pp. 196-209 Chapter 13 Marketing in Today’s World
Learning Objectives After completing this chapter, you’ll be able to: <ul><li>List the functions of marketing. </li></ul><ul><li>Identify the importance of market research. </li></ul>continued
Learning Objectives After completing this chapter, you’ll be able to: <ul><li>Explain how channels of distribution work. </li></ul>
Why It’s Important Effective marketing puts the products in the hands of its targeted customers.
Key Words market marketing marketing concept target marketing relationship marketing marketing mix break-even point continued
Key Words market research demographics channel of distribution direct distribution indirect distribution wholesaler retailer
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 .
Functions of Marketing The seven functions of marketing are: <ul><li>Distribution </li></ul><ul><li>Financing </li></ul><ul><li>Marketing information management </li></ul><ul><li>Pricing </li></ul>continued
Functions of Marketing <ul><li>Product/service management </li></ul><ul><li>Promotion </li></ul><ul><li>Selling </li></ul>
Functions of Marketing A popular trend in today’s marketing world is relationship marketing . Companies use this strategy to build customer relations.
Marketing Mix The four elements of marketing—product, place, price, and promotion—are called the marketing mix , or the four Ps .
Product Marketing is used first to find out if there is a demand for a product. Then it is concerned with how to present a product to the customer to make it as appealing as possible.
Place One of the first things marketers have to consider is where to sell a product. Then marketers have to consider in what kind of location to sell their product.
Place The placement of the product in a store is important.
Price To determine the price of a product a marketer considers three questions: <ul><li>How much are customers willing to pay? </li></ul><ul><li>Is the price competitive with other products? </li></ul><ul><li>Can the company make a profit? </li></ul>
Price The break-even point is the amount of money a company has to make on a product to pay for its costs.
Promotion Promotion consists of making customers aware of a product. The most familiar form of promotion is advertising.
Promotion Some marketers offer discounts in the form of coupons, rebates, and sales. Another way companies promote their products is through public relations, or publicity .
Fast Review <ul><li>What is marketing? </li></ul><ul><li>What are a few functions of marketing? </li></ul><ul><li>Name the marketing mix, or the four Ps. </li></ul>
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: <ul><li>Generating ideas </li></ul><ul><li>Screening ideas </li></ul><ul><li>Developing a business proposal </li></ul>continued
Product Development <ul><li>Developing the product </li></ul><ul><li>Test marketing the product </li></ul><ul><li>Introducing the product </li></ul><ul><li>Evaluating customer acceptance </li></ul>
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?
Fast Review <ul><li>What’s the purpose of market research? </li></ul><ul><li>Name the seven steps in developing a new product. </li></ul>
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. 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.
Fast Review <ul><li>Channels of distribution are classified in which two ways? </li></ul><ul><li>How does distribution affect the prices of products? </li></ul><ul><li>What are the major types of intermediaries? </li></ul>
Name some qualities about the teen market. What do you want and need? continued
Describe the marketing mix of a skateboard park. continued
Do you show product loyalty? If so, what brands are you loyal to? Why?
pp. 196-209 End of Chapter 13 Marketing in Today’s World