Download File - School of Business Mrs. Kelly @ SHSE

“To successfully
market a product, a
company needs to
understand what
people want to buy
and why they want
to buy it”
Think Now:
Look at this ad
What company
is represented?
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
Key Concepts
The Basics of Marketing
The Functions of Marketing
The Marketing Mix
The Basics of Marketing
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 Marketing
Marketing includes
studying what people
want and designing a
product’s packaging.
marketing
the process of creating,
promoting, and presenting
a product or service to
meet the wants and needs
of consumers
The Functions of Marketing
The seven functions of marketing define all the
aspects that are part of marketing.
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1
2
Distribution
7
Financing
Selling
Promotion
Seven
Functions of
Marketing
Marketing
information
management
6
Product/
service
management
5
Pricing
4
3
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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.
3
Marketing information management is gathering and analyzing
information about consumers, trends, and competitors’ products
4
Pricing is deciding how much to charge for a product or service so the
business can make a profit.
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5
Product/service management is obtaining, developing, maintaining,
and improving a product or product mix in response to the market.
6
Promotion 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.
Objective: Functions of Marketing
Do Now:
Copy the following and respond on your do
now sheet
Describe the strategy that Steve is referring to
Steve's Marketing Strategy
The Functions of Marketing
Relationship
marketing is part of
the selling function of
marketing.
relationship marketing
building and maintaining
relationships with
customers
The Marketing Mix
The marketing mix
consists of four basic
marketing strategies.
marketing mix
product, place, price, and
promotion, collectively
known as the four Ps
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P
P
P
P
Product
Place
Price
Promotion
In recent years, many people have
begun to include a fifth P for people.
Taken from McDonald’s
Marketing Philosophy!
Product
First, 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.
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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.
Objective: Functions of Marketing
Do Now:
Provide an example of product placement
Place
To make place
decisions,
marketers select
the right channel
of distribution.
channel of distribution
a pathway to direct
products to consumers
Channel of Distribution
Place
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
Price
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
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Questions to Ask When Determining
the Price of a Product
1
How much are
customers
willing to pay?
2
Is the price
competitive with
other products?
3
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.
1. Define marketing.
the process of creating, promoting, and
presenting a product or service to meet the
wants and needs of consumers
2. What are the seven functions of marketing?
distribution, financing, marketing information
management, pricing, product/ service
management, promotion, and selling
3. What four elements are in the marketing mix?
What is sometimes considered a fifth
element?
Product, place, price, and promotion. Some
people include a fifth P for people.