2Key ConceptsThe Basics of MarketingThe Functions of MarketingThe Marketing Mix
3The Basics of Marketing To market a product successfully, a company must understand what people want to buy and why they want to buy it.
4The Basics of Marketing A company must know the market.In the global marketplace, many countries can make up a market.marketa group of customers who share common wants and needs
5The Basics of Marketing Marketing includes studying what people want and designing a product’s packaging.marketingthe process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers
6The Functions of Marketing The seven functions of marketing define all the aspects that are part of marketing.
7Graphic Organizer1Distribution is the process of getting goods and services to customers.2Financing is getting the money that is necessary for setting up and running a business.3Marketing information management is gathering and analyzing information about consumers, trends, and competitors’ products4Pricing is deciding how much to charge for a product or service so the business can make a profit.
8Graphic Organizer5Product/service management is obtaining, developing, maintaining, and improving a product or product mix in response to the market.6Promotion is any effort to inform, persuade, or remind potential customers about a business’s products or services7Selling is providing customers with the goods and services they choose to buy.
9The Functions of Marketing Relationship marketing is part of the selling function of marketing.relationship marketingbuilding and maintaining relationships with customers
10The marketing mix consists of four basic marketing strategies. product, place, price, and promotion, collectively known as the four Ps
15PlaceMarketers have to decide how and where customers will buy their goods and services.Then, marketers have to consider in what kind of location to sell their product.
16PlaceTo make place decisions, marketers select the right channel of distribution.channel of distributiona pathway to direct products to consumers
17Distribution decisions affect the price of products. PlaceDistribution decisions affect the price of products.Marketers can use direct distribution or indirect distribution.direct distributionwhen goods or services are sold from the producer directly to the consumerindirect distributionwhen goods or services are sold through one or more intermediaries
19A marketer must consider the break-even point. PriceA marketer must consider the break-even point.break-even pointthe point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service
20Questions to Ask When Determining the Price of a Product How much are customers willing to pay?Is the price competitive with other products?Can the company make a profit?123
22PromotionPromotion involves making customers aware of a product.Advertising and offering discounts are two popular methods of promotion.
23The Four Ps…PPPPProductPlacePricePromotionIn recent years, many people have begun to include a fifth P for people.
24Celebrity Endorsements Many big companies hire celebrities to endorse what they sell. A celebrity endorsement is public support from a well-known person for a product or services. Companies put celebrities in their TV commercials and print ads.
25You have just gotten a job working for a toy company as a marketing director specializing in action figures. A team member suggests a contest for the children in your target market. Part of the contest involves the children completing a questionnaire about their preferences.Decision Making What are some ethical guidelines you would use in designing this contest for children?
26AnswerPrivacy is an important issue when marketing to children. Marketing interactions directed to children, including requests for personal information, should require the express consent of the child’s parent or guardian.
27Define marketing.the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers
28What are the seven functions of marketing? distribution, financing, marketing information management, pricing, product/ service management, promotion, and selling
29What four elements are in the marketing mix What four elements are in the marketing mix? What is sometimes considered a fifth element?Product, place, price, and promotion. Some people include a fifth P for people.
30Now it is your turn…Find a magazine ad and relate it to the Marketing Mix (The Four Ps)Product 1. What target market is this advertisement aimed toward? 2. What want or need is this product satisfying?Place 3. From what you know, where does a customer buy this product? 4. Is there direct or indirect distribution used?Promotion 5. How does this ad make the product appeal to customers? 6. What are two other ways the business could promote their product?