Transcript Marketing in Today`s World

Chapter 13
Chapter 13
Marketing in Today’s World
Introduction to Business, Marketing in Today’s World
Chapter 13
Learning Objectives
After completing this chapter, you’ll be
able to:
1. List the functions of marketing.
2. Identify the importance of market
research.
3. Explain how channels of distribution
work.
Introduction to Business, Marketing in Today’s World
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Why It’s Important
Effective marketing puts the
products in the hands of its
targeted customers.
Introduction to Business, Marketing in Today’s World
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Marketing Essentials
To successfully market a product,
a company has to understand what
people WANT to buy and WHY they
want to buy it.
Introduction to Business, Marketing in Today’s World
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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.
Introduction to Business, Marketing in Today’s World
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Basics of Marketing
Marketing is the process of
creating, promoting, and presenting a
product to meet the wants and needs
of consumers.
Introduction to Business, Marketing in Today’s World
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Basics of Marketing
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.
Introduction to Business, Marketing in Today’s World
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Functions of Marketing
The seven functions of marketing are:
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Distribution
Financing
Marketing information management
Pricing
Product/service management
Promotion
Selling
Introduction to Business, Marketing in Today’s World
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Marketing Questions
Even before a product appears on the
market, marketing specialist have to consider
a number of questions.
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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?
Introduction to Business, Marketing in Today’s World
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Functions of Marketing
A popular trend in today’s
marketing world is relationship
marketing.
Companies use this strategy to
build customer relations.
Introduction to Business, Marketing in Today’s World
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Marketing Mix
The four elements of marketing—
product, place, price, and promotion—
are called the marketing mix, or the
four Ps.
Introduction to Business, Marketing in Today’s World
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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.
Introduction to Business, Marketing in Today’s World
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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.
Introduction to Business, Marketing in Today’s World
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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?
Introduction to Business, Marketing in Today’s World
Chapter 13
Price
The break-even point is the
amount of money a company has to
make on a product to pay for its costs.
Introduction to Business, Marketing in Today’s World
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Promotion
Promotion consists of making
customers aware of a product.
The most familiar form of
promotion is advertising.
Introduction to Business, Marketing in Today’s World
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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.
Introduction to Business, Marketing in Today’s World
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Market Research
Companies do market research
to gather and study information about
consumers to determine what kinds of
goods and services to produce.
Introduction to Business, Marketing in Today’s World
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Market Research
Demographics are facts about
the population in terms of age, gender,
location, income, and education.
Once marketers know the demographics of a market, they can develop
products for it.
Introduction to Business, Marketing in Today’s World
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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.
Introduction to Business, Marketing in Today’s World
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Product Development
The seven steps for developing a new
product are:
1. Generating ideas
2. Screening ideas
3. Developing a business proposal
continued
Introduction to Business, Marketing in Today’s World
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Product Development
4. Developing the product
5. Test marketing the product
6. Introducing the product
7. Evaluating customer acceptance
Introduction to Business, Marketing in Today’s World
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Channels of Distribution
A channel of distribution is a
particular way to direct products to
consumers.
Introduction to Business, Marketing in Today’s World
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Channels of Distribution
Direct distribution occurs when
the goods or services are sold from
the producer directly to the customer.
(Ex: online Nike store)
Introduction to Business, Marketing in Today’s World
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Channels of Distribution
Indirect distribution involves one
or more intermediaries.
(Same Ex: buying Nike in a store)
Introduction to Business, Marketing in Today’s World
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Channels of Distribution
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.
Introduction to Business, Marketing in Today’s World
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Channels of Distribution
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.
Introduction to Business, Marketing in Today’s World
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Distributors
A distributor represents a single
manufacturer in a geographic area.
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Wholesalers
A wholesaler receives large
shipments of products from many
different producers.
Wholesalers break the shipments
into smaller batches for resale.
Introduction to Business, Marketing in Today’s World
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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