What is Marketing?
Marketing is the creation and maintenance of satisfying exchange relationships. The action or business of promoting and selling products or services, including market research and advertising.
Marketing Functions - OE 8
Market Planning: Identifying and understanding the markets a company wants to serve and developing effective marketing strategies for each market.
Product and Service Management: Assisting in the design and development of products and services to meet the needs of prospective customers.
Distribution: Determining the best methods and procedures to be used so prospective customers are able to locate, obtain, and use the products and services of an organization.
Pricing: Establishing and communication the value of products and services to perspective customers.
Promotion: Communicating information to prospective customers through advertising and other promotional methods to encourage them to purchase the organization's products and services.
Selling: Direct, personal communications with prospective customers in order to assess needs and satisfy those needs with appropriate products and services.
Market-Information Management: Obtaining, managing and using market information to improve decision making and the performance of marketing activities.
Financing: Budgeting for necessary financing, and providing financial assistance to customers to assist them with purchasing products and services.
Risk Management: Providing security for products, personnel, and customers and reducing the risk associated with marketing decisions and activities.
Importance of Marketing in the Economy
Marketing is important in the economy because it makes the company, and the tasks that the company needs to do, more organized. It also helps a company promote their products to customers who are in need of those certain products. Marketing is almost like a big circle effect that helps everyone throughout the economy.
Functions of Business
Production: creates or obtains products or services for sale.
Operations: the ongoing activities designed to support the primary function of a business and keep it operating efficiently.
Accounting and Financing: pans and manages financial resources and maintains records and information related to a business's finances.
Management: develops, implements, and evaluates business plans.
Marketing: exchanges products and services with customers.Human Resources:the department of a business or organization that deals with the hiring, administration, and training of personnel.
Marketing Mix - OE 2
The blending of four marketing elements - product, distribution, price, and promotion - by a business.
Product: anything offered to a market by the business to satisfy needs, including physical products, services, and ideas.
Distribution: (place) includes the locations and methods used to make the product available to customers.
Price: amount that customers pay and the methods of increasing the value of the product to the customers.
Promotion: includes the methods used and information communicated to encourage customers to purchase and to increase their satisfaction.
Marketing Concept - OE1
The marketing concept is using the needs of customers as the primary focus during the planning, production, pricing, distribution, and promotion of a product or service WHILE MAKING A PROFIT
Marketing is important because...
- creates competition which lowers prices
- creates competition which creates more product offerings
- creates job opportunities
- creates utility
Marketing is defined by the American Marketing Association as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” [1] If you read the definition closely, you see that there are four activities, or components, of marketing:
The traditional way of viewing the components of marketing is via the four Ps:
- Product. Goods and services (creating offerings).
- Promotion. Communication.
- Place. Getting the product to a point at which the customer can purchase it (delivering).
- Price. The monetary amount charged for the product (exchanging).
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