Understand the role marketing in business Essential Standard

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

3. 01 - PRINCIPLES OF MARKETING “Marketers influence demand by making the product appropriate, attractive, affordable, and easily available to target consumers. ” -Philip Kotler -Professor Philip Kotler is widely regarded as the world’s leading expert on strategic marketing. -He is currently the S. C. Johnson & Son Distinguished Professor of International Marketing at the Northwestern University Kellogg Graduate School of Management in Chicago. 2

ESSENTIAL QUESTIONS What is the marketing process? How do businesses use marketing process? What are the 7 -Marketing Functions? What are examples of the 7 -Marketing Functions? 3

MARKETING PROCESS Businesses are involved in the process of Ø Creating Ø Pricing Ø Promotion Ø Distribution (PLACE) of products and services. These products and services are made available in order to meet the goals of individuals and businesses. 4

Functions of marketing 5

7 FUNCTIONS OF MARKETING Seven functions of marketing: 1. Marketing-information management 2. Product/service management 3. Pricing 4. Place (Distribution) 5. Selling 6. Financing 7. Promotion 6

Marketing-Information Management (MIM) Obtaining Managing Using information about products and services, customers, and competitors. Helps business decision-making and the performance of marketing activities. Examples: On-line SURVEY 7

Marketing-Information Management (MIM) SURVEY What is your zip code? Do you agree or disagree with the following statements? Are you male or female? What is your age? 8

Product/ Service Management (PSM) Product/service management Ø Designing Ø Developing Ø Maintaining Ø Improving Ø Obtaining products and services in order to meet the needs of customers. Example: A Store now offers 20 ounce bottles of water instead of the 12 ounce bottles it previously sold. 9

Pricing Determining the value of products and services. How much will you charge to make a profit? 10

Place (Distribution) Ways for customers to: Ø Locate Ø Obtain products and services of a business. Examples: Ø Business opens new warehouses Ø Selling online products at Amazon or Overstock. com 11

Selling Communicating directly with potential customers in order to determine and satisfy their needs and wants. 12

Financing Obtaining money to do business and help customers. Example: credit A company gives credit (or money ) to another company to do business. 13

Promotion Communicates information on features, prices, and services to products customers. Examples: Advertisements Sales Brochures that include the value, features, and benefits of handcrafted furniture 14

Classification of the Main Types of Promotion continued Personalized is customized for individual customer. Mass promotion is communicated with many people with a common message. Examples of personalized promotion: visits, telephone calls, live audio and video Internet connections Types of mass promotion: advertisement, publicity, public relations, sales promotion 15

Importance of marketing research to the creation or improvement of products or services 16

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. 17

Marketing Research continued Types of research studies ◦ Surveys ◦ Focus groups ◦ Observations ◦ Experiment 18

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) 19

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 Less control over 20

Selling prices of products and services 21

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 22

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? 23

Classification of distribution and promotion 24

Classification of Channels of Distribution What is channel of distribution? How does having a channel of distribution help businesses? 25

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. 26

Classification of the Main Types of Promotion How do you know when communication is effective? What is the relationship between effective communication and promotion? 27