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Marketing In
Business
Introduction to Business
Basics of Marketing
 It all comes down to knowing your market
 Behind a product is a company’s intense
research, development, and marketing.
 To successfully market a product, a
company has to understand what people
want to buy and why they want to buy it.
What is a Market?
 A group of customers who:
 share common wants and needs
 Have the ability to purchase the product
 There is more to marketing than just
selling a product.
Marketing
 The process of creating, promoting, and
presenting a product to meet the wants
and needs of consumers.
 Involves a number of stages from
studying what people want to buy to
designing a product’s package.
Marketing Concept
 Businesses need to know their
customers’ wants and needs in order to
make a profit.
Marketing
 Creating, promoting and presenting a
product to meet the wants and needs of
the consumer.
 Marketing involves a number of stages
from studying what people want to buy to
designing a product’s package.
Target marketing
 Businesses want you to buy their product
so they perform detailed research on
markets to find and analyze potential
customers in their market.
What does Marketing
Involve?
 Involves what people want to buy to
designing a products package.
Target Marketing
 Detailed research
 Finding and analyzing consumers to
determine their wants and needs.
Marketing Functions
 Marketing activities can be organized into 7
functions.
 Each function occurs every time a product
or service is developed and sold.
 Businesses provide many of the marketing
functions.
 Consumers often take part in one or more
of the marketing functions when they make
purchases.
Marketing Functions
Distribution
Financial Analysis Marketing
Information
Management
Pricing
Product/Service
Planning
Promotion
Selling
Purchasing
Risk
Management
Distribution
 Involves deciding the best ways for
customers to locate, obtain, and use the
products and services of an organization.
 Careful shipping, handling, and storing of
products are needed for effective
distribution.
Financial Analysis
 Financial analysis is budgeting for marketing
activities, obtaining the necessary funds
needed for operations, and providing
financial assistance to customers so they
can purchase the business’ products and
services. Businesses decide if customers
can pay with credit or other payment
options.
Marketing Information
Management
 Is obtaining, managing, and using market
information to improve business decisionmaking and the performance of marketing
activities.
 Marketing information management
includes marketing research and the
development databases with information
about products, customers, and
competitors.
Pricing
 Marketers have to figure out what price to
charge for a product so the company
makes a profit.
 Marketing needs to consider the cost of
distribution, because each time a product
goes through another channel of
distribution the price goes up.
Product/Service
Management
 Is designing, developing, maintaining,
improving, and acquiring products and
services that meet consumer needs.
 Producers and manufacturers develop
new products. Other businesses are also
involved in product/service management
when they buy products for resale.
Promotion
 Communicating information about
products and services to potential
customers.
 Advertising and other promotional
methods are used to encourage
consumers to buy.
 Advertising may occur in a variety of
ways—TV, direct mail, internet, etc.
Selling
 Communicatin directly with potential
customers to determine and satisfy their
needs.
 Selling can be face-to-face, telephone, or
other technology.
 A popular trend in today’s marketing
world is relationship marketing.
Relationship Marketing
 Popular today
 Build relationships with customers
 Customer relations is important
Marketing Mix
 Even before a product appears o nthe
marekt, marketing specialsits have to
consider a number of questions.
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Who will the product appeal to?
How much should it cost?
Where should it be sold?
What is the best way to tell people about it?
The four elements of
marketing
 Marketing mix or The four P’s
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Product
Place
Price
Promotion
Product
 Marketing is used first to find out if there
is a demand for a product.
 Packaging a product is a major element
of marketing
 Includes the design, color, size, and even
brand name of a product.
 Cover design attracts customers.
Place
 Marketers must decide where to sell a
product to get it to the right customer.
 Marketers must consider in what kind of
location to sell their product.
 The placement of the product in a store is
equally as important.
 Featured products on display stands in the front
of the store.
Price
 To determine price, consider 3 things
 How much will a customer pay.
 Is the price competitive with other products.
 Can the company make a profit?
 Break-even point
 The amount of money a company has to
make on a product to pay for its costs.
Promotion
 This is making customers aware of a
product.
 Most popular form of promotion:
advertising.
Types of promotion
 Discounts—coupons, rebates, and sales.
 Publicity
Publicity
 Public relations
 Kind of free advertising
 Microsoft and Sony benefit from news
stories.
 Celebrities go on talk shows.
Fast Review
 What is marketing?
 What are three functions of marketing?
 What is the four P’s?
Market Research
 Used to gather and study about
consumers and o find what consumers
need and want.
 Marketing experts keep track of
consumers using surveys, sales figures,
databases, and census.
 Marketers analyze and categorize their
markets by demographics.
Demographics
 Facts about the population in terms of:
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Age
Income
Education
Gender
Location
 Marketers use to develop product to fit
that group.
Product Development
 Demand for products change constantly.
 Fads and fashions go in and out of style.
 A company’s ability to create a new
product or a slight variation of an already
successful one is important to increasing
sales.
Product Development
 7 Steps in developing a new product
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Generate Ideas
Screen Ideas
Develop business proposal
Developing the product
Test marketing the product
Introducing the product
Evaluating customer acceptance
Generating ideas
 Brainstorm for creative ideas for the new
product.
 Employees from the development
department, the market research staff,
and generate ideas for a new creative
products.
 Collaboration is key to this step.
Screening Ideas
 Once the team puts together a final list of
creative ideas for the product, they are
evaluated.
Developing a Business
Proposal
 Once the creative idea passes the screen
process, then ideas are:
 A business plan is created.
 The written proposal provides answers
about the:
 Market, potential sales, costs, profit potential
 Market trends, competitions products, risk
Developing the Product
 A prototype is made.
 This is a model of the actual product.
 It is used to test ideas.
 If anything needs to be changed this is the
stage ot make those changes.
 Government requires extensive testing
during various stages of product
development.
Test Marketing the
Product
 Once the product is fully developed, the
product might be test marketed.
 The goal is to collect customers’
responses.
Introducing the product
 The product passed the market test.
 Now it’s ready for the market place.
 The costs of doing this are often high.
Evaluating Customer
Acceptance
 Once the product is introduced,
marketers track customers’ responses.
 The report answer key questions?
 Who are the best customers?
 What new products are customers buying?
 How often do customers buy new product?
Fast Review
 What’s the purpose of market research?
 Name the seven steps in developing a
new product.
Channels of Distribution
 Marketers have to decide how and where
customers will buy their goods and
services.
 Channel of distribution is
 The way to get the products to the customer.
 Producers use a specific channel to move
goods to the final user.
Direct Distribution
 Is when the goods or services are sold
from the producer directly to the
customer
 An intermediary is not involved.
Indirect distribution
 Involves one or more intermediaries.
Distribution and cost
 Each time a product goes through
another channel the cost of marketing it
goes up!
 Wholesalers, retailers, truck companies,
and warehouses all have to cover their
costs.
 The costs of distributing a product must
be added to the price of the product.
Channel Members
 Moving the product from manufacturer to
the final user is an intermediary.
 Intermediaries are:
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Distributors
Wholesalers
Retailers
Even the Internet
Distributors
 Intermediary
 A single manufacturer in a geographic
area.
 Cosmetics, cars, furniture, and shoes are
sold through distributors.
Wholesalers
 Receives large shipments of products
from many different producers.
 They break the shipments into smaller
batches for resale.
Retailers
 Sells goods directly to the customer.
 This is the final stop in the channel of
distribution.
 The Internet encourages producers to
distribute their products themselves.
 A virtual business allows customers to
order online.
Summary
 Functions of marketing include
 Distribution, financing, marketing, information
management, pricing, product and service
management, promotion and selling.
 The Four P’s:
 Market research is important to study the customers’ wants
and needs.
 A product goes through 7 developmental steps.
 A product has to go through channels of distribution to get
from producers to consumers.