Marketing in Today’s Marketing in Today’s WorldWorld

Chapter 13Chapter 13

Brown & CrowBrown & Crow

Objectives Objectives

SWBATSWBAT• List the functions of marketingList the functions of marketing• Identify the importance of market Identify the importance of market

researchresearch• Explain how channels of distribution Explain how channels of distribution

work.work.

Basics of MarketingBasics of Marketing

MarketMarket• A group of customers who share common wants A group of customers who share common wants

and needsand needs MarketingMarketing

• The process of creating, promoting, and presenting The process of creating, promoting, and presenting a product to meet the wants and needs of a product to meet the wants and needs of customerscustomers

Marketing conceptMarketing concept• Knowing customer’s needs and wants in order to Knowing customer’s needs and wants in order to

make a profitmake a profit Target marketingTarget marketing

• Find and analyze potential customers in the marketFind and analyze potential customers in the market

Functions of MarketingFunctions of Marketing

DistributionDistribution• Moving goods services from one place to Moving goods services from one place to

the end userthe end user FinancingFinancing

• Businesses decide if customers can pay Businesses decide if customers can pay with credit or other payment optionswith credit or other payment options

Marketing Information ManagementMarketing Information Management• Making informed decisions through Making informed decisions through

market research and developmentmarket research and development

Functions (cont.)Functions (cont.)

PricingPricing• What price to charge for a product so a What price to charge for a product so a

company can make a profitcompany can make a profit Product/Service ManagementProduct/Service Management

• Obtaining information, developing and Obtaining information, developing and maintaining productsmaintaining products

PromotionPromotion• Media communication to get a business’s Media communication to get a business’s

product out into the hands of the publicproduct out into the hands of the public SellingSelling

• Provides customers with goods and servicesProvides customers with goods and services

Marketing MixMarketing Mix

Also known as the 4 p’sAlso known as the 4 p’s• ProductProduct

Is there a demand for the productIs there a demand for the product

• PlacePlace Where to sell the product to the right customerWhere to sell the product to the right customer

• PricePrice What price to chargeWhat price to charge

• Customer willing to payCustomer willing to pay• CompetitiveCompetitive• Can company make a profitCan company make a profit

• PromotionPromotion Making the customer aware of the productMaking the customer aware of the product

Market ResearchMarket Research

Gather and study information Gather and study information to determine what kind of to determine what kind of

goods and services to goods and services to produce.produce.

DemographicsDemographics

Facts about the population in Facts about the population in terms of age, gender, terms of age, gender, location, income and location, income and

education.education.

Product DevelopmentProduct Development

Generating ideasGenerating ideas Screening ideasScreening ideas Developing a Business ProposalDeveloping a Business Proposal Developing the productDeveloping the product

Product Development (cont)Product Development (cont)

Test marketing the ProductTest marketing the Product Introducing the ProductIntroducing the Product Evaluating customer acceptanceEvaluating customer acceptance

Channels of DistributionChannels of Distribution

Channel of distributionChannel of distribution• A particular way to direct products to A particular way to direct products to

consumersconsumers Direct distributionDirect distribution

• Occurs when the goods or services are Occurs when the goods or services are sold directly to the customersold directly to the customer

Indirect distributionIndirect distribution• Involves one or more intermediariesInvolves one or more intermediaries

Channel MembersChannel Members

DistributorsDistributors• This intermediary represents a single This intermediary represents a single

manufacturer in a geographic area. manufacturer in a geographic area. Cosmetics, cars, furniture and shoesCosmetics, cars, furniture and shoes

WholesalersWholesalers• Receives large shipments of products from Receives large shipments of products from

many producers, break them into smaller many producers, break them into smaller batches for resale.batches for resale.

Retailers Retailers • Sells goods directly to the customer. This is the Sells goods directly to the customer. This is the

final step the channel of distributionfinal step the channel of distribution