1. 13
Chapter
Marketing in
Today’s World pp

2. Learning Objectives After completing this chapter, you’ll be able to:
List the functions of marketing.
Identify the importance of market research.
continued

3. Learning Objectives After completing this chapter, you’ll be able to:
Explain how channels of distribution work.

4. Why It’s Important
Effective marketing puts the products in the hands of its targeted customers.

5. Key Words market marketing marketing concept target marketing
relationship marketing
marketing mix
break-even point
continued

6. Key Words market research demographics channel of distribution
direct distribution
indirect distribution
wholesaler
retailer

7. Basics of Marketing
A market is a group of customers who share common wants and needs, and who have the ability to purchase a particular product.

8. Figure
13.1
U.S GAME CONSOLE MARKET
Fun and Games. A market can be described as the people who are potential customers of a product, as well as by the classification of a product in a category.
Which company that makes game consoles interests you most? What does the company do to grab your attention?

9. Basics of Marketing
Marketing is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.

10. Basics of Marketing
Businesses want you to buy their product so they perform detailed research on markets to find and analyze potential customers in their market. This is called target marketing.

11. Functions of Marketing
The seven functions of marketing are:
Distribution
Financing
Marketing information management
Pricing
continued

12. Functions of Marketing
Product/service management
Promotion
Selling

13. Graphic Organizer Graphic Organizer Marketing Functions Producers
Financing
Pricing
Market-Information Management
Product/Service Management
Promotion
Distribution
Selling
Producers
Consumers

14. Functions of Marketing
A popular trend in today’s marketing world is relationship marketing.
Companies use this strategy to build customer relations.

15. Marketing Mix
The four elements of marketing—product, place, price, and promotion—are called the marketing mix, or the four Ps.

16. Product
Marketing is used first to find out if there is a demand for a product.
Then it is concerned with how to present a product to the customer to make it as appealing as possible.

17. Place
One of the first things marketers have to consider is where to sell a product.
Then marketers have to consider in what kind of location to sell their product.

18. Place
The placement of the product in a store is important.

19. Price
To determine the price of a product a marketer considers three questions:
How much are customers willing to pay?
Is the price competitive with other products?
Can the company make a profit?

20. Price
The break-even point is the amount of money a company has to make on a product to pay for its costs.

21. Promotion Promotion consists of making customers aware of a product.
The most familiar form of promotion is advertising.

22. Promotion
Some marketers offer discounts in the form of coupons, rebates, and sales.
Another way companies promote their products is through public relations, or publicity.

23. What are a few functions of marketing?
Fast Review
What is marketing?
What are a few functions of marketing?
continued

24. Name the marketing mix, or the four Ps.
Fast Review
Name the marketing mix, or the four Ps.

25. Market Research
Companies do market research to gather and study information about consumers to determine what kinds of goods and services to produce.

26. Market Research
Demographics are facts about the population in terms of age, gender, location, income, and education.
Once marketers know the demo-graphics of a market, they can develop products for it.

27. Product Development
A company’s ability to create a new product or a slight variation of an already successful one is important to increasing sales.

28. Product Development The seven steps for developing a new product are:
Generating ideas
Screening ideas
Developing a business proposal
continued

29. Product Development Developing the product Test marketing the product
Introducing the product
Evaluating customer acceptance

30. Why does the government spend money on marketing research?
Figure
13.2
MARKETING RESEARCH REVENUES BY INDUSTRY GROUPS
Client industry groups for marketing research spend over $3 billion annually.
Why does the government spend money on marketing research?

31. What’s the purpose of market research?
Fast Review
What’s the purpose of market research?
Name the seven steps in developing a new product.

32. Channels of Distribution
A channel of distribution is a particular way to direct products to consumers.

33. Channels of Distribution
Direct distribution occurs when the goods or services are sold from the producer directly to the customer.

34. Channels of Distribution
Indirect distribution involves one or more intermediaries.

35. Channels of Distribution
The biggest impact distribution has on marketing is how it affects the price of products.
Each time a product goes through another channel of distribution, the cost of marketing it increases.

36. Channels of Distribution
Moving the product from manufacturer to the final user is an intermediary, or a go-between.
Intermediaries include distributors, wholesalers, retailers, and even the Internet.

37. Distributors
A distributor represents a single manufacturer in a geographic area.

38. Wholesalers
A wholesaler receives large shipments of products from many different producers.
Wholesalers break the shipments into smaller batches for resale.

39. Retailers A retailer sells goods directly to the customer.
This is the final stop in the channel of distribution.

40. Channels of distribution are classified in which two ways?
Fast Review
Channels of distribution are classified in which two ways?
How does distribution affect the prices of products?
continued

41. What are the major types of intermediaries?
Fast Review
What are the major types of intermediaries?

42. Name some qualities about the teen market. What do you want and need?
continued

43. Describe the marketing mix of a skateboard park.
continued

44. Do you show product loyalty? If so, what brands are you loyal to? Why?

45. 13
End of Chapter
Marketing in Today’s World