Essential Standard 3 00 Understand the role marketing

Essential Standard 3. 00 Understand the role marketing in business. 1

Objective 3. 01 Understand principles of marketing. 2

Topics • Functions of marketing • Importance of marketing research to the creation or improvement of products or services • Selling prices of products and services • Classification of channels of distribution • Classification of the main types of promotion 3

Functions of marketing 4

Functions of Marketing • What happens during the marketing process? • Activities of marketing happen throughout the seven functions of marketing 5

Functions of Marketing continued Seven functions of marketing: – Marketing-information management – Product/service management – Pricing – Place (Distribution) – Selling – Financing – Promotion 6

Importance of marketing research to the creation or improvement of products or services 7

Marketing Research • What is marketing research? • Steps in marketing research: 1. 2. 3. 4. 5. Define the marketing problem. Study the situation. Develop a data collection procedure. Gather and analyze information. Propose a solution. 8

Marketing Research continued Types of research studies – Surveys – Focus groups – Observations – Experiment 9

Marketing Research continued Similarities of products and services • Meet the needs or satisfaction of a target market • Include a mix of the marketing elements: product, price, promotion, and place (distribution) 10

Marketing Research continued Differences between products and services Products Tangible Non-perishable or perishable Separable Easier to market More control over quality Services Intangible Perishable Inseparable More difficult to market Less control over quality 11

Selling prices of products and services 12

Selling Prices of Products and Services • What factors influence the pricing of products and services? • Pricing formula Selling price =product costs + operating expenses + profit Example: $215=67+38+100 13

Selling Prices of Products and Services continued • What is markup? – Selling price = product cost + markup – Example: $35+$14=$49 – $35*40%=$14 • What is a markdown? 14

Classification of distribution and promotion 15

Classification of Channels of Distribution • What is channel of distribution? • How does having a channel of distribution help businesses? 16

Classification of Channels of Distribution continued Types of channels of distribution: – Direct Example-Tonya makes and sells drapes to local customers. – Indirect Example-UPS delivers packages for Ann Taylor. 17

Classification of the Main Types of Promotion • How do you know when communication is effective? • What is the relationship between effective communication and promotion? 18

Classification of the Main Types of Promotion continued • Main types of promotion: – Personalized – Mass • What are some examples of personalized promotion? • What are some types of mass promotion? 19