Chapter 12 Marketing

Objectives Be able to define market and marketing Describe how market research is done. Explain why advertising is important. Name three major ways of selling products. Explain how products are distributed.

Terms Advertising Chain of distribution Commission Consumers Direct sales Distribution Market Market Research Retailers Sales Forecasts

Terms cont’d Test marketing Warehouse Wholesalers

Marketing Marketing includes all the activities involved in selling the product. – Market Research – data collection – Test Marketing – sampling small group/area. – Advertising- persuade, inform. A Market is a specific group of people who might buy a product. (Markets Change) – Teenagers, senior citizens, young married couples, mechanics, military, or even a school district.

Markets Industrial Market – buy products to use at their own companies. – Car dealerships, hospitals, schools, etc. Pg Identify industrial markets for 12-1 Consumer Market – People like you and me who buy products for their own personal use. Consists of many millions of people

The Marketing Plan Sales Forecast – A prediction of how many products the company will sell. – Determines what the companies market share will be. Market Research – All activities used to determine what people want to buy and how much they are willing to pay for it. Interview people, taste test, test market.

Marketing Plan cont’d Advertising – Tells people about a product. The method or methods a company uses to persuade, inform, or influence consumers to buy a certain product. Market research determines the best type of advertising to reach the target market. (TV, Radio, Magazines, Samples, Billboards, etc.) – Target market – Group of consumers most likely to use and want the product.

Sales If a company can’t sell the product, all is lost. Many sales personnel work on a commission basis. Three main ways of selling: – Direct Sales – Wholesale sales – Retail Sales

Direct Sales When manufacturing companies sell their products directly to the consumer. – Typically a less popular method of sales. Examples: – LL Bean – Bose – Others?

Wholesale Sales Wholesalers are people or companies who act as intermediaries (go betweens). Typically buy large quantities of products from manufacturers. Sell products to commercial, professional, retail and other of distribution outlets.

Retail Sales Retailers buy products from the manufacturers or wholesalers. Sell products to the consumer. – Department stores – Chain Stores – Discount stores.

Distribution Distribution refers to methods used to get goods to the purchaser. The path a product takes to get from the manufacturer to the consumer is called the chain of distribution. Managing distribution is very critical. Products must be available at the right time and at the right place.

Distribution cont’d Warehousing – A warehouse is a building where products are temporarily stored until the next part of the chain if distribution is ready for them. Transportation – All products need to be shipped from the factory and must eventually reach the industrial or consumer market. Quiz star

Understanding Concepts What is the difference between a market and marketing?

Understanding Concepts Name two activities that may take place during market research.

Understanding Concepts What is the goal of advertising?

Understanding Concepts What is the difference between direct sales and retail sales?

Understanding Concepts Describe the supply chain.