Transcript Products Services

ESSENTIAL STANDARD 3.00
Understand the
role marketing
in business.
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OBJECTIVE 3.01
Understand principles of
marketing.
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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
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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
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Surveys
Focus groups
Observations
Experiment
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MARKETING RESEARCH CONTINUED
Parts of a product
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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
Services
Tangible
Intangible
Perishable or non-perishable Perishable
Separable
Inseparable
Easier to market
More difficult to
market
More control over quality
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:
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Quantity
Assortment
Location
Timing
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CLASSIFICATION OF CHANNELS OF
DISTRIBUTION CONTINUED
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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:
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Direct
Example-Tonya makes and sells drapes to local customers.
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Indirect
Example-UPS delivers packages to constomers for Ann Taylor
Clothing Store.
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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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