Essential Standard Understand the role marketing in 3

Essential Standard Understand the role marketing in 3. 00 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? Businesses are involved in the process of � Origin � Pricing � Promotion � Distribution of products and services. These products and services are made available in order to meet the goals of individuals and businesses. 5

Functions of Marketing Activities of marketing happen throughout the seven functions of marketing • • Marketing-information management Product/service management Pricing Place (Distribution) Selling Financing Promotion 6

Marketing Information Systems Involves �Obtaining �Managing �Using information about products, services, customers, and competitors to improve business decision-making and the performance of marketing activities. 7

Product/service management �Product/service management may include several businesses involved with designing, developing, maintaining, improving, and obtaining products and services in order to meet the needs of customers. 8

research to the creation or improvement of products or services 9

Marketing Research �What is marketing research? �Steps in marketing research: 1. Define the marketing problem. 2. Study the situation. 3. Develop a data collection procedure. 4. Gather and analyze information. 5. Propose a solution. 10

Marketing Research continued Types of research studies • Surveys • Focus groups • Observations • Experiment 11

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) 12

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 13

Selling prices of products and services 14

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 15

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? 16

Classification of distribution and promotion 17

Classification of Channels of Distribution �What is channel of distribution? �How does having a channel of distribution help businesses? 18

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. 19

Classification of the Main Types of Promotion �How do you know when communication is effective? �What is the relationship between effective communication and promotion? 20

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? 21