Wednesday, March 9th
Unit 3 - Principles of Marketing
• Warm –up – Unit 2 Test
• Review 6 Weeks Test
• Unit 3 – Principles of
Marketing
–Slide show/Notes/Organizer
–Marketing In your Town Activity
1
Thursday, March 10th
Unit 3 - Principles of Marketing
• Warm up –Review Unit 2 Test
• Unit 3 – Principles of
Marketing
–Slide show/Notes/Organizer
–Marketing In your Town Activity
2
Essential Standard 3.00
Understand the basic role of marketing in
business and the buying behaviors of
consumers.
3
Objective 3.01
Understand principles of marketing.
4
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
5
Functions of marketing
6
Functions of Marketing
• What happens during the marketing
process?
• Businesses are involved in the process of
origin, pricing, promotion, and distribution
of products and services.
7
Functions of Marketing
• What happens during the marketing
process?
• These products and services are made
available in order to meet the goals of
individuals and businesses
8
Functions of Marketing
• Activities of marketing happen throughout
the seven functions of marketing
9
7 Functions of Marketing
– Product/service management
– Distribution
– Selling
– Marketing-information management
– Financing
– Pricing
– Promotion
10
Functions of Marketing continued
• Product/service management
– Involves
•
•
•
•
•
designing,
developing,
maintaining,
improving and
Obtaining
– Products and Services in order to meet the
needs of customers.
– May include several businesses
11
Functions of Marketing continued
• Distribution
– Involves using the best ways for customers to
• locate,
• obtain, and
• use
– the products and services of a business.
12
Functions of Marketing continued
• Selling
– involves communicating directly with potential
customers in order to determine and satisfy
their needs and wants.
13
Functions of Marketing
continued
• Marketing-information management
involves:
– obtaining, managing, and using information
• About:
– products and services, customers, and competitors
• to improve
– business decision-making and the
– performance of marketing activities.
14
Functions of Marketing continued
• Financing
–Involves:
• budgeting for marketing activities,
• securing necessary funds for
operations, and
• providing financial assistance to
customers.
15
Functions of Marketing continued
• Pricing:
–involves determining and
communicating the value of
products and services.
16
Functions of Marketing continued
• Promotion
– involves communicating information
such as features and prices about
products and services to potential
customers.
17
Activity
• Marketing in Your Town Worksheet
• Choose 6 of the 7 Marketing functions
18
Friday, March 11th
Unit 3 – Principles of Marketing
• Warm up –
– Complete Marketing in Your Town Worksheet
– Current Event
• Obj. 3.01 – Market Research/Price
Components
– Slide Show/Notes/Organizer
– Marketing Research Activity
– Slide Show/Notes/Organizer
– Price Component Activity
19
Importance of marketing
research to the
creation or improvement of
products or services
20
Marketing Research
• What is marketing research?
• Businesses use marketing research to
obtain information about experiences of
customers and characteristics of
goods/services in order to create or
improve them.
• (Part of Marketing Information
Management Function)
21
Marketing Research
• Steps in marketing research:
Define the marketing problem.
Study the situation.
Develop a data collection procedure.
Gather and analyze information.
Propose a solution.
22
Marketing Research continued
Types of research studies
–Surveys
–Focus groups
–Observations
–Experiment
23
Marketing Research continued
• Surveys: - series of questions (written,
face-to-face, telephone) asked to
determine customers’ preferences, likes,
dislikes, etc.
• Paid survey, a method for companies to
collect consumer opinions about a product by
offering them money as rewards
24
Marketing Research continued
• Focus groups
– a form of qualitative research in which a group of
people are asked about their perceptions,
opinions, beliefs and attitudes towards a product,
service, concept, advertisement, idea, or
packaging
– Questions are asked in an interactive group
setting where participants are free to talk with
other group members.
25
Focus Groups – cont’d
• In marketing, focus groups are an important tool for
acquiring feedback regarding new products, as well
as various topics.
• Focus groups allow companies wishing to develop,
package, name, or test market a new product, to
discuss, view, and/or test the new product before it
is made available to the public.
• This can provide invaluable information about the
potential market acceptance of the product.
26
Marketing Research continued
• Observations - an activity of a
human, consisting of receiving
knowledge of the outside world
through the senses, or the
recording of data using scientific
instrument.
27
Marketing Research continued
• Experiment - usually refers to
observations in which conditions are
artificially controlled and manipulated
by the experimenter to eliminate
extraneous factors -
28
Marketing Research continued
Parts of a product
– Basic product
– Product features
– Options
– Brand name
– Packaging
– Warranty
29
Marketing Research continued
• Basic product
– Simplest form of a product or service
30
Marketing Research continued
• Product features
– Include additions and improvements to the
product or service
31
Marketing Research continued
• Options
– Includes choices of the product or service
32
Marketing Research continued
• Brand name
– A company’s unique identification for a
product or service
33
Marketing Research continued
• Packaging
– The protection and security of a product or
service before it is used.
34
Marketing Research continued
• Warranty
– An offer to repair, replace, or provide a refund
a product or service in order to build the
confidence of consumers in a business.
35
Characteristics of Goods/Services
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
distribution)
36
Characteristics of Goods/Services
Differences between products and services
Products
Tangible
Perishable
Inseparable
Easier to market
More control over quality
Services
Intangible
Non-perishable
Separable
More difficult to market
Less control over quality
37
Monday, March 14th
Unit 3 – Principles of Marketing
• Warm up – Marketing Research Activity
• Conduct Surveys
• Compile/analyze results
• Present results
• Obj. 3.01 – Market Research/Price
Components
– Review Market Research
– Slide Show/Notes/Organizer
– Price Component Activity
38
ACTIVITY
• Marketing Research
– Determine Product/Service you would like to
gather fellow students’ opinions, experience,
thoughts on.
– Make a list of 5-7 survey questions.
– Survey a minimum of 8 students & compile
results.
– Make conclusions/summarizations about your
product based on data you collected.
– TURN IN!!!
39
Tuesday, March 15th
Unit 3 – Principles of Marketing
• Obj. 3.01 – Market Research/Price
Components/Channels of Distribution
– Review Market Research
– Slide Show/Notes/Organizer
– Price Component Activity
– Slide Show/Notes/Organizer
– Activity
40
Selling prices of
products and services
41
Selling Prices of Products and
Services
• What factors influence the pricing of
products and services?
•
•
•
•
•
•
Supply and demand
Uniqueness
Age
Season
Complexity
Convenience
42
Selling Prices of Products and
Services
• Pricing formula
Selling price=product costs+operating
expenses+profit
Example: $215=67+38+100
Or – rearrange
Selling price-product costs-operating
expenses = PROFIT
43
Selling Prices of Products and
Services continued
• Markup
– The amount charged of the selling price to
cover the operating expenses and profit
usually stated as a percent so…
– Markup = operating cost + profit
– Selling price=product cost+markup
– Example: $35+$14=$49
– $35*40%=$14
44
Selling Prices of Products and
Services continued
• Markdown
A reduction from the original selling price.
45
ACTIVITY
Price Component Activity Worksheet
46
Classification of channels of
distribution
47
Classification of Channels of
Distribution
• What is channel of distribution?
• How products and services reach final
customers and the businesses involved
48
Classification of Channels of
Distribution
• How do the needs between producers and
consumers differ? They differ by:
– Quantity
– Assortment
– Location
– Timing
49
Classification of Channels of
Distribution
• Quantity
– Businesses produce or sell massive quantities
of products and services.
– Consumers needs fewer numbers.
50
Classification of Channels of
Distribution
• Assortment
– Businesses usually specialize in producing a
specific type of products and services.
– Customers usually purchase a variety of
products and services
51
Classification of Channels of
Distribution
• Location
– Businesses may distribute products and
services to customers in many locations –
including other countries as well as in local
communities
– Customers generally buy their products in one
location (city, state, geographic region).
52
Classification of Channels of
Distribution
• Timing
– May be a gap in time between when
businesses produce products and services
and when consumers need them.
53
Classification of Channels of
Distribution continued
•
Channels of distribution allow businesses to
adjust quantity and assortments accessible in
convenient locations for customers and
storage of products.
54
Classification of Channels of
Distribution continued
• Types of channels of distribution:
– Direct
– Indirect
55
Classification of Channels of
Distribution continued
•
Types of channels of distribution:
– Direct – involves the exchange of
products and services between producer
and consumer only.
Example-Tonya makes and sells drapes to
local customers.
56
Classification of Channels of
Distribution continued
•
Types of channels of distribution:
– Indirect – involves the exchange of
products and services with one or more
business and consumer
– Example-UPS delivers packages for Ann
Taylor.
57
Wednesday, March 16th
Unit 3 – Principles of Marketing
• Warm up – Review Decimals and Percentages
– Worksheet
• Review Selling Price Formula and Markup
– Worksheet
• Obj. 3.01 –Main Types of Promotion
– Slide Show/Notes/Organizer
– Activity
58
th
20
Wednesday, October
Unit 3 – Principles of Marketing
• Obj. 3.01 –Main Types of Promotion
– Slide Show/Notes/Organizer
– Activity
• Obj. 3.02 –
• Slide Show/Notes/Organizers
59
Classification of the main
types of promotion
60
Effective Communication and Promotion
• Effective communication consists of an
understanding of information between the
sender and the receiver.
• The sender selects a channel of
communication and the receiver indicates
understanding by providing some form of
feedback.
• What is the relationship between effective
communication and promotion?
61
Effective Communication and Promotion
• What is the relationship between effective
communication and promotion?
• Businesses use promotion to
communicate with potential customers
about their products and services.
• Info about products and service in
encoded in a promotional message.
62
Effective Communication and Promotion
• What is the relationship between effective
communication and promotion?
• Promotional messages may be delivered
through ads and sales reps.
• Potential customers decode the message
• Provide feedback by purchasing or asking
about products and services.
63
Classification of the Main Types of
Promotion continued
• Main types of promotion:
– Personalized is customized for
individual customer.
– Mass is communicated with many
people with a common message.
64
Classification of the Main Types of
Promotion continued
• Some types of mass promotion:
– Advertisement
– Publicity
– Public relations
– Sales promotion
65