Marketing in Today’s World

1. Marketing in Today’s World Chapter 13

2. Marketing • Behind every product is a company’s intense research, development, and marketing. To successfully market a product, a company has to understand what people want to buy and why they want to buy it.

3. The Market • Market is a group of customers who share common wants and needs, and who have the ability to purchase the product. • Marketing is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.

4. Marketing concept • Knowing the customer’s wants and needs in order to make a profit is known as the Marketing Concept. • Potential customers are the “Target Market”

5. Functions of Marketing • Distribution • Financing • Marketing Information Management • Pricing • Product/Service Management • Promotion • Selling

6. Distribution • Involves moving goods and services from one place to the end user. Trucks, trains, airplanes, and ships are possible transporters

7. Financing • Money is necessary to keep any business afloat. Businesses decide if customers can pay with credit or other options.

8. Marketing Information Management • Making an informed decision requires good research and development. Companies conduct market research to learn more about their market.

9. Pricing • Marketers have to figure out what price to charge for a product so the company makes a profit. • Marketers consider the impact of distribution

10. Product/Service Management • Obtaining information, developing and maintaining products helps marketers decide how to respond to market opportunities

11. Promotion • Communication through any type of media gets a business’s product out and into the hands of the public.

12. Selling • Retailers or the business-to-business market provides customers or industrial users with goods and services. • Relationship marketing (trend of today) Companies use this strategy to build customer relations. This keeps companies aware of customer needs and wants

13. The 4 P’s • Marketing Mix • The four elements of marketing are called the Marketing Mix • Product • Place • Price • Promotion

14. Product • Marketers have to find out if there is a demand for the product • How are they going to present the product • Packaging color, name, design, etc

15. Place • Where are they going to sell the product • The placement of the product in the store

16. Price • How much are customers willing to pay • Is the price competitive with other products • Can the company make a profit • The amount of money a company has to make on a product to cover its costs is the break even point.

17. Promotion • Making customers aware of a product • Advertising • Publicity • deals

18. Market Research • Market research is done to gather and study information about consumers to determine what kinds of goods and services to produce. • This is done through survey, sales figures, databases, and the census

19. Market Research Con’t • Demographics are facts about the population in terms of age, gender, location, income, and education. Once marketers know the demographics of a market, companies can start developing products to fit that particular group.

20. Product Development • Seven Steps in Developing a new product • Generating Ideas • Screening Ideas • Developing a Business Proposal • Developing the product • Test Marketing the Product • Introducing the Product • Evaluating Customer Acceptance

21. Channels of Distribution • Channel of distribution is a particular way to direct products to consumers. Producers use a specific channel to move goods to their final user. • Direct Distribution occurs when the goods or services are sold from the producer directly to the customer; an intermediary isn’t involved.

22. Channels con’t • Indirect distribution involves one or more intermediaries • The biggest impact distribution has on marketing is how it affects the price of products. • Each time the product goes through another channel, the cost of marketing increases

23. Channel Members • Distributors • Represents a single manufacturer in a geographic area. Cosmetics, cars, candy, ice cream and furniture are sold through distributors.

24. Channel members con’t • Wholesaler • Receives large shipments of products from many different producers. They break the shipments into smaller batches for resale. • Retailer sells goods directly to the customer. This is the final stop in the channel of distribution. A supermarket is a retailer.