Chapter 13 Marketing in Today’s World Section 13.1 Marketing Essentials

Standards. BMA- IBT-5: Demonstrate understanding of the concept of marketing and its importance to business ownership. BMA-IBT-6 BMA-IBT-6: Use professional oral, written, and digital communication skills to create, express, and interpret information and ideas.

Essential Questions What are the fundamental marketing concepts used by small businesses? What is marketing? Explain the elements of marketing? What are the kinds of marketing research that a company might use? What are the steps for developing a new product? What is advertising? Why is advertising important in the business world? What are some types of media that businesses use to reach potential customers?

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 and 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. market a group of customers who share common wants and needs

The Basics of Marketing Marketing includes studying what people want and designing a product’s packaging. marketing the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers

The Functions of Marketing The seven functions of marketing define all the aspects that are part of marketing.

Graphic Organizer Seven Functions of Marketing Distribution Pricing Financing Marketing information management Product/ service management Promotion Selling

Graphic Organizer 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.

Graphic Organizer 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. relationship marketing building and maintaining relationships with customers

The Marketing Mix The marketing mix consists of four basic marketing strategies. marketing mix product, place, price, and promotion, collectively known as the four Ps

Graphic Organizer PPPP ProductPlacePricePromotion 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.

Graphic Organizer Establish demand Make the product appealingPackaging 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. channel of distribution a pathway to direct products to consumers

Place Distribution decisions affect the price of products. Marketers can use direct distribution or indirect distribution. direct distribution when goods or services are sold from the producer directly to the consumer indirect distribution when goods or services are sold through one or more intermediaries

Price A marketer must consider the break-even point. break-even point the point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service

Graphic Organizer 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? 123

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