2 Read to LearnDefine marketing.Identify the functions of marketing.List the elements of the marketing mix.
3 The Main IdeaTo 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.
4 Key ConceptsThe Basics of MarketingThe Functions of MarketingThe Marketing Mix
5 Key Terma group of customers who share common wants and needsmarketthe process of creating, promoting, and presenting a product or service to meet the wants and needs of consumersmarketing
6 Key Termrelationship marketingbuilding and maintaining relationships with customersmarketing mixproduct, place, price, and promotion, collectively known as the four Ps
7 Key Termchannel of distributiona pathway to direct products to consumersdirect distributionwhen goods or services are sold from the producer directly to the customer
8 Key Termindirect distributionwhen goods or services are sold through one or more intermediariesthe point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or servicebreak-even point
9 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.
10 The Basics of Marketing A company must know the market.In the global marketplace, many countries can make up a market.marketa group of customers who share common wants and needs
11 The Basics of Marketing Marketing includes studying what people want and designing a product’s packaging.marketingthe process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers
12 The Functions of Marketing The seven functions of marketing define all the aspects that are part of marketing.
13 Seven Functions of Marketing Marketing information management Graphic Organizer12Distribution7SellingFinancingSeven Functions of MarketingMarketing information managementPromotion36Product/ servicemanagementPricing54
14 Graphic Organizer1Distribution is the process of getting goods and services to customers.2Financing is getting the money that is necessary for setting up and running a business.3Marketing information management is gathering and analyzing information about consumers, trends, and competitors’ products4Pricing is deciding how much to charge for a product or service so the business can make a profit.
15 Graphic Organizer5Product/service management is obtaining, developing, maintaining, and improving a product or product mix in response to the market.6Promotion is any effort to inform, persuade, or remind potential customers about a business’s products or services7Selling is providing customers with the goods and services they choose to buy.
16 The Functions of Marketing Relationship marketing is part of the selling function of marketing.relationship marketingbuilding and maintaining relationships with customers
17 The marketing mix consists of four basic marketing strategies. product, place, price, and promotion, collectively known as the four Ps
18 Graphic Organizer P P P P ProductPlacePricePromotionIn recent years, many people have begun to include a fifth P for people.
19 ProductFirst, 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.
20 Make the product appealing Graphic OrganizerEstablish demandMake the product appealingPackaging designDesignColorSizeBrand name
21 PlaceMarketers 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.
22 PlaceTo make place decisions, marketers select the right channel of distribution.channel of distributiona pathway to direct products to consumers
23 Distribution decisions affect the price of products. PlaceDistribution decisions affect the price of products.Marketers can use direct distribution or indirect distribution.direct distributionwhen goods or services are sold from the producer directly to the consumerindirect distributionwhen goods or services are sold through one or more intermediaries
24 A marketer must consider the break-even point. PriceA marketer must consider the break-even point.break-even pointthe point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service
25 Questions to Ask When Determining the Price of a Product Graphic OrganizerQuestions to Ask When Determining the Price of a Product123How much are customers willing to pay?Is the price competitive with other products?Can the company make a profit?
26 PromotionPromotion involves making customers aware of a product.Advertising and offering discounts are two popular methods of promotion.
27 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.
28 You have just gotten a job working for a toy company as a marketing director specializing in action figures. A team member suggests a contest for the children in your target market. Part of the contest involves the children completing a questionnaire about their preferences.Decision Making What are some ethical guidelines you would use in designing this contest for children?
29 AnswerPrivacy is an important issue when marketing to children. Marketing interactions directed to children, including requests for personal information, should require the express consent of the child’s parent or guardian.
30 Define marketing.the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers
31 What are the seven functions of marketing? distribution, financing, marketing information management, pricing, product/ service management, promotion, and selling
32 What four elements are in the marketing mix What four elements are in the marketing mix? What is sometimes considered a fifth element?Product, place, price, and promotion. Some people include a fifth P for people.