1. Marketing and Distribution
Chapter 11
Marketing and Distribution

2. All the activities needed to generate consumer demand and to move goods and services from the producer to the consumer
It is estimated that about 50% of the price people pay for an item today is for the cost of marketing
Olympus video
Marketing

3. The role of the consumer as ruler of the market when determining the types of goods and services produced
What is this known as?
What are some things we have control over?
Consumer sovereignty

4. Utility The amount of satisfaction one gets from a good or service
Diminishing utility
Four types of utility…
Utility

5. Questionnaire
Focus Group
Market Research

6. Information gathered by researchers about possible users of a product based on such characteristics as age, gender, income, education, and geographic location
Lets create our own market research and survey
Market Survey

7. Offering a product for sale in a small area for a limited period of time to see how well it sells before offering it nationally
Samples, sporting events, etc…
Test-marketing

8. Product Identification

9. Selling a new product at a low price to attract customers away from an established product
Often coupons, deals, and price gimics
Penetration Price

10. Lowers price for consumers
Price leadership

11. Impulse buying

12. Use of advertising to inform consumers that a new or improved product or service is available and to persuade them to purchase it.
ADVIRTISING
Promotion

13. Direct-mail advertising
Type of promotion using a mailer that usually includes a letter describing the product or service and an order blank or application form
Does anybody use this anymore?? What do they use??
Direct-mail advertising

14. Series of stages that a product goes through from first introduction to complete withdraw from the market
Cycle or curve…
Product life cycle

15. Channels of Distribution
Routes by which goods are moved from producers to consumers
Wholesalers – Businesses that purchase large quantities of goods from producers for resale to other businesses
Sam’s Club and Home Depot
Channels of Distribution

16. Retailers Businesses that sell consumer goods directly to the public
Video
Retailers

17. e-commerce Business transactions conducted over the Internet
What has made this business possible??
e-commerce