Chapter 20 Nature and Scope of Marketing 1 Chapter 20 Nature and Scope of Marketing ©2008 Thomson/South-Western

Chapter 20 Nature and Scope of Marketing 2 Lesson 20.1 Nature of Marketing Goals Discuss the importance of marketing and its role in the economy. Describe the factors that are part of the nature of marketing.

Chapter 20 Nature and Scope of Marketing 3 Marketing Marketing — an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

Chapter 20 Nature and Scope of Marketing 4 Marketing Activities Buying Selling Transporting Storing Financing Researching Risk taking Grading and valuing

Chapter 20 Nature and Scope of Marketing 5 Role of Marketing Production oriented — decisions about what and how to produce receive the most attention Sales oriented — emphasis is on widespread distribution and promotion to sell products Customer oriented — company activities are directed toward satisfying customers

Chapter 20 Nature and Scope of Marketing 6 Lesson 20.2 Elements of Marketing Goals Describe the role that market determination plays in marketing. Define basic marketing concepts and the four elements of the marketing mix.

Chapter 20 Nature and Scope of Marketing 7 Marketing Determination Market — the types of buyers a business wishes to attract and where those buyers are located Market research — study of a company’s current and prospective customers Target market — groups of customers with very similar needs to whom the company plans to sell its product

Chapter 20 Nature and Scope of Marketing 8 The Marketing Mix Marketing mix — blend of all decisions related to the four elements of marketing: Product Price Distribution (place) Promotion

Chapter 20 Nature and Scope of Marketing 9 Lesson 20.3 Marketing Plan Goals Explain the four stages of the product life cycle. Identify the consumer goods classifications.

Chapter 20 Nature and Scope of Marketing 10 Marketing Plan Marketing plan — detailed written description of all marketing activities that a business must accomplish in order to sell its products; written for a specific time period, often one year

Chapter 20 Nature and Scope of Marketing 11 Product Life Cycle Introduction stage — brand-new product enters the market Growth stage — several different brands of the new product are available Maturity stage — product is competing with many other brands with very similar features Decline stage — new product is introduced that is much better or easier to use and customers begin to switch from the old to the new product

Chapter 20 Nature and Scope of Marketing 12 Product Life Cycle

Chapter 20 Nature and Scope of Marketing 13 Types of Consumer Products Convenience goods — inexpensive items that consumers purchase regularly without a great deal of thought Shopping goods — products purchased less frequently than convenience goods; have a higher price and require some thought Specialty goods — products customers insist on having and are willing to search for Unsought goods —products customers do not shop for because they do not have a strong need for them