Essential Standard 3.00
Understand the role marketing in business.
1

Objective 3.01
Understand principles of marketing.
2

Topics
• Functions of marketing
• Importance of marketing research to the creation or improvement of products or services
• Selling prices of products and services
• Classification of channels of distribution
• Classification of the main types of promotion
3

Functions of marketing
4

Functions of Marketing
• What happens during the marketing process?
• Activities of marketing happen throughout the seven functions of marketing
5

Functions of Marketing continued
Seven functions of marketing:
– Marketing-information management
– Product/service management
– Pricing
– Place (Distribution)
– Selling
– Financing
– Promotion
6

Importance of marketing research to the creation or improvement of products or services
7

Marketing Research
• What is marketing research?
• Steps in marketing research:
1. Define the marketing problem.
2. Study the situation.
3. Develop a data collection procedure.
4. Gather and analyze information.
5. Propose a solution.
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Marketing Research continued
Types of research studies
–Surveys
–Focus groups
–Observations
–Experiment
9

Marketing Research continued
Similarities of products and services
• Meet the needs or satisfaction of a target market
• Include a mix of the marketing elements: product, price, promotion, and place
(distribution)
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Marketing Research continued
Differences between products and services
Products
Tangible
Non-perishable or perishable
Separable
Easier to market
More control over quality
Services
Intangible
Perishable
Inseparable
More difficult to market
Less control over quality
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Selling prices of products and services
12

Selling Prices of Products and
Services
• What factors influence the pricing of products and services?
• Pricing formula
Selling price
=product costs + operating expenses + profit
Example: $215=67+38+100
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Selling Prices of Products and
Services continued
• What is markup ?
– Selling price = product cost + markup
– Example: $35+$14=$49
– $35*40%=$14
• What is a markdown ?
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Classification of distribution and promotion
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Classification of Channels of
Distribution
• What is channel of distribution?
• How does having a channel of distribution help businesses?
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Classification of Channels of
Distribution continued
Types of channels of distribution:
– Direct
Example-Tonya makes and sells drapes to local customers.
– Indirect
Example-UPS delivers packages for Ann
Taylor.
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Classification of the Main Types of
Promotion
• How do you know when communication is effective?
• What is the relationship between effective communication and promotion?
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Classification of the Main Types of
Promotion continued
• Main types of promotion:
– Personalized
– Mass
• What are some examples of personalized promotion?
• What are some types of mass promotion?
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