Transcript Products Services

Understand the role marketing in business.
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Understand principles of marketing.
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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
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Starter
 Define Key Terms on page 236.
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Functions of Marketing
 What happens during the marketing process?
 Businesses are involved in the process of origin, pricing,
promotion, and distribution of products and services.
 These products and services are made available in order
to meet the goals of individuals and businesses.
 Activities of marketing happen throughout the seven
functions of marketing
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Seven functions of marketing:
Marketing-information management
Product/service management
Pricing
Place (Distribution)
Selling
Financing
Promotion
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Marketing-information
management
 Involves obtaining, managing, and using information
about products and services, customers, and
competitors to improve business decision-making and
the performance of marketing activities.
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Product/service management
 May include several businesses involved with
designing, developing, maintaining, improving, and
obtaining products and services in order to meet the
needs of customers.
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Pricing
 Involves determining and communicating the value of
products and services.
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Place (Distribution)
 Involves using the best ways for customers to locate,
obtain, and use the products and services of a
business.
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Selling
 Involves communicating directly with potential
customers in order to determine and satisfy their
needs and wants.
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Financing
 Involves budgeting for marketing activities, securing
necessary funds for operations, and providing financial
assistance to customers.
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Promotion
 Involves communicating information such as features
and prices about products and services to potential
customers.
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Critical
Thinking
 Why is each marketing function
needed whenever a product or service
is sold?
 Can promotion influence the quantity
of a product consumers purchase?
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To Do:
 Complete Marketing in Your Town Activity. NOTE:
Use Make Academic Connection Marketing
Activity on page 242 in Intro to Business, 6e,
Thomson South Western textbook as a guide.
 Read 10-1 (Pages 236-242 then answer Goal Questions
on page 236 and Key Concepts (1-3) on page 242.
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STOP
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Starter
 Define Key Terms on page 243.
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Marketing Research
 What is marketing research?
 Marketing research involves customers in order to find
solutions to problems through carefully designed
studies.
 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.
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Surveys
Focus groups
• are a specific set of
questions asked to
consumers.
• are small groups of
consumers that discuss
a specific product.
Types of
research
studies
Observations
Experiment
• record the actions of
consumers rather than
questioning them.
• is a comparison of two
controlled alternatives
for consumers.
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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)
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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
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To Do:
 Complete the Marketing Research Activity. NOTE:
Use Make Academic Connection Research Activity
on page 242 in Intro to Business, 6e, Thomson
South Western textbook as a guide.
 Read 10-2 (pages 243-248) then answer Goals
questions on page 243 and Key Concepts on page 248.
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STOP
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Starter
 Define Key Terms on page 250.
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Selling Prices of Products and
Services
 What factors influence the pricing of products and services?
1.
Supply and demand
2.
Uniqueness
3.
Age
4.
Season
5.
Complexity
6.
Convenience
 Pricing formula
Selling price
=product costs + operating expenses + profit
Example: $215=67+38+100
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Selling Prices of Products and
Services
 Selling Price = the price paid by the customer for the
product.
 Product Costs = the costs to the manufacturer for
producing the product or the price paid by other
businesses to buy the product.
 Operating Expenses = all expenses of operating the
business that are associated with the product. I.e.
salaries, storage, facilities, utilities, taxes, etc.
 Profit = the amount of money available to the business
after all costs and expenses have been paid.
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Selling Prices of Products and
Services continued
 What is markup?
 the amount charged of the selling price to cover the
operating expenses and profit usually stated as a
percent.
 Selling price = product cost + markup
 Example: $35+$14=$49
 $35*40%=$14
 What is a markdown?
 a reduction from the original selling price.
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To Do:
 Complete the Price Components Activity
 Read 10-3 (pages 250-254) then answer Goals questions
on page 250 and Key Concepts on page 254.
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STOP
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Starter
 Define Key Terms on page 255.
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Classification of Channels of Distribution
 What is channel of distribution?
 The channels of distribution is how
products and services reach final
customers and the businesses involved.
 How does having a channel of distribution
help businesses?
 Channels of distribution allow businesses
to adjust quantity and assortments
accessible in convenient locations for
customers and storage of products.
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Classification of Channels of Distribution continued
Types of channels of distribution:
 Direct
 Direct involves the exchange of products and services between producer and




consumer only.
Examples of direct:
Local cleaning company promotes its business and provides services to its local
customers.
Mary sells her famous juices at the local festivals.
Tonya makes and sells drapes to local customers.
 Indirect
 Indirect involves the exchange of products and services with one or more business




and consumer.
Examples of indirect:
Drugstores sell Maybelline Cosmetics.
Macy’s sells Nautica line of clothing
UPS delivers packages for Ann Taylor.
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Classification of the Main Types of Promotion
 How do you know when communication is effective?
 Effective communication consists of an understanding of
information between the sender and the receiver.
 The sender selects a channel of communication and the
receiver indicates understanding by providing some form of
feedback.
 What is the relationship between effective communication
and promotion?
 Businesses use promotion to communicate with potential
customers about their products and services. Information
about products and services is encoded in a promotional
message. Promotional messages may be delivered through
advertisements and sales representatives. Potential customers
decode the message and provide feedback by way of purchasing
or inquiring about products or services.
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Components of Effective Communication
Sender
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Classification of the Main Types of Promotion continued
 Main types of promotion:
 Personalized is customized for individual customer.
 Mass promotion is communicated with many people with a
common message.
 What are some examples of personalized promotion?
 Examples of personalized promotion: visits, telephone calls,
live audio and video Internet connections
 What are some types of mass promotion?
 Types of mass promotion: advertisement, publicity, public
relations, sales promotion
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