CHAPTER 13.1 INTRODUCTION TO BUSINESS AND MARKETING 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 buy

Why 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

45

6

7

The Seven Marketing Functions

1 Distribution is the process of getting goods and services to customers.

2Financing 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.

5

Product/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

7Selling 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 P

Product 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.

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.

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.

Place

To 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.