Transcript Marketing in Today`s World

Marketing in Today’s World
Chapter 13
Marketing
• Behind every product is a company’s
intense research, development, and
marketing. To successfully market a
product, a company has to understand
what people want to buy and why they
want to buy it.
The Market
• Market is a group of customers who share
common wants and needs, and who have
the ability to purchase the product.
• Marketing is the process of creating,
promoting, and presenting a product to
meet the wants and needs of consumers.
Marketing concept
• Knowing the customer’s wants and needs
in order to make a profit is known as the
Marketing Concept.
• Potential customers are the “Target
Market”
Functions of Marketing
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Distribution
Financing
Marketing Information Management
Pricing
Product/Service Management
Promotion
Selling
Distribution
• Involves moving goods and services from
one place to the end user. Trucks, trains,
airplanes, and ships are possible
transporters
Financing
• Money is necessary to keep any business
afloat. Businesses decide if customers
can pay with credit or other options.
Marketing Information Management
• Making an informed decision requires
good research and development.
Companies conduct market research to
learn more about their market.
Pricing
• Marketers have to figure out what price to
charge for a product so the company
makes a profit.
• Marketers consider the impact of
distribution
Product/Service Management
• Obtaining information, developing and
maintaining products helps marketers
decide how to respond to market
opportunities
Promotion
• Communication through any type of media
gets a business’s product out and into the
hands of the public.
Selling
• Retailers or the business-to-business
market provides customers or industrial
users with goods and services.
• Relationship marketing (trend of today)
Companies use this strategy to build
customer relations. This keeps companies
aware of customer needs and wants
The 4 P’s
• Marketing Mix
– The four elements of marketing are called the
Marketing Mix
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Product
Place
Price
Promotion
Product
• Marketers have to find out if there is a
demand for the product
• How are they going to present the product
– Packaging
color, name, design, etc
Place
• Where are they going to sell the product
• The placement of the product in the store
Price
• How much are customers willing to pay
• Is the price competitive with other products
• Can the company make a profit
• The amount of money a company has to
make on a product to cover its costs is the
break even point.
Promotion
• Making customers aware of a product
– Advertising
– Publicity
– deals
Market Research
• Market research is done to gather and
study information about consumers to
determine what kinds of goods and
services to produce.
• This is done through survey, sales figures,
databases, and the census
Market Research Con’t
• Demographics are facts about the
population in terms of age, gender,
location, income, and education. Once
marketers know the demographics of a
market, companies can start developing
products to fit that particular group.
Product Development
• Seven Steps in Developing a new product
– Generating Ideas
– Screening Ideas
– Developing a Business Proposal
– Developing the product
– Test Marketing the Product
– Introducing the Product
– Evaluating Customer Acceptance
Channels of Distribution
• Channel of distribution is a particular way
to direct products to consumers.
Producers use a specific channel to move
goods to their final user.
• Direct Distribution occurs when the goods
or services are sold from the producer
directly to the customer; an intermediary
isn’t involved.
Channels con’t
• Indirect distribution involves one or more
intermediaries
• The biggest impact distribution has on
marketing is how it affects the price of
products.
• Each time the product goes through
another channel, the cost of marketing
increases
Channel Members
• Distributors
– Represents a single manufacturer in a
geographic area. Cosmetics, cars, candy, ice
cream and furniture are sold through
distributors.
Channel members con’t
• Wholesaler
– Receives large shipments of products from
many different producers. They break the
shipments into smaller batches for resale.
– Retailer sells goods directly to the customer.
This is the final stop in the channel of
distribution. A supermarket is a retailer.