Objective 3.01 Understand principles of marketing
Topics <ul><li>Functions of marketing </li></ul><ul><li>Importance of marketing research to the creation or improvement of...
Functions of marketing
Functions of Marketing <ul><li>What happens during the marketing process? </li></ul><ul><ul><li>Businesses are involved in...
Functions of Marketing continued <ul><li>Seven functions of marketing: </li></ul><ul><ul><li>Product/service management </...
Importance of marketing research to the  creation or improvement of products or services
Marketing Research <ul><li>What is marketing research? </li></ul><ul><ul><li>Using customers in order to find solutions to...
Marketing Research continued <ul><li>Types of research studies </li></ul><ul><ul><li>Surveys </li></ul></ul><ul><ul><li>Fo...
Marketing Research continued <ul><li>Parts of a product </li></ul><ul><ul><li>Basic product </li></ul></ul><ul><ul><ul><li...
Marketing Research continued <ul><li>Similarities of products and services  </li></ul><ul><li>Meet the needs or satisfacti...
Marketing Research continued <ul><li>Differences between products and services </li></ul><ul><li>Products Services </li></...
Selling prices of  products and services
Selling Prices of Products and Services <ul><li>What factors influence the pricing of products and services? </li></ul><ul...
Selling Prices of Products and Services continued <ul><li>Markup </li></ul><ul><ul><li>The amount charged of the selling p...
Classification of channels of distribution
Classification of Channels of Distribution <ul><li>What is channel of distribution? </li></ul><ul><ul><li>How  products/se...
Classification of Channels of Distribution continued <ul><li>Channels of distribution allow businesses to adjust quantity ...
Classification of the main  types of promotion
Classification of the Main Types of Promotion <ul><li>Effective communication consists of an understanding of information ...
What is the relationship between effective communication and promotion? <ul><li>Businesses use promotion to communicate wi...
Classification of the Main Types of Promotion continued <ul><li>Main types of promotion: </li></ul><ul><ul><li>Personalize...
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  • What happens during the marketing process? Businesses are involved in the process of origin, pricing, promotion, and distribution of products and services. These products and services are made available in order to meet the goals of individuals and businesses.
  • Product/service management may include several businesses involved with designing, developing, maintaining, improving, and obtaining products and services in order to meet the needs of customers. Distribution (Place) involves using the best ways for customers to locate, obtain, and use the products and services of a business. Selling involves communicating directly with potential customers in order to determine and satisfy their needs and wants. Marketing-information management involves obtaining, managing, and using information about products and services, customers, and competitors to improve business decision-making and the performance of marketing activities. Financing involves budgeting for marketing activities, securing necessary funds for operations, and providing financial assistance to customers. Pricing involves determining and communicating the value of products and services. Promotion involves communicating information such as features and prices about products and services to potential customers.
  • What is marketing research? Marketing research involves customers in order to find solutions to problems through carefully designed studies.
  • Basic product is simplest form of a product or service. Product features include additions and improvements to the product or service. Options include choices of the product or service. Brand name is a company’s unique identification for a product or service. Packaging is the protection and security of a product or service before it is used. Warranty is an offer to repair, replace, or provide a refund a product or service in order to build the confidence of consumers in a business.
  • What factors influence the pricing of products and services? Supply and demand Uniqueness Age Season Complexity Convenience
  • What is channels of distribution? The channels of distribution is how products and services reach final customers and the businesses involved. How do the needs between producers and consumers differ? They differ by: Quantity-Businesses produce or sell massive quantities of products and services, where as each consumer needs fewer numbers. Assortment-Businesses usually specialize in producing a specific type of products and services, where as consumers usually purchase a variety of products and services. Location-Businesses may distribute products and services to customers in other countries as well in local communities. Timing-There could be a gap in time when businesses produce products and services as to when consumers need them.
  • Direct involves the exchange of products and services between producer and consumer only. Indirect involves the exchange of products and services with one or more business and consumer.
  • What is the relationship between effective communication and promotion? Businesses use promotion to communicate with potential customers about their products and services. Information about products and services is encoded in a promotional message. Promotional messages may be delivered through advertisements and sales representatives. Potential customers decode the message and provide feedback by way of purchasing or inquiring about products or services.
  • 3.01 PowerPoint

    1. 1. Objective 3.01 Understand principles of marketing
    2. 2. Topics <ul><li>Functions of marketing </li></ul><ul><li>Importance of marketing research to the creation or improvement of products or services </li></ul><ul><li>Selling prices of products and services </li></ul><ul><li>Classification of channels of distribution </li></ul><ul><li>Classification of the main types of promotion </li></ul>
    3. 3. Functions of marketing
    4. 4. Functions of Marketing <ul><li>What happens during the marketing process? </li></ul><ul><ul><li>Businesses are involved in the process of origin, pricing, promotion, and distribution of products and services. </li></ul></ul><ul><ul><li>These products and services are made available in order to meet the goals of individuals and businesses. </li></ul></ul><ul><li>Activities of marketing happen throughout the seven functions of marketing </li></ul>
    5. 5. Functions of Marketing continued <ul><li>Seven functions of marketing: </li></ul><ul><ul><li>Product/service management </li></ul></ul><ul><ul><ul><li>Designing, developing, maintaining, improving, and obtaining products/services to meet the needs of customers </li></ul></ul></ul><ul><ul><li>Distribution </li></ul></ul><ul><ul><ul><li>Using the best ways for customers to locate obtain, and use the products /services of a business </li></ul></ul></ul><ul><ul><li>Selling </li></ul></ul><ul><ul><ul><li>Communicating directly with potential customers to locate, obtain, and use the products /services of a business. </li></ul></ul></ul><ul><ul><li>Marketing-information management </li></ul></ul><ul><ul><ul><li>Obtaining, managing, and using information about products /services, customers, and competitors to improve business decision-making and the performance of marketing activities </li></ul></ul></ul><ul><ul><li>Financing </li></ul></ul><ul><ul><ul><li>Budgeting for marketing activities, securing funds, and providing financial assistance to customers </li></ul></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><ul><li>Determining and communicating the value of products /services </li></ul></ul></ul><ul><ul><li>Promotion </li></ul></ul><ul><ul><ul><li>Communicating features and prices about products /services to potential customers </li></ul></ul></ul>
    6. 6. Importance of marketing research to the creation or improvement of products or services
    7. 7. Marketing Research <ul><li>What is marketing research? </li></ul><ul><ul><li>Using customers in order to find solutions to problems through carefully designed studies </li></ul></ul><ul><li>Steps in marketing research: </li></ul><ul><ul><ul><li>Define the marketing problem. </li></ul></ul></ul><ul><ul><ul><li>Study the situation. </li></ul></ul></ul><ul><ul><ul><li>Develop a data collection procedure. </li></ul></ul></ul><ul><ul><ul><li>Gather and analyze information. </li></ul></ul></ul><ul><ul><ul><li>Propose a solution. </li></ul></ul></ul>
    8. 8. Marketing Research continued <ul><li>Types of research studies </li></ul><ul><ul><li>Surveys </li></ul></ul><ul><ul><li>Focus groups </li></ul></ul><ul><ul><li>Observations </li></ul></ul><ul><ul><li>Experiment </li></ul></ul>
    9. 9. Marketing Research continued <ul><li>Parts of a product </li></ul><ul><ul><li>Basic product </li></ul></ul><ul><ul><ul><li>Simplest form of a product/service </li></ul></ul></ul><ul><ul><li>Product features </li></ul></ul><ul><ul><ul><li>Additions and improvements to the product/service </li></ul></ul></ul><ul><ul><li>Options </li></ul></ul><ul><ul><ul><li>Choices of the product/service </li></ul></ul></ul><ul><ul><li>Brand name </li></ul></ul><ul><ul><ul><li>Company’s unique identification </li></ul></ul></ul><ul><ul><li>Packaging </li></ul></ul><ul><ul><ul><li>Protection and security before it is used </li></ul></ul></ul><ul><ul><li>Warranty </li></ul></ul><ul><ul><ul><li>Offer to repair, replace, or provide a refund in order to build the confidence of consumers </li></ul></ul></ul>
    10. 10. Marketing Research continued <ul><li>Similarities of products and services </li></ul><ul><li>Meet the needs or satisfaction of a target market </li></ul><ul><li>Include a mix of the marketing elements (product, price, promotion, and distribution) </li></ul>
    11. 11. Marketing Research continued <ul><li>Differences between products and services </li></ul><ul><li>Products Services </li></ul><ul><li>Tangible Intangible </li></ul><ul><li>Perishable Non-perishable </li></ul><ul><li>Inseparable Separable </li></ul><ul><li>Easier to market More difficult to market </li></ul><ul><li>More control over quality Less control over quality </li></ul>
    12. 12. Selling prices of products and services
    13. 13. Selling Prices of Products and Services <ul><li>What factors influence the pricing of products and services? </li></ul><ul><ul><li>supply & demand, uniqueness, age, season, complexity, convenience </li></ul></ul><ul><li>Pricing formula </li></ul><ul><li>Selling price=product costs+operating expenses+profit </li></ul><ul><li>Example: $215=67+38+100 </li></ul>
    14. 14. Selling Prices of Products and Services continued <ul><li>Markup </li></ul><ul><ul><li>The amount charged of the selling price to cover the operating expenses and profit usually stated as a percent. </li></ul></ul><ul><ul><li>Selling price=product cost+markup </li></ul></ul><ul><ul><li>Example: $35+$14=$49 </li></ul></ul><ul><ul><li>$35*40%=$14 </li></ul></ul><ul><li>Markdown </li></ul><ul><ul><li>A reduction from the original selling price. </li></ul></ul>
    15. 15. Classification of channels of distribution
    16. 16. Classification of Channels of Distribution <ul><li>What is channel of distribution? </li></ul><ul><ul><li>How products/services reach final customers and businesses involved </li></ul></ul><ul><li>How do the needs between producers and consumers differ? They differ by: </li></ul><ul><ul><li>Quantity </li></ul></ul><ul><ul><ul><li>business=lots; consumer=fewer </li></ul></ul></ul><ul><ul><li>Assortment </li></ul></ul><ul><ul><ul><li>businesses=specialize in specific type </li></ul></ul></ul><ul><ul><ul><li>Consumers=purchase a large variety of products/services </li></ul></ul></ul><ul><ul><li>Location </li></ul></ul><ul><ul><ul><li>global or local </li></ul></ul></ul><ul><ul><li>Timing </li></ul></ul><ul><ul><ul><li>Can be a gap in time when businesses produce products/services as to when consumers need them </li></ul></ul></ul>
    17. 17. Classification of Channels of Distribution continued <ul><li>Channels of distribution allow businesses to adjust quantity and assortments accessible in convenient locations for customers and storage of products. </li></ul><ul><li>Types of channels of distribution: </li></ul><ul><ul><li>Direct </li></ul></ul><ul><ul><ul><li>between producer and consumer </li></ul></ul></ul><ul><ul><ul><li>Example-UPS delivers packages for Ann Taylor. </li></ul></ul></ul><ul><ul><li>Indirect </li></ul></ul><ul><ul><ul><li>Uses one or more other businesses to move product from producer to consumer </li></ul></ul></ul><ul><ul><ul><li>Example-Tonya makes and sells drapes to a retailer who sells to local customers. </li></ul></ul></ul>
    18. 18. Classification of the main types of promotion
    19. 19. Classification of the Main Types of Promotion <ul><li>Effective communication consists of an understanding of information between the sender and the receiver. </li></ul><ul><li>The sender selects a channel of communication and the receiver indicates understanding by providing some form of feedback. </li></ul>
    20. 20. What is the relationship between effective communication and promotion? <ul><li>Businesses use promotion to communicate with potential customers about their products and services. </li></ul><ul><li>Information about products and services is encoded in a promotional message. </li></ul><ul><li>Promotional messages may be delivered through advertisements and sales representatives. </li></ul><ul><li>Potential customers decode the message and provide feedback by way of purchasing or inquiring about products or services. </li></ul>
    21. 21. Classification of the Main Types of Promotion continued <ul><li>Main types of promotion: </li></ul><ul><ul><li>Personalized is customized for individual customer. </li></ul></ul><ul><ul><li>Mass is communicated with many people with a common message. </li></ul></ul><ul><li>Some types of mass promotion: </li></ul><ul><ul><li>Advertisement </li></ul></ul><ul><ul><li>Publicity </li></ul></ul><ul><ul><li>Public relations </li></ul></ul><ul><ul><li>Sales promotion </li></ul></ul>

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