Transcript Chapter 20 - Trimble County Schools

Nature and Scope
Chapter 20 of Marketing
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©2008 Thomson/South-Western
Chapter 20
Nature and Scope of Marketing
Lesson 20.1 Nature of Marketing
Goals
 Discuss the importance of marketing and its
role in the economy.
 Describe the factors that are part of the
nature of marketing.
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Chapter 20
Nature and Scope of Marketing
Marketing
Marketing — an organizational function and a
set of processes for creating, communicating,
and delivering value to customers and for
managing customer relationships in ways
that benefit the organization and its
stakeholders
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Chapter 20
Nature and Scope of Marketing
Marketing Activities
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Buying
Selling
Transporting
Storing
Financing
Researching
Risk taking
Grading and valuing
Chapter 20
Nature and Scope of Marketing
Role of Marketing
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Production oriented — decisions about
what and how to produce receive the most
attention
Sales oriented — emphasis is on
widespread distribution and promotion to sell
products
Customer oriented — company activities
are directed toward satisfying customers
Chapter 20
Nature and Scope of Marketing
Lesson 20.2 Elements of Marketing
Goals
 Describe the role that market determination
plays in marketing.
 Define basic marketing concepts and the four
elements of the marketing mix.
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Chapter 20
Nature and Scope of Marketing
Marketing Determination
Market — the types of buyers a business
wishes to attract and where those buyers are
located
Market research — study of a company’s
current and prospective customers
Target market — groups of customers with
very similar needs to whom the company
plans to sell its product
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Chapter 20
Nature and Scope of Marketing
The Marketing Mix
Marketing mix — blend of all decisions related
to the four elements of marketing:
 Product
 Price
 Distribution (place)
 Promotion
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Chapter 20
Nature and Scope of Marketing
Lesson 20.3 Marketing Plan
Goals
 Explain the four stages of the product life
cycle.
 Identify the consumer goods classifications.
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Chapter 20
Nature and Scope of Marketing
Marketing Plan
Marketing plan — detailed written description
of all marketing activities that a business
must accomplish in order to sell its products;
written for a specific time period, often one
year
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Chapter 20
Nature and Scope of Marketing
Product Life Cycle
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Introduction stage — brand-new product enters the
market
Growth stage — several different brands of the new
product are available
Maturity stage — product is competing with many
other brands with very similar features
Decline stage — new product is introduced that is
much better or easier to use and customers begin to
switch from the old to the new product
Chapter 20
Nature and Scope of Marketing
Product Life Cycle
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Chapter 20
Nature and Scope of Marketing
Types of Consumer Products
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Convenience goods — inexpensive items that
consumers purchase regularly without a great deal
of thought
Shopping goods — products purchased less
frequently than convenience goods; have a higher
price and require some thought
Specialty goods — products customers insist on
having and are willing to search for
Unsought goods —products customers do not shop
for because they do not have a strong need for them
Chapter 20
Nature and Scope of Marketing