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Essential Standard 3.00

Essential Standard 3.00. Understand the role marketing in business. Objective 3.01. Understand principles of marketing. Topics. Functions of marketing Importance of marketing research to the creation or improvement of products or services Selling prices of products and services

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Essential Standard 3.00

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  1. Essential Standard 3.00 Understand the role marketing in business.

  2. Objective 3.01 Understand principles of marketing.

  3. Topics • 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

  4. Functions of marketing

  5. Functions of Marketing • What happens during the marketing process? • Activities of marketing happen throughout the seven functions of marketing

  6. Functions of Marketing continued Seven functions of marketing: • Product/service management • Distribution • Selling • Marketing-information management • Financing • Pricing • Promotion

  7. Marketing Information Mgt. Marketing-information management involves obtaining, managing, and using information about products and services, customers, and competitors to improve business decision-making and the performance of marketing activities.

  8. . . . Pricing Pricing involves determining and communicating the value of products and services.

  9. Product Service Mgt. 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.

  10. Promotion involves communicating information such as features and prices about products and services to potential customers

  11. Distribution Distribution (Place) involves using the best ways for customers to locate, obtain, and use the products and services of a business.

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

  13. Financing Financing involves budgeting for marketing activities, securing necessary funds for operations, and providing financial assistance to customers

  14. Importance of marketing research to the creation or improvement of products or services

  15. Marketing Research • What is marketing research? Marketing research involves customers in order to find solutions to problems through carefully designed studies • Steps in marketing research: • Define the marketing problem. • Study the situation. • Develop a data collection procedure. • Gather and analyze information. • Propose a solution.

  16. Marketing Research continued Types of research studies • Surveys • Focus groups • Observations • Experiment

  17. Good/Products vs. Services

  18. Marketing Research continued Parts of a product • Basic product • Product features • Options • Brand name • Packaging • Warranty

  19. 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 distribution)

  20. Marketing Research continued Differences between products and services ProductsServices Tangible Intangible Perishable or non-perishable Perishable Separable Inseparable Easier to market More difficult to market More control over quality Less control over quality

  21. Selling prices of products and services

  22. 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

  23. Selling Prices of Products and Services continued • Markup • The amount charged of the selling price to cover the operating expenses and profit usually stated as a percent. • Selling price=product cost+markup • Example: $35+$14=$49 • $35*40%=$14 • Markdown A reduction from the original selling price.

  24. Classification of channels of distribution

  25. Classification of Channels of Distribution • What is channel of distribution? • How do the needs between producers and consumers differ? They differ by: • Quantity • Assortment • Location • Timing

  26. Classification of Channels of Distribution continued • Channels of distribution allow businesses to adjust quantity and assortments accessible in convenient locations for customers and storage of products. • Types of channels of distribution: • Direct Example-Tonya makes and sells drapes to local customers. • Indirect Example-UPS delivers packages to constomers for Ann Taylor Clothing Store.

  27. Classification of the main types of promotion

  28. Classification of the Main Types of Promotion • Effective communication consists of an understanding of information between the sender and the receiver. • The sender selects a channel of communication and the receiver indicates understanding by providing some form of feedback. • What is the relationship between effective communication and promotion?

  29. Classification of the Main Types of Promotion continued • Main types of promotion: • Personalized is customized for individual customer. • Mass is communicated with many people with a common message. • Some types of mass promotion: • Advertisement • Publicity • Public relations • Sales promotion

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