Transcript Economics Chapter 11

Economics Chapter 11
Marketing and Distribution
Section 1: The Changing Role of
Marketing
The development of Marketing
– Generate consumer demand
– Consumer Sovereignty- consumer as
ruler
– Utility- ability to satisfy customer wants
Form Utility
Place Utility
Time Utility
Ownership Utility
Market Research
Gather, record, and analyze data on
what people want.
When Should it be done?
– Initially with the idea
– Later to test sample products or
packaging
Market Surveys
– Who might use your product
– Questionnaires made up
Testing New Products
Test marketing
–Offering the product in a small
area.
–Try different prices
–Ad campaigns
–Most new products do not
make it
Section 2: The Marketing Mix
Market Strategy- how to sell
effectively
The “Four Ps” of Marketing
– 1. Product
What accompany is there. Warranty
Packaging- product identification
– 2. Price
Penetration Pricing- low initially
Coupons
Price leadership- One lowers, all lower
The “Four Ps” of Marketing
3. Place
– Where to sell, regionally and in a store
– Online, specialty shops, by mail etc.
4. Promotion
– Inform customers
– Billions spent yearly
– Who to target, teens = teen magazines
– Direct-mail advertising
Product Life Cycle
Introduction- Explain and heavily
promote.
Growth- Higher prices
Maturity
Decline- Redesign packaging or find
new uses.
Section 3: Distribution Channels
Channels of Distribution- How to
move your goods
1. Wholesalers- Buy large amounts
and sell to businesses.
2. Retailers- Direct sale to
consumer
– E-commerce, online sales. Growing
3. Storage and Transportation
– On hand stock, method to move
Other Distribution Channels
Club Warehouse Store
– Fee to join
– Buy in bulk, bring down prices
Direct Marketing
– Catalogs
– Internet