Chapter 13 Marketing in Todays World Introduction to
- Slides: 30
Chapter 13 Marketing in Today’s World Introduction to Business, Marketing in Today’s World
Chapter 13 Learning Objectives After completing this chapter, you’ll be able to: 1. List the functions of marketing. 2. Identify the importance of market research. 3. Explain how channels of distribution work. Introduction to Business, Marketing in Today’s World
Chapter 13 Why It’s Important Effective marketing puts the products in the hands of its targeted customers. Introduction to Business, Marketing in Today’s World
Chapter 13 Marketing Essentials To successfully market a product, a company has to understand what people WANT to buy and WHY they want to buy it. Introduction to Business, Marketing in Today’s World
Chapter 13 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. Introduction to Business, Marketing in Today’s World
Chapter 13 Basics of Marketing is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers. Introduction to Business, Marketing in Today’s World
Chapter 13 Basics of Marketing Businesses want you to buy their product so they perform detailed research on markets (like teenagers) to find analyze potential customers in their market. This is called target marketing. Introduction to Business, Marketing in Today’s World
Chapter 13 Functions of Marketing The seven functions of marketing are: • • Distribution Financing Marketing information management Pricing Product/service management Promotion Selling Introduction to Business, Marketing in Today’s World
Chapter 13 Marketing Questions Even before a product appears on the market, marketing specialist have to consider a number of questions. • • Who will the product appeal to? How much should it cost? Where should it be sold? What’s the best way to tell people about it? Introduction to Business, Marketing in Today’s World
Chapter 13 Functions of Marketing A popular trend in today’s marketing world is relationship marketing. Companies use this strategy to build customer relations. Introduction to Business, Marketing in Today’s World
Chapter 13 Marketing Mix The four elements of marketing— product, place, price, and promotion— are called the marketing mix, or the four Ps. Introduction to Business, Marketing in Today’s World
Chapter 13 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. Introduction to Business, Marketing in Today’s World
Chapter 13 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. • The placement of the product in a store is important. Introduction to Business, Marketing in Today’s World
Chapter 13 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? Introduction to Business, Marketing in Today’s World
Chapter 13 Price The break-even point is the amount of money a company has to make on a product to pay for its costs. Introduction to Business, Marketing in Today’s World
Chapter 13 Promotion consists of making customers aware of a product. The most familiar form of promotion is advertising. Introduction to Business, Marketing in Today’s World
Chapter 13 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. Introduction to Business, Marketing in Today’s World
Chapter 13 Market Research Companies do market research to gather and study information about consumers to determine what kinds of goods and services to produce. Introduction to Business, Marketing in Today’s World
Chapter 13 Market Research Demographics are facts about the population in terms of age, gender, location, income, and education. Once marketers know the demographics of a market, they can develop products for it. Introduction to Business, Marketing in Today’s World
Chapter 13 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. Introduction to Business, Marketing in Today’s World
Chapter 13 Product Development The seven steps for developing a new product are: 1. Generating ideas 2. Screening ideas 3. Developing a business proposal continued Introduction to Business, Marketing in Today’s World
Chapter 13 Product Development 4. Developing the product 5. Test marketing the product 6. Introducing the product 7. Evaluating customer acceptance Introduction to Business, Marketing in Today’s World
Chapter 13 Channels of Distribution A channel of distribution is a particular way to direct products to consumers. Introduction to Business, Marketing in Today’s World
Chapter 13 Channels of Distribution Direct distribution occurs when the goods or services are sold from the producer directly to the customer. (Ex: online Nike store) Introduction to Business, Marketing in Today’s World
Chapter 13 Channels of Distribution Indirect distribution involves one or more intermediaries. (Same Ex: buying Nike in a store) Introduction to Business, Marketing in Today’s World
Chapter 13 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. Introduction to Business, Marketing in Today’s World
Chapter 13 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. Introduction to Business, Marketing in Today’s World
Chapter 13 Distributors A distributor represents a single manufacturer in a geographic area. Introduction to Business, Marketing in Today’s World
Chapter 13 Wholesalers A wholesaler receives large shipments of products from many different producers. Wholesalers break the shipments into smaller batches for resale. Introduction to Business, Marketing in Today’s World
Chapter 13 Retailers A retailer sells goods directly to the customer. This is the final stop in the channel of distribution. Introduction to Business, Marketing in Today’s World