Marketing in Today’s World Chapter 13.1 Introduction to business and marketing

Objectives Define marketing. Identify the functions of marketing. List the elements of the marketing mix.

The Main Idea To sell their products or services, businesses engage in marketing activities. They find and analyze potential customers and then try to meet their wants and needs.

The Basics of Marketing To market a product successfully a company must understand: What people want to buy Why they want to buy it

The Basics of Marketing A company must know the market. In the global marketplace, many countries can make up a market.

The Basics of Marketing Marketing includes studying what people want and designing a product’s packaging.

The Functions of Marketing The seven functions of marketing define all the aspects that are part of marketing. Distribution Pricing Financing Marketing Information Management Product/ Service Management Promotion Selling 1 2 3 4 5 6 7

The Seven Marketing Functions 1 Distribution is the process of getting goods and services to customers. 2 Financing is getting the money that is necessary for setting up and running a business. 3 Marketing information management is gathering and analyzing information about consumers, trends, and competitors’ products 4 Pricing is deciding how much to charge for a product or service so the business can make a profit.

The Seven Marketing Functions 5 Product/service management is obtaining, developing, maintaining, and improving a product or product mix in response to the market. 6 Promotion is any effort to inform, persuade, or remind potential customers about a business’s products or services 7 Selling is providing customers with the goods and services they choose to buy.

The Functions of Marketing Relationship marketing is part of the selling function of marketing. It is used to build and maintain relationships with their customers.

The marketing mix consists of four basic marketing strategies. P Product Place Price Promotion In recent years, many people have begun to include a fifth P for people.

Product First, marketing is used to find out if there a demand for a product. Marketing is then concerned with how to make the product appeal to consumers.

Make the product appealing Graphic Organizer Establish demand Make the product appealing Packaging design Design Color Size Brand name

Place Marketers 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.

Place To make place decisions, marketers select the right channel of distribution. Distribution decisions affect the price of products. Marketers can use direct distribution or indirect distribution.

Questions to Ask When Determining the Price of a Product A marketer must consider the break-even point. Questions 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? 1 2 3

Promotion Promotion involves making customers aware of a product. Advertising and offering discounts are two popular methods of promotion.

Promotion: Celebrity 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.