Ch. 13 Marketing in Today’s World 13.1 Marketing Essentials

The Basics of Marketing Market: A group of customers who share common wants and needs. These people have the ability to purchase the products or services. Marketing: The process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers, wherever they are. Knowing what groups of people want and need helps companies know what to sell.

The Functions of Marketing Distribution: the process of getting goods and services to customers Financing: getting the money that is necessary for setting up and running a business Marketing Information Management: gathering and analyzing information about consumers, trends, and competitors’ products Pricing: deciding how much to charge for a product or service so the business can make a profit Promotion: any effort to inform, persuade, or remind potential customers about the business’s products or services Selling: providing customers with the goods and services they choose to buy Relationship Marketing: Companies use this as a strategy to build customer relationships.

The Marketing Mix Marketing Mix: Consists of four basic marketing strategies: product, place, price, and promotion, collectively known as the 4P’s. In recent years, people have included a 5th P for “People” since the success of a marketing mix depends on people: good employees and customers.

Product Marketing is first used to determine if there is a demand for a product. Next it considers how to make the product and make it appeal to consumers. Then, packaging is determined to make the product more appealing to consumers. This includes the design, color, size, and brand name of a product

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 produce directly to the customer. Indirect Distribution: Involves one or more intermediaries.

Price To determine the price of a product, you must consider 3 questions How much are customers willing to pay? Is the price competitive with other products? Can the company make a profit? Break-even Point: The point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service

Promotion Promotion involves making the customers aware of a product Most familiar form of promotion is advertising Most companies offer discounts or giveaways to promote products and services

Homework Type out all definitions for Ch. 13 Review the questions on pg. 222, 1-3 Complete the 13.1 Reading Activity Quiz Friday