Post on 31-Mar-2015
Chapter 13
Marketing in Today’s World
Section 13.1
Marketing Essentials
Key Concepts
The Basics of Marketing
The Functions of Marketing
The Marketing Mix
The Basics of Marketing
To market a product successfully, a company must understand what people want to buy and why they want to buy it.
The Basics of Marketing
A company must know the market.
In the global marketplace, many countries can make up a market.
marketa group of customers who share common wants and needs
The Basics of Marketing
Marketing includes studying what people want and designing a product’s packaging.
marketingthe process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers
The Functions of Marketing
The seven functions of marketing define all the aspects that are part of marketing.
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1 Distribution is the process of getting goods and services to customers.
2Financing is getting the money that is necessary for setting up andrunning a business.
3Marketing information management is gathering and analyzing information about consumers, trends, and competitors’ products
4Pricing is deciding how much to charge for a product or service so the business can make a profit.
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5 Product/service management is obtaining, developing, maintaining, and improving a product or product mix in response to the market.
6Promotion is any effort to inform, persuade, or remind potential customers about a business’s products or services
7Selling is providing customers with the goods and services they choose to buy.
The Functions of Marketing
Relationship marketing is part of the selling function of marketing.
relationship marketingbuilding and maintaining relationships with customers
The Marketing Mix
The marketing mix consists of four basic marketing strategies.
marketing mixproduct, place, price, and promotion, collectively known as the four Ps
Product
First, marketing is used to find out if there a demand for a product.
Marketing is then concerned with how to make the product appeal to consumers.
Establish demand
Make the product appealing Packaging design
Design
Color
Size
Brand name
Place
Marketers have to decide how and where customers will buy their goods and services.
Then, marketers have to consider in what kind of location to sell their product.
Place
To make place decisions, marketers select the right channel of distribution.
channel of distributiona pathway to direct products to consumers
Place
Distribution decisions affect the price of products.
Marketers can use direct distribution or indirect distribution.
direct distributionwhen goods or services are sold from the producer directly to the consumer
indirect distributionwhen goods or services are sold through one or more intermediaries
Price
A marketer must consider the break-even point.
break-even pointthe point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service
Questions to Ask When Determining the Price of a Product
How much are customers willing to pay?
Is the price competitive with other products?
Can the company make a profit?
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Promotion
Promotion involves making customers aware of a product.
Advertising and offering discounts are two popular methods of promotion.
The Four Ps…
P P P P
Product Place Price Promotion
In recent years, many people have begun to include a fifth P for people.
Celebrity Endorsements
Many big companies hire celebrities to endorse what they sell. A celebrity endorsement is public support from a well-known person for a product or services. Companies put celebrities in their TV commercials and print ads.
You have just gotten a job working for a toy company as a marketing director specializing in action figures. A team member suggests a contest for the children in your target market. Part of the contest involves the children completing a questionnaire about their preferences.
Decision Making What are some ethical guidelines you would use in designing this contest for children?
Answer
Privacy is an important issue when marketing to children. Marketing interactions directed to children, including requests for personal information, should require the express consent of the child’s parent or guardian.
1. Define marketing.
the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers
2. What are the seven functions of marketing?
distribution, financing, marketing information management, pricing, product/ service management, promotion, and selling
3. What four elements are in the marketing mix? What is sometimes considered a fifth element?
Product, place, price, and promotion. Some people include a fifth P for people.
Now it is your turn…Find a magazine ad and relate it to the Marketing Mix (The Four Ps)
Product1. What target market is this advertisement aimed toward?2. What want or need is this product satisfying?
Place3. From what you know, where does a customer buy this product?4. Is there direct or indirect distribution used?
Promotion5. How does this ad make the product appeal to customers?6. What are two other ways the business could promote their product?
Chapter 13
Marketing in Today’s World
Section 13.1
Marketing Essentials
End of