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To market a product successfully, a company has to understand what people want to buy and why they want to buy it.
It all comes down to knowing your market.
From a marketing viewpoint, a market$$market$$ is a group of customers who share common wants and needs.
Marketing$$Marketing$$ is the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers, wherever they are.
Marketing involves a number of stages, from studying what people want to buy to designing a product’s packaging.
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There are seven functions of marketing.
Distribution is the process of getting goods and services to customers.
Financing is getting the money that is necessary for setting up and running a business.
Marketing information management is gathering and analyzing information about consumers, trends, and competitors’ products.
Pricing is deciding how much to charge for a product or service so the business can make a profit.
Product/service management is obtaining, developing, maintaining, and improving a product or product mix in response to market opportunities.
Promotion is any effort to inform, persuade, or remind potential customers about a business’s products or services.
Selling is providing customers with the goods and services they choose to buy.
A popular trend today is using relationship marketing.
Companies use relationshipmarketing$$relationship marketing$$ to build and maintain relationships with their customers.
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The marketingmix$$marketing mix$$ consists of four basic marketing strategies: product, place, price, and promotion, collectively known as the four Ps.
In recent years, many people have begun to include a fifth P for people because the success of a marketing mix depends on people: good employees and customers.
First, marketing is used to find out if there is a demand for a product.
Marketers have to decide how and where customers will buy their goods and services
To make place decisions, marketers select the right channel of distribution.
A channelofdistribution$$channel of distribution$$ is a pathway to direct products to consumers.
Direct distribution occurs when goods or services are sold from the producer directly to the customer.
Indirectdistribution$$Indirect distribution$$ involves one or more intermediaries.
To determine the price of a product, a marketer considers three questions:
(1) How much are customers willing to pay?
(2) Is the price competitive with other products? and
(3) Can the company make a profit?
Marketers must find the break-even point.
The break−evenpoint$$break-even point$$ is the point at which total revenues, or sales, equal total costs and expenses of developing and offering a product or service.
Promotion involves making customers aware of a product.
The most familiar form of promotion is advertising
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Marketresearch$$Market research$$ is the gathering and analysis of information on the size, location, and makeup of a market.
Market research helps companies to produce and market products and services that attract customers.
This is known as the marketing concept.
The marketingconcept$$marketing concept$$ involves determining the wants and needs of customers and providing them more efficiently and effectively than competitors.
Demographics$$Demographics$$ are facts about the population
Targetmarketing$$Target marketing$$ helps companies focus on the people most likely to buy their goods or services.
Marketsegmentation$$Market segmentation$$ is the division of a market for a product into groups of customers who have the same needs and traits.
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Generate ideas
Screen ideas
Develop a business plan
Develop the product
A prototype is a model of the actual product
Test-market the product
To test−market$$test-market$$ a product means to offer it in a limited market for a limited time
Introduce the product
Evaluate customer acceptance
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Chapter 13: Marketing in Today's World
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