1. Marketing 10-1 Marketing Basics 10-2 Develop Effective Productsand Services 10-3 Price and Distribute Products 10-4 Plan Promotion 10

2. LESSON 10-1 Marketing Basics

Goals

Define important marketing concepts.

Identify the steps in a marketing strategy.

Describe the consumer decision-making process.

Chapter 10 Slide 3. Key Terms

Marketing-the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

marketing strategy-companys plan that identifies how it will use marketing to achieve its goals

target market-specific group of consumers that have similar wants and needs

marketing mix- blending of the four marketing elements: product, price, distribution, and promotion

marketing orientation-considers the needs of customers when developing a marketing mix (not assuming they know what customers want)

final consumers-people who buy products and services mostly for their own use

business consumers-people, companies, and organizations that buy products for the operation of a business, for resale, or for incorporation in to other products or services

consumer decision-making-Process-specific sequence of steps consumers follow to make a purchase

buying motives-the reasons consumers decide what products and services to purchase

Chapter 10 Slide 4. UNDERSTAND MARKETING

Marketing activities

Marketing businesses

Marketing functions

Chapter 10 Slide 5. MARKETING FUNCTIONS Chapter 10 Slide 6. >>C H E C K P O I N T

Define marketing and the seven marketing functions.

Chapter 10 Slide 7. MARKETING STRATEGY

Marketing planning

Develop a successful marketing strategy

• Identify a target market

• Create a marketing mix

Chapter 10 Slide 8. >>C H E C K P O I N T

What are the two steps in developing a marketing strategy?

Chapter 10 Slide 9. UNDERSTAND CUSTOMERS

Consumer decision-making

Buying motives

Chapter 10 Slide 10. 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.

Chapter 10 Slide 11. >>C H E C K P O I N T

What are the steps in the consumer decision-making process?

Chapter 10 Slide 12. LESSON 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.

Chapter 10 Slide 13. Key Terms

marketing research-finding solutions to problems through carefully designed studies involving consumers

Product-everything a business offers to satisfy a customers needs

Services-activities that are consumed at the same time they are produced

Intangible- a service with no physical form

Inseparable- service that is consumed at the same time it is produced

Perishable- the availability of a service must match the demand for that service at a specific time

Heterogeneous- there will be a difference in the type of quality of service provided

Chapter 10 Slide 14. CREATE ANDIMPROVE PRODUCTS

Totally new products

Major improvements in existing products

Minor improvements in existing products

Chapter 10 Slide 15. 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.

Chapter 10 Slide 16. TYPES OF RESEARCH STUDIES

Surveys

Focus groups

Observations

Experiments

Chapter 10 Slide 17. >>C H E C K P O I N T

List the steps in a marketing research study.

Chapter 10 Slide 18. PRODUCT PLANNING

Parts of a product

Product planning procedures

• Idea development

• Idea screening

• Strategy development

• Production and financial planning

• Limited production and test marketing

• Full-scale production

Chapter 10 Slide 19. >>C H E C K P O I N T

What are the components of a product?

Chapter 10 Slide 20. SERVICES

Intangible

Inseparable

Perishable

Heterogeneous

Chapter 10 Slide 21. >>C H E C K P O I N T

In what ways are services different from products?

Chapter 10 Slide 22. LESSON 10-3 Price andDistribute Products

Goals

Discuss how the selling price of a product is calculated.

Differentiate between a direct and an indirect channel of distribution.

Chapter 10 Slide 23. Key Terms

Price- money a consumer must pay for product or service

Distribution-the locations and methods used to make a product or service available to the target market

channel of distribution-the route a product follows and the business involved in moving a product

channel members-businesses that take part in a channel of distribution

Chapter 10 Slide 24. VALUE AND PRICE

Buyers usually want to pay the lowest price possible.

Sellers want to charge the highest price possible.

Chapter 10 Slide 25. PRICING FACTORS

Supply and demand

Uniqueness

Age

Season

Complexity

Convenience

Chapter 10 Slide 26. PRICE A PRODUCT

Selling price

Product costs

Operating expenses

Profit

Gross margin

Chapter 10 SlideSelling price = Product costs + Operating expenses + Profit Gross Margin = Selling price + Product costs 27. PRICE A PRODUCT

Markup

Markdown

Chapter 10 Slide 28. >>C H E C K P O I N T

What is the formula for calculating the selling price of a product?

Chapter 10 Slide 29. CHANNELS OF DISTRIBUTION

Need for distribution channels

• Differences in quantity

• Differences in assortment

• Differences in location

• Differences in timing

Channels and channel members

Chapter 10 Slide 30. >>C H E C K P O I N T

What is the difference between a direct and an indirect channel of distribution?

Chapter 10 Slide 31. LESSON 10-4 Plan Promotion

Goals

Justify the importance of communication in marketing.

Identify and describe the common types of promotion.

Chapter 10 Slide 32. Key Terms

Promotion- any form of communication use to inform, persuade, or remind

effective communication-the exchange of information so there is common understanding by all participants

personal selling- direct, individualized communication with prospective customers to assess their needs and assist them 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

Chapter 10 Slide 33. COMMUNICATION

The communication process

Communicating through promotion

Chapter 10 Slide 34. COMPONENTS OFEFFECTIVE COMMUNICATION Chapter 10 Slide 35. >>C H E C K P O I N T

How does identifying a target market improve promotion communications?

Chapter 10 Slide 36. PROMOTION

Personalized promotion

Mass promotion

Mass personalization

Chapter 10 Slide 37. >>C H E C K P O I N T

Describe the advantages and disadvantages of the major types of promotion.

Chapter 10 Slide