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Read to Learn Define marketing. Identify the functions of marketing. List the elements of the marketing mix.

The Main Idea To sell their products or services, businesses engage in marketing activities. They find and analyze potential customers and then try to meet their wants and needs.

Key Concepts The Basics of Marketing The Functions of Marketing The Marketing Mix

Key Term a group of customers who share common wants and needs market the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers marketing

Key Term relationship marketing building and maintaining relationships with customers marketing mix product, place, price, and promotion, collectively known as the four Ps

Key Term channel of distribution a pathway to direct products to consumers direct distribution when goods or services are sold from the producer directly to the customer

Key Term indirect distribution when goods or services are sold through one or more intermediaries the point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service break-even point

The Basics of Marketing To market a product successfully, a company must understand what people want to buy and why they want to buy it.

The Basics of Marketing A company must know the market. In the global marketplace, many countries can make up a market. market a group of customers who share common wants and needs

The Basics of Marketing Marketing includes studying what people want and designing a product’s packaging. marketing the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers

The Functions of Marketing The seven functions of marketing define all the aspects that are part of marketing.

Seven Functions of Marketing Marketing information management Graphic Organizer 1 2 Distribution 7 Selling Financing Seven Functions of Marketing Marketing information management Promotion 3 6 Product/ service management Pricing 5 4

Graphic Organizer 1 Distribution is the process of getting goods and services to customers. 2 Financing is getting the money that is necessary for setting up and running a business. 3 Marketing information management is gathering and analyzing information about consumers, trends, and competitors’ products 4 Pricing is deciding how much to charge for a product or service so the business can make a profit.

Graphic Organizer 5 Product/service management is obtaining, developing, maintaining, and improving a product or product mix in response to the market. 6 Promotion is any effort to inform, persuade, or remind potential customers about a business’s products or services 7 Selling is providing customers with the goods and services they choose to buy.

The Functions of Marketing Relationship marketing is part of the selling function of marketing. relationship marketing building and maintaining relationships with customers

The marketing mix consists of four basic marketing strategies. product, place, price, and promotion, collectively known as the four Ps

Graphic Organizer P P P P Product Place Price Promotion In recent years, many people have begun to include a fifth P for people.

Product First, marketing is used to find out if there a demand for a product. Marketing is then concerned with how to make the product appeal to consumers.

Make the product appealing Graphic Organizer Establish demand Make the product appealing Packaging design Design Color Size Brand name

Place Marketers have to decide how and where customers will buy their goods and services. Then, marketers have to consider in what kind of location to sell their product.

Place To make place decisions, marketers select the right channel of distribution. channel of distribution a pathway to direct products to consumers

Distribution decisions affect the price of products. Place Distribution decisions affect the price of products. Marketers can use direct distribution or indirect distribution. direct distribution when goods or services are sold from the producer directly to the consumer indirect distribution when goods or services are sold through one or more intermediaries

A marketer must consider the break-even point. Price A marketer must consider the break-even point. break-even point the point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service

Questions to Ask When Determining the Price of a Product Graphic Organizer Questions to Ask When Determining the Price of a Product 1 2 3 How much are customers willing to pay? Is the price competitive with other products? Can the company make a profit?

Promotion Promotion involves making customers aware of a product. Advertising and offering discounts are two popular methods of promotion.

Celebrity Endorsements Many big companies hire celebrities to endorse what they sell. A celebrity endorsement is public support from a well-known person for a product or services. Companies put celebrities in their TV commercials and print ads.

You have just gotten a job working for a toy company as a marketing director specializing in action figures. A team member suggests a contest for the children in your target market. Part of the contest involves the children completing a questionnaire about their preferences. Decision Making What are some ethical guidelines you would use in designing this contest for children?

Answer Privacy is an important issue when marketing to children. Marketing interactions directed to children, including requests for personal information, should require the express consent of the child’s parent or guardian.

Define marketing. the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers

What are the seven functions of marketing? distribution, financing, marketing information management, pricing, product/ service management, promotion, and selling

What four elements are in the marketing mix What four elements are in the marketing mix? What is sometimes considered a fifth element? Product, place, price, and promotion. Some people include a fifth P for people.

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