marketing in today’s world

CHAPTER 13 .1INTRODUCTION TO BUSINESS AND

MARKETING

Marketing in Today’s World

Objectives

Define marketing.

Identify the functions of marketing.

List the elements of the marketing mix.

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.

The Basics of Marketing

To market a product successfully a company must understand:

What people want to buyWhy they want to buy it

The Basics of Marketing

A company must know the market.

In the global marketplace, many countries can make up a market.

The Basics of Marketing

Marketing includes studying what people want and designing a product’s packaging.

The Functions of Marketing

The seven functions of marketing define all the aspects that are part of marketing.

Distribution

Pricing

Financing

MarketingInformationManagement

Product/Service

Management

Promotion

Selling

1

2

3

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6

7

The Seven Marketing Functions

1 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.

3Marketing information management is gathering and analyzing information about consumers, trends, and competitors’ products

4Pricing is deciding how much to charge for a product or service so the business can make a profit.

5Product/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 services

7 Selling is providing customers with the goods and services they choose to buy.

The Seven Marketing Functions

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.

The Marketing Mix

P P P PProduct Place Price Promotion

In recent years, many people have begun to include a fifth P for

people.

The marketing mix consists of four basic marketing strategies.

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.

Graphic Organizer

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.

PlaceTo 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.

Price

Questions to Ask When Determining

the Price of a ProductHow much are customers willing to pay?

Is the price competitive with other products?

Can the company make a profit?

1 2 3

A marketer must consider the break-even point.

Promotion

Promotion involves making customers aware of a product.

Advertising and offering discounts are two popular methods of promotion.

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.