1. Marketing CHAPTER 10 10-1 Marketing Basics
10-2 Develop Effective Products and Services
10-3 Price and Distribute Products
10-4 Plan Promotion

2. 10-1 Marketing Basics Learning Targets:
Define important marketing concepts.
Identify the steps in a marketing strategy.
Describe the consumer decision-making process.

3. UNDERSTAND MARKETING
Chapter 10
Marketing activities – storing products, moving products to where they will be sold, on-line payment, gather data on customer needs, improve products, test new products
Marketing businesses – advertising agencies, marketing research firms, shipping and delivery companies
Marketing functions – seven functions
Product and service management – design, develop, maintain, improve
Distribution – determining the best ways for customers to locate, obtain and use the products and services, shipping, handling and storage

4. Financial analysis – budgeting for marketing activities
Chapter 10
Selling – communicating directly with potential customers to determine and satisfy their needs
Marketing information management – using market information to improve business decisions
Financial analysis – budgeting for marketing activities
Pricing – setting the value of products and services. Proving services for a fair price. Low enough for people to buy; high enough to make a profit
Promotion – communicating information about products and services to potential customers

5. Chapter 10
Marketing Functions

6. MARKETING STRATEGY Develop a successful marketing strategy
Chapter 10
MARKETING STRATEGY
Develop a successful marketing strategy
Identify a target market – a specific group of consumers who have similar wants and needs
Create a marketing mix – the blending of the four marketing elements: product, distribution, price, promotion

7. UNDERSTAND CUSTOMERS Consumer decision-making process Recognize a need
Chapter 10
UNDERSTAND CUSTOMERS
Consumer decision-making process
Recognize a need
Gather information
Select and evaluate alternatives
Make a purchase decision
Determine effectiveness of decision

8. Chapter 10
Buying Motives
Emotional buying motives – reasons to purchase based on feelings, beliefs, and attitudes.
Rational buying motives – guided by facts and logic

9. Develop Effective Products and Services
10-2
Develop Effective Products and Services
Learning Targets
Justify the importance of marketing research.
Identify the components of a product.
Describe how services differ from products.

10. CREATE AND IMPROVE PRODUCTS
Chapter 10
Totally new products – not very common; airbags, the Internet, artificial hearts.
Major improvements in existing products
Minor improvements in existing products

11. PLAN MARKETING RESEARCH
Chapter 10
PLAN MARKETING RESEARCH
Steps in marketing research
1. Define the marketing problem.
2. Study the situation.
3. Develop a data collection procedure.
4. Gather and analyze information.
5. Propose a solution.

12. TYPES OF RESEARCH STUDIES
Chapter 10
TYPES OF RESEARCH STUDIES
Surveys - questionnaires
Focus groups – small number of people take part in a discussion
Observations – collect information by recording the actions or reactions of people
Experiments – people given the choice between two alternative

13. PRODUCT PLANNING Parts of a product – basic product, features, options
Chapter 10
Parts of a product – basic product, features, options
Product planning procedures
Idea development
Idea screening
Strategy development
Production and financial planning
Limited production and test marketing
Full-scale production

14. Price and Distribute Products
10-3
Price and Distribute Products
Learning Targets
Discuss how the selling price of a product is calculated.
Differentiate between a direct and an indirect channel of distribution.

15. VALUE AND PRICE Buyers usually want to pay the lowest price possible.
Chapter 10
VALUE AND PRICE
Buyers usually want to pay the lowest price possible.
Sellers want to charge the highest price possible.

16. PRICING FACTORS
Chapter 10
Supply and demand – the higher the demand, the higher price
Uniqueness – little to no competition
Age – as products age, price goes down
Season – prices highest at beginning of season
Complexity – higher prices than simple products
Convenience – people will pay for easily available products/services

17. PRICE A PRODUCT Selling price Product costs Operating expenses Profit
Chapter 10
PRICE A PRODUCT
Selling price
Product costs
Operating expenses
Profit
Gross margin
Gross Margin =
Selling price +
Product costs
Selling price =
Product costs +
Operating expenses
Profit

18. Chapter 10
PRICE A PRODUCT
Markup – the amount added to the cost of a product to set the selling price
Markdown – reduction from the original selling price

19. CHANNELS OF DISTRIBUTION
Chapter 10
Need for distribution channels
Differences in quantity
Differences in assortment
Differences in location
Differences in timing
Direct channel of distribution – product moves from producer straight to consumer
Indirect channel of distribution – one or more other businesses between producer and consumer

20. 10-4 Plan Promotion Learning Targets
Justify the importance of communication in marketing.
Identify and describe the common types of promotion.

21. Chapter 10
COMMUNICATION
The communication process – through the internet, radio, TV, mailers
Communicating through promotion – promotional messages from businesses, organizations and political figures

22. Chapter 10
PROMOTION
Personalized promotion – most effective form; also most expensive.
Mass promotion – directed to many people at the same time.
Mass personalization – combination of the two.