1. Marketing

2. Lesson Objectives Define Marketing Identify the functions of marketing
List the elements of the marketing mix

3. Key Terms Market Marketing Relationship marketing Marketing mix
Channel of Distribution
Direct distribution
Indirect distribution
Break-even point

4. The Basics of Marketing
There is no one way to market a product or service
The business environment is constantly changing and evolving
People are inherently different
A Market is a group of customers who share common wants and needs and they have the ability to purchase the good or service
Marketing is the process of creating promoting and presenting a product or service to meet the wants and needs of consumers

5. The Functions of Marketing
Distribution is the process of getting goods and services to customers
Includes purchasing, stock handling, inventory control, and physical distribution
Also involves the systems that track products during shipping

6. The Functions of Marketing
Financing is getting the money that is necessary for setting up and running a business
Protects investments through risk management

7. The Functions of Marketing
Marketing information management is gathering and analyzing information about customers, trends, and competitors’ products
Pricing is deciding how much to charge for a product or service so the business can make a profit
Product/service management is obtaining, developing, maintaining, and improving a product or product mix in response to market opportunities
Promotion is any effort to inform, persuade, or remind potential customers about a business’s products or services

8. The Functions of Marketing
Selling is providing customers with the goods and services they choose to buy
Relationship marketing is used to build and maintain relationships with their customers

9. The Marketing Mix
The Marketing Mix consists of four basic marketing strategies:
Product, place, price, and promotion or the four P’s
The fifth “p” could be considered people since they are required for the other four p’s

10. Product Is there a demand for this product?
How can you make this product appeal to potential customers?
Packaging can be as important as the product
Includes the design, color, size, and brand name of a product

11. Place How and where customers buy goods
What kind of locations will customers buy goods
Channel of Distribution is a pathway to direct products to customers
Direct Distribution occurs when goods or services are sold from the producer directly to the customer
Indirect Distribution involves one or more intermediaries for the product to reach the customer

12. Price How much are customers willing to pay?
Is the price competitive with other products?
Can the company make a profit?
Break-even point is the point at which total revenues or sales, equal total costs and expenses of developing and offering a product or service

13. Promotion Involves making the customer aware of the product
The most popular form is advertising
You can also offer discounts, coupons, rebates, and sales.

14. Market Research
Market Research is the gathering and analysis of information on the size, location, and makeup of a market
Usually gathered by using surveys, observation, or simply asking
Marketing Concept involves determining the wants and needs of customers and providing them more efficiently and effectively and competitors

15. Information about Customers
Need to understand who is in the market for the product
Demographics facts about the population
Include age, gender, location, and income
Target Marketing helps companies focus on the people most likely to buy their goods or services
Market Segmentation is the division of a market for a product into groups of customers who have the same needs and traits

16. The Seven Steps of Product Development
Generate Ideas
Screen Ideas
Develop a business plan
Develop the product
Test-market the product
Introduce the product
Evaluate customer acceptance

17. Project
Packaging must be as appealing as possible to catch the attention of customers. Pair up with a classmate and design a box for a new snack food called Twirls. This new item is nutritious, tastes like your favorite candy, is low-fat, and would be a good after-school snack. Develop a theme for your box and choose colors that will catch the attention of buyers. Design a logo and write a slogan.