Back to Table of Contents

pp. 196-209

Chapter 13 Marketing in Today’s World

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 2 of 45

Why It’s ImportantWhy It’s Important

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

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 3 of 45

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.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 4 of 45

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.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 5 of 45

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.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 6 of 45

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

• Distribution • Financing • Marketing information management • Pricing

continued

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 7 of 45

Functions of Marketing Functions of Marketing

• Product/service management • Promotion • Selling

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 8 of 45

Graphic OrganizerMarketing FunctionsMarketing Functions

Graphic OrganizerGraphic Organizer

FinancingPricingMarket-Information ManagementProduct/Service ManagementPromotionDistributionSelling

ProducersProducers ConsumersConsumers

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 9 of 45

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.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 10 of 45

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

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 11 of 45

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.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 12 of 45

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.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 13 of 45

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

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 14 of 45

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?

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 15 of 45

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

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 16 of 45

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

The most familiar form of promotion is advertising.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 17 of 45

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.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 18 of 45

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.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 19 of 45

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.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 20 of 45

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.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 21 of 45

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

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

continued

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 22 of 45

Product Development Product Development

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

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 23 of 45

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

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 24 of 45

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

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 25 of 45

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

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 26 of 45

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 increases.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 27 of 45

Channel MembersChannel MembersMoving the product from manufacturer to the final user is an intermediary, or a go-between.

Intermediaries include distributors, wholesalers, retailers, and even the Internet.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 28 of 45

Channel MembersChannel MembersA distributor represents a single manufacturer in a geographic area.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 29 of 45

Channel MembersChannel MembersA wholesaler receives large shipments of products from many different producers.

Wholesalers break the shipments into smaller batches for resale.

ChapteChapterr

1313

Introduction to Business, Marketing in Today’s World Slide 30 of 45

Channel MembersChannel MembersA retailer sells goods directly to the customer.

This is the final stop in the channel of distribution.