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Marketing Essentials for Success: Strategy, Products, Pricing, Distribution

Learn vital marketing concepts, strategies, consumer behavior, and product development to excel in today's competitive market. Understand pricing tactics, effective distribution channels, and product planning for business growth. Master the art of marketing research and develop winning products and services that meet customer needs.

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Marketing Essentials for Success: Strategy, Products, Pricing, Distribution

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  1. C H A P T E R 10 Marketing 10-1 Marketing Basics 10-2 Develop Effective Productsand Services 10-3 Price and Distribute Products 10-4 Plan Promotion

  2. 10-1 Marketing Basics Goal 1 Define important marketing concepts. Goal 2 Identify the steps in a marketing strategy. Goal 3 Describe the consumer decision-making process.

  3. KEY TERMS • marketing • marketing strategy • target market • marketing mix • marketing orientation • final consumers • business consumers • consumer decision-making process • buying motives

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

  5. Marketing Functions

  6. Checkpoint  • Define marketing and the seven marketing functions. • Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. • The seven marketing functions include product and service management, distribution, selling, marketing information management, financial analysis, pricing, and promotion.

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

  8. Checkpoint  • What are the two steps in developing a marketing strategy? • The two steps are identifying a target market and developing a marketing mix.

  9. UNDERSTAND CUSTOMERS • Consumer decision-making • Buying motives

  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.

  11. Checkpoint  • What are the steps in the consumer decision-making process? • Steps in the consumer decision-making process include recognizing a need, gathering information, selecting and evaluating alternatives, making a purchase decision, and determining the effectiveness of the decision.

  12. 10-2 Develop Effective Products and Services Goal 1 Justify the importance of marketing research. Goal 2 Identify the components of a product. Goal 3 Describe how services differ from products.

  13. KEY TERMS • marketing research • product • services • intangible • inseparable • perishable • heterogeneous

  14. CREATE AND IMPROVE PRODUCTS • Totally new products • Major improvements in existing products • Minor improvements in existing products

  15. 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.

  16. TYPES OF RESEARCH STUDIES • Surveys • Focus groups • Observations • Experiments

  17. Checkpoint  • List the steps in a marketing research study. • 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.

  18. PRODUCT PLANNING • Parts of a product • Product planning procedures • Idea development • Idea screening • Strategy development • Production and financial planning • Limited production and test marketing • Full-scale production

  19. Checkpoint  • What are the components of a product? • 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.

  20. SERVICES • Intangible • Inseparable • Perishable • Heterogeneous

  21. Checkpoint  • In what ways are services different from products? • 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.

  22. 10-3 Price and Distribute Products Goal 1 Discuss how the selling price of a product is calculated. Goal 2 Differentiate between a direct and an indirect channel of distribution.

  23. KEY TERMS • price • distribution • channel of distribution • channel members • retailer

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

  25. PRICING FACTORS • Supply and demand • Uniqueness • Age • Season • Complexity • Convenience

  26. PRICE A PRODUCT • Selling price • Product costs • Operating expenses • Profit

  27. GROSS MARGIN Gross Margin = Selling price + Product costs

  28. MARKUP • The amount added to the cost of a product to set the selling price • Markup on cost • Markup on selling price

  29. MARKDOWN • A reduction from the original selling price • Reasons for markdowns • Low demand • End of season • Flaws

  30. Checkpoint  • What is the formula for calculating the selling price of a product? • Selling price = Product cost + Operating expenses + Profit

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

  32. Checkpoint  • What is the difference between a direct and an indirect channel of distribution? • 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.

  33. 10-4 Plan Promotion Goal 1 Justify the importance of communication in marketing. Goal 2 Identify and describe the common types of promotion.

  34. KEY TERMS • promotion • effective communication • personal selling • advertising • merchandising

  35. COMMUNICATION AND PROMOTION • The communication process • Communicating through promotion

  36. COMPONENTS OF EFFECTIVE COMMUNICATION

  37. Checkpoint  • How does identifying a target market improve promotion communications? • Communication can be developed and directed more specifically if a target market is identified.

  38. TYPES OF PROMOTION • Personalized promotion • Mass promotion • Merchandising • Mass personalization

  39. Checkpoint  • Describe the advantages and disadvantages of the major types of promotion. • 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.

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