CHAPTER 1
World of
Marketing
BELL RINGER
With a partner, come up with a definition
of marketing that you would see in a
textbook
Please don’t use any resources, create
the definition on your own
We will share as a group
1.1 WHAT IS MARKETING?
Marketing- the process of developing,
promoting, and distributing products, or goods
and services, to satisfy customers’ needs and
wants.
In order to market something, it must either
be a good or service
Goods- tangible (touchable) products. Ex –
basketball, computer, chair
Services- intangible (not touchable). Ex –
Doctor, lawyer, healthcare
THE MARKETING PROCESS
Develop
Promote
Distribute
DEVELOP
Involves studying consumers to determine
what they want
Design the products that will satisfy their
needs and wants
Market research
Questionnaires
Surveys
PROMOTION
What are forms of promotion?
Helps to:
Educate consumers
Create interest and desire
Make sales
Create an image for a company and its
products
Play Logo/Slogan games on my wiki
under Chapter 1
DISTRIBUTION
 "You can have the best product in the world, but if
nobody knows about it, what good is it ?“ – Phil Knight,
Chairman of Nike
 You need to get the product into the hands of customer!
 Buying and selling are also involved with distribution
 Some companies sell directly to the consumer
 Direct mail
 Telephone solicitation (We love telemarketers!)
 Internet
 Most use intermediaries (middle-man):
 Wholesalers
 Retailers
INTERMEDIARIES
Producer
Consumer
Intermediary:
Wholesaler
Retailer
WHOLESALER
 Wholesaler- reseller who buy goods, store them, and
sell them in smaller quantities to retailers or directly
to organizations.
 A manufacturer or sporting goods may sell its
products to wholesalers
 That wholesaler then sells the product to different
retailers or directly to a sports organization
 NASGW – go to my wiki and see if you recognize any
sporting good wholesalers
 Hard to give examples because we don’t really hear
about the companies!
RETAILERS
Retailer- Sell their goods directly to the
consumer.
They are resellers too, but they sell their
goods directly to the consumer
A lot easier to give examples because we
see them everyday!
Name some examples
THE MARKETING CONCEPT
 Successful organizations recognize the importance
of their customers
 Marketing concept- the idea that organizations need
to satisfy their customers while also trying to reach
their organizations’ goals.
 To be profitable, businesses must focus their efforts
on our needs and wants!
THE MARKET
 Market- potential customers with shared needs who
have the desire and ability to buy a product.
 “I’m in the market for a new purse”
I’m not in the
 “I’m in the market for a new car”
market for
 “I’m in the market for new shoes”
anything 
 “I’m in the market for a new tank”
 If you don’t have the $$$, then you aren’t in the
market
NEEDS AND WANTS
Organizations spend millions to learn
about their customers’ needs and wants.
Why?
Needs- basic necessities such as food,
clothing, shelter
Wants- things that people desire based
on personality, experience, or
information about a product.
THE MARKET
 The first step in creating a marketing concept
involves identifying customers
NEEDS AND WANTS
Mr. Hakim
OR
So…
TARGET MARKET
 Satisfying customer needs isn’t easy.
 Think of everyone in your family from youngest to oldest
(grandma/grandpa)
 They all have the need for shoes, but would they all want to
wear the exact same shoe?
TARGET MARKET
Target market- a specific group of consumers
that an organization selects as the focus of its
marketing plan.
Magazine ad activity - library
DEMOGRAPHICS
Demographics- Statistics that describe a
population in terms of personal
characteristics
Age
Income level
Occupation
Gender
Ethnic background
Education level
DEMOGRAPHIC ACTIVIT Y
 In your group of 4, create a brief presentation for the
class with the demographic you were given. Include:
 Title slide informing us of your demographic
 Some likely traits/characteristics this demographic
would share
 What kind of athletic shoes would best suit this
group, and why?
 Include a picture of the shoes on the last slide
 20 minutes to complete
 Save to someone’s Drive folder for your presentation
EXAMPLE:
 17 year old male, student, doesn’t work, has
girlfriend, Caucasian race.
 Traits/Characteristics this demographic would share:
 Athletic
 Outgoing
 Spoiled
 Friendly
 Irresponsible
 Picture of shoes:
THE MARKETING MIX
One of the most important and yet simplest to
remember when it comes to marketing
Marketing Mix:
A combination of four basic marketing
strategies – the 4 P’s –
Product
Price
Place
Promotion
PRODUCT
 It’s not only the product/service that the company is
trying to sell  Designing
 Naming
 Packaging
 Coloring
 Are all very important aspects to decide on before
the product reaches the shelves
 The power of color in packaging –on my wiki, Ch 1.
 Cruise over it, I will assign certain people to certain
colors to tell us more about them.
PRICE
Why is the price so important?
What must a business consider when deciding
what price to charge?
Did you know, approximately 50% of a item’s
price goes back to the company for marketing
expenses?
Did you know, on average, stores raise the
price around 50% more for what they paid for
it!
PLACE (DISTRIBUTION)
Where do you buy pair of gloves or a
theater ticket?
Internet?
Retail Store?
Theater?
Telephone Solicitation?
Wholesaler?
Retailer?
Channel of distribution- path a product
takes from the producer to the consumer
PROMOTION
Ways to encourage customers to purchase
products/services.
Our product
will make
Increase customer satisfaction.
you better at
everything!
Includes: advertising, publicity, personal
selling, and public relations
Buy 2,
get 1
free!!