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Marketing

CHAPTER 10. Marketing. 10-1 Marketing Basics 10-2 Develop Effective Products and Services 10-3 Price and Distribute Products 10-4 Plan Promotion. 10-1. Marketing Basics. Goals Define important marketing concepts. Identify the steps in a marketing strategy.

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Marketing

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  1. CHAPTER 10 Marketing 10-1 Marketing Basics 10-2 Develop Effective Products and Services 10-3 Price and Distribute Products 10-4 Plan Promotion

  2. 10-1 Marketing Basics Goals Define important marketing concepts. Identify the steps in a marketing strategy. Describe the consumer decision-making process.

  3. marketing marketing strategy target market marketing mix marketing orientation final consumers business consumers consumer decision-making process buying motives Chapter 10 Key Terms

  4. Chapter 10 UNDERSTAND MARKETING • Marketing activities • Marketing businesses • Marketing functions

  5. Chapter 10 Marketing Functions

  6. Define marketing and the seven marketing functions. Chapter 10 Checkpoint >> Answer • Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. • The seven marketing functions include product and service management, distribution, selling, marketing information management, financial analysis, pricing, and promotion.

  7. Chapter 10 MARKETING STRATEGY • Marketing planning • Develop a successful marketing strategy • Identify a target market • Create a marketing mix

  8. Specific group of consumers who have similar needs and wants • Proctor & Gamble • http://www.pg.com/en_US/index.shtml Chapter 10 TARGET MARKET

  9. http://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL12_2000.htmhttp://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL12_2000.htm Chapter 10

  10. PRODUCT- includes the basic (or simplest form) product, features, options, brand name, packaging guarantee/warranty, PRICE- the $ a customer must pay for a product or service PLACE- distribution (channels of distribution) and placement PROMOTION- promotion, personal selling, and advertising Chapter 10 MARKETING MIX

  11. What are the two steps in developing a marketing strategy? Chapter 10 Checkpoint >> Answer • 1. Identify your target market • 2. Develop your marketing mix.

  12. Chapter 10 UNDERSTAND CUSTOMERS • Consumer decision-making (next slide) • Buying motives • Emotional • Purchases based on feelings, beliefs, and attitudes • Rational • Purchase decisions guided by facts and logic

  13. Chapter 10 STEPS IN THE CONSUMER DECISION-MAKING PROCESS 1. Recognize a need. 2. Gather information. 3. Select and evaluate alternatives. 4. Make a purchase decision. 5. Determine the effectiveness of the decision.

  14. 1-3, and 4 or 5 Then read Chapter 10-2 starting on page 243 and complete questions on page 248 (1-3, and 4 or 5) Chapter 10 Assessment page 242>>

  15. 10-2 Develop Effective Products and Services Goals Justify the importance of marketing research. Identify the components of a product. Describe how services differ from products.

  16. marketing research product services intangible inseparable perishable heterogeneous Chapter 10 Key Terms

  17. Chapter 10 CREATE AND IMPROVE PRODUCTS • Totally new products • Major improvements in existing products • Minor improvements in existing products

  18. Chapter 10 PLAN 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.

  19. Chapter 10 TYPES OF RESEARCH STUDIES • Secondary Research- Analyzing existing information gathered for another purpose and using it to solve a current problem • Primary Research- Studies carried out to gather new information specifically directed at a current problem (continued on following slide)

  20. Chapter 10 TYPES OF RESEARCH STUDIES (Primary Research) • Surveys • Focus groups • Observations • Experiments

  21. Chapter 10 Check out these examples… • http://www.fastcompany.com/magazine/05/elab.html • http://www.youtube.com/watch?v=oBaiKsYUdvg • http://online.wsj.com/article/SB121927508211958397.html

  22. List the steps in a marketing research study. Chapter 10 Checkpoint >> Answer • The steps in marketing research are to define the marketing problem, study the situation, develop a data collection procedure, gather and analyze information, and propose a solution.

  23. Chapter 10 PRODUCT PLANNING • Parts of a product • Basic Product • Product Features (Options) • Brand Name • Packaging • Guarantee or Warranty

  24. Chapter 10 PRODUCT PLANNING • Product planning procedures • Idea development • Idea screening • Strategy development • Production and financial planning • Limited production and test marketing • Full-scale production

  25. What are the components of a product? Chapter 10 Checkpoint >> Answer • Products are everything businesses offer to customers and are composed of the basic product, product features, its brand name and packaging, and sometimes a guarantee or warranty.

  26. Chapter 10 SERVICES • Intangible • No tangible form • Inseparable • Consumed at the time they are produced • Perishable • Cannot be stored for later use • Heterogeneous • Differences in the type and quality of services provided

  27. In what ways are services different from products? Chapter 10 Checkpoint >> Answer • Products are tangible and may be nonperishable; it is generally easier to control the quality and marketability of these items. • Services, however, are intangible, more difficult to market, and perishable.

  28. 10-3 Price and Distribute Products Goals Discuss how the selling price of a product is calculated. Differentiate between a direct and an indirect channel of distribution.

  29. Chapter 10 Key Terms • price • distribution • channel of distribution • channel members

  30. Chapter 10 VALUE AND PRICE • Buyers usually want to pay the lowest price possible. • Sellers want to charge the highest price possible.

  31. Chapter 10 PRICING FACTORS • Supply and demand • Uniqueness • Age • Season • Complexity • Convenience

  32. Selling price Product costs Operating expenses Profit Gross margin Chapter 10 PRICE A PRODUCT

  33. Chapter 10 PRICE A PRODUCT • Markup • Markdown

  34. What is the formula for calculating the selling price of a product? Chapter 10 Checkpoint >> Answer Selling price = Product cost + Operating expenses + Profit.

  35. Chapter 10 CHANNELS OF DISTRIBUTION • Need for distribution channels • Differences in quantity • Differences in assortment • Differences in location • Differences in timing • Channels and channel members

  36. What is the difference between a direct and an indirect channel of distribution? Chapter 10 Checkpoint >> Answer • In a direct channel of distribution, products move directly from the producer to the consumer. • In an indirect channel, others may participate in the movement of products from the producer to the consumer, such as transportation services and retailers.

  37. Chapter 10 Reinforcements Page 242 (1-3 and 4 or 5) Page 247 Ethics (1-3) Page 248 (1-3) Page 254 (1-2 and 3 or 4)

  38. 10-4 Plan Promotion Goals Justify the importance of communication in marketing. Identify and describe the common types of promotion.

  39. Chapter 10 Key Terms • Promotion ~ any form of communication use to inform, persuade, or remind. • Effective communication ~ exchange of information so there is common understanding by all participants. • Personal selling ~ direct, individualized communication withy prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and services. • Advertising ~ any paid form of communication through mass media directed at identified consumers to provide information and influence their actions.

  40. Chapter 10 COMMUNICATION • The communication process • Communicating through promotion – p.256 How does identifying a target market improve promotion communications?

  41. Chapter 10 Components of Effective Communication

  42. How does identifying a target market improve promotion communications? Chapter 10 Checkpoint >> Answer • Communication can be developed and directed more specifically if a target market is identified.

  43. Chapter 10 A QUESTION OF ETHICS on page 258 The Price of Success A MICROSOFT CASE STUDY http://www.nytimes.com/2007/09/17/technology/17cnd-soft.html?ex=1347681600&en=d16802a6603d512f&ei=5088&partner=rssnyt&emc=rss http://www.computerworld.com/s/article/9103578/For_Bill_Gates_antitrust_fight_was_a_personal_crucible http://en.wikipedia.org/wiki/Bill_Gates

  44. Chapter 10 PROMOTION • Personalized promotion • Direct communication w/ customer • Tailors information for that customer • a.k.a. Personal Selling • Mass promotion • Communicates with many people at the same time • Common message • More info on next slide

  45. Mass Promotion (continued) • Advertising~ pd communication through mass media to influence the public • Publicity~ non-paid promotion • Public Relations~ ongoing program of pd and non-pd communications. Planned to favorably influence public opinion • Sales Promotions ~activities and materials designed to reinforce a company’s brand or image Chapter 10 PROMOTION

  46. Mass personalization • Combines the advantages of personal selling and mass promotion • Begins as mass promotion and then invites prospective customers to call, write, or go online, for a more personal analysis of their needs. Chapter 10 PROMOTION

  47. Describe the advantages and disadvantages of the major types of promotion. Chapter 10 Checkpoint >> Answer • Personalized promotion allows the provider to meet customers and identify customer needs. • It is, however, the most expensive type of promotion. • Mass promotion reaches a larger target market and is much less expensive. • It does not, however, provide for individualized service, and sales (results) are often not immediate.

  48. Reinforcement 10-4 Page 259 (1, 2, and 4) AND Chapter Review Page 260 1-21 and 2 from 22-27

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