Marketing in Today s World
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1 Chapter 13 in Today s World Section 13.1 Essentials Read to Learn Define. Identify the functions of. List the elements of the mix. The Main Idea To sell their products or services, businesses engage in activities. They find and analyze potential customers and then try to meet their wants and needs. Key Concepts The Basics of The Functions of The Mix Key Term Key Term market a group of customers who share common wants and needs relationship building and maintaining relationships with customers the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers mix product, place, price, and promotion, collectively known as the four Ps 1
2 Key Term channel of distribution a pathway to direct products to consumers Key Term indirect distribution when goods or services are sold through one or more intermediaries direct distribution when goods or services are sold from the producer directly to the customer break-even point the point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service The Basics of The Basics of To market a product successfully, a company must understand what people want to buy and why they want to buy it. A company must know the market. In the global marketplace, many countries can make up a market. market a group of customers who share common wants and needs The Basics of The Functions of includes studying what people want and designing a product s packaging. the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers The seven functions of define all the aspects that are part of. 2
3 6 7 Selling Promotion Product/ service management 5 1 Distribution Seven Functions of Pricing Financing 2 information management Distribution is the process of getting goods and services to customers Financing is getting the money that is necessary for setting up and running a business. information management is gathering and analyzing information about consumers, trends, and competitors products Pricing is deciding how much to charge for a product or service so the business can make a profit. The Functions of Product/service management is obtaining, developing, maintaining, and improving a product or product mix in response to the market. Promotion is any effort to inform, persuade, or remind potential customers about a business s products or services Selling is providing customers with the goods and services they choose to buy. Relationship is part of the selling function of. relationship building and maintaining relationships with customers The Mix The mix consists of four basic strategies. mix product, place, price, and promotion, collectively known as the four Ps P P P P Product Place Price Promotion In recent years, many people have begun to include a fifth P for people. 3
4 Product First, is used to find out if there a demand for a product. is then concerned with how to make the product appeal to consumers. Establish demand Make the product appealing Packaging design Design Color Size Brand name 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. Place To make place decisions, marketers select the right channel of distribution. channel of distribution a pathway to direct products to consumers Place Price Distribution decisions affect the price of products. Marketers can use direct distribution or indirect distribution. direct distribution when goods or services are sold from the producer directly to the consumer indirect distribution when goods or services are sold through one or more intermediaries A marketer must consider the break-even point. break-even point the point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service 4
5 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? Promotion Promotion involves making customers aware of a product. Advertising and offering discounts are two popular methods of 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. You have just gotten a job working for a toy company as a 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? Answer Privacy is an important issue when to children. interactions directed to children, including requests for personal information, should require the express consent of the child s parent or guardian. 1. Define. the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers 5
6 2. What are the seven functions of? distribution, financing, information management, pricing, product/ service management, promotion, and selling 3. What four elements are in the mix? What is sometimes considered a fifth element? Product, place, price, and promotion. Some people include a fifth P for people. End of Chapter 13 in Today s World Section 13.1 Essentials 6
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