Introduction to Business

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(No Transcript)
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Read to Learn

• Define marketing.
• Identify the functions of marketing.
• List the elements of the marketing mix.

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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.
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Key Concepts

• The Basics of Marketing
• The Functions of Marketing
• The Marketing Mix

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Key Term
a group of customers who share common wants and
needs
market
the process of creating, promoting, and
presenting a product or service to meet the wants
and needs of consumers
marketing
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Key Term
relationshipmarketing
building and maintaining relationships with
customers
marketingmix
product, place, price, and promotion,
collectively known as the four Ps
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Key Term
channel ofdistribution
a pathway to direct products to consumers
directdistribution
when goods or services are sold from the producer
directly to the customer
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Key Term
indirectdistribution
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
break-evenpoint
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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.

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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
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The Basics of Marketing

• Marketing includes studying what people want and
  designing a products packaging.

marketing the process of creating, promoting, and
presenting a product or service to meet the wants
and needs of consumers
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The Functions of Marketing

• The seven functions of marketing define all the
  aspects that are part of marketing.

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Graphic Organizer
1
2
Distribution
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Financing
Selling
SevenFunctions ofMarketing
Marketinginformationmanagement
Promotion
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6
Product/service management
Pricing
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4
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Graphic Organizer
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Distribution is the process of getting goods and
services to customers.
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Financing is getting the money that is necessary
for setting up andrunning a business.
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Marketing information management is gathering and
analyzing information about consumers, trends,
and competitors products
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Pricing is deciding how much to charge for a
product or service so the business can make a
profit.
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Graphic Organizer
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Product/service management is obtaining,
developing, maintaining, and improving a product
or product mix in response to the market.
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Promotion is any effort to inform, persuade, or
remind potential customers about a businesss
products or services
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Selling is providing customers with the goods and
services they choose to buy.
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The Functions of Marketing

• Relationship marketing is part of the selling
  function of marketing.

relationship marketing building and maintaining
relationships with customers
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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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Graphic Organizer
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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Graphic Organizer
Establish demand
Make the product appealing
Packaging design
Design
Color
Size
Brand name
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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.

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Place

• To make place decisions, marketers select the
  right channel of distribution.

channel of distribution a pathway to direct
products to consumers
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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
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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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Graphic Organizer
Questions to Ask When Determining the Price of a
Product
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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.

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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.
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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?
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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 childs parent or guardian.
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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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1. What are the seven functions of marketing?

distribution, financing, marketing information
management, pricing, product/ service management,
promotion, and selling
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1. 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.
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