1. Marketing in Today’s World
Intro to Business
Chapter 13

2. Marketing Essentials Learning Targets Define Marketing
Identify the Functions of Marketing
List the Elements of the Marketing Mix

3. Marketing Essentials The Basics of Marketing Market Marketing
A group of customers who share common wants and needs
Must identify who your market is before selling your product.
Ex. of markets: Gender, age, income levels
Marketing
The process of creating, promoting, and presenting a product or service to meet the wants and needs of customers.
Used to find out if there is demand for a product

4. Marketing Essentials The Functions of Marketing Distribution Financing
The process of getting goods and services to customers
Includes purchasing, stock handling, inventory control and physical distribution.
How?
Financing
Getting the money that is necessary for setting up and running a business

5. Marketing Essentials Marketing Information Management Pricing
Gathering and analyzing information about consumers, trends, and competitors products.
Making informed decisions requires good research and development
Pricing
Deciding how much to charge for a product or service so the business can make a profit
Product/Service Management
Obtaining, developing, maintaining and improving a product or product mix on response to market opportunities.

6. Marketing Essentials Promotion Selling
Any effort to inform, persuade, or remind potential customers about a business’s products or services
Selling
Providing Customers with the goods and services to buy
Relationship marketing – Build and maintain relationships with their customers

7. Marketing Essentials The Marketing Mix
4 P’s - basic marketing strategies
Product
Marketing is used to find out if there is a demand for a product
How to make the product appeal to the customers
Packaging – design, color, size and brand name
Place
Marketers have to decide how and where customers will buy their goods and services.
Channel of distribution – a pathway to direct products to consumers
Direct distribution – Occurs when goods or services are sold from the producer directly to the consumer
Indirect distribution – Involves one or more intermediaries.
Distribution affects the price of products. Cost of distribution is added to the product

8. Marketing Essentials Price Promotion 5th P – People
To determine price a marketer must consider:
How much are customers willing to pay?
Is the price competitive with other products?
Can the company make a profit
Must find the break-even point
The point at which total revenues, or sales, equal total costs and expenses.
Promotion
Making customers aware of a product
Most familiar is advertising
Others include discounts (rebates, coupons and sales) and giveaways
5th P – People
The success of a marketing mix depends on people: Employees and Customers
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9. Market Research and Product Development
Learning Targets
Describe the kinds of market research a company may use
Identify the steps in developing a new product
Market Research
The gathering and analysis of information on the size, location, and makeup of a market
Helps companies to produce and market products and services that attract customers
Marketing Concept
Involves determining the wants and needs of customers and providing them more efficiently and effectively than competitors.
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10. Market Research and Product Development
Information About Customers
Demographics
Facts about the population
Include: age, gender, location and income
Target Marketing
Helps companies focus on the people most likely to buy their product or service
Once demographics are figured out companies produce product to fit that group
Market Segmentation
The division of a market, for a product, into groups of customers who have the same needs and traits.
Ex. Coach purse or Playstation

11. Market Research and Product Development
The Seven Steps of Product Development
Step 1: Generate Ideas
Working together to think of new products (brainstorming)
Includes people from development department, market research staff, and outside market researchers
Collaboration is key
Step 2: Screen Ideas
The team must evaluate each plan
How do these ideas fit the company’s mission and strategy?
Does the new product compete with one of the company’s existing products
Check with consumers. Likes and dislikes about ideas

12. Market Research and Product Development
Step 3: Develop a Business Plan
Written proposal provides a look at the market
Includes: Estimated sales, costs, profit potential, market trends and competing products
Step 4: Develop the Product
Build a prototype: model of the actual product
To see how it would look and test how it can be made
Any changes need to be made at this time

13. Market Research and Product Development
Step 5: Test-Market the Product
Offer it in a limited market for a limited time
To collect customer responses to see if the product is likely to succeed.
This can allow competitors to enter market at the same time taking away the competitive advantage
Step 6: Introduce the Product
Once it has passes the market test, it is time to enter the marketplace
Introduced through a publicity campaign (Can be expensive)
Have a limited time

14. Market Research and Product Development
Step 7: Evaluate Customer Acceptance
Once introduced, marketers track customers and their responses
Answers key questions used in research and development
If the customers like the product the company will continue to produce it
If it is not liked by the customers, it will be taken off the market
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