1. Chapter 21 Nature & Scope of Marketing

2. Importance of Marketing
Marketing - used to get goods from producers to consumers
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges which satisfy individual and organizational objectives
Retailers - directly sell to final consumers
Wholesalers - businesses that buy products from businesses and sell them to other retailers or other businesses.
Consumers
Wholesalers
Retailers

3. Nature of Marketing Marketing Activities - buying selling transporting
storing
financing
researching & information gathering
risk taking
grading & valuing

4. Role of Marketing
Production Oriented - early 1900’s producers concentrated on making more kinds of products in larger quantities.
Sales Oriented - advertising and selling became important marketing tools as businesses tried to convince customers that their products were the best.
Customer Oriented - not enough to provide a variety of products, they had to produce the right products. Keeping the needs of the customer in mind during the production, design and distribution of a product.

5. Marketing Determination
Market - the types of buyers a business wishes to attract and where those buyers are located.
Whom to Serve - businesses need to identify groups of potential customers and then decide which group will be the be the best markets for a product.
Where to Serve - Marketing managers study sections of a region, country, or continent to determine whether a product might sell in one area rather than another.

6. Characteristics of Good Markets
Marketing Research - the study of people who buy a company’s products or who may buy a new product.
Target market - groups of customers with very similar needs to whom the company can sell its products

7. Elements of Marketing
Marketing Mix - (The Four P’s of Marketing) the blending of all decisions that are related to the four elements in marketing
Product - everything offered by a business
Price - the monetary or perceived value of a product or service.
Promotion - providing information to consumers that will assist them in making a decision to purchase a product or service.
Place (distribution) - transporting and storing goods.

8. The Product Life Cycle
Introduction Stage - a brand new product enters the market. There is only one brand of the product available for consumers to purchase. This new product is better than what is available.
Growth Stage - several brands are now available. Competitors want to get into the market. Profits begin to appear.
Maturity - product is being purchased by large numbers of consumers. Many competing brands with similar features. Competition is very difficult.
Decline - A new product is introduced into the market which is better than yours. Consumers begin switching.

9. Types of Consumer Products
Industrial Goods - products that are used by other businesses. They are frequently purchased in large quantities.
Consumer Goods - produced for sale to people for personal use. Consumer goods require special marketing attention because there are so many brands available and so many possible consumers located throughout the world.

10. Consumer Goods
Convenience Goods - inexpensive items that consumers purchase regularly without a great deal of thought.
Shopping Goods - purchased less frequently, have a higher price and require some thought. Brand awareness and people are willing to shop around.
Specialty Goods - customers insist upon having and are willing to search. Only one product will satisfy their needs.
Unsought Goods - shoppers do not look for these products.