Transcript 3.01

Essential Standard 3.00
Understand the role marketing in
business.
1
Objective 3.01
Understand principles of
marketing.
2
Topics
• Functions of marketing
• Importance of marketing research to the
creation or improvement of products or
services
• Selling prices of products and services
• Classification of channels of distribution
• Classification of the main types of
promotion
3
Functions of marketing
4
Functions of Marketing
• What happens during the marketing
process?
• Activities of marketing happen throughout
the seven functions of marketing
5
Functions of Marketing
continued
Seven functions of marketing:
– Marketing-information management
– Product/service management
– Pricing
– Place (Distribution)
– Selling
– Financing
– Promotion
6
Importance of marketing
research to the
creation or improvement of
products or services
7
Marketing Research
• What is marketing research?
• Steps in marketing research:
1.
2.
3.
4.
5.
Define the marketing problem.
Study the situation.
Develop a data collection procedure.
Gather and analyze information.
Propose a solution.
8
Marketing Research continued
Types of research studies
–Surveys
–Focus groups
–Observations
–Experiment
9
Marketing Research continued
Similarities of products and services
• Meet the needs or satisfaction of a target
market
• Include a mix of the marketing elements:
product, price, promotion, and place
(distribution)
10
Marketing Research continued
Differences between products and services
Products
Tangible
Non-perishable or perishable
Separable
Easier to market
More control over quality
Services
Intangible
Perishable
Inseparable
More difficult to market
Less control over quality
11
Selling prices of
products and services
12
Selling Prices of Products and
Services
• What factors influence the pricing of
products and services?
• Pricing formula
Selling price
=product costs + operating expenses + profit
Example: $215=67+38+100
13
Selling Prices of Products and
Services continued
• What is markup?
– Selling price = product cost + markup
– Example: $35+$14=$49
– $35*40%=$14
• What is a markdown?
14
Classification of distribution and
promotion
15
Classification of Channels of
Distribution
• What is channel of distribution?
• How does having a channel of
distribution help businesses?
16
Classification of Channels of
Distribution continued
Types of channels of distribution:
– Direct
Example-Tonya makes and sells drapes to
local customers.
– Indirect
Example-UPS delivers packages for Ann
Taylor.
17
Classification of the Main Types of
Promotion
• How do you know when communication is
effective?
• What is the relationship between effective
communication and promotion?
18
Classification of the Main Types of
Promotion continued
• Main types of promotion:
– Personalized
– Mass
• What are some examples of personalized
promotion?
• What are some types of mass promotion?
19