Chapter 13 Marketing in Today’s World

BASICS OF MARKETING: (abbreviated as MKTG) MARKET- a group of customers who share common wants and needs. (NOTE: they must also have the ability to purchase the product.) MARKETING- the process of creating, promoting & presenting a product to meet the needs & wants of consumers.

MARKETING CONCEPT- a plan for how to market a product or service to consumers. TARGET MARKETING- finding & analyzing potential consumers for a product.

FUNCTIONS OF MKTG: (1) distribution (2) financing (3) mktg information management (4) pricing (5) product/service management (6) promotion (7) selling

Distribution: This involves moving goods & services from one place to the end user. Trucks, trains, airplanes and ships are possible transportation methods.

Financing: Money is necessary to keep any business afloat. Businesses decide if customers can pay with credit or other payment options.

Mktg Info. Mgmt: Making an informed decision requires good research and development. Companies conduct market research to learn more about their market. (Market research is discussed in more detail later in this chapter.)

Pricing: Marketers have to figure out what price to charge for a product so the company makes a profit. Marketing needs to consider the impact of distribution, because each time a product goes through another channel of distribution the price goes up. (You’ll learn more about channels of distribution later in the chapter.)

Product/Service Mgmt: Obtaining information, developing, and maintaining products helps marketers decide how to respond to market opportunities.

Promotion: Communication through any type of media gets a business’s product out into the ands of the public.

Selling: Retailers or the business-to-business market provides customers or industrial users with goods and services. A popular trend in today’s marketing world is RELATIONSHIP MARKETING- building customer loyalty through good customer relations.

MARKETING MIX: The four main elements of marketing, also called the four P’s: product, place, price & promotion. BREAK-EVEN POINT: The amount of money a company has to make on a product to pay for the cost of producing it.

The “Purple Cow” Principle:

Product Development: MARKET RESEARCH- gathering and studying information about the buying habits of consumers to determine what goods and services to produce. DEMOGRAPHICS- facts about the population in terms of age, gender, income and education.

Product Development: Generating Ideas Screening Ideas Developing a Business Proposal Developing the Product Test Marketing the Product Introducing the Product Evaluating Customer Acceptance

Channels of Distribution CHANNEL OF DISTRIBUTUION- A particular means of directing products from producers to consumers, such as a wholesaler or retailer.

Channels of Distribution DIRECT DISTRIBUTION- Selling goods and services directly from producers to consumers without using intermediaries. INDIRECT DISTRIBUTION- Moving goods from producers to consumers using one or more intermediaries.

Channel Members (1) Distributors- This kind of intermediary represents a single manufacturer in a geographic area. (2) WHOLESALERS- A type of business that buys goods in large amounts and resells them to other businesses in smaller lots. (3) RETAILERS- A business that sells goods or services directly to the public.