Marketing and Distribution Economics Chapter 11 Marketing and Distribution

Section 1: The Changing Role of Marketing The development of Marketing Generate consumer demand Consumer Sovereignty- consumer as ruler Utility- ability to satisfy customer wants Form Utility Place Utility Time Utility Ownership Utility

Market Research Gather, record, and analyze data on what people want. When Should it be done? Initially with the idea Later to test sample products or packaging Market Surveys Who might use your product Questionnaires made up

Testing New Products Test marketing Offering the product in a small area. Try different prices Ad campaigns Most new products do not make it

Section 2: The Marketing Mix Market Strategy- how to sell effectively The “Four Ps” of Marketing 1. Product What accompany is there. Warranty Packaging- product identification 2. Price Penetration Pricing- low initially Coupons Price leadership- One lowers, all lower

The “Four Ps” of Marketing 3. Place Where to sell, regionally and in a store Online, specialty shops, by mail etc. 4. Promotion Inform customers Billions spent yearly Who to target, teens = teen magazines Direct-mail advertising

Product Life Cycle Introduction- Explain and heavily promote. Growth- Higher prices Maturity Decline- Redesign packaging or find new uses.

Section 3: Distribution Channels Channels of Distribution- How to move your goods 1. Wholesalers- Buy large amounts and sell to businesses. 2. Retailers- Direct sale to consumer E-commerce, online sales. Growing 3. Storage and Transportation On hand stock, method to move

Other Distribution Channels Club Warehouse Store Fee to join Buy in bulk, bring down prices Direct Marketing Catalogs Internet