Chapter 10
Marketing Basics
What is marketing?
What is marketing?
Process of planning
and executing the
conception, pricing,
promotion, and
distribution of
ideas, goods,...
Marketing Mix
The blending of
four marketing
elements –
product, place, pric
e, and promotion.
Marketing Mix
PRODUCT
Idea
Development
Design
Packaging
Prototypes
Quality
Marketing Mix
PRICE
Retail
Wholesale
Production
Competitive
Strategic
Marketing Mix
PROMOTION
Sales
Advertising
Commercials
Online
Print
Word of Mouth
Marketing Mix
PLACE
Stores
Shelves
Channels
Countries
Online
PLACE
In your journal:
Make a list of all the
places you can
purchase and iPod.
Marketing Strategy
A company’s plan that identifies
how it will use marketing to achieve
its goals.
Target Market
A specific group of customers that
have similar wants and needs.
Target Market
Who is the target market for…
Target Market
Who is the target market for…
Target Market
Who is the target market for…
Target Market
Who is the target market for…
Target Market
Who is the target market for…
Marketing Orientation
An approach that considers the
needs of customers when
developing a marketing mix.
• Do not assume w...
Understanding Customers

Stand up!
Understanding Customers
Final Consumers
Are persons who buy products and services
mostly for their own use.

Business Cons...
Understanding Customers
Consumer Decision Making Process
The specific sequence of steps consumers
follow to make a purchas...
Understanding Customers
Buying Motives
The reason consumers decide what products
and services to purchase.
1. Emotional bu...
What did you learn?
The best definition of marketing is…
A. Promotion and selling
B. Producing and distributing products a...
What did you learn?
The best definition of marketing is…
A. Promotion and selling
B. Producing and distributing products a...
What did you learn?
The two steps in a marketing
strategy are…
A. Developing a product and promoting it to
consumers
B. Id...
What did you learn?
The two steps in a marketing
strategy are…
A. Developing a product and promoting it to
consumers
B. Id...
What did you learn?
Which of the following is an
example of rational buying?
A.
B.
C.
D.

Valentine’s Day
Fear
Mother’s Da...
What did you learn?
Which of the following is an
example of rational buying?
A.
B.
C.
D.

Valentine’s Day
Fear
Mother’s Da...
Marketing Research
What is it?
Marketing Research
Finding solutions to problems
though carefully designed studies
involving customers.
Steps in
Marketing Research
1. Define the marketing problem.
2. Study the situation.
3. Develop a data collection
procedur...
What are different types
of research studies
or ways to collect data
information?
PRODUCT
Everything a business offers to
satisfy a customer's needs.
It starts with a basic product. Which
is the simplest ...
PRODUCT
Options – when customers are
offered choices of features.
Brand Name – provides a unique
identification of a compa...
WHY DID
THEY FAIL?
Advertising
Any paid form of communication through
mass media directed at identified consumers
to provide information and ...
Advertising
Page 258
Read – Mass Promotion
Advertising Media
•
•
•
•
•
•
•

Television
Radio
Newspapers
Magazines
Mass mailings (junk mail)
Outside displays
Internet
Other Forms of Mass Promotion
Publicity
Non-paid promotional communication
presented by the media rather than by the
busin...
Other Forms of Mass Promotion
Publicity
Non-paid promotional communication
presented by the media rather than by the
busin...
Other Forms of Mass Promotion
Public Relations
An ongoing program of non-aid or paid
communications.

Planned to favorably...
Other Forms of Mass Promotion
Sales Promotion
Includes activities and materials designed to
reinforce a company’s brand an...
Glogster
• Bvbusiness.com
Pricing Factors
•
•
•
•
•
•

Supply and Demand
Uniqueness
Age
Season
Complexity
Convenience
Supply and Demand
• A product with a ready supply will
have a lower price than a product
with a very limited supply.
• If ...
Uniqueness
• When a product has few close
competitors because it is
unique, the price will be higher
than products that ar...
Age
• When products are first
introduced to the market, prices
will be quite high. As products
age, the price gradually de...
Season
• High prices just before or at the
beginning of a season
• Low prices during other times of
the year
• Example – w...
Complexity
• Highly complex and technical
products have higher prices than
simple products.
Convenience
• People pay for convenience!
• Easily available and seller provides
high level of customer
service, prices go...
PRICE
The money a customer must pay
for a product or service.

Price changes as a product
moves from producer to
consumer.
PRICE
Selling
Product Operating
+
+ Profit
=
Price
Costs
Expenses
SELLING PRICE
The price paid by the customer
for the product.
Operating Expenses
All expenses of operating the
business that are associated with
the product.
• Salaries
• Storage
• Dis...
PROFIT
Amount of money available to
the business after all costs and
expenses have been paid.
Gross Margin
Difference between the selling
price and the product costs.
Do the Math…
Product Costs - $39
Operating Expenses - $210
Profit - $250
What is the selling price?
Markup
Amount added to the cost of a
product to set the selling price.

Product cost - $25
Markup - 50%
What is the sellin...
Markdown
Reduction from the original price.
Product cost - $25
Markdown - 50%
What is the selling price?
Page 254 #3
Product Name

Original Price

TOTAL Original Price –
TOTAL Sale Price –
TOTAL Saving –

Sale Price

Markdown (...
PLACE
Also called distribution.
Determining the best methods and
procedures to use so customers can
find, obtain, and use ...
Channel of Distribution
The route a product follows and the
businesses involved in moving a
product from the producer to t...
Manufacture
Wholesale
Retail
Consumer
Channels of Distribution
BUN
CHEESE

MEAT
ONION
LETTUCE
TOMATOE
Chapter 10 -  Marketing Basics
Chapter 10 -  Marketing Basics
Chapter 10 -  Marketing Basics
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Transcript of "Chapter 10 - Marketing Basics"

  1. 1. Chapter 10 Marketing Basics
  2. 2. What is marketing?
  3. 3. What is marketing? Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objects.
  4. 4. Marketing Mix The blending of four marketing elements – product, place, pric e, and promotion.
  5. 5. Marketing Mix PRODUCT Idea Development Design Packaging Prototypes Quality
  6. 6. Marketing Mix PRICE Retail Wholesale Production Competitive Strategic
  7. 7. Marketing Mix PROMOTION Sales Advertising Commercials Online Print Word of Mouth
  8. 8. Marketing Mix PLACE Stores Shelves Channels Countries Online
  9. 9. PLACE In your journal: Make a list of all the places you can purchase and iPod.
  10. 10. Marketing Strategy A company’s plan that identifies how it will use marketing to achieve its goals.
  11. 11. Target Market A specific group of customers that have similar wants and needs.
  12. 12. Target Market Who is the target market for…
  13. 13. Target Market Who is the target market for…
  14. 14. Target Market Who is the target market for…
  15. 15. Target Market Who is the target market for…
  16. 16. Target Market Who is the target market for…
  17. 17. Marketing Orientation An approach that considers the needs of customers when developing a marketing mix. • Do not assume what customers want. • Use research to study customers and their needs
  18. 18. Understanding Customers Stand up!
  19. 19. Understanding Customers Final Consumers Are persons who buy products and services mostly for their own use. Business Consumers A persons, companies, and organizations that buy products for the operation of a business, for incorporation into other products and services, or for resale to their customers.
  20. 20. Understanding Customers Consumer Decision Making Process The specific sequence of steps consumers follow to make a purchase. 1. Recognize a need 2. Gather information 3. Select and evaluate alternatives 4. Make a purchase decision 5. Determine the effectiveness of the decision.
  21. 21. Understanding Customers Buying Motives The reason consumers decide what products and services to purchase. 1. Emotional buying motives love, fear, self-image 2. Rational buying motives economy, comparison in cost
  22. 22. What did you learn? The best definition of marketing is… A. Promotion and selling B. Producing and distributing products and services to customers C. Finding customers and convincing them to buy your products D. None of the above
  23. 23. What did you learn? The best definition of marketing is… A. Promotion and selling B. Producing and distributing products and services to customers C. Finding customers and convincing them to buy your products D. None of the above
  24. 24. What did you learn? The two steps in a marketing strategy are… A. Developing a product and promoting it to consumers B. Identifying a target market and developing a marketing mix C. Conducting marketing research and planning production D. Pricing a product and distributing it to customers
  25. 25. What did you learn? The two steps in a marketing strategy are… A. Developing a product and promoting it to consumers B. Identifying a target market and developing a marketing mix C. Conducting marketing research and planning production D. Pricing a product and distributing it to customers
  26. 26. What did you learn? Which of the following is an example of rational buying? A. B. C. D. Valentine’s Day Fear Mother’s Day Economy
  27. 27. What did you learn? Which of the following is an example of rational buying? A. B. C. D. Valentine’s Day Fear Mother’s Day Economy
  28. 28. Marketing Research What is it?
  29. 29. Marketing Research Finding solutions to problems though carefully designed studies involving customers.
  30. 30. Steps in Marketing Research 1. Define the marketing problem. 2. Study the situation. 3. Develop a data collection procedure. 4. Gather and analyze information. 5. Propose a solution.
  31. 31. What are different types of research studies or ways to collect data information?
  32. 32. PRODUCT Everything a business offers to satisfy a customer's needs. It starts with a basic product. Which is the simplest form of the product.
  33. 33. PRODUCT Options – when customers are offered choices of features. Brand Name – provides a unique identification of a company’s products.
  34. 34. WHY DID THEY FAIL?
  35. 35. Advertising Any paid form of communication through mass media directed at identified consumers to provide information and influence their actions.
  36. 36. Advertising Page 258 Read – Mass Promotion
  37. 37. Advertising Media • • • • • • • Television Radio Newspapers Magazines Mass mailings (junk mail) Outside displays Internet
  38. 38. Other Forms of Mass Promotion Publicity Non-paid promotional communication presented by the media rather than by the business or organization that is being promoted.
  39. 39. Other Forms of Mass Promotion Publicity Non-paid promotional communication presented by the media rather than by the business or organization that is being promoted.
  40. 40. Other Forms of Mass Promotion Public Relations An ongoing program of non-aid or paid communications. Planned to favorably influence public opinion about an organization.
  41. 41. Other Forms of Mass Promotion Sales Promotion Includes activities and materials designed to reinforce a company’s brand and image. Incentive to take action!
  42. 42. Glogster • Bvbusiness.com
  43. 43. Pricing Factors • • • • • • Supply and Demand Uniqueness Age Season Complexity Convenience
  44. 44. Supply and Demand • A product with a ready supply will have a lower price than a product with a very limited supply. • If demand for a product is high, prices will increase.
  45. 45. Uniqueness • When a product has few close competitors because it is unique, the price will be higher than products that are very similar to others.
  46. 46. Age • When products are first introduced to the market, prices will be quite high. As products age, the price gradually decreases. • Example – flat screen TV’s
  47. 47. Season • High prices just before or at the beginning of a season • Low prices during other times of the year • Example – winter apparel, holiday decorations, etc.
  48. 48. Complexity • Highly complex and technical products have higher prices than simple products.
  49. 49. Convenience • People pay for convenience! • Easily available and seller provides high level of customer service, prices go up.
  50. 50. PRICE The money a customer must pay for a product or service. Price changes as a product moves from producer to consumer.
  51. 51. PRICE Selling Product Operating + + Profit = Price Costs Expenses
  52. 52. SELLING PRICE The price paid by the customer for the product.
  53. 53. Operating Expenses All expenses of operating the business that are associated with the product. • Salaries • Storage • Display equipment • Facilities • Taxes
  54. 54. PROFIT Amount of money available to the business after all costs and expenses have been paid.
  55. 55. Gross Margin Difference between the selling price and the product costs.
  56. 56. Do the Math… Product Costs - $39 Operating Expenses - $210 Profit - $250 What is the selling price?
  57. 57. Markup Amount added to the cost of a product to set the selling price. Product cost - $25 Markup - 50% What is the selling price?
  58. 58. Markdown Reduction from the original price. Product cost - $25 Markdown - 50% What is the selling price?
  59. 59. Page 254 #3 Product Name Original Price TOTAL Original Price – TOTAL Sale Price – TOTAL Saving – Sale Price Markdown ($) Markdown (%)
  60. 60. PLACE Also called distribution. Determining the best methods and procedures to use so customers can find, obtain, and use a product or service.
  61. 61. Channel of Distribution The route a product follows and the businesses involved in moving a product from the producer to the final consumer.
  62. 62. Manufacture Wholesale Retail Consumer
  63. 63. Channels of Distribution BUN CHEESE MEAT ONION LETTUCE TOMATOE
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