Why Do We Need Marketing?

Businesses That Use Marketing

Direct Marketing Activities:Advertising agenciesMarket research firmsTrucking companies

Major Marketing Activities:RetailersManufacturersReal estate agents

Limited Marketing Activities:Law officesPhysiciansUniversities

Marketing is all around you…Consumers are faced with many marketing

decisions on a daily basis:Do I make a purchase from this advertisement? In a store? On TV? Social Media?How do I purchase this good or service? Cash? Credit? Debit card? PayPal? Check?What concepts make consumers choose between effective and ineffective advertising?

Basic Internet BusinessesSelling businesses and services on-lineGlobalizationCommunicationCost effectiveness

MarketingThe creation and maintenance of

satisfying exchange relationships“the process of planning and executing

the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges that satisfy individual and organizational objectives” AMA

Marketing Mix

Businesses Need Marketing

The Need for MarketingPast View: simple set of activities that

would help a business sell its productsToday’s view: businesses utilize the

marketing concept which is using the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product and service

Development of Business

Self-sufficientBartering

Specialization of LaborMoney system

Central MarketsOther Marketing Activities

The Functions of BusinessProduction:

Raw materialsProcessing Services Merchandising

Operations Accounts and FinanceManagement and

AdministrationMarketing

Coordination of the Functions of Business

Each function of business is dependent upon the other functions of the businessWhat would happen if a business was not

successful in coordinating all aspects of the business operation?

Examples?