CHAPTER 1: WHAT IS MARKETING?Marketing Goods and Services

MARKETING GOODS AND SERVICES

Marketing the sum of all the activities involved in the planning, pricing, promoting, distributing, and selling of goods and services to satisfy consumers’ needs and wants

Marketing is the process that connects suppliers with end users

Can a business survive without marketing? NO!

Who uses marketing? Manufacturers Politicians Service businesses Not-for-profit organizations Individuals

INPUT FIGURE 1.2 PG 4 SCAN IN PICTURE!

GOODS AND SERVICES

The object of marketing is the distribution of goods and services

Goods and services are divided into two categories: Industrial Consumer

Each category requires different marketing methods to reach a specific set of consumers.

INDUSTRIAL GOODS

Industrial goods (also called business goods) are products used in business to make other products or to assist in business operations

They can be: Raw materials Processed foods Finished goods

Raw Materials

Much of Canada's raw materials are exported, and international sales representatives search the world for new marketing opportunities

Raw materials are usually marketed to businesses that process them or use them in manufacturing

Mining companies, logging corporations, farms, fishing boats, and oil rigs all market raw materials.

Processed Goods

Although some products are sold in their raw state (apples and lobster), most raw materials need processing before they can be used

Processing alters the nature of the product Processed goods are sold as finished goods or

semi finished goods Semifinished goods include: flour,

plastic, wood. What types of companies would

need these goods?

Finished Goods

Finished goods in the industrial market are products that no longer require processing and are used to make another product or provide a service

An auto manufacturer requires spark plugs and fan belts, tires and circuit boards. All of these parts are made by other companies.

Consumers of industrial goods look for small price differences and quality differences. Shipping costs and buying terms can also be important.

CONSUMER GOODS

Consumer goods are nonindustrial products intended for personal use by the general public

Retail stores sell consumer goods. Consumer goods may also be marketed to

industry. The Original Maple Bat Company in Ottawa sells

bats to major league baseball teams and to individual consumers

Which is considered an industrial product vs. a consumer product?

INDUSTRIAL SERVICES AND CONSUMER SERVICES Services are activities performed for others.

Like goods, they can be marketed to both industrial and consumer markets

The major difference between industrial (or business) services and consumer services is in who pays for the service

If a business purchases the service, it is industrial; if an individual buys the service for personal reasons, it is a consumer service

Many businesses focus their marketing effort on either the industrial or consumer market. The advertising business focuses exclusively on the industrial market

A target market is any group of consumers to whom marketers want to sell their products and services