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pp. 196-209 Chapter 13 Marketing in Today’s World
Basics of Marketing A market is a group of customers who share common wants and needs, and who have the ability to purchase a particular product.
Figure 13.1 U.S GAME CONSOLE MARKET 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. Which company that makes game consoles interests you most? What does the company do to grab your attention?
Basics of Marketing Marketing is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.
Basics of Marketing Businesses want you to buy their product so they perform detailed research on markets to find and analyze potential customers in their market. This is called target marketing.
Making an informed decision requires good research and development (market research)
Marketers must figure out what price to charge for a product so the company makes a profit.
Need to consider the impact of distribution, because each time a product goes through another channel of distribution, the price goes up (later on in the chapter)
Product/service management By obtaining information, developing and maintaining products, marketers decide how to respond to market opportunities Promotion Communication through any type of media gets a business’s product out and into the hands of the public
Market Research Companies do market research to gather and study information about consumers to determine what kinds of goods and services to produce.
Market Research Demographics are facts about the population in terms of age, gender, location, income, and education. Once marketers know the demo-graphics of a market, they can develop products for it.
Product Development A company’s ability to create a new product or a slight variation of an already successful one is important to increasing sales.
Product Development The seven steps for developing a new product are:
Figure 13.2 MARKETING RESEARCH REVENUES BY INDUSTRY GROUPS Client industry groups for marketing research spend over $3 billion annually. Why does the government spend money on marketing research?
Channels of Distribution A channel of distribution is a particular way to direct products to consumers.
Channels of Distribution Direct distribution occurs when the goods or services are sold from the producer directly to the customer.
Channels of Distribution Indirect distribution involves one or more intermediaries.
Channels of Distribution The biggest impact distribution has on marketing is how it affects the price of products. Each time a product goes through another channel of distribution, the cost of marketing increases.
Channel Members Moving the product from manufacturer to the final user is an intermediary, or a go-between. Intermediaries include distributors, wholesalers, retailers, and even the Internet.
Channel Members A distributor represents a single manufacturer in a geographic area.
Channel Members A wholesaler receives large shipments of products from many different producers. Wholesalers break the shipments into smaller batches for resale.
Channel Members A retailer sells goods directly to the customer. This is the final stop in the channel of distribution.