6 Chapter 10Checkpoint >>Define marketing and the seven marketing functions.AnswerMarketing 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.
7 MARKETING STRATEGY Marketing planning Chapter 10MARKETING STRATEGYMarketing planningDevelop a successful marketing strategyIdentify a target marketCreate a marketing mix
8 Chapter 10Checkpoint >>What are the two steps in developing a marketing strategy?AnswerThe two steps are identifying a target market and developing a marketing mix.
10 STEPS IN THE CONSUMER DECISION-MAKING PROCESS Chapter 10STEPS IN THE CONSUMER DECISION-MAKING PROCESS1. Recognize a need.2. Gather information.3. Select and evaluate alternatives.4. Make a purchase decision.5. Determine the effectiveness of the decision.
11 Chapter 10Checkpoint >>What are the steps in the consumer decision-making process?AnswerSteps 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.
12 Develop Effective Products and Services 10-2Develop Effective Products and ServicesGoalsJustify the importance of marketing research.Identify the components of a product.Describe how services differ from products.
14 CREATE AND IMPROVE PRODUCTS Chapter 10CREATE AND IMPROVE PRODUCTSTotally new productsMajor improvements in existing productsMinor improvements in existing products
15 PLAN MARKETING RESEARCH Chapter 10PLAN MARKETING RESEARCHSteps in marketing research1. Define the marketing problem.2. Study the situation.3. Develop a data collection procedure.4. Gather and analyze information.5. Propose a solution.
16 TYPES OF RESEARCH STUDIES Chapter 10TYPES OF RESEARCH STUDIESSurveysFocus groupsObservationsExperiments
17 Checkpoint >> List the steps in a marketing research study. Chapter 10Checkpoint >>List the steps in a marketing research study.AnswerThe 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.
18 PRODUCT PLANNING Parts of a product Product planning procedures Chapter 10PRODUCT PLANNINGParts of a productProduct planning proceduresIdea developmentIdea screeningStrategy developmentProduction and financial planningLimited production and test marketingFull-scale production
19 Checkpoint >> What are the components of a product? Answer Chapter 10Checkpoint >>What are the components of a product?AnswerProducts 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.
21 Checkpoint >> In what ways are services different from products? Chapter 10Checkpoint >>In what ways are services different from products?AnswerProducts 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.
22 Price and Distribute Products 10-3Price and Distribute ProductsGoalsDiscuss how the selling price of a product is calculated.Differentiate between a direct and an indirect channel of distribution.
23 Key Terms price distribution channel of distribution channel members Chapter 10Key Termspricedistributionchannel of distributionchannel members
24 VALUE AND PRICE Buyers usually want to pay the lowest price possible. Chapter 10VALUE AND PRICEBuyers usually want to pay the lowest price possible.Sellers want to charge the highest price possible.
25 PRICING FACTORS Supply and demand Uniqueness Age Season Complexity Chapter 10PRICING FACTORSSupply and demandUniquenessAgeSeasonComplexityConvenience
28 Chapter 10Checkpoint >>What is the formula for calculating the selling price of a product?AnswerSelling price = Product cost + Operating expenses + Profit.
29 CHANNELS OF DISTRIBUTION Chapter 10CHANNELS OF DISTRIBUTIONNeed for distribution channelsDifferences in quantityDifferences in assortmentDifferences in locationDifferences in timingChannels and channel members
30 Chapter 10Checkpoint >>What is the difference between a direct and an indirect channel of distribution?AnswerIn 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.
31 10-4Plan PromotionGoalsJustify the importance of communication in marketing.Identify and describe the common types of promotion.
32 Key Terms promotion effective communication personal selling Chapter 10Key Termspromotioneffective communicationpersonal sellingadvertising
33 COMMUNICATION The communication process Chapter 10COMMUNICATIONThe communication processCommunicating through promotion
34 Components of Effective Communication Chapter 10Components of Effective Communication
35 Chapter 10Checkpoint >>How does identifying a target market improve promotion communications?AnswerCommunication can be developed and directed more specifically if a target market is identified.
36 PROMOTION Personalized promotion Mass promotion Mass personalization Chapter 10PROMOTIONPersonalized promotionMass promotionMass personalization
37 Chapter 10Checkpoint >>Describe the advantages and disadvantages of the major types of promotion.AnswerPersonalized 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.