1. Marketing CHAPTER 10 10-1 Marketing Basics
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CHAPTER 10
Marketing
10-1 Marketing Basics
10-2 Develop Effective Products and Services
10-3 Price and Distribute Products
10-4 Plan Promotion
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2. 10-1 Marketing Basics Goals Define important marketing concepts.
CHAPTER 10
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10-1
Marketing Basics
Goals
Define important marketing concepts.
Identify the steps in a marketing strategy.
Describe the consumer decision-making process.
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3. Key Terms marketing marketing strategy target market marketing mix
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Chapter 10
Key Terms
marketing
marketing strategy
target market
marketing mix
marketing orientation
final consumers
business consumers
consumer decision-making
process
buying motives
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4. UNDERSTAND MARKETING Marketing activities Marketing businesses
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UNDERSTAND MARKETING
Marketing activities
Marketing businesses
Marketing functions
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5. CHAPTER 10
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Chapter 10
Marketing Functions
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6. CHAPTER 10
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Chapter 10
Checkpoint >>
Define marketing and the seven marketing functions.
Answer
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
The seven marketing functions include product and service management, distribution, selling, marketing information management, financial analysis, pricing, and promotion.
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7. MARKETING STRATEGY Marketing planning
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Chapter 10
MARKETING STRATEGY
Marketing planning
Develop a successful marketing strategy
Identify a target market
Create a marketing mix
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8. Chapter 10
TARGET MARKET
Specific group of consumers who have similar needs and wants
Proctor & Gamble

9. Chapter 10

10. Chapter 10
MARKETING MIX
PRODUCT- includes the basic (or simplest form) product, features, options, brand name, packaging guarantee/warranty,
PRICE- the $ a customer must pay for a product or service
PLACE- distribution (channels of distribution) and placement
PROMOTION- promotion, personal selling, and advertising

11. CHAPTER 10
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Chapter 10
Checkpoint >>
What are the two steps in developing a marketing strategy?
Answer
1. Identify your target market
2. Develop your marketing mix.
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12. UNDERSTAND CUSTOMERS Consumer decision-making (next slide)
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Chapter 10
UNDERSTAND CUSTOMERS
Consumer decision-making (next slide)
Buying motives
Emotional
Purchases based on feelings, beliefs, and attitudes
Rational
Purchase decisions guided by facts and logic
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13. STEPS IN THE CONSUMER DECISION-MAKING PROCESS
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STEPS IN THE CONSUMER DECISION-MAKING PROCESS
1. Recognize a need.
2. Gather information.
3. Select and evaluate alternatives.
4. Make a purchase decision.
5. Determine the effectiveness of the decision.
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14. Assessment page 242>>
CHAPTER 10
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Chapter 10
Assessment page 242>>
1-3, and 4 or 5
Then read Chapter 10-2 starting on page 243 and complete questions on page 248 (1-3, and 4 or 5)
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15. Develop Effective Products and Services
CHAPTER 10
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10-2
Develop Effective Products and Services
Goals
Justify the importance of marketing research.
Identify the components of a product.
Describe how services differ from products.
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16. Key Terms marketing research product services intangible inseparable
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Chapter 10
Key Terms
marketing research
product
services
intangible
inseparable
perishable
heterogeneous
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17. CREATE AND IMPROVE PRODUCTS
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CREATE AND IMPROVE PRODUCTS
Totally new products
Major improvements in existing products
Minor improvements in existing products
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18. PLAN MARKETING RESEARCH
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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.
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19. TYPES OF RESEARCH STUDIES
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TYPES OF RESEARCH STUDIES
Secondary Research- Analyzing existing information gathered for another purpose and using it to solve a current problem
Primary Research Studies carried out to gather new information specifically directed at a current problem (continued on following slide)
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20. TYPES OF RESEARCH STUDIES (Primary Research)
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Chapter 10
TYPES OF RESEARCH STUDIES (Primary Research)
Surveys
Focus groups
Observations
Experiments
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21. Check out these examples…
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Chapter 10
Check out these examples…
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22. Checkpoint >> List the steps in a marketing research study.
CHAPTER 10
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Chapter 10
Checkpoint >>
List the steps in a marketing research study.
Answer
The steps in marketing research are to define the marketing problem, study the situation, develop a data collection procedure, gather and analyze information, and propose a solution.
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23. PRODUCT PLANNING Parts of a product Basic Product
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PRODUCT PLANNING
Parts of a product
Basic Product
Product Features (Options)
Brand Name
Packaging
Guarantee or Warranty
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24. PRODUCT PLANNING Product planning procedures Idea development
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PRODUCT PLANNING
Product planning procedures
Idea development
Idea screening
Strategy development
Production and financial planning
Limited production and test marketing
Full-scale production
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25. Checkpoint >> What are the components of a product? Answer
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Chapter 10
Checkpoint >>
What are the components of a product?
Answer
Products are everything businesses offer to customers and are composed of the basic product, product features, its brand name and packaging, and sometimes a guarantee or warranty.
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26. SERVICES Intangible Inseparable Perishable Heterogeneous
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SERVICES
Intangible
No tangible form
Inseparable
Consumed at the time they are produced
Perishable
Cannot be stored for later use
Heterogeneous
Differences in the type and quality of services provided
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27. Checkpoint >> In what ways are services different from products?
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Chapter 10
Checkpoint >>
In what ways are services different from products?
Answer
Products are tangible and may be nonperishable; it is generally easier to control the quality and marketability of these items.
Services, however, are intangible, more difficult to market, and perishable.
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28. Price and Distribute Products
CHAPTER 10
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10-3
Price and Distribute Products
Goals
Discuss how the selling price of a product is calculated.
Differentiate between a direct and an indirect channel of distribution.
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29. Key Terms price distribution channel of distribution channel members
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Chapter 10
Key Terms
price
distribution
channel of distribution
channel members
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30. VALUE AND PRICE Buyers usually want to pay the lowest price possible.
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VALUE AND PRICE
Buyers usually want to pay the lowest price possible.
Sellers want to charge the highest price possible.
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31. PRICING FACTORS Supply and demand Uniqueness Age Season Complexity
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PRICING FACTORS
Supply and demand
Uniqueness
Age
Season
Complexity
Convenience
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32. PRICE A PRODUCT Selling price Product costs Operating expenses Profit
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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
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33. CHAPTER 10
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Chapter 10
PRICE A PRODUCT
Markup
Markdown
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34. CHAPTER 10
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Chapter 10
Checkpoint >>
What is the formula for calculating the selling price of a product?
Answer
Selling price = Product cost + Operating expenses + Profit.
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35. CHANNELS OF DISTRIBUTION
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CHANNELS OF DISTRIBUTION
Need for distribution channels
Differences in quantity
Differences in assortment
Differences in location
Differences in timing
Channels and channel members
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36. CHAPTER 10
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Chapter 10
Checkpoint >>
What is the difference between a direct and an indirect channel of distribution?
Answer
In a direct channel of distribution, products move directly from the producer to the consumer.
In an indirect channel, others may participate in the movement of products from the producer to the consumer, such as transportation services and retailers.
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37. Reinforcements Page 242 (1-3 and 4 or 5) Page 247 Ethics (1-3)
Chapter 10
Reinforcements
Page (1-3 and 4 or 5)
Page Ethics (1-3)
Page (1-3)
Page (1-2 and 3 or 4)

38. CHAPTER 10
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10-4
Plan Promotion
Goals
Justify the importance of communication in marketing.
Identify and describe the common types of promotion.
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39. CHAPTER 10
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Key Terms
Chapter 10
Promotion ~ any form of communication use to inform, persuade, or remind.
Effective communication ~ exchange of information so there is common understanding by all participants.
Personal selling ~ direct, individualized communication withy prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and services.
Advertising ~ any paid form of communication through mass media directed at identified consumers to provide information and influence their actions.
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40. COMMUNICATION The communication process
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Chapter 10
COMMUNICATION
The communication process
Communicating through promotion – p.256 How does identifying a target market improve promotion communications?
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41. Components of Effective Communication
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Components of Effective Communication
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42. CHAPTER 10
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Chapter 10
Checkpoint >>
How does identifying a target market improve promotion communications?
Answer
Communication can be developed and directed more specifically if a target market is identified.
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43. A QUESTION OF ETHICS on page 258
Chapter 10
A QUESTION OF ETHICS on page 258
The Price of Success
A MICROSOFT CASE STUDY

44. PROMOTION Personalized promotion Mass promotion
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Chapter 10
PROMOTION
Personalized promotion
Direct communication w/ customer
Tailors information for that customer
a.k.a. Personal Selling
Mass promotion
Communicates with many people at the same time
Common message
More info on next slide
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45. PROMOTION Mass Promotion (continued)
Chapter 10
PROMOTION
Mass Promotion (continued)
Advertising~ pd communication through mass media to influence the public
Publicity~ non-paid promotion
Public Relations~ ongoing program of pd and non-pd communications. Planned to favorably influence public opinion
Sales Promotions ~activities and materials designed to reinforce a company’s brand or image

46. PROMOTION Mass personalization
Chapter 10
PROMOTION
Mass personalization
Combines the advantages of personal selling and mass promotion
Begins as mass promotion and then invites prospective customers to call, write, or go online, for a more personal analysis of their needs.

47. CHAPTER 10
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Chapter 10
Checkpoint >>
Describe the advantages and disadvantages of the major types of promotion.
Answer
Personalized promotion allows the provider to meet customers and identify customer needs.
It is, however, the most expensive type of promotion.
Mass promotion reaches a larger target market and is much less expensive.
It does not, however, provide for individualized service, and sales (results) are often not immediate.
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48. Reinforcement 10-4 Page 260 Page 259 (1, 2, and 4) AND Chapter Review
1-21 and 2 from 22-27