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Copyright Goodheart-Willcox Co., Inc.
Chapter 10 Marketing
Functions of Marketing
Marketing consists of hundreds of
activities. These marketing activities can be
organized by the seven functions of marketing,
as shown in Figure 10-3. The seven functions of
marketing are channel management, marketing-
information management (MIM), market
planning, pricing, product/service management,
promotion, and selling.
• Channel management handles activities
involved in getting products through the
different routes from the producers to the
customers. These routes are called channels.
• Marketing-information management (MIM)
involves gathering and analyzing
information about markets, customers,
industry trends, new technology, and
competing businesses. MIM is also called
marketing research.
• The market planning function is creating
an actionable marketing plan designed to
achieve business goals. Activities in market
planning include identifying the target
market. A target market is the specific group
of customers whose needs a company will
focus on satisfying.
• Pricing directly affects the profit of a
business. The pricing function handles all
activities involved in setting acceptable
prices for products. Financial information
is used to set prices that cover costs and
include a reasonable profit, as well as to
adjust prices when conditions change.
• The product/service management function
determines which products a business should
offer to meet customer needs. Activities can
include developing new goods or services or
improving a current one.
• Promotion refers to the nonpersonal
communication with customers that
influences purchasing. It includes decisions
about advertising, such as the type of ads to
use and where to place them. It also includes
decisions about personal selling, customer
service, publicity, promotional events, and
store design and layout.
• Selling is all personal communications
with customers. Selling activities include
helping customers in a store, making sales
presentations or product demonstrations,
and providing customer service.
Marketing Strategies
Marketing strategy is the plan that
helps a business meet its overall goals and
objectives. A well-designed strategy first
addresses the target market. It then addresses
the four Ps of marketing. Marketing strategies
provide the groundwork for writing the
marketing plan. The marketing plan is a
document describing business and marketing
objectives and the strategies and tactics to
achieve them. Marketing plans are generally
written each year and updated throughout the
year, as needed.
Target the Market
The first step in developing a marketing
strategy is to identify the target market. This is
Channel
Management
Marketing-
Information
Management
(MIM)
Market
Planning
Pricing
Product/
Service
Management
Promotion Selling
Functions
of Marketing
Goodheart-Willcox Publisher
Figure 10-3 The seven functions of marketing
incorporate hundreds of activities.