introduction to business, marketing in today’s world chapter 13 marketing in today’s world
TRANSCRIPT
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Chapter 13
Marketing in Today’s World
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:
1.1. ListList the functions of marketing.
2.2. IdentifyIdentify the importance of market research.
3.3. Explain Explain how channels of distribution work.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Why It’s ImportantWhy It’s Important
Effective marketing puts the products in the hands of its targeted customers.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Marketing EssentialsMarketing Essentials
To successfully market a product, a company has to understand what people WANT to buy and WHY they want to buy it.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Basics of Marketing 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.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Basics of Marketing Basics of Marketing
Marketing is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Basics of Marketing Basics of Marketing
Businesses want you to buy their product so they perform detailed research on markets (like teenagers) to find and analyze potential customers in their market. This is called target marketing.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Functions of Marketing Functions of Marketing The seven functions of marketing are:
• Distribution • Financing • Marketing information management • Pricing • Product/service management • Promotion • Selling
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Marketing QuestionsMarketing 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?
Even before a product appears on the market, marketing specialist have to consider a number of questions.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Functions of Marketing Functions of Marketing
A popular trend in today’s marketing world is relationship marketing.
Companies use this strategy to build customer relations.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Marketing Mix Marketing Mix
The four elements of marketing—product, place, price, and promotion—are called the marketing mix, or the four Ps.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Product 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.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Place 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.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Price 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?
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Price Price
The break-even point is the amount of money a company has to make on a product to pay for its costs.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Promotion Promotion
Promotion consists of making customers aware of a product.
The most familiar form of promotion is advertising.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Promotion 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.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Market Research Market Research
Companies do market research to gather and study information about consumers to determine what kinds of goods and services to produce.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Market Research Market Research
Demographics are facts about the population in terms of age, gender, location, income, and education.
Once marketers know the demo-graphics of a market, they can develop products for it.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Product Development 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.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Product Development Product Development The seven steps for developing a new product are:
1. Generating ideas 2. Screening ideas 3. Developing a business proposal
continued
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Product Development Product Development
4. Developing the product 5. Test marketing the product 6. Introducing the product 7. Evaluating customer acceptance
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Channels of Distribution Channels of Distribution
A channel of distribution is a particular way to direct products to consumers.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Channels of Distribution Channels of Distribution
Direct distribution occurs when the goods or services are sold from the producer directly to the customer.
(Ex: online Nike store)
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Channels of Distribution Channels of Distribution
Indirect distribution involves one or more intermediaries.
(Same Ex: buying Nike in a store)
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Channels of Distribution 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.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Channels of Distribution 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.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Distributors Distributors
A distributor represents a single manufacturer in a geographic area.
ChapteChapterr
1313
Introduction to Business, Marketing in Today’s World
Wholesalers Wholesalers
A wholesaler receives large shipments of products from many different producers.
Wholesalers break the shipments into smaller batches for resale.