goes into getting goods, services,
and ideas from the producer to the consumer
Marketing Mix
 Product-good, service, idea
 Place-where sold and how it gets there
 Price-everything that goes into the amount a
consumer pays and how they pay for it
 Promotion-anything that is done to communicate
product information to a consumer
Businesses Need Marketing
The Need for Marketing
 Past View: simple set of activities that
would help a business sell its products
 Today’s view: businesses utilize the
marketing concept which is using the needs
of customers as the primary focus during
the planning, production, distribution, and
promotion of a product and service
Development of Business
 Self-sufficient: do not rely on anyone else to survive
 Bartering: exchanging products or services with
others by agreeing on their value
 Specialization of Labor: concentrating on one or a
few related activities so they can be done well
 Money system: established the use of currency as a
recognized medium of exchange
 Central Markets: location where people bring
products to be conveniently exchanged
 Other Marketing Activities: support businesses to
make the exchange process more efficient
The Functions of Business
 Production: creates or obtains products or
services for sale
Raw materials (mining, logging)
Processing (oil refining, paper manufacturing)
Services (hair, nail, tanning)
Merchandising (retailers, wholesalers)
 Operations: on-going activities designed to
support the primary function of a business and to
keep it operating efficiently
 Accounts and Finance: plans and manages
financial resources and maintains records and
information related to the business’ finances
The Functions of Business
 Management and Administration:
developing, implementing, and evaluating
the plans and activities of a business
 Marketing: all business activities to make a
product or service available to consumers
and to ensure effective exchanges occur
Coordination of the Functions
of Business
 Each function of business is dependent
upon the other functions of the business
– What would happen if a business was not
successful in coordinating all aspects of the
business operation?
– Examples?