1. Marketing in Today’s World
Chapter 13.1
Introduction to business and marketing

2. Objectives Define marketing. Identify the functions of marketing.
List the elements of the marketing mix.

3. 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.

4. The Basics of Marketing
To market a product successfully a company must understand:
What people want to buy
Why they want to buy it

5. The Basics of Marketing
A company must know the market. In the global marketplace, many countries can make up a market.

6. The Basics of Marketing
Marketing includes studying what people want and designing a product’s packaging.

7. The Functions of Marketing
The seven functions of marketing define all the aspects that are part of marketing.
Distribution
Pricing
Financing
Marketing Information Management
Product/ Service
Management
Promotion
Selling 1 2 3 4 5 6 7

8. The Seven Marketing Functions1
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.

9. The Seven Marketing Functions5
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.

10. The Functions of Marketing
Relationship marketing is part of the selling function of marketing. It is used to build and maintain relationships with their customers.

11. The marketing mix consists of four basic marketing strategies.P
Product
Place
Price
Promotion
In recent years, many people have begun to include a fifth P for people.

12. 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.

13. Make the product appealing
Graphic Organizer
Establish demand
Make the product appealing
Packaging design
Design
Color
Size
Brand name

14. 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.

15. Place
To make place decisions, marketers select the right channel of distribution. Distribution decisions affect the price of products. Marketers can use direct distribution or indirect distribution.

16. Questions to Ask When Determining the Price of a Product
A marketer must consider the break-even point.
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? 1 2 3

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

18. Promotion: 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.