1. CHAPTER 11 MARKETING AND DISTRIBUTION

2. LEARNING OBJECTIVE I can identify what marketing is and the important role it plays in selling products

3. DEVELOPMENT OF MARKETING Marketing History of Marketing by what the focus has been on Production Sales Advertising Consumer Sovereignty Consumer making choices for market production Today – How will product add to

4. LEARNING OBJECTIVE I can identify what marketing is and the important role it plays in selling products

5. LEARNING OBJECTIVE I can identify and give examples of the 4 types of utility

6. 4 TYPES OF UTILITY Form Utility Example??? Place Utility Example??? Time Utility Example??? Ownership Utility Example???

7. LEARNING OBJECTIVE I can identify and give examples of the 4 types of utility

8. LEARNING OBJECTIVE I can identify the purpose of Market Research and describe how it is done

9. MARKET RESEARCH Process using research methods to find out what consumer Research used to determine how to promote product What is target Audience? What is most effective way to reach audience? When is Market Research done? Beginning of Product Development What do consumers want in a product After development Taste testing or product sampling Purpose Is there a market for the good or service Who is our intended audience? Do we need to change product before we offer for sale? Immediately After release Is advertising attracting intended buyers? Is product working for consumers as expected? What can we do to increase or maintain current sales?

10. PRODUCT DEVELOPMENT Step 1 Conduct a survey Who are users of product Age, gender, income, education, location (urban, rural, suburban) Questionnaire, Individual interviews, focus group discussions, online Step 2 Test Market the product Select small area to release the product Track sales at various prices If doing poorly Alter (very costly) or Abandon the product If doing well Offer nationally Very few make it to this level Why do producers continue to make new??? Opportunity of high profit product

11. LEARNING OBJECTIVE I can identify the purpose of Market Research and describe how it is done

12. LEARNING OBJECTIVE I understand the purpose of a Marketing Strategy and can describe the 4 P’s of Marketing

13. “FOUR PS” OF MARKETING Companies will develop a marketing strategy Details how to successfully sell product Includes 4 Ps of Marketing Product Price Place Promotion

14. PRODUCT Market research determines What to sell Marketing Department also determines Services to offer with product Warranties How to Package product Size, design, color, coupons (repeat buyers), rebate offers EX. New and Improved, Economy Size What identification to use Attract consumers to look at, buy, and remember a product Uses a logo, colors, a song, etc

15. PRICE Ultimately decided by Supply and Demand BUT, Producer must consider costs of Production Advertising Selling Distributing How much profit desired When first introduced Penetration Pricing often used Low introduction price to lure consumers away from similar product Another tactic is to offer coupons If consumer satisfied, will buy again without coupon Prices also determined by Price Leadership One firm lowers, all others lower One firm raises, all other raise

16. PLACE Where should product be sold Mail, telephone, department stores, specialty shops, supermarkets, discount stores, door-to-door, or on Internet Could be combination of many Other considerations??? Location within a store Cereal/Candy at children’s eye level More expensive items at Adult eye level/Nearest door Mail Order Catalogs/Specialty Shops Geographic Location Rural vs. Urban

17. PROMOTION Use of advertising to inform consumers new or improved product is available Seeks to convince to purchase new item Type of Promotion depends on 3 factors Product Type of consumer company wants to attract Amount company plans to spend Teen Product – teen magazine or Social Media site Credit Card Company – Usually Direct mail advertising Other Promotions: Free Samples, Cents-off coupons, gifts, rebates

18. LEARNING OBJECTIVE I understand the purpose of a Marketing Strategy and can describe the 4 P’s of Marketing

19. LEARNING OBJECTIVE I know and understand a product’s life cycle

20. PRODUCT LIFE CYCLE Introduction Growth Maturity Decline Important to understand because marketing different at each stage Introduction – product must be explained more thoroughly – Prices lower to entice buyers Growth – Prices much higher to maximize profits Maturity – Slightly lower prices - Decline Redesign Packaging Find new uses for product Refocus advertising

21. LEARNING OBJECTIVE I know and understand a product’s life cycle