Exploring Business
Marketing
Key Terms
Buying motives Marketing functions
Channel of Marketing mix
distribution Marketing strategy
Direct Channel of Place price product
distribution promotion
Indirect channel of Retailer
distribution Target market
Marketing concept Wholesaler
Telemarketers
Junk mail
What is the telemarketer trying to
sell?
Have you listened to the sales pitch?
Were you temped to buy?
Was this the most effective way to sell the
product or service?
4 (5) P’s of Marketing
Product
Price
Place
Promotion
(People)
So, what is marketing?
All of the activities used to insure the
effective exchange of goods and services
between businesses and consumers.
What do marketers do?
Research – wants and needs
Test new ideas
Select product name, packaging desing develop
advertising
Decide where to sell product
Work on improvements
Intermediaries – match production and
consumption among producers and consumers
United States – Capitalistic Economy
Voluntary exchange
Can produce and sell what they want
Consumers are free to chose what they want
Consumers are free to pay what they want
Marketing Functions
must be completed in order for an exchange to occur
Product/Service Planning
Purchasing
Financing
Distribution
Pricing
Risk Management
Marketing Information Management
Promotion
Target Markets
What is a target market?
We all end up in a target market at some
point. Is this good?
Yes…why….
Increase standard of living
Makes us aware of the best products, prices
Creates millions of jobs
More choices, better products, lower prices
Businesses and consumers benefit
Philosophy of Business/Marketing
Concept
Needs of customers
Planning, pricing, distributing,
promoting
1. Identify the customers they want to serve
2. Develop product to satisfy customers
3. Complete activities at a profit
Marketing Strategy
2 step process
Identify target market
Marketing mix
Combo of marketing elements (4 P’s)
designed to meet the needs of a target
market
Product Development
Includes, brand name, packaging,
accessories and services
Six steps
Developing a new product
Step 6: Prepare facilities, equip and
personnel for manufacturing
Step 5: Develop budgets and forecast
Step 4: Design production market procedures
Step 3: Construct model - test
Step 2: Test the product
Step 1: Develop a new idea
The Factors of Distribution
How to get products/services to customer
Channel of Distribution Direct and Indirect Distribution see
page 109
Role of Pricing
Consumers compare prices
Buy based on value NOT price
Goals and Objectives of Pricing
Maximize Profits
Increase Sales
Maintain an Image
Factors that Influence a Product’s
Price
The quantity of a product purchased
The level of customer service offered
Whether the product is fragile or requires special
handling
The number of businesses in the same channel of
distribution
The amount of advertising and communications
needed to inform customers
Promotion for successful Marketing
The Role of Promotion
Selecting Promotional Methods and Media
Personal Selling as a Promotional Activity