Economics: Today and Tomorrow © 2008

Chapter 11: Marketing and Distribution

Chapter Overviews

Section 1: The Changing Role of Marketing
Over the past 100 years, marketing has evolved from being merely a part of production to a way of creating demand. Today, marketing is even used to predict demand for a given item. Market research has therefore become extremely important, and marketers have become more sophisticated in responding to that research. Many companies test consumer interest by having special promotions of their goods, and most companies choose wholesale and retail distribution patterns carefully.

Section 2: The Marketing Mix
The "four Ps" of marketing are product, price, place, and promotion. Most products go through a product life cycle, which entails stages from first introduction to complete withdrawal from the market. The four stages are introduction, growth, maturity, and decline.

Section 3: Distribution Channels
Channels of distribution, or moving goods from where they are produced to the people who will buy them, is another function of marketing. Producers, wholesalers, retailers, and consumers are involved in this process. Another form of distribution is called direct marketing, which is achieved mainly through catalogs and over the internet.