Marketing and Distribution Chapter 11 Marketing and Distribution

All the activities needed to generate consumer demand and to move goods and services from the producer to the consumer It is estimated that about 50% of the price people pay for an item today is for the cost of marketing Olympus video Marketing

The role of the consumer as ruler of the market when determining the types of goods and services produced What is this known as? What are some things we have control over? Consumer sovereignty

Utility The amount of satisfaction one gets from a good or service Diminishing utility Four types of utility… Utility

Questionnaire Focus Group Market Research

Information gathered by researchers about possible users of a product based on such characteristics as age, gender, income, education, and geographic location Lets create our own market research and survey Market Survey

Offering a product for sale in a small area for a limited period of time to see how well it sells before offering it nationally Samples, sporting events, etc… Test-marketing

Product Identification

Selling a new product at a low price to attract customers away from an established product Often coupons, deals, and price gimics Penetration Price

Lowers price for consumers Price leadership

Impulse buying

Use of advertising to inform consumers that a new or improved product or service is available and to persuade them to purchase it. ADVIRTISING Promotion

Direct-mail advertising Type of promotion using a mailer that usually includes a letter describing the product or service and an order blank or application form Does anybody use this anymore?? What do they use?? Direct-mail advertising

Series of stages that a product goes through from first introduction to complete withdraw from the market Cycle or curve… Product life cycle

Channels of Distribution Routes by which goods are moved from producers to consumers Wholesalers – Businesses that purchase large quantities of goods from producers for resale to other businesses Sam’s Club and Home Depot Channels of Distribution

Retailers Businesses that sell consumer goods directly to the public Video Retailers

e-commerce Business transactions conducted over the Internet What has made this business possible?? e-commerce