Marketing Dynamics

The Marketing Concept

Objectives

Give examples of the five types of utility. Explain the three elements of the

marketing concept. Describe the benefits of the marketing

concept to business and customers. List the seven functions of marketing. Give an example of each marketing

function and describe how it supports the marketing concept.

Marketing Terms

utility adding value form utility place utility time utility information utility

possession utility customer satisfac

tion marketing concep

t

What's Easier?

Lets say you want cornflakes for breakfast. Which is easier, plan A or Plan B?

PLAN A Find a cornfield, pick corn, bring the corn home and

remove the kernels, grind the kernels, mix ingredients, bake then flake! Oh don’t forget to find a cow, Yikes!

PLAN B Go to the store, buy the product

and take it home.

Utility?

Basically the cornflake story best describes business using utility…..and that’s what we are going to learn about.

A business can add value to wood by converting it to furniture OR Paper

Utility

Utility is the ability of a product to satisfy human wants and needs utility also means usefulness

The process of adding utility is often called adding value

In what other wayscan businesses add value to wood?

Utility

Types of utility form place time information possession

Utility

Form utility changing the form

of a raw material or product to add usefulness.

Auto maker uses plastic, steel, glass and fabric to make a car

Utility

Place utility making products available at

convenient locations Need money, ATM’s are

banks using place utility in the best possible way.

Utility

Time utility making products available

at the time customers need or want them

This could also be businesses staying open longer to serve you

Utility

Information utility providing the customer

with information about a product

Advertising is a form of information utility…it’s about telling the customer what they need to know

Utility

Possession utility making it easier for a

customer to acquire a product. This can be done by providing loans or accepting credit.

The Five Utilities Team Assignment

Assignment: Design a presentation that illustrates the five utilities for one

consumer product.

The Marketing Concept

Customer satisfaction Developing the positive

feelings that customers get when their expectations are met or exceeded

Describe an experience ofcustomer satisfaction.

The Marketing Concept

The marketing concept is an approach to business

Three elements of the marketing concept customer satisfaction

– Done by adding utility or exceptional service total company approach

– Employees, finance, management & marketing team members must all work together

Profit– Finding the balance between providing great service

and not losing money meeting those customers needs

The Marketing Concept

Businesses that follow the marketing concept provide goods and services that meet or

exceed customers’ expectations (customer satisfaction)

encourage all four functions of business to work together to provide customer satisfaction (total company approach)

balance satisfying customers with making sales (profit)

Describe some marketing activities.

The Functions of Marketing

The activities of marketing can be organized into seven functions financing information management distribution product/service management pricing promotion selling

The Functions of Marketing

Financing managing money

for marketing activities

helping customers buy products by providing credit or financing

List some financing activities.

The Functions ofMarketing

Information management gather, analyze, and

distribute information– about markets,

competition, and customers

– Remember Wal-Mart and how they use their information?

The Functions of Marketing

Distribution activities involved in

getting products from producers to customers

List some distribution activities.

The Functions of Marketing

Product/service management developing new

products modifying

existing products deciding which

products to carry in a store

The Functions of Marketing

Pricing activities involved

in setting prices for products

This could include competitors prices

List some pricing activities.

The Functions of Marketing

Promotion nonpersonal

communication with customers– advertising– visual

merchandising

List some promotion activities.

The Functions of Marketing

Selling personal

communication with customers

List some selling activities.

The Functions and the Marketing Concept

All of the functions of marketing help a business focus

– on satisfying customers’ needs and wants

– while making a profit

Give examples of how each functionsupports the marketing concept.

Review

Give examples for each of the five types of utility.

What are the three elements of the marketing concept?

Describe the seven functions of marketing.

Glossary

adding value. Adding a feature or service that makes a product meet more customer wants and needs.

customer satisfaction. Positive feeling a customer gets when the product purchased meets or exceeds the customer’s expectations.

Back

Glossary

form utility. Type of utility added to a product when a business changes the form of something to make it more useful.

information utility. Type of utility added to a product when a business provides information about a product to a customer.

Back

Glossary

marketing concept. Approach to business that says that the way to make a profit is to focus on customer satisfaction.

place utility. Type of utility added to a product when a business makes products available at convenient places.

Back

Glossary

possession utility. Type of utility added when a business makes it easier for a customer to acquire a product.

time utility. Type of utility added to a product when a business makes products available at the times that customers want them.

utility. Ability of a product to satisfy human wants and needs.

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7 Functions of Marketing Assignment