Introduction to Business, Marketing in Today’s World Chapter 13 Marketing in Today’s World.

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Introduction to Business, Marketing in Today’s World

Chapter 13

Marketing in Today’s World

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Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:

1.1. ListList the functions of marketing.

2.2. IdentifyIdentify the importance of market research.

3.3. Explain Explain how channels of distribution work.

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Why It’s ImportantWhy It’s Important

Effective marketing puts the products in the hands of its targeted customers.

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Marketing EssentialsMarketing Essentials

To successfully market a product, a company has to understand what people WANT to buy and WHY they want to buy it.

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Basics of Marketing Basics of Marketing

A market is a group of customers who share common wants and needs, and who have the ability to purchase a particular product.

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Marketing is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.

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Businesses want you to buy their product so they perform detailed research on markets (like teenagers) to find and analyze potential customers in their market. This is called target marketing.

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Functions of Marketing Functions of Marketing The seven functions of marketing are:

• Distribution • Financing • Marketing information management • Pricing • Product/service management • Promotion • Selling

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Marketing QuestionsMarketing Questions

• Who will the product appeal to?

• How much should it cost?

• Where should it be sold?

• What’s the best way to tell people about it?

Even before a product appears on the market, marketing specialist have to consider a number of questions.

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Functions of Marketing Functions of Marketing

A popular trend in today’s marketing world is relationship marketing.

Companies use this strategy to build customer relations.

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Marketing Mix Marketing Mix

The four elements of marketing—product, place, price, and promotion—are called the marketing mix, or the four Ps.

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Product Product

Marketing is used first to find out if there is a demand for a product.

Then it is concerned with how to present a product to the customer to make it as appealing as possible.

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Place Place

• One of the first things marketers have to consider is where to sell a product.

• Then marketers have to consider in what kind of location to sell their product.

• The placement of the product in a store is important.

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Price Price To determine the price of a product a marketer considers three questions:

1. How much are customers willing to pay?

2. Is the price competitive with other products?

3. Can the company make a profit?

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Price Price

The break-even point is the amount of money a company has to make on a product to pay for its costs.

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Promotion Promotion

Promotion consists of making customers aware of a product.

The most familiar form of promotion is advertising.

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Promotion Promotion Some marketers offer discounts in

the form of coupons, rebates, and sales.

Another way companies promote their products is through public relations, or publicity.

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Market Research Market Research

Companies do market research to gather and study information about consumers to determine what kinds of goods and services to produce.

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Market Research Market Research

Demographics are facts about the population in terms of age, gender, location, income, and education.

Once marketers know the demo-graphics of a market, they can develop products for it.

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Product Development Product Development

A company’s ability to create a new product or a slight variation of an already successful one is important to increasing sales.

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Product Development Product Development The seven steps for developing a new product are:

1. Generating ideas 2. Screening ideas 3. Developing a business proposal

continued

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Product Development Product Development

4. Developing the product 5. Test marketing the product 6. Introducing the product 7. Evaluating customer acceptance

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Channels of Distribution Channels of Distribution

A channel of distribution is a particular way to direct products to consumers.

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Direct distribution occurs when the goods or services are sold from the producer directly to the customer.

(Ex: online Nike store)

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Indirect distribution involves one or more intermediaries.

(Same Ex: buying Nike in a store)

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The biggest impact distribution has on marketing is how it affects the price of products.

Each time a product goes through another channel of distribution, the cost of marketing it increases.

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Moving the product from manufacturer to the final user is an intermediary, or a go-between.

Intermediaries include distributors, wholesalers, retailers, and even the Internet.

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Distributors Distributors

A distributor represents a single manufacturer in a geographic area.

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Wholesalers Wholesalers

A wholesaler receives large shipments of products from many different producers.

Wholesalers break the shipments into smaller batches for resale.

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Retailers Retailers

A retailer sells goods directly to the customer.

This is the final stop in the channel of distribution.

Introduction to Business, Marketing in Today’s World Chapter 13 Marketing in Today’s World.

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