 Marketing – Marketing is the activity, set

of institutions and processes for creating,

communicating, delivering, and
exchanging offerings with value for
customers, clients, partners, and society
at large.

13-2
 LG2

 The ingredients that go into a marketing program:

 Product

 Price

 Place

 Promotion

13-3
• Consumer Market (B2C) -- All the individuals or
households that want goods and services for
personal use and have the resources to buy them.

• Business-to-Business Market (B2B) -- Individuals and

organizations that buy goods and services to use in
production or to sell, rent, or supply to others.

13-4
• The size and diversity of the consumer market
forces marketers to decide which groups they want
to serve.
• Market Segmentation -- Divides the total market
into groups with similar characteristics.
• Target Marketing -- Selecting which segments an
organization can serve profitably.

13-5
• Geographic Segmentation -- Dividing the
market by cities, counties, states, or
regions.

• Demographic Segmentation -- Dividing

the market by age, income, education, and
other demographic variables.

• Psychographic Segmentation -- Dividing

the market by group values, attitudes, and
• Benefit Segmentation -- Dividing the
interests.
market according to product benefits the
customer prefers.

• Volume (Usage) Segmentation -- Dividing

the market by the volume of product use. 13-6
• Cost-Based pricing – A strategy, that
measures cost of producing a product
including materials, labor, and overhead.

• Demand-Based Pricing– Target costing is

demand based which refer to designing a
product that satisfies customers and meets
the firm’s targeted profit margins.

• Competition-Based Pricing -- A strategy

based on what the competition is charging
for its products.
• Break-Even Analysis -- The process used to
determine profitability at various levels of
sales. The break-even point is where revenues
equals cost.

BEP= FC/ (P-VC)

• Total Fixed Costs -- All costs that remain the

same no matter how much is produced or sold.

• Variable Costs -- Costs that change according

to the level of production.
• Agents and Brokers -- Intermediaries who
bring buyers and sellers together and assist
in negotiating an exchange but do not take
title to the goods.

• Wholesaler -- An intermediary that sells

products to other organizations such as
retailers, manufacturers, and hospitals.

• Retailer -- An organization that sells

products to ultimate customers.
• Intensive Distribution -- Puts products into as many retail outlets
as possible. Specifically for convenience goods like candy,
cigarettes, biscuits etc.

• Selective Distribution -- Uses only a preferred group of the

available retailers in an area. Specifically for shopping goods like
clothing, furniture, appliances etc.

• Exclusive Distribution -- The use of only one retail outlet in a

given geographic area. Specifically for specialty or luxury goods
like skydiving equipment, diamond/platinum jewelery etc.
 Chapter 16
Using Effective Promotions
 Promotion is one of the four Ps of Marketing.

 Promotion Mix: It is the combination of

promotional tools an organization uses.

 The traditional promotional tools are:

 Advertising
 Personal selling
 Public relations
 Sales promotion
 Promotion is one of the four Ps of Marketing.

 Promotion Mix: It is the combination of

promotional tools an organization uses.

 The traditional promotional tools are:

 Advertising
 Personal selling
 Public relations
 Sales promotion
 It is a paid, nonpersonal communication through
various media by organizations and individuals
who are in some way identified in the advertising
message.
Personal Selling
The face-to face presentation and promotion of goods
and services.
 The management function that evaluates public
attitudes, changes policies and procedures in
response to the public’s requests, and executes a
program of action and information to earn public
understanding and acceptance.

The steps in good public relation program:

 Listen to the public.

 Change policies and procedures.

 Inform people that you’re being responsive to their
needs.
 Any information about an individual, product or
organization that’s distributed to the public through the
media and that’s not paid for or controlled by the seller.

Advantages:
 Free, More Effective Than Advertising, Believable

Disadvantages:
 No Control, No Repetition
 The promotional tool that stimulates consumer
purchasing and dealer interest by means of
short-term activities.

B2C sales promotion techniques:

 Coupons, Cents-off Promotions, Sampling,
Premiums, Sweepstakes, Contests, Bonuses,
Catalogs, Demonstrations, Special Events, Lotteries,
In-store Displays