Marketing Functions

Introduction to Business & Marketing

What is marketing?◦ Process of developing, promoting & distributing

goods & services to meet consumer wants & needs

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Develop

Promote

Distribute

What is marketing?◦ Process of developing, promoting & distributing

goods & services to meet consumer wants & needs

Needs vs. Wants◦ Needs = essential◦ Wants = desired

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Goods vs. services◦ Goods – tangible (can touch)

◦ Services – intangible (can’t touch)

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Exchange◦ Takes place every time something is sold in the

marketplace.

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Marketing Functions refer to all the activities that the business or company performs to connect with customers.

There are 6 essential functions of marketing.

Marketing Functions

1. Selling2. Pricing3. Promotion4. Distribution5. Marketing Information Management

(MIM)6. Product/Service Management (PSM)

The Seven Marketing Functions

Involves two-way interactions between the business and the customer

Ex: Buying my first car at the dealership OR buying a house with my realtor

Selling

Deciding how much to charge for goods & services to make a profit

Prices should consider both the target market and the competition

Ex.: tickets for sporting events vary depending on the opponent and time of year (prices higher for playoffs)

Pricing

Any form of communication (usually one-way) used to inform, persuade, or remind people about a product

Ex: Briar Woods High School makes morning announcements each day to alert students of what is going on.

Promotion

Decisions related to selecting stores or locations at which the product will be sold

Transportation & Location

Also includes transporting products to customers

Ex: Surfboards arrive via plane from Hawaii and are trucked to and sold on 17th street in Virginia Beach.

Distribution

Gathering, storing and analyzing information using the market research process

Surveys = information

Ex.: sweetFrog distributes surveys for customers to complete online based on potential flavors. These results are used to make decisions on what new flavors to add. Yummy!

Marketing Information Management

Product changes over time to meet the needs of customers

Designing, developing and improving products

Ex.: The iPod has changed over the last seven years. It was originally bulky and only black/white; next a smaller/color version called the Nano; next a video iPod; next a smaller Nano; finally the iPhone.

Product/Service Management

7 Years of the iPod

Students will complete the following activity that applies their knowledge of

the marketing functions.

Marketing Functions Activity