Marketing and the Marketing Concept Connect Have you ever been influenced by marketing? Explain and give examples.
OBJECTIVES
THE MAIN IDEA
• Define marketing • List the seven marketing core functions • Understand the marketing concept
To be a successful marketer, you need to understand the marketing skills, marketing core functions, and basic tools of marketing.
GRAPHIC ORGANIZER Draw an umbrella to organize the marketing core functions.
KEY TERMS • • • •
marketing goods services marketing concept
ACADEMIC VOCABULARY You will find these words in your reading and on your tests. Make sure you know their meanings. • create • conduct
Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.
ACADEMIC STANDARDS English Language Arts NCTE 4 Use written language to communicate effectively. Social Studies NCSS 2 Time, Continuity, and Change: Study the ways human beings view themselves over time.
The Scope of Marketing Connect Relate the definition of marketing to the marketing core functions and to the marketing concept.
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You already know a lot about marketing because it is all around you. You have been a consumer for many years, and you have made decisions about products you liked and did not like. As you study marketing, you will analyze what businesses do to influence consumers' buying decisions. That knowledge will help you begin to think like a marketer. Marketing is a broad term that includes many activities and requires many skills. Marketing is the process of planning,
UNIT 1 - THE WORLD OF MARKETING
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and wants are services. Intangible means you cannot physically touch them. Services involve a task, such as cooking a hamburger or cutting hair. Banks, dry cleaners, amusement parks, movie theaters, and accounting offices all provide economic services. Every time someone sells or buys something, an exchange takes place in the marketplace. The marketplace is the commercial environment where such trades happen. It is the world of shops, Internet stores, financial institutions, catalogs, and much more.
Skills and Knowledge
• MARKETING IDEAS The definition of marketing includes marketing ideas, such as eating healthful foods. What other ideas have you seen marketed?
pncmg, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers. Note that marketing is a process. This means it is ongoing, and it changes. As a marketer, you need to keep up with trends and consumer attitudes. The products, ideas, or services you develop and the way you price, promote, and distribute them should reflect these trends and attitudes. All marketing careers support this effort.
Ideas, Goods, and Services Marketing promotes ideas, goods, and services. Politicians, for example, use marketing techniques to promote their platform, or ideas. Gooas are tangible items that have monetary value and satisfy your needs and wants such as cars, toys, furniture, televisions, clothing, and candy. Intangible items that have monetary value and satisfy your needs Y-1"' glencoe.com ~
Marketing is one career cluster in business administration. The practice of marketing depends on many key areas of skill and knowledge. These areas are listed in the illlustration on page 1 that introduces the unit. Many of the topics that you will study in Marketing Essentials are based on these areas of skill and knowledge: 1. Business Law Understand business's responsibility to know, abide by, and enforce laws and regulations that affect business operations and transactions 2. Communications Understand the concepts, strategies, and systems used to obtain and convey ideas and information 3. Customer Relations Understand the various techniques and strategies used to foster positive, ongoing relationships with customers 4. Economics Understand the economic principles and concepts fundamental to business operations 5. Emotional Intelligence Understand techniques, strategies, and systems used to foster self-understanding and enhance relationships with others 6. Entrepreneurship Understand the concepts, processes, and skills associated with identifying new ideas, opportunities, and methods and with creating or starting a new project or venture 7. Financial Analysis Understand tools, strategies, and systems used to maintain, monitor, control, and plan the use of financial resources Chapter 1 -
Marketing Is All Around Us
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8. Human Resource Management Understand the tools techniques, and systems that businesses use to plan, staff, lead, and organize human resources 9. Information Management Understand tools, strategies, and systems needed to access, process, maintain, evaluate, and disseminate information to assist business decision-making 10. Marketing Understand the tools, techniques, and systems that businesses use to create exchanges and satisfy organizational objectives 11. Operations Understand the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning 12. Professional Development Understand concepts, tools, and strategies used to explore, obtain, and develop in a business career 13. Strategic Management Understand tools, techniques, and systems that affect a business's ability to plan, control, and organize an organization/department
Market Planning
Market planning involves understanding the concepts and strategies used to develop and target specific marketing strategies to a select audience. This function requires an in-depth knowledge of activities. that involve determining information needs, designing data-collection processes, conducting the collection of data, analyzing data, presenting data, and using that data for creating a marketing plan. Marketing Information Management
Good business and marketing decisions rely on good information about customers, trends, and competing products. Gathering this information, storing it, and analyzing it are all part of marketing information management. This research is done on a continual basis and through special marketing research studies and surveys. This is what marketers do to find out about customers, their habits and attitudes, where they live, and trends in the marketplace. Companies conduct research so they can be successful at marketing and selling their products. Pricing
Seven Marketing Core Functions The marketing core includes seven functions: channel management, marketing information management, market planning, pricing, product/service management, promotion, and selling. The illustration on page 1 also includes these functions. The marketing core functions define all the aspects that are part of the practice of marketing. Channel Management
Channel Management, or Distribution, is the process of deciding how to get goods into customer's hands. Physically moving and storing goods is part of distribution planning. The main methods of transportation are by truck, rail, ship, or air. Some large retail chains store products in central warehouses for later distribution. Distribution also involves the systems that track products so that they can be located at any time. 6
UNIT 1 - THE WORLD OF MARKETING
Pricing decisions dictate how much to charge for goods and services in order to make a profit. Pricing decisions are based on costs and on what competitors charge for the same product or service. To determine a price, marketers must also determine how much customers are willing to pay. ProducVService Management
Product/service management is obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities. Marketing research guides product/service management toward what the consumer needs and wants. Promotion
Promotion is the effort to inform, persuade, or remind potential customers about a business's products or services. Television and radio commercials are forms of promotion.
This type of promotion is called advertising. Promotion is also used to improve a company's public image. A company can show that it is socially responsible by recycling materials or cleaning up the environment. Promotion concepts and strategies are used to achieve success in the marketplace. Selling
Selling provides customers with the goods and services they want. This includes selling in the retail market to you, the customer, and selling in the business-to-business market to wholesalers, retailers, or manufacturers. Selling techniques and activities include determining client needs and wants and responding through planned, personalized communication. The selling process influences purchasing decisions and enhances future business opportunities.
The Marketing Concept The marketing concept is the idea that a business should strive to satisfy customers' needs and wants while generating a profit for the firm. The focus is on the customer. For an organization to be successful, all seven marketing core functions need to support this idea. The personnel responsible for those functions must understand the marketing concept and reach for the same goal in order to send a consistent message to the customer. The message is that the customer satisfaction is most important. Everyone in an organization needs to recognize that repeat customers keep a company in business. Customer Relationship Management (CRM)
In today's marketplace, customer relationship is most important. Customer relationship management (CRM) is an aspect of marketing that combines customer information (through database and computer technology) with customer service and marketing communications.
Key Terms and Concepts 1. Name two ideas that can be marketed. 2. Where do exchanges take place? 3. What is the main difference between consumers and industrial users?
Academic Skills
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5. List at least three ways the Internet has changed marketing functions.
'IMilil• For help, go to the Math Appendix
Problem Solving Think Math ......................................................... . about which operations to use. 1. Use addition to calculate the sum for 4. A customer purchases two tables at $149.99 both tables, which is the subtotal. each and would like them to be delivered. Your 2. To find the sales tax amount, company charges customers $50 for delivery multiply the subtotal by the tax and the state imposes a 5 percent sales tax on percentage. furniture, but not on the delivery charge. What 3 . Add up the sales tax, subtotal, and is the total amount due from the customer? delivery charge to find the total amount due. Social Studies/Economics located at the back of this book.
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