1. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 1 10-1 10-1Marketing Basics 10-2 10-2Develop Effective Products and Services 10-3 10-3Price and Distribute Products 10-4 10-4Plan Promotion 10 C H A P T E R Marketing

2. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 2 UNDERSTAND MARKETING ●Marketing activities ●Marketing businesses ●Marketing functions

3. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 3 Marketing Functions

4. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 4 Checkpoint ●Define marketing and the seven marketing functions. ●Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. ●The seven marketing functions include product and service management, distribution, selling, marketing information management, financial analysis, pricing, and promotion.

5. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 5 MARKETING STRATEGY ●Marketing planning ●Develop a successful marketing strategy ●Identify a target market ●Create a marketing mix ●four P’s

6. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 6 UNDERSTAND CUSTOMERS ●Consumer decision-making ●Buying motives

7. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 7 STEPS IN THE CONSUMER DECISION-MAKING PROCESS 1. 1.Recognize a need. 2. 2.Gather information. 3. 3.Select and evaluate alternatives. 4. 4.Make a purchase decision. 5. 5.Determine the effectiveness of the decision.

8. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 8 CREATE AND IMPROVE PRODUCTS ●Totally new products ●Major improvements in existing products ●Minor improvements in existing products ●Marketing Research

9. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 9 PLAN MARKETING RESEARCH ●Steps in marketing research 1. 1. Define the marketing problem. 2. 2. Study the situation. 3. 3. Develop a data collection procedure. 4. 4. Gather and analyze information. 5. 5. Propose a solution.

10. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 10 TYPES OF RESEARCH STUDIES ●Surveys ●Focus groups ●Observations ●Experiments

11. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 11 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

12. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 12 VALUE AND PRICE ●Buyers usually want to pay the lowest price possible. ●Sellers want to charge the highest price possible.

13. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 13 PRICING FACTORS ●Supply and demand ●Uniqueness ●Age ●Season ●Complexity ●Convenience

14. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 14 PRICE A PRODUCT ●Selling price ●Product costs ●Operating expenses ●Profit Selling price = Product costs + Operating expenses +Profit

15. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 15 GROSS MARGIN Gross Margin = Selling price + Product costs

16. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 16 MARKUP ●The amount added to the cost of a product to set the selling price ●Markup on cost ●Markup on selling price

17. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 17 MARKDOWN ●A reduction from the original selling price ●Reasons for markdowns ●Low demand ●End of season ●Flaws

18. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 18 CHANNELS OF DISTRIBUTION ●Need for distribution channels ●Differences in quantity ●Differences in assortment ●Differences in location ●Differences in timing ●Channels and channel members ●Wholesalers & Retailers

19. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 19 COMMUNICATION AND PROMOTION ●The communication process ●Communicating through promotion

20. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 20 COMPONENTS OF EFFECTIVE COMMUNICATION

21. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE 21 TYPES OF PROMOTION ●Personalized promotion ●Mass promotion ●Merchandising ●Mass personalization ●Print ●Broadcast ●Cyber