Economics Today and Tomorrow

Chapter 11: Marketing and Distribution

Chapter Overviews

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. This is the focus of Chapter 11.

Four Ps of Marketing
The chapter describes the elements of market research and the different types of utility a product can have. The "four Ps" of marketing—product, price, place, and promotion—are examined. The chapter also explains the importance of product identification, and it describes the types of promotion a firm may use. The differences between wholesalers and retailers and the roles they play in distribution are explained. The chapter concludes with a discussion of two growing distribution channels—wholesale clubs and direct marketing.