Marketing in Today’s World

Marketing in Today’s World Intro to Business Chapter 13

Marketing Essentials • Learning Targets • Define Marketing • Identify the Functions of Marketing • List the Elements of the Marketing Mix

Marketing Essentials • The Basics of Marketing • Market • A group of customers who share common wants and needs • Must identify who your market is before selling your product. • Ex. of markets: Gender, age, income levels • Marketing • The process of creating, promoting, and presenting a product or service to meet the wants and needs of customers. • Used to find out if there is demand for a product

Marketing Essentials • The Functions of Marketing • Distribution • The process of getting goods and services to customers • Includes purchasing, stock handling, inventory control and physical distribution. • How? • Financing • Getting the money that is necessary for setting up and running a business

Marketing Essentials • Marketing Information Management • Gathering and analyzing information about consumers, trends, and competitors products. • Making informed decisions requires good research and development • Pricing • Deciding how much to charge for a product or service so the business can make a profit • Product/Service Management • Obtaining, developing, maintaining and improving a product or product mix on response to market opportunities.

Marketing Essentials • Promotion • Any effort to inform, persuade, or remind potential customers about a business’s products or services • Selling • Providing Customers with the goods and services to buy • Relationship marketing – Build and maintain relationships with their customers

Marketing Essentials • The Marketing Mix • 4 P’s - basic marketing strategies • Product • Marketing is used to find out if there is a demand for a product • How to make the product appeal to the customers • Packaging – design, color, size and brand name • Place • Marketers have to decide how and where customers will buy their goods and services. • Channel of distribution – a pathway to direct products to consumers • Direct distribution – Occurs when goods or services are sold from the producer directly to the consumer • Indirect distribution – Involves one or more intermediaries. • Distribution affects the price of products. Cost of distribution is added to the product

Marketing Essentials • Price • To determine price a marketer must consider: • How much are customers willing to pay? • Is the price competitive with other products? • Can the company make a profit • Must find the break-even point • The point at which total revenues, or sales, equal total costs and expenses. • Promotion • Making customers aware of a product • Most familiar is advertising • Others include discounts (rebates, coupons and sales) and giveaways • 5th P – People • The success of a marketing mix depends on people: Employees and Customers 13-1

Market Research and Product Development • Learning Targets • Describe the kinds of market research a company may use • Identify the steps in developing a new product • Market Research • The gathering and analysis of information on the size, location, and makeup of a market • Helps companies to produce and market products and services that attract customers • Marketing Concept • Involves determining the wants and needs of customers and providing them more efficiently and effectively than competitors. 13.2

Market Research and Product Development • Information About Customers • Demographics • Facts about the population • Include: age, gender, location and income • Target Marketing • Helps companies focus on the people most likely to buy their product or service • Once demographics are figured out companies produce product to fit that group • Market Segmentation • The division of a market, for a product, into groups of customers who have the same needs and traits. • Ex. Coach purse or Playstation

Market Research and Product Development • The Seven Steps of Product Development • Step 1: Generate Ideas • Working together to think of new products (brainstorming) • Includes people from development department, market research staff, and outside market researchers • Collaboration is key • Step 2: Screen Ideas • The team must evaluate each plan • How do these ideas fit the company’s mission and strategy? • Does the new product compete with one of the company’s existing products • Check with consumers. Likes and dislikes about ideas

Market Research and Product Development • Step 3: Develop a Business Plan • Written proposal provides a look at the market • Includes: Estimated sales, costs, profit potential, market trends and competing products • Step 4: Develop the Product • Build a prototype: model of the actual product • To see how it would look and test how it can be made • Any changes need to be made at this time

Market Research and Product Development • Step 5: Test-Market the Product • Offer it in a limited market for a limited time • To collect customer responses to see if the product is likely to succeed. • This can allow competitors to enter market at the same time taking away the competitive advantage • Step 6: Introduce the Product • Once it has passes the market test, it is time to enter the marketplace • Introduced through a publicity campaign (Can be expensive) • Have a limited time

Market Research and Product Development • Step 7: Evaluate Customer Acceptance • Once introduced, marketers track customers and their responses • Answers key questions used in research and development • If the customers like the product the company will continue to produce it • If it is not liked by the customers, it will be taken off the market 13-2

Marketing in Today’s World