1. Marketing CHAPTER 10 10-1 Marketing Basics
10-2 Develop Effective Products and Services
10-3 Price and Distribute Products
10-4 Plan Promotion

2. 10-1 Marketing Basics Define important marketing concepts.
Goals
Define important marketing concepts.
Identify the steps in a marketing strategy.
Describe the consumer decision-making process.

3. Key Terms marketing marketing strategy target market marketing mix
marketing orientation
final consumers
business consumers
consumer decision-making
process
buying motives
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4. Standards & EQ
BMA-IBT-5 Demonstrate understanding of the concept of marketing and its importance to business ownership.
5.1 Explain the fundamental marketing concepts used by a small business.
5.2 Understand target market and demographics in marketing strategies.
5.3 Create a customer database using database software to create and maintain an accurate customer list.
5.4 Use customer database to pull specific data to target for marketing campaign.
5.5 Evaluate different types of promotional tools for business product and/or services.
a. Traditional tools and online tools, personal networking
5.6 Use innovation to gain a competitive advantage in the marketplace.
Essential Questions: What are some important marketing concepts?
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5. Focus on Real Life
Compare selling today with selling hundreds of years ago.
How is it the same and how is it different?
What about advertising?
Most of the time businesses continue to use things that work, but must adapt to changes in consumer needs and technology.
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6. UNDERSTAND MARKETING What is marketing?
People often use terms such as advertising and selling when talking about 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.
Includes a range of activities.
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7. UNDERSTAND MARKETING Marketing activities
Advertisements of the radio for products and services.
You see brand names on packages you eat and wear.
Interact with salespeople in stores.
Read product descriptions on company’s websites
All of these are examples of marketing.
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8. UNDERSTAND MARKETING Other examples include:
Storing products in warehouses.
Establishing and accepting credit and arranging means of online payment.
Businesses use marketing when they gather data on consumer needs.
They use that info to improve products
To test new products before they are sold.
Businesses market products and services
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9. UNDERSTAND MARKETING Marketing businesses
All businesses must complete some mkting activities.
Includes advertising agencies and marketing research firms.
Examples – pg. 237
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10. UNDERSTAND MARKETING Marketing functions Product & Service Management
Distribution
Selling
Marketing-information management
Financial analysis
Pricing
Promotion
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11. Marketing Functions Product & Service Management Distribution Selling
Designing, developing, maintaining, improving, and acquiring products and services that meet consumer needs.
Distribution
Determining the best ways for customers to locate, obtain, and use the products and services of an organization.
Selling
Communicating directly with potential customers to determine and satisfy their need.
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12. Marketing Functions Marketing-information management
Obtaining, managing, and using market information to improve business decision-making and the performance or marketing activities.
Includes marketing research and development of databases with info about products, customers, & competitors.
Financial analysis
Budgeting for marketing activities, obtaining necessary funds needed for operations, and providing financial assistance to customers so they can purchase the business’ products and services.
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13. Marketing Functions Pricing Promotion
Setting and communicating the value of products and services.
Customers must be able to easily to identify the price of items that interest them or they will move on to another price.
Promotion
Communicating information about products and services to potential customers.
Advertising through television, newspaper, magazines, radio, direct mail, Internet.
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14. Marketing Functions
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15. Checkpoint >>
Define marketing and the seven marketing functions.
Answer
Marketing is 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.
The seven marketing functions include product and service management, distribution, selling, marketing information management, financial analysis, pricing, and promotion.
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16. MARKETING STRATEGY Marketing planning
Aimed at satisfying customers needs better than competitors do, resulting in sales and profits.
Develop a successful marketing strategy (step process)
Identify a target market (specific group of consumers who have similar wants and needs)
Create a marketing mix (blending of four marketing elements
Product
Distribution
Price
Promotion
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17. WTBS… Create Flash Cards
Write each marketing function on one side of the card and the definition on the other side of the card.
Work in teams to study the function and their definition using the flash cards
15 minutes…
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18. Marketing Mix Example
Company owns a fleet of cruise ships gathers info on people who might consider a cruise as a vacation choice.
Product
Exciting, relaxing cruise experience
Onboard activities, onshore activities
Distribution
Providing all of documents needed by travelers, arranging customer travel to & from port city, handling baggage, ensuring effective customer service throughout process.
Price
Provide affordable cruise with payment options to meet the budgets of target customers.
Promotion
Offers information to interest prospective customers in the cruise and persuade them to decided it is the best vacation choice
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19. Checkpoint >>
What are the two steps in developing a marketing strategy?
Answer
The two steps are identifying a target market and developing a marketing mix.
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20. WTBS…
On a sheet of paper, write down a product or service. Identify the target market (write down similar needs and wants of them) and write the marketing mix for that product or service.
10 minutes…
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21. UNDERSTAND CUSTOMERS Consumer decision-making 1. Recognize a need.
2. Gather information.
3. Select and evaluate alternatives.
4. Make a purchase decision.
5. Determine the effectiveness of the decision.
Buying motives (reasons consumers decide what products and services to purchase)
Emotional buying motives
Reasons to purchase based on feelings, beliefs, and attitudes.
Rational buying motives
Guided by facts and logics. (ex. College to attend, car to buy)
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22. Checkpoint >>
What are the steps in the consumer decision-making process?
Answer
Steps in the consumer decision- making process include recognizing a need, gathering information, selecting and evaluating alternatives, making a purchase decision, and determining the effectiveness of the decision.
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23. WTBS…
Think of something you purchase and which motive (Emotional or Rational) persuaded you to make the purchase.
3 minutes…
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24. Develop Effective Products and Services
10-2
Develop Effective Products and Services
Goals
Justify the importance of marketing research.
Identify the components of a product.
Describe how services differ from products.

25. Key Terms marketing research product services intangible inseparable
perishable
heterogeneous
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26. CREATE AND IMPROVE PRODUCTS
Totally new products
Major improvements in existing products
Minor improvements in existing products
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27. PLAN 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.
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28. TYPES OF RESEARCH STUDIES
Surveys
Focus groups
Observations
Experiments
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29. Checkpoint >> List the steps in a marketing research study.
Answer
The steps in marketing research are to define the marketing problem, study the situation, develop a data collection procedure, gather and analyze information, and propose a solution.
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30. PRODUCT PLANNING Parts of a product Product planning procedures
Idea development
Idea screening
Strategy development
Production and financial planning
Limited production and test marketing
Full-scale production
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31. Checkpoint >> What are the components of a product? Answer
Products are everything businesses offer to customers and are composed of the basic product, product features, its brand name and packaging, and sometimes a guarantee or warranty.
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32. SERVICES
Intangible
Inseparable
Perishable
Heterogeneous
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33. Checkpoint >> In what ways are services different from products?
Answer
Products are tangible and may be nonperishable; it is generally easier to control the quality and marketability of these items.
Services, however, are intangible, more difficult to market, and perishable.
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34. Price and Distribute Products
10-3
Price and Distribute Products
Goals
Discuss how the selling price of a product is calculated.
Differentiate between a direct and an indirect channel of distribution.

35. Key Terms price distribution channel of distribution channel members
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36. VALUE AND PRICE Buyers usually want to pay the lowest price possible.
Sellers want to charge the highest price possible.
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37. PRICING FACTORS Supply and demand Uniqueness Age Season Complexity
Convenience
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38. PRICE A PRODUCT Selling price Product costs Operating expenses Profit
Gross margin
Gross Margin =
Selling price +
Product costs
Selling price =
Product costs +
Operating expenses
Profit
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39. PRICE A PRODUCT
Markup
Markdown
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40. Checkpoint >>
What is the formula for calculating the selling price of a product?
Answer
Selling price = Product cost + Operating expenses + Profit.
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41. CHANNELS OF DISTRIBUTION
Need for distribution channels
Differences in quantity
Differences in assortment
Differences in location
Differences in timing
Channels and channel members
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42. Checkpoint >>
What is the difference between a direct and an indirect channel of distribution?
Answer
In a direct channel of distribution, products move directly from the producer to the consumer.
In an indirect channel, others may participate in the movement of products from the producer to the consumer, such as transportation services and retailers.
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43. 10-4
Plan Promotion
Goals
Justify the importance of communication in marketing.
Identify and describe the common types of promotion.

44. Key Terms promotion effective communication personal selling
advertising
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45. COMMUNICATION The communication process
Communicating through promotion
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46. Components of Effective Communication
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47. Checkpoint >>
How does identifying a target market improve promotion communications?
Answer
Communication can be developed and directed more specifically if a target market is identified.
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48. PROMOTION Personalized promotion Mass promotion Mass personalization
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49. Checkpoint >>
Describe the advantages and disadvantages of the major types of promotion.
Answer
Personalized promotion allows the provider to meet customers and identify customer needs.
It is, however, the most expensive type of promotion.
Mass promotion reaches a larger target market and is much less expensive.
It does not, however, provide for individualized service, and sales (results) are often not immediate.
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