CHAPTER 10
Marketing
10-1
10-2
10-3
10-4
Marketing Basics
Develop Effective Products
and Services
Price and Distribute Products
Plan Promotion
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10-1
Marketing
Basics
Goals
Define important
marketing concepts.
Identify the steps in a
marketing strategy.
Describe the consumer
decision-making process.
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Key Terms
 marketing
 marketing
strategy
 target market
 marketing mix
 marketing
orientation
 final
consumers
 business consumers
 consumer decisionmaking process
 buying motives
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Standards & EQ

BMA-IBT-5 Demonstrate understanding of the concept of
marketing and its importance to business ownership.



5.1 Explain the fundamental marketing concepts used by a small
business.
5.2 Understand target market and demographics in marketing
strategies.
Essential Questions: What are some important marketing
concepts?
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Focus on Real Life
 Compare
selling today with selling
hundreds of years ago.
 How is it the same and how is it different?
 What about advertising?

Most of the time businesses continue to use
things that work, but must adapt to
changes in consumer needs and
technology.
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UNDERSTAND MARKETING
 What


People often use terms such as advertising
and selling when talking about marketing.
Marketing is





is marketing?
An organizational function and
A set of processes for creating,
communicating, and delivering value to
customers
And for managing customer relationships
In ways that benefit the organization and its
stakeholders.
Includes a range of activities.
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UNDERSTAND MARKETING
 Marketing





activities
Advertisements of the radio for products
and services.
You see brand names on packages you
eat and wear.
Interact with salespeople in stores.
Read product descriptions on company’s
websites
All of these are examples of marketing.
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UNDERSTAND MARKETING
 Other


examples include:
Storing products in warehouses.
Establishing and accepting credit and
arranging means of online payment.
 Businesses
use marketing when they
gather data on consumer needs.

They use that info to improve products & to
test new products before they are sold.
 Businesses
market products and services
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UNDERSTAND MARKETING
 Marketing


businesses
All businesses must complete some mkting
activities.
Includes advertising agencies and
marketing research firms.
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UNDERSTAND MARKETING
 Marketing
1.
2.
3.
4.
5.
6.
7.
functions
Product & Service Management
Distribution
Selling
Marketing-information management
Financial analysis
Pricing
Promotion
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Marketing Functions
Product & Service Management
1.

Designing, developing, maintaining, improving, and
acquiring products and services that meet consumer
needs.
Distribution
2.

Determining the best ways for customers to locate,
obtain, and use the products and services of an
organization.
Selling
3.

Communicating directly with potential customers to
determine and satisfy their need.
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Marketing Functions
Marketing-information management
4.


Obtaining, managing, and using market information to
improve business decision-making and the
performance of marketing activities.
Includes marketing research and development of
databases with info about products, customers, &
competitors.
Financial analysis
5.

Budgeting for marketing activities, obtaining necessary
funds needed for operations, and providing financial
assistance to customers so they can purchase the
business’ products and services.
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Marketing Functions
Pricing
6.


Setting and communicating the value of products
and services.
Customers must be able to easily to identify the price
of items that interest them or they will move on to
another price.
Promotion
7.


Communicating information about products and
services to potential customers.
Advertising through television, newspaper,
magazines, radio, direct mail, Internet.
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Marketing
Functions
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Checkpoint >>
Define marketing and the seven marketing
functions.
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WTBS…
 Create
Flash Cards
 Write each marketing function on one
side of the card and the definition on
the other side of the card.
 Work in teams of 2 to study the function
and their definition using the flash cards
 15 minutes…
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
MARKETING STRATEGY
Marketing planning


Develop a successful marketing strategy


Aimed at satisfying customers needs better than
competitors do, resulting in sales and profits.
A company’s plan that identifies how it will use marketing
to achieve it goals.
Marketing Strategy (2-step process)
1.
2.




Identify a target market (specific group of consumers who
have similar wants and needs)
Create a marketing mix (blending of four marketing
elements
Product
Distribution
Price
Promotion
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Developing a Successful
Marketing Strategy
 Marketing



orientation
Considers the needs of customers when
developing a marketing mix.
Businesspeople use research to study
customers and their needs.
The results of the research are used to plan
a marketing mix designed to satisfy those
needs.
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Marketing Mix Example





Company owns a fleet of cruise ships gathers info on people
who might consider a cruise as a vacation choice.
Product
 Exciting, relaxing cruise experience
 Onboard activities, onshore activities
Distribution
 Providing all of documents needed by travelers, arranging
customer travel to & from port city, handling baggage,
ensuring effective customer service throughout process.
Price
 Provide affordable cruise with payment options to meet the
budgets of target customers.
Promotion
 Offers information to interest prospective customers in the
10
cruise and persuade them to decided it is the best Chapter
vacation
choice
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Checkpoint >>
What are the two steps in developing a marketing
strategy?
Chapter 10
WTBS…
21
 On
a sheet of paper, with a partner,
write down a product or service.
 Identify
the target market (write down
similar needs and wants of them)
 Write the marketing mix for that product
or service.
Product
Distribution
Price
Promotion
 10
minutes…
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Understand Customers
 Effective
marketing begins with customers
 Many new businesses fail b/c the owners have an
idea for the product, but fail to consider customers
and their needs.
 Business can develop products for 2 types of
consumers:
1.
2.
Final consumer – Persons who buy products and
services mostly for their own use.
Business consumer - persons, companies, and
organizations that buy products for the operation of
a business.
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UNDERSTAND CUSTOMERS
 Consumer
decision-making
1. Recognize a need.
2. Gather information.
3. Select and evaluate alternatives.
4. Make a purchase decision.
5. Determine the effectiveness of the decision.
 Buying motives (reasons consumers decide what
products and services to purchase)

Emotional buying motives
 Reasons
to purchase based on feelings, beliefs, and
attitudes.
 Rational buying motives
Chapter 10

Guided by facts and logics. (ex. College to attend, car to buy)
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Checkpoint >>
What are the steps in the consumer
decision-making process?
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WTBS…
Think
of something you
purchase and which motive
(Emotional or Rational)
persuaded you to make the
purchase.
3 minutes…
Chapter 10