Intro to Business 7 e CHAPTER 10 Marketing

Intro to Business, 7 e CHAPTER 10 Marketing 10 -1 Marketing Basics 10 -2 Develop Effective Products and Services 10 -3 Price and Distribute Products 10 -4 Plan Promotion © 2009 South-Western, Cengage Learning SLIDE 1

Intro to Business, 7 e 10 -1 Marketing Basics Goals l Define important marketing concepts. l Identify the steps in a marketing strategy. l Describe the consumer decision-making process. © 2009 South-Western, Cengage Learning SLIDE 2

Intro to Business, 7 e Chapter 10 Key Terms l marketing strategy l target market l marketing mix l marketing orientation l final consumers l business consumers l consumer decisionmaking l process l buying motives © 2009 South-Western, Cengage Learning SLIDE 3

Intro to Business, 7 e UNDERSTAND MARKETING Chapter 10 l Marketing activities l Marketing businesses l Marketing functions © 2009 South-Western, Cengage Learning SLIDE 4

Intro to Business, 7 e Chapter 10 Marketing Functions © 2009 South-Western, Cengage Learning SLIDE 5

Intro to Business, 7 e Chapter 10 Checkpoint >> Define marketing and the seven marketing functions. Answer l Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. l The seven marketing functions include product and service management, distribution, selling, marketing information management, financial analysis, pricing, and promotion. © 2009 South-Western, Cengage Learning SLIDE 6

Intro to Business, 7 e Chapter 10 MARKETING STRATEGY l Marketing planning l Develop a successful marketing strategy l Identify a target market l Create a marketing mix © 2009 South-Western, Cengage Learning SLIDE 7

Intro to Business, 7 e Chapter 10 Checkpoint >> What are the two steps in developing a marketing strategy? Answer l The two steps are identifying a target market and developing a marketing mix. © 2009 South-Western, Cengage Learning SLIDE 8

Intro to Business, 7 e UNDERSTAND CUSTOMERS Chapter 10 l Consumer decision-making l Buying motives © 2009 South-Western, Cengage Learning SLIDE 9

Intro to Business, 7 e STEPS IN THE CONSUMER DECISION-MAKING PROCESS 1. 2. 3. 4. 5. Chapter 10 Recognize a need. Gather information. Select and evaluate alternatives. Make a purchase decision. Determine the effectiveness of the decision. © 2009 South-Western, Cengage Learning SLIDE 10

Intro to Business, 7 e Chapter 10 Checkpoint >> What are the steps in the consumer decision-making process? Answer l Steps in the consumer decision- making process include recognizing a need, gathering information, selecting and evaluating alternatives, making a purchase decision, and determining the effectiveness of the decision. © 2009 South-Western, Cengage Learning SLIDE 11

Intro to Business, 7 e 10 -2 Develop Effective Products and Services Goals l Justify the importance of marketing research. l Identify the components of a product. l Describe how services differ from products. © 2009 South-Western, Cengage Learning SLIDE 12

Intro to Business, 7 e Chapter 10 Key Terms l marketing research l product l services l intangible l inseparable l perishable l heterogeneous © 2009 South-Western, Cengage Learning SLIDE 13

Intro to Business, 7 e CREATE AND IMPROVE PRODUCTS Chapter 10 l Totally new products l Major improvements in existing products l Minor improvements in existing products © 2009 South-Western, Cengage Learning SLIDE 14

Intro to Business, 7 e PLAN MARKETING RESEARCH Chapter 10 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. © 2009 South-Western, Cengage Learning SLIDE 15

Intro to Business, 7 e TYPES OF RESEARCH STUDIES Chapter 10 l Surveys l Focus groups l Observations l Experiments © 2009 South-Western, Cengage Learning SLIDE 16

Intro to Business, 7 e Chapter 10 Checkpoint >> List the steps in a marketing research study. Answer l The steps in marketing research are to define the marketing problem, study the situation, develop a data collection procedure, gather and analyze information, and propose a solution. © 2009 South-Western, Cengage Learning SLIDE 17

Intro to Business, 7 e Chapter 10 PRODUCT PLANNING l Parts of a product l Product planning procedures l l l Idea development Idea screening Strategy development Production and financial planning Limited production and test marketing Full-scale production © 2009 South-Western, Cengage Learning SLIDE 18

Intro to Business, 7 e Chapter 10 Checkpoint >> What are the components of a product? Answer l Products are everything businesses offer to customers and are composed of the basic product, product features, its brand name and packaging, and sometimes a guarantee or warranty. © 2009 South-Western, Cengage Learning SLIDE 19

Intro to Business, 7 e Chapter 10 SERVICES l Intangible l Inseparable l Perishable l Heterogeneous © 2009 South-Western, Cengage Learning SLIDE 20

Intro to Business, 7 e Chapter 10 Checkpoint >> In what ways are services different from products? Answer l Products are tangible and may be nonperishable; it is generally easier to control the quality and marketability of these items. l Services, however, are intangible, more difficult to market, and perishable. © 2009 South-Western, Cengage Learning SLIDE 21

Intro to Business, 7 e 10 -3 Price and Distribute Products Goals l Discuss how the selling price of a product is calculated. l Differentiate between a direct and an indirect channel of distribution. © 2009 South-Western, Cengage Learning SLIDE 22

Intro to Business, 7 e Chapter 10 Key Terms l price l distribution l channel of distribution l channel members © 2009 South-Western, Cengage Learning SLIDE 23

Intro to Business, 7 e Chapter 10 VALUE AND PRICE l Buyers usually want to pay the lowest price possible. l Sellers want to charge the highest price possible. © 2009 South-Western, Cengage Learning SLIDE 24

Intro to Business, 7 e Chapter 10 PRICING FACTORS l Supply and demand l Uniqueness l Age l Season l Complexity l Convenience © 2009 South-Western, Cengage Learning SLIDE 25

Intro to Business, 7 e Chapter 10 PRICE A PRODUCT l Selling price l Product costs l Operating expenses l Profit l Gross margin Gross Selling Product = + Margin price costs Selling Product Operating = + + Profit price costs expenses © 2009 South-Western, Cengage Learning SLIDE 26

Intro to Business, 7 e Chapter 10 PRICE A PRODUCT l Markup l Markdown © 2009 South-Western, Cengage Learning SLIDE 27

Intro to Business, 7 e Chapter 10 Checkpoint >> What is the formula for calculating the selling price of a product? Answer Selling price = Product cost + Operating expenses + Profit. © 2009 South-Western, Cengage Learning SLIDE 28

Intro to Business, 7 e CHANNELS OF DISTRIBUTION Chapter 10 l Need for distribution channels l l Differences in quantity Differences in assortment Differences in location Differences in timing l Channels and channel members © 2009 South-Western, Cengage Learning SLIDE 29

Intro to Business, 7 e Chapter 10 Checkpoint >> What is the difference between a direct and an indirect channel of distribution? Answer l In a direct channel of distribution, products move directly from the producer to the consumer. l In an indirect channel, others may participate in the movement of products from the producer to the consumer, such as transportation services and retailers. © 2009 South-Western, Cengage Learning SLIDE 30

Intro to Business, 7 e 10 -4 Plan Promotion Goals l Justify the importance of communication in marketing. l Identify and describe the common types of promotion. © 2009 South-Western, Cengage Learning SLIDE 31

Intro to Business, 7 e Chapter 10 Key Terms l promotion l effective communication l personal selling l advertising © 2009 South-Western, Cengage Learning SLIDE 32

Intro to Business, 7 e Chapter 10 COMMUNICATION l The communication process l Communicating through promotion © 2009 South-Western, Cengage Learning SLIDE 33

Intro to Business, 7 e Chapter 10 Components of Effective Communication © 2009 South-Western, Cengage Learning SLIDE 34

Intro to Business, 7 e Chapter 10 Checkpoint >> How does identifying a target market improve promotion communications? Answer l Communication can be developed and directed more specifically if a target market is identified. © 2009 South-Western, Cengage Learning SLIDE 35

Intro to Business, 7 e Chapter 10 PROMOTION l Personalized promotion l Mass personalization © 2009 South-Western, Cengage Learning SLIDE 36

Intro to Business, 7 e Chapter 10 Checkpoint >> Describe the advantages and disadvantages of the major types of promotion. Answer l Personalized promotion allows the provider to meet customers and identify customer needs. l It is, however, the most expensive type of promotion. l Mass promotion reaches a larger target market and is much less expensive. l It does not, however, provide for individualized service, and sales (results) are often not immediate. © 2009 South-Western, Cengage Learning SLIDE 37