Marketing Essentials n Chapter 1 Marketing Is All Around Us Section 1.1 What Is Marketing? Chapter 1 n Marketing Is All Around Us 1 SECTION 1.1 What Is Marketing What You'll Learn The meaning of marketing The foundations of marketing The functions of marketing Chapter 1 n Marketing Is All Around Us 2 SECTION 1.1 What Is Marketing Why It's Important To be successful in business requires being marketing oriented. Learning how businesses and people operate from a marketing point of view will help you in all your future endeavors. You will also get a good idea of whether marketing is a potential career for you. Chapter 1 n Marketing Is All Around Us 3 SECTION 1.1 What Is Marketing Key Terms marketing products goods services exchange Chapter 1 n Marketing Is All Around Us 4 SECTION 1.1 What Is Marketing What Is Marketing Marketing is the process of developing, promoting, and distributing products to satisfy customers' wants and needs. Chapter 1 n Marketing Is All Around Us 5 SECTION 1.1 What Is Marketing Products = Goods and Services Goods: Hammers, automobiles, soda pop, clothing, and computers Services: Dry cleaners, amusement parks, attorneys, and movie theaters Exchange: Buying or selling a good or service Chapter 1 n Marketing Is All Around Us 6 SECTION 1.1 What Is Marketing Foundations of Marketing Building on these four foundations helps you to acquire marketing skills that are relevant to your own career development. Business, Management, and Entrepreneurship Communication and Interpersonal Skills Economics Professional Development Slide 1 of 3 Chapter 1 n Marketing Is All Around Us 7 SECTION 1.1 What Is Marketing Foundations of Marketing Business, Management, and Entrepreneurship Understanding the basics of business, management, and entrepreneurial concepts that affect business decision making. Communication and Interpersonal Skills Understanding concepts, strategies, and systems needed to interact effectively with others. Slide 2 of 3 Chapter 1 n Marketing Is All Around Us 8 SECTION 1.1 What Is Marketing Foundations of Marketing Economics Understanding the economic principles and concepts that are basic to marketing. Professional Development Understanding concepts and strategies needed for career exploration, development, and growth. Slide 3 of 3 Chapter 1 n Marketing Is All Around Us 9 SECTION 1.1 What Is Marketing Functions of Marketing These functions define marketing as it is applied in business operations. Distribution Financing Marketing-Information Management Pricing Product/Service Management Promotion Selling Slide 1 of 4 Chapter 1 n Marketing Is All Around Us 10 SECTION 1.1 What Is Marketing Functions of Marketing Distribution involves deciding where and to whom products need to be sold in order to reach the final users. Financing is getting the money needed to pay for the operation of a business. Slide 2 of 4 Chapter 1 n Marketing Is All Around Us 11 SECTION 1.1 What Is Marketing Functions of Marketing Marketing-Information Management involves getting the necessary information to make sound business decisions. Pricing dictates how much to charge for goods and services. Product/Service Management is obtaining, developing, maintaining, and improving a product. Slide 3 of 4 Chapter 1 n Marketing Is All Around Us 12 SECTION 1.1 What Is Marketing Functions of Marketing Promotion is communicating with potential customers to inform, persuade, or remind them about a company. Selling is providing customers with goods and services they want. Slide 4 of 4 Chapter 1 n Marketing Is All Around Us 13 1.1 ASSESSMENT Thinking Critically How is a presidential political campaign an example of marketing? Chapter 1 n Marketing Is All Around Us 14 1.1 Graphic Organizer Marketing Functions Producers Financing Pricing Marketing-Information Management Product/Service Management Promotion Distribution Selling Consumers Chapter 1 n Marketing Is All Around Us 15 Marketing Essentials n Chapter 1 Marketing Is All Around Us Section 1.2 Economic Utilities Chapter 1 n Marketing Is All Around Us 16 SECTION 1.2 Economic Utilities What You'll Learn The benefits of marketing The meaning of economic utility The five economic utilities and how to distinguish the four that are related to marketing Chapter 1 n Marketing Is All Around Us 17 SECTION 1.2 Economic Utilities Why It's Important By understanding the benefits of marketing, you will see how the functions of marketing add value to products. You will also see how marketing activities lead to lower prices and new and improved products. Chapter 1 n Marketing Is All Around Us 18 SECTION 1.2 Economic Utilities Key Terms utility form utility place utility time utility possession utility information utility Chapter 1 n Marketing Is All Around Us 19 SECTION 1.2 Economic Utilities Economic Benefits of Marketing Bridges the gap between you and the maker or seller of an item. Makes buying easy for customers. Creates new and improved products at lower prices. Chapter 1 n Marketing Is All Around Us 20 SECTION 1.2 Economic Utilities Economic Utilities Economic utilities reflect the value that producers and marketers add to raw materials when they make them into products and offer them for sale to the public. Form utility Place utility Time utility Possession utility Information utility Chapter 1 n Marketing Is All Around Us 21 SECTION 1.2 Economic Utilities Form Utility Changing raw materials or putting parts together to make them more useful. Example: The parts of a lounge chair— the wood frame, the fabric, the glue and nails, and the reclining mechanism—are less useful by themselves. Putting them together adds form utility. Chapter 1 n Marketing Is All Around Us 22 SECTION 1.2 Economic Utilities Place Utility Having a product where customers can buy it. Example: Selling directly to the customer through catalogs. Chapter 1 n Marketing Is All Around Us 23 SECTION 1.2 Economic Utilities Time Utility Having a product available at a time convenient for customers. Example: Retailers offer large supplies of backpacks in the late summer, near the beginning of the school year. Chapter 1 n Marketing Is All Around Us 24 SECTION 1.2 Economic Utilities Possession Utility Exchange of a product for some monetary value. Example: Taking credit cards and checks rather than just cash enables customers to buy products. Chapter 1 n Marketing Is All Around Us 25 SECTION 1.2 Economic Utilities Information Utility Providing information so the customer is comfortable buying. Example: Salespeople explain features of products. Example: Packaging explains qualities and uses. Example: Advertising informs consumers about products. Chapter 1 n Marketing Is All Around Us 26 SECTION 1.2 Economic Utilities Lower Prices When demand is high, manufacturers can make products in larger quantities, which reduces the unit cost of each product. Example: When fixed costs are $20,000: Quantity Produced Fixed Cost Per Unit 10,000 $2.00 200,000 10¢ Chapter 1 n Marketing Is All Around Us 27 SECTION 1.2 Economic Utilities New and Improved Products As businesses continue to look for opportunities to better satisfy customers' wants and needs, the result is a larger variety of goods and services. Example: Personal computers have become smaller, more powerful, and less expensive through competition between makers. Chapter 1 n Marketing Is All Around Us 28 1.2 ASSESSMENT Reviewing Key Terms and Concepts 1. What is meant by the economic concept of utility? 2. Which economic utility is not classified as a marketing utility? Why? 3. Besides added value, what are two other benefits of marketing? Chapter 1 n Marketing Is All Around Us 29 1.2 ASSESSMENT Thinking Critically How would you explain the following statement? Marketing is more than just promotion. Chapter 1 n Marketing Is All Around Us 30 Marketing Essentials n Chapter 1 Marketing Is All Around Us Section 1.3 Careers in Marketing Chapter 1 n Marketing Is All Around Us 31 SECTION 1.3 Careers in Marketing What You'll Learn The importance of marketing careers to the U.S. economy The benefits of working in marketing Employment opportunities for people trained in marketing Examples of jobs within marketing occupational areas and at different skill levels Chapter 1 n Marketing Is All Around Us 32 SECTION 1.3 Careers in Marketing Why It's Important If you are considering a career in marketing, you’ll want to learn about the requirements, opportunities, rewards, and trends in this exciting field. Chapter 1 n Marketing Is All Around Us 33 SECTION 1.3 Careers in Marketing Key Terms benefits occupational area Chapter 1 n Marketing Is All Around Us 34 SECTION 1.3 Careers in Marketing Why Study Marketing? You can evaluate marketing as a potential career. The skills and knowledge you learn will help you in school and on the job. You will learn how businesses function. Chapter 1 n Marketing Is All Around Us 35 SECTION 1.3 Careers in Marketing An Overview of Marketing Careers Marketing provides a great diversity of opportunities. Marketing activities account for about one in every three jobs in the United States. Chapter 1 n Marketing Is All Around Us 36 SECTION 1.3 Careers in Marketing Employment Trends Employment in marketing and sales increased 20.6 percent in the period 19922005. Job opportunities in marketing are growing, while those in production are decreasing. This is because production lends itself to automation while marketing requires personal contact. Chapter 1 n Marketing Is All Around Us 37 SECTION 1.3 Careers in Marketing Benefits of a Marketing Career The opportunity to make an above-average income. Most jobs in marketing, especially those beyond entry-level positions, are interesting and varied. You will usually have more opportunities to advance in a marketing career than in almost any other area of business. Chapter 1 n Marketing Is All Around Us 38 SECTION 1.3 Careers in Marketing Marketing Occupational Areas An occupational area is a category of jobs that involves similar skills and aptitudes. Advertising Customer Service E-Commerce Entrepreneur Fashion Merchandising Financial Services Food Marketing Hospitality Marketing Importing/Exporting International Marketing Marketing Research Product Management Professional Sales Public Relations Real Estate Restaurant Management Retail Management Sales Management Service Marketing Sports Marketing Travel/Tourism Marketing Chapter 1 n Marketing Is All Around Us 39 SECTION 1.3 Careers in Marketing Job Levels in Marketing Entry-level jobs usually require no prior experience and involve limited decision-making skills. Career sustaining jobs require a higher level of skill and more decision making. Slide 1 of 3 Chapter 1 n Marketing Is All Around Us 40 SECTION 1.3 Careers in Marketing Job Levels in Marketing Marketing specialist employees must show leadership ability and make many decisions on a daily basis. Marketing supervisors must have good management skills, the ability to make many decisions on a daily basis, and excellent marketing skills. Slide 2 of 3 Chapter 1 n Marketing Is All Around Us 41 SECTION 1.3 Careers in Marketing Job Levels in Marketing Manager/owners are competent to run a small business or a significant part of a large business. Slide 3 of 3 Chapter 1 n Marketing Is All Around Us 42 1.3 ASSESSMENT Reviewing Key Terms and Concepts 1. What proportion of the U.S. work force is involved in marketing activities? 2. Name one employment trend. 3. List two major benefits of working in marketing. Slide 1 of 2 Chapter 1 n Marketing Is All Around Us 43 1.3 ASSESSMENT Reviewing Key Terms and Concepts 4. What basic skills are needed for success in a marketing career? 5. According to the Bureau of Labor Statistics, approximately how many new marketing and sales jobs were created between 1992 and 2005? Slide 2 of 2 Chapter 1 n Marketing Is All Around Us 44 1.3 ASSESSMENT Thinking Critically Discuss how the marketing skills you would learn in a fast-food restaurant could be transferred to an industrial sales position. Chapter 1 n Marketing Is All Around Us 45