Understand the role marketing in business. 1

Understand principles of marketing. 2

 Functions of marketing  Importance of marketing research to the creation or improvement of products or services  Selling prices of products and services  Classification of channels of distribution  Classification of the main types of promotion 3

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What happens during the marketing process? Businesses are involved in the process of  Origin  Pricing  Promotion  Distribution of products and services. These products and services are made available in order to meet the goals of individuals and businesses. 5

Activities of marketing happen throughout the seven functions of marketing Marketing-information management Product/service management Pricing Place (Distribution) Selling Financing Promotion 6

Involves  Obtaining  Managing  Using information about products, services, customers, and competitors to improve business decision-making and the performance of marketing activities. 7

 Product/service management may include several businesses involved with designing, developing, maintaining, improving, and obtaining products and services in order to meet the needs of customers. 8

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 What is marketing research?  Steps in marketing research: 1.Define the marketing problem. 2.Study the situation. 3.Develop a data collection procedure. 4.Gather and analyze information. 5.Propose a solution. 10

Types of research studies Surveys Focus groups Observations Experiment 11

Similarities of products and services  Meet the needs or satisfaction of a target market  Include a mix of the marketing elements: product, price, promotion, and place (distribution) 12

Differences between products and services ProductsServices TangibleIntangible Non-perishable or perishablePerishable Separable Inseparable Easier to market More difficult to market More control over quality Less control over quality 13

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 What factors influence the pricing of products and services?  Pricing formula Selling price =product costs + operating expenses + profit Example: $215=

 What is markup? Selling price = product cost + markup Example: $35+$14=$49 $35*40%=$14  What is a markdown? 16

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 What is channel of distribution?  How does having a channel of distribution help businesses? 18

Types of channels of distribution: Direct Example-Tonya makes and sells drapes to local customers. Indirect Example-UPS delivers packages for Ann Taylor. 19

 How do you know when communication is effective?  What is the relationship between effective communication and promotion? 20

 Main types of promotion: Personalized Mass  What are some examples of personalized promotion?  What are some types of mass promotion? 21