MARKETINGMARKETING © South-Western Thomson

CHAPTER 1

Marketing Today

1.11.1 What Is Marketing?1.2 Businesses Need Marketing1.3 Understanding the Marketing Concept1.4 Marketing’s Role Today and Tomorrow

2

MARKETINGMARKETING © South-Western Thomson

WHAT IS MARKETING? WHAT IS MARKETING?

GOALS GOALS for Lesson 1.1Understand the importance of studying

marketing.Explain what marketing is and describe

the marketing functions.Define marketing.

3

MARKETINGMARKETING © South-Western Thomson

Why Study Marketing?Why Study Marketing?

Where does marketing take place?All types of businesses use marketing

4

MARKETINGMARKETING © South-Western Thomson

Businesses Directly Businesses Directly Involved in MarketingInvolved in MarketingAdvertising agenciesMarketing research firmsSales representativesTrucking companiesCredit card companiesTelemarketing businessesTravel agencies

5

MARKETINGMARKETING © South-Western Thomson

Businesses with Businesses with Major Marketing ActivitiesMajor Marketing ActivitiesRetailersManufacturersBanksReal estate agenciesInsurance companiesAutomobile dealersFarmers and ranchers

6

MARKETINGMARKETING © South-Western Thomson

Businesses with Businesses with Limited Marketing RoleLimited Marketing RoleLaw officesPhysiciansAccounting firmsGovernment agenciesUniversitiesConstruction businessesPublic utilities

7

MARKETINGMARKETING © South-Western Thomson

What Is Marketing?What Is Marketing?

Marketing functionsProduct/service managementDistributionSellingMarketing-information managementFinancingPricingPromotion

Companies use the marketing functions

8

MARKETINGMARKETING © South-Western Thomson

Defining MarketingDefining Marketing

MarketingMarketing is the creation and maintenance of satisfying exchange relationships.

9

MARKETINGMARKETING © South-Western Thomson

BUSINESSESBUSINESSESNEED MARKETING NEED MARKETING GOALSGOALS for Lesson 1.2Explain why businesses need

marketing.Understand how marketing has

developed in the business world.Describe the functions of business.

10

MARKETINGMARKETING © South-Western Thomson

The Need for MarketingThe Need for Marketing

Marketing must be carefully planned.Marketing must be coordinated with

other business activities.

11

MARKETINGMARKETING © South-Western Thomson

Marketing and theMarketing and theDevelopment of BusinessDevelopment of BusinessBarteringSpecialization of laborMoney systemsCentral marketsOther marketing activities

12

MARKETINGMARKETING © South-Western Thomson

The FunctionsThe Functionsof Businessof BusinessProduction

Raw materialsProcessingServices

OperationsAccounting and financeManagement and administrationMarketingCoordination of business functions

13

MARKETINGMARKETING © South-Western Thomson

UNDERSTANDING THEUNDERSTANDING THEMARKETING CONCEPTMARKETING CONCEPTGOALSGOALS for Lesson 1.3 Define the marketing concept.Determine how businesses implement

the marketing concept.

14

MARKETINGMARKETING © South-Western Thomson

The Marketing ConceptThe Marketing Concept

Satisfying customer needsThe consequences of not satisfying

customer needs

15

MARKETINGMARKETING © South-Western Thomson

Elements of the Elements of the Marketing ConceptMarketing Concept

Identify needs of

customers

Identify needs of

customers

Develop and

market products

or services

Develop and

market products

or services

Operate a business profitably

Operate a business profitably

16

MARKETINGMARKETING © South-Western Thomson

Implementing the Implementing the Marketing ConceptMarketing ConceptIdentify the marketDevelop a marketing mix

ProductDistribution or placePricePromotion

17

MARKETINGMARKETING © South-Western Thomson

Marketing’s Role Marketing’s Role Today and TomorrowToday and TomorrowGOALSGOALS for Lesson 1.4Describe the changing role of

marketing.Summarize how marketing is changing

and why marketing is important.

18

MARKETINGMARKETING © South-Western Thomson

The Changing The Changing Role of MarketingRole of MarketingProduction emphasisSales emphasisMarketing department emphasisMarketing concept emphasis

19

MARKETINGMARKETING © South-Western Thomson

Philosophy of MarketingPhilosophy of Marketing

Production Era: 1900s-1920sEmphasis on producing and distributing new products

Sales Era: 1930s-1940sEmphasis on using advertising and salespeople to convince customers to buy a company’s products

Marketing Department Era: 1950s-1960sEmphasis on developing many new marketing activities to sell products

Marketing Concept Era: 1970s-TodayEmphasis on satisfying customers’ needs with a carefully developed marketing mix

20

MARKETINGMARKETING © South-Western Thomson

The Changing The Changing Definition of MarketingDefinition of MarketingMarketing in other organizationsMarketing is important

21

MARKETINGMARKETING © South-Western Thomson

The Progress The Progress of Marketingof Marketing

Marketing as a variety of activities

Marketing as promotion

Marketing as selling

Marketing as distribution The P

rogre

ss of M

arketin

g