© 2009 South-Western, Cengage LearningMARKETINGMARKETING

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Chapter 1

MARKETING TODAYMARKETING TODAYAND TOMORROWAND TOMORROW

1-1 What Is Marketing?

1-2 Businesses Need Marketing

1-3 Understanding the Marketing Concept

1-4 The Changing Role of Marketing

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Focus Questions:What marketing activities

are being demonstrated by Cargill in the advertisement?

Why do you believe a large international company like Cargill is concerned about how to get products to consumers living in Central America?

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1-1WHAT IS MARKETING?

GOALS GOALS Understand the importance of studying

marketing.Explain what marketing is and describe

important marketing functions.Define marketing.

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Why Study Marketing?

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

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Businesses Directly Involved in Marketing

Advertising agenciesMarketing research firmsImport/export officesFreight companiesFinance and credit firmsTelemarketersTravel agencies

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Businesses with Major Marketing Activities

RetailersManufacturersBanksReal estate agenciesInsurance companiesAutomobile dealersFarmers and ranchers

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Businesses with Limited Marketing Role

Law officesMedical centersAccounting firmsGovernment agenciesUniversitiesConstruction businessesPublic utilities

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What Is Marketing?

Marketing functionsCompanies use the

marketing functions

MARKETING FUNCTIONSMarket planningProduct/service managementDistributionPricingPromotionSellingMarketing-information managementFinancingRisk management

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Defining Marketing

Marketing is the creation and maintenance of satisfying exchange relationships.

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BUSINESSES NEED MARKETING

GOALSExplain why businesses need

marketing.Understand how marketing developed

as a part of business.Describe the functions of business.

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The Need for Marketing

Marketing must be carefully planned.Marketing must be coordinated with

other business activities.

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The Development of Marketing in Business

BarteringSpecialization of laborMoney systemsCentral marketsOther marketing activities

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The Functions of Business

ProductionOperationsAccounting and financeManagement and administrationMarketingCoordination of business functions

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UNDERSTANDING THEMARKETING CONCEPT

GOALS Define the marketing concept.Determine how businesses implement

the marketing concept.

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The Marketing Concept

Satisfying customer needsThe consequences of not satisfying

customer needs

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Elements of the Marketing Concept

Identify needs of

customers

Develop and market products or

services

Operate a business profitably

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Implementing the Marketing Concept

Identify the marketDevelop a marketing mix

ProductDistribution or placePricePromotion

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THE CHANGINGROLE OF MARKETING

GOALS Describe how businesses approach

marketing differently today than they did in the past.

Summarize how marketing is changing in businesses and other organizations.

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The Changing Approachto Marketing

Production emphasisSales emphasisMarketing department emphasisMarketing concept emphasis

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Production Era

• Emphasis on producing and distributing new products

1900s–1920s

Sales Era

• Emphasis on using advertising and salespeople to convince customers to buy a company’s products

1930s–1940s

Marketing Department Era

• Emphasis on developing many new marketing activities to sell products

1950s–1960s

Marketing Concept Era

• Emphasis on satisfying customers’ needs with a carefully developed marketing mix

1970s–Today

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Improving the Marketing Concept

Relationship MarketingEmployee Empowerment

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The Changing View of Marketing

Marketing in other organizationsMarketers’ roles today