Key Concepts

2. Key Concepts • The Basics of Marketing • The Functions of Marketing • The Marketing Mix

3. The Basics of Marketing To market a product successfully, a company must understand what people want to buy and why they want to buy it.

4. The Basics of Marketing A company must know the market. In the global marketplace, many countries can make up a market. market a group of customers who share common wants and needs

5. The Basics of Marketing Marketing includes studying what people want and designing a product’s packaging. marketing the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers

6. The Functions of Marketing The seven functions of marketing define all the aspects that are part of marketing.

7. Graphic Organizer 1 Distribution is the process of getting goods and services to customers. 2 Financing is getting the money that is necessary for setting up andrunning a business. 3 Marketing information management is gathering and analyzing information about consumers, trends, and competitors’ products 4 Pricing is deciding how much to charge for a product or service so the business can make a profit.

8. Graphic Organizer 5 Product/service management is obtaining, developing, maintaining, and improving a product or product mix in response to the market. 6 Promotion is any effort to inform, persuade, or remind potential customers about a business’s products or services 7 Selling is providing customers with the goods and services they choose to buy.

9. The Functions of Marketing Relationship marketing is part of the selling function of marketing. relationship marketing building and maintaining relationships with customers

10. The Marketing Mix The marketing mix consists of four basic marketing strategies. marketing mix product, place, price, and promotion, collectively known as the four Ps

11. The Four Ps… P Product

12. Product First, marketing is used to find out if there a demand for a product. Marketing is then concerned with how to make the product appeal to consumers.

13. Establish demand Make the product appealing Packaging design Design Color Size Brand name

14. The Four Ps… P P Product Place

15. Place Marketers have to decide how and where customers will buy their goods and services. Then, marketers have to consider in what kind of location to sell their product.

16. Place To make place decisions, marketers select the right channel of distribution. channel of distribution a pathway to direct products to consumers

17. Place Distribution decisions affect the price of products. Marketers can use direct distribution or indirect distribution. direct distribution when goods or services are sold from the producer directly to the consumer indirect distribution when goods or services are sold through one or more intermediaries

18. The Four Ps… P P P Product Place Price

19. Price A marketer must consider the break-evenpoint. break-even point the point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service

20. Questions to Ask When Determining the Price of a Product 1 2 3 How much are customers willing to pay? Is the price competitive with other products? Can the company make a profit?

21. The Four Ps… P P P P Product Place Price Promotion

22. Promotion Promotion involves making customers aware of a product. Advertising and offering discounts are two popular methods of promotion.

23. The Four Ps… P P P P Product Place Price Promotion In recent years, many people have begun to include a fifth P for people.

24. Celebrity Endorsements Many big companies hire celebrities to endorse what they sell. A celebrity endorsement is public support from a well-known person for a product or services. Companies put celebrities in their TV commercials and print ads.

25. You have just gotten a job working for a toy company as a marketing director specializing in action figures. A team member suggests a contest for the children in your target market. Part of the contest involves the children completing a questionnaire about their preferences. Decision Making What are some ethical guidelines you would use in designing this contest for children?

26. Answer Privacy is an important issue when marketing to children. Marketing interactions directed to children, including requests for personal information, should require the express consent of the child’s parent or guardian.

27. Define marketing. the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers

28. What are the seven functions of marketing? distribution, financing, marketing information management, pricing, product/ service management, promotion, and selling

29. What four elements are in the marketing mix? What is sometimes considered a fifth element? Product, place, price, and promotion. Some people include a fifth P for people.

30. Now it is your turn… Find a magazine ad and relate it to the Marketing Mix (The Four Ps) Product1. What target market is this advertisement aimed toward?2. What want or need is this product satisfying? Place3. From what you know, where does a customer buy this product?4. Is there direct or indirect distribution used? Promotion5. How does this ad make the product appeal to customers?6. What are two other ways the business could promote their product?

31. End of