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Chapter 13
Marketing in Today’s World
Section 13.1
Marketing Essentials
Read to Learn
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.
Key Concepts
The Basics of Marketing
The Functions of Marketing
The Marketing Mix
Key Term
market
marketing
a group of customers who share
common wants and needs
the process of creating, promoting, and
presenting a product or service to meet
the wants and needs of consumers
Key Term
relationship
marketing
marketing
mix
building and maintaining
relationships with customers
product, place, price, and promotion,
collectively known as the four Ps
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Key Term
channel of
distribution
direct
distribution
a pathway to direct products to
consumers
when goods or services are sold from
the producer directly to the customer
Key Term
indirect
distribution
break-even
point
when goods or services are sold
through one or more intermediaries
the point at which total revenues, or
sales, equal total costs and expenses
of developing and offering a product
or service
The Basics of Marketing
To market a product successfully, a company
must understand what people want to buy and
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.
marketa 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.
marketingthe 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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SevenFunctions of
Marketing
Distribution
Pricing
Financing
Marketing
informationmanagement
Product/
servicemanagement
Promotion
Selling
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2
3
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6
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1 Distribution is the process of getting goods and services to customers.
2Financing is getting the money that is necessary for setting up andrunning 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.
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5Product/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 Functions of Marketing
Relationship
marketing is part of
the selling function of
marketing.
relationship marketingbuilding and maintaining relationships with customers
The Marketing Mix
The marketing mix
consists of four basic
marketing strategies.
marketing mixproduct, 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.
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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.
Place
To make place
decisions,
marketers select
the right channel
of distribution.
channel of distributiona pathway to direct products to consumers
Place
Distribution decisions
affect the price of
products.
Marketers can use
direct distribution or
indirect distribution.
direct distributionwhen goods or services are sold from the producer directly to the consumer
indirect distributionwhen goods or services are sold through one or more intermediaries
Price
A marketer must
consider the
break-even point.
break-even pointthe 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
How much are
customers willing to pay?
Is the price competitive with
other products?
Can the
company make a profit?
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Promotion
Promotion involves making customers aware
of a product.
Advertising and offering discounts are two
popular methods of 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.
You have just gotten a job working for a toy
company as a marketing director specializing in
action figures. A team member suggests a contest
for the children in your target market. Part of the
contest involves the children completing a
questionnaire about their preferences.
Decision Making What are some ethical
guidelines you would use in designing this contest
for children?
Answer
Privacy is an important issue when marketing to
children. Marketing interactions directed to children,
including requests for personal information, should
require the express consent of the child’s parent or
guardian.
1. Define marketing.
the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers
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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.
Chapter 13
Marketing in Today’s World
Section 13.1
Marketing Essentials
End of
