Economics: Today and Tomorrow © 2012

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. The focus of marketing is to maximize sales by satisfying consumer wants and needs. Market research has become extremely important. Through market research, businesses can determine what products consumers are likely to buy and at what prices.

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.