Overview
This lecture introduces the Big 7 marketing functions, outlining each function's role in the marketing process and their importance in business operations.
The Big 7 Marketing Functions
- The Big 7 refers to the seven core functions that drive all marketing activities.
- Understanding these functions is essential for effective business and marketing practices.
1. Channel Management
- Channel management is the process of deciding how to get goods into customers’ hands (distribution).
- Involves selecting, managing, and evaluating sales channels like retailers, wholesalers, and direct sales.
2. Marketing Information Management
- Marketing information management means gathering, analyzing, and distributing information to make marketing decisions.
- Utilizes tools like surveys, sales data, and market research.
3. Market Planning
- Market planning involves identifying target markets and creating strategies to reach them.
- Requires research, goal setting, budgeting, and SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
4. Pricing
- Pricing is setting and adjusting the cost of products or services to maximize profit and meet market demand.
- Takes into consideration costs, competitors, and perceived value.
5. Product/Service Management
- Product/service management is developing, maintaining, and improving products in response to market opportunities.
- Involves product design, updates, and elimination of weak products.
6. Promotion
- Promotion communicates information about products or services to persuade consumers.
- Includes advertising, public relations, sales promotions, and personal selling.
7. Selling
- Selling is directly communicating with potential customers to satisfy their needs and persuade them to buy.
- Builds long-term customer relationships and generates revenue.
Key Terms & Definitions
- Channel Management — handling the movement of goods from producer to consumer.
- Marketing Information Management — collecting and using data to support marketing decisions.
- Market Planning — creating strategies based on research to reach target markets.
- Pricing — determining the value exchanged for products/services.
- Product/Service Management — overseeing the development and life cycle of a product/service.
- Promotion — communicating to inform or persuade about a product/service.
- Selling — direct interaction aimed at making sales and meeting customer needs.
Action Items / Next Steps
- Review examples of each marketing function in real-world businesses.
- Prepare to match marketing functions with examples for upcoming class discussion.