Chapter 13 Marketing in Today’s World pp. 196-209

Chapter 13Marketing in Today’s World pp. 196-209

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Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:

1.1. ListList the functions of marketing.

2.2. IdentifyIdentify the importance of market research.

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Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:

3.3. Explain Explain how channels of distribution work.

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Why It’s ImportantWhy It’s Important

Effective marketing puts the products in the hands of its targeted customers.

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Key WordsKey Words

marketmarketingmarketing concepttarget marketingrelationship marketingmarketing mixbreak-even point continued

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Key WordsKey Words

market researchdemographicschannel of distributiondirect distributionindirect distributionwholesalerretailer

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Basics of Marketing 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.

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Figure13.1 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?

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Basics of Marketing Basics of Marketing Marketing is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.

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Basics of Marketing 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.

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Functions of Marketing Functions of Marketing The seven functions of marketing are:

• Distribution • Financing • Marketing information management • Pricing

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Functions of Marketing Functions of Marketing

• Product/service management • Promotion • Selling

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Graphic OrganizerMarketing FunctionsMarketing Functions

Graphic OrganizerGraphic Organizer

FinancingPricingMarket-Information ManagementProduct/Service ManagementPromotionDistributionSelling

ProducersProducers ConsumersConsumers

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Functions of Marketing Functions of Marketing A popular trend in today’s marketing world is relationship marketing.

Companies use this strategy to build customer relations.

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Marketing Mix Marketing Mix The four elements of marketing—product, place, price, and promotion—are called the marketing mix, or the four Ps.

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Product 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.

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Place 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.

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Place Place The placement of the product in a store is important.

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Price Price To determine the price of a product a marketer considers three questions: 1. How much are customers willing to

pay? 2. Is the price competitive with other

products?3. Can the company make a profit?

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Price Price The break-even point is the amount of money a company has to make on a product to pay for its costs.

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Promotion Promotion Promotion consists of making customers aware of a product.

The most familiar form of promotion is advertising.

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Promotion 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.

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Fast Review

1. What is marketing?

2. What are a few functions of marketing?

continued

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Fast Review

3. Name the marketing mix, or the four Ps.

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Market Research Market Research Companies do market research to gather and study information about consumers to determine what kinds of goods and services to produce.

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Market Research 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.

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Product Development 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.

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Product Development Product Development The seven steps for developing a new product are:

1. Generating ideas 2. Screening ideas 3. Developing a business proposal

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Product Development Product Development

4. Developing the product 5. Test marketing the product 6. Introducing the product 7. Evaluating customer acceptance

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Figure13.2 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?

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Fast Review

1. What’s the purpose of market research?

2. Name the seven steps in developing a new product.

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Channels of Distribution Channels of Distribution A channel of distribution is a particular way to direct products to consumers.

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Channels of Distribution Channels of Distribution Direct distribution occurs when the goods or services are sold from the producer directly to the customer.

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Channels of Distribution Channels of Distribution Indirect distribution involves one or more intermediaries.

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Channels of Distribution 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 it increases.

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Channels of Distribution Channels of Distribution 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.

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Distributors Distributors A distributor represents a single manufacturer in a geographic area.

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Wholesalers Wholesalers A wholesaler receives large shipments of products from many different producers.

Wholesalers break the shipments into smaller batches for resale.

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Retailers Retailers A retailer sells goods directly to the customer.

This is the final stop in the channel of distribution.

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Fast Review

1. Channels of distribution are classified in which two ways?

2. How does distribution affect the prices of products?

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Fast Review

3. What are the major types of intermediaries?

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Name some qualities about the teen market. What do you want and need?

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Describe the marketing mix of a skateboard park.

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Do you show product loyalty? If so, what brands are you loyal to? Why?

End of ChapterMarketing in Today’s World

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