Transcript Ch13 - Marketing

Chapter
13
Marketing in
Today’s World
pp. 196-209
Learning Objectives
After completing this chapter, you’ll be able to:
1. Identify the functions of marketing.
2. Define Marketing.
3. Describe the elements of the marketing mix.
Why It’s Important
Effective marketing puts the products
in the hands of its targeted
customers.
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WHAT is Marketing??
A market is a group of customers who
share common wants and needs, and
who have the ability to purchase a
particular product
Teens 12-18
Adults 18-32
Middle 32-54
Senior 55&up
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WHAT is Marketing??
Marketing is the process of creating,
promoting, and presenting a product to
meet the wants and needs of consumers
Fun and Games. A
market can be described
as the people who are
potential customers of a
product, as well as by
the classification of a
product in a category.
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VIDEO GAME SALES MARKET
YEAR - 2000
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Marketing Mix- The 4 P’s
The four elements of marketing—
product, place, price, and promotion—
are called the marketing mix,
or the four P’s.
•
•
•
•
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?
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Product
Is there a demand for our product?
How do we package our product?
• Packaging – color, size, design, brand
name
• Make product as appealing to customer
as possible
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Place
Where do we sell our product?
In what kind of location do we sell it?
Where do we place the product?
Where to sell – what region?
What kind of location – Gas store? Fast
food place? Department store?
Placement – Display stand? Checkout line?
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Promotion
- making customers aware of a product
- Advertising is a form of promotion (tool)
Ways to promote products
- through public relations, or publicity.
- offer discounts: coupons, rebates, sales
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Price
To determine price:
1. How much are customers willing to pay?
2. Is the price competitive with other
products?
3. Can the company make a profit?
break-even point - amount of money a
company has to make on a product to pay
for its costs
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??????????????????
What is the Marketing Mix?
 The
4 P’s
 Product
 Place
 Price
 Promotion
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7 Functions of Marketing
1) Distribution - moving G&S to end user
2) Financing – keep money coming in, how
do customers pay?
HUNTLEY
3) Marketing Information Management conduct mkt research about their market
4) Pricing – what to charge to make profit?
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7 Functions of Marketing
5) Product/Service Management – obtaining
info, developing and maintaining products
6) Promotion – communication through any
type of media, how do we get our product
into the customer’s hands?
7) Selling – provide customer with the G&S
relationship marketing: building customer
relations through loyal customer service
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HOMEWORK
Rd. Pages 223-227
Questions 1-3 on Pg. 227
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Learning Objectives
After completing this chapter, you’ll be able to:
1. Describe market research.
2. Identify the steps in developing a new product.
3. Explain the process of the channels of
distribution.
Why It’s Important
Effective marketing puts the products
in the hands of its targeted
customers.
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Market Research
• Companies do market research to gather
and study information about consumers
• 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.
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WHAT is Marketing??
• Businesses want you to buy their
product so they perform detailed
research on markets
• Target Marketing – businesses find and
analyze potential customers in their
market
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Product Development
• A company’s ability to create a new
product or a slight variation is important to
increasing sales
7 STEPS TO DEVELOP A NEW PRODUCT
1. Generate ideas
2. Screen ideas
3. Develop business proposal
4. Develop the product
5. Test market product
6. Introduce product
7. Evaluate customer acceptance
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Channels of Distribution
• The way to direct products to consumers
• Distribution impacts marketing b/c it
affects the price of products
• Each “channel of distribution” makes the
marketing costs increase
• Intermediaries (go-betweens) include
distributors, wholesalers, retailers, and
even the Internet
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??????????????????
• What are facts about the population
in terms of age, gender, location,
income, and education called?
• DEMOGRAPHICS
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Channels of Distribution
• Direct distribution G&S sold from the
producer directly to the customer
EX: farmer’s market (Tom’s), fish market
• Indirect distribution involves one or
more intermediaries
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Channel Members
Distributors – represents a single
manufacturer in a geographic area
Wholesalers – receive large shipments.
Sell small batches for resale.
Retailers – sell goods directly to
customer. Final stop in channel of
distribution.
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HOMEWORK
Questions 2-6 on Pg. 228
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End of Chapter
13
Marketing in Today’s World