Transcript Production and Business Operations

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
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Functions of marketing
4
Functions of Marketing
• What happens during the marketing
process?
• Activities of marketing happen throughout
the seven functions of marketing
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Functions of Marketing
continued
Seven functions of marketing:
– Product/service management
– Distribution
– Selling
– Marketing-information management
– Financing
– Pricing
– Promotion
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Importance of marketing
research to the
creation or improvement of
products or services
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Marketing Research
• What is marketing research?
• Steps in marketing research:
Define the marketing problem.
Study the situation.
Develop a data collection procedure.
Gather and analyze information.
Propose a solution.
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Marketing Research continued
Types of research studies
– Surveys
– Focus groups
– Observations
– Experiment
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Marketing Research continued
Parts of a product
– Basic product
– Product features
– Options
– Brand name
– Packaging
– Warranty
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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
distribution)
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Marketing Research continued
Differences between products and services
Products
Tangible
Perishable
Inseparable
Easier to market
More control over quality
Services
Intangible
Non-perishable
Separable
More difficult to market
Less control over quality
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Selling prices of
products and services
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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
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Selling Prices of Products and
Services continued
• 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
• Markdown
A reduction from the original selling price.
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Classification of channels of
distribution
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Classification of Channels of
Distribution
• What is channel of distribution?
• How do the needs between producers and
consumers differ? They differ by:
– Quantity
– Assortment
– Location
– Timing
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Classification of Channels of
Distribution continued
•
•
Channels of distribution allow businesses to
adjust quantity and assortments accessible in
convenient locations for customers and
storage of products.
Types of channels of distribution:
–
Direct
Example-UPS delivers packages for Ann Taylor.
– Indirect
Example-Tonya makes and sells drapes to local
customers.
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Classification of the main
types of promotion
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Classification of the Main Types of
Promotion
• 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?
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Classification of the Main Types of
Promotion continued
• Main types of promotion:
– Personalized is customized for individual customer.
– Mass is communicated with many people with a
common message.
• Some types of mass promotion:
–
–
–
–
Advertisement
Publicity
Public relations
Sales promotion
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