Understand the role marketing in business.

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Understand principles of marketing.

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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

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What happens during the marketing process?

Businesses are involved in the process ofOriginPricingPromotionDistribution of products and services.

These products and services are made available in order to meet the goals of individuals and businesses.

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Activities of marketing happen throughout the seven functions of marketing

• Marketing-information management• Product/service management• Pricing• Place (Distribution)• Selling• Financing• Promotion

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Involves

ObtainingManagingUsing

information about products, services, customers, and competitors to improve business decision-making and the performance of marketing activities.

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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.

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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.

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Types of research studies•Surveys•Focus groups•Observations•Experiment

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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)

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Differences between products and servicesProducts ServicesTangible IntangibleNon-perishable or perishable PerishableSeparable InseparableEasier to market More difficult to

marketMore control over quality Less control over

quality

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What factors influence the pricing of products and services?

Pricing formulaSelling price

=product costs + operating expenses + profitExample: $215=67+38+100

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What is markup?• Selling price = product cost + markup• Example: $35+$14=$49• $35*40%=$14

What is a markdown?

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What is channel of distribution?

How does having a channel of distribution help businesses?

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Types of channels of distribution:

• DirectExample-Tonya makes and sells drapes to local customers.

• IndirectExample-UPS delivers packages for Ann

Taylor.

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How do you know when communication is effective?

What is the relationship between effective communication and promotion?

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Main types of promotion:• Personalized• Mass

What are some examples of personalized promotion?

What are some types of mass promotion?

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