essential standard 3.00
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Essential Standard 3.00. Understand the role marketing in business. Objective 3.01. Understand principles of marketing. Topics. Functions of marketing Importance of marketing research to the creation or improvement of products or services Selling prices of products and services - PowerPoint PPT PresentationTRANSCRIPT
Essential Standard 3.00
Understand the role marketing in business.
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Objective 3.01
Understand principles of marketing.
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Topics
• Functions of marketing
• Importance of marketing research to the creation or improvement of products or services
• Selling prices of products and services
• Classification of channels of distribution
• Classification of the main types of promotion
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Functions of marketing
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Functions of Marketing
• What happens during the marketing process?
• Activities of marketing happen throughout the seven functions of marketing
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Functions of Marketing continuedSeven functions of marketing:
– Product/service management
– Distribution
– Selling
– Marketing-information management
– Financing
– Pricing
– Promotion6
Marketing Information Mgt.
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Marketing-information management involves obtaining, managing, and using information about products and services, customers, and competitors to improve business decision-making and the performance of marketing activities.
Pricing
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Pricing involves determining and communicating the value of products and services.
Product Service Mgt.
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Product/service management may include several businesses involved with designing, developing, maintaining, improving, and obtaining products and services in order to meet the needs of customers.
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Promotion involves communicating information such as features and prices about products and services to potential customers
Distribution
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Distribution (Place) involves using the best ways for customers to locate, obtain, and use the products and services of a business.
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Selling involves communicating directly with potential customers in order to determine and satisfy their needs and wants
Financing
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Financing involves budgeting for marketing activities, securing necessary funds for operations, and providing financial assistance to customers
Importance of marketing research to the
creation or improvement of products or services
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Marketing Research
• What is marketing research?Marketing research involves customers in order to find solutions to
problems through carefully designed studies
• Steps in marketing research:Define the marketing problem. Study the situation. Develop a data collection procedure.Gather and analyze information.Propose a solution.
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Marketing Research continued
Types of research studies– Surveys– Focus groups– Observations– Experiment
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Good/Products vs. ServicesSimilar Different
Goods/Products Services 1.Meet the needs or satisfaction of a target market2.Include a mix of the marketing elements: product, price, promotion, and place (distribution)
Goods/Products
TangibleNon-perishableSeparableEasier to marketMore control over quality
Services
IntangiblePerishableInseparableMore difficult to marketLess control over quality
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Marketing Research continued
Parts of a product– Basic product– Product features– Options– Brand name– Packaging– Warranty
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Marketing Research continued
Similarities of products and services
• Meet the needs or satisfaction of a target market
• Include a mix of the marketing elements (product, price, promotion, and distribution)
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Marketing Research continued
Differences between products and services
Products Services
Tangible Intangible
Perishable or non-perishable Perishable
Separable Inseparable
Easier to market More difficult to market
More control over quality Less control over quality
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Selling prices of products and services
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Selling Prices of Products and Services• What factors influence the pricing of
products and services?
• Pricing formula
Selling price=product costs+operating expenses+profit
Example: $215=67+38+100
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Selling Prices of Products and Services continued• Markup
– The amount charged of the selling price to cover the operating expenses and profit usually stated as a percent.
– Selling price=product cost+markup– Example: $35+$14=$49– $35*40%=$14
• MarkdownA reduction from the original selling price.
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Classification of channels of distribution
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Classification of Channels of Distribution• What is channel of distribution?
• How do the needs between producers and consumers differ? They differ by:– Quantity– Assortment– Location– Timing
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Classification of Channels of Distribution continued• Channels of distribution allow businesses to
adjust quantity and assortments accessible in convenient locations for customers and storage of products.
• Types of channels of distribution:– Direct
Example-Tonya makes and sells drapes to local customers.
– IndirectExample-UPS delivers packages to constomers for Ann Taylor Clothing Store.
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Classification of the main types of promotion
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Classification of the Main Types of Promotion• Effective communication consists of an
understanding of information between the sender and the receiver.
• The sender selects a channel of communication and the receiver indicates understanding by providing some form of feedback.
• What is the relationship between effective communication and promotion?
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Classification of the Main Types of Promotion continued• Main types of promotion:
– Personalized is customized for individual customer.– Mass is communicated with many people with a
common message.
• Some types of mass promotion:– Advertisement– Publicity– Public relations– Sales promotion
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