Chapter 8 Producing and Marketing Goods and Services

1
Chapter 8Producing and Marketing Goods and
Services
2
Marketing

• Marketing all of the activities used to insure
  the effective exchange of goods and services
  between businesses and consumers.
• Marketers the people and businesses who
  complete marketing activities.
• Marketers use research
• 1. to determine the wants and needs of
  consumers
• 2. to test new ideas with consumers
• Marketers select the product name, design
  packaging and begin to develop advertising.
• Marketers decide where the product will be sold,
  how to get the products from the place they are
  produced to the selling location.
• Marketers help set price and decide what forms of
  payment will be accepted.

3
Marketing functions

• Marketing functions groups of marketing
  activities that must be completed in order for an
  exchange to occur
• 1. product/service planning assists in design
  and development.
• 2. purchasing identifies and obtains the
  products needed.
• 3. financing have finances and credit
  available to support purchase and sale of
  products
• 4. distribution getting the product to the
  customers
• 5. pricing setting prices and payment methods.
• 6. risk management provides security and
  safety for products and people, reduces risks
• 7. marketing information management obtains or
  organizes information to make marketing
  decisions.
• 8. promotion involves communicating with
  consumers.

4

• Impact of Marketing on Your Life page 104
• Marketing increases our standard of living by
  helping businesses understand our needs so they
  can produce the products and services we want.

5
MARKET CONCEPT

• -- The philosophy of business -- most successful
  businesses think of the consumer as they produce
  and market products and services.
• Consider needs of customers when planning,
  pricing, distributing, and promoting a product or
  service.
• To be successful, businesses must
• 1. identify the customers they want to serve
• 2. develop a product to satisfy the customers
  and
• complete necessary marketing activities.
• 3. complete all activities at a profit

6
A Marketing Strategy

• 2 step process for successfully planning and
  marketing products and services
• 1. identify a target market 2. develop a
  marketing mix
• marketing mix a combination of marketing
  elements designed to meet the needs of the target
  market

7
4 Ps of Marketing

• Product anything offered to the target market
  to satisfy needs
• Place Distribution includes locations where
  products are sold and ways they are made
  available.
• Price what customers pay and method of payment
• Promotion methods used to communicate
  information to customers to encourage purchase
  and increase their satisfaction

8
Product Development

• Steps page 106
• 1. Develop a new product idea
• 2. test the idea with prospective customers
• 3. construct a product model and test it
• 4. design production and marketing procedures
• 5. develop budgets and forecast sales
• 6. prepare for manufacturing
• Planning, Developing and Testing New Goods and
  Services
• Developing products and services that consumers
  want

9
Buying Motives

• reasons for making a purchase
• Can be rational based on facts or logic
• Can be emotional, based on feelings and attitudes

10
Planning Distribution Channels

• How do we get product to customers?
• Channel of Distribution path that a product
  travels from producer to consumer
• Direct channel of distribution process through
  which goods are bought by the consumer directly
  from the producer
• Indirect channel of distribution process
  through which goods move through one or more
  middle firms between producer and the consumer

11

• Wholesaler -- middle firm that assists with
  distribution activities between businesses
• Retailer a business firm that sells directly to
  the consumer
• Effective Distribution Characteristics (pages
  109-110)
• 1. Differences in Quantity
• 2. Differences in Assortment
• 3. Differences in Location
• 4. Differences in Time

12
THE ROLE OF PRICING

• (page 110)
• Price what we pay for products and services
• Goals and Objectives of Pricing
• GOALS
• 1. cover cost and make a profit
• 2. want a prices that consumers view as a good
  value
• 3. price that wont put them at a competitive
  disadvantage
• OBJECTIVES
• 1. maximize profits
• 2. increase sales
• 3. maintain an image

13
Factors that influence prices

• 1. the quantity purchased
• 2. the level of customer service offered
• 3. product special handling or if its fragile
• 4. No. of businesses in channel of distribution
• 5. amount of advertising needed

14
Promotion for Successful Marketing

• Promotion -- the marketing tool businesses use
  to communicate with consumers to persuade them to
  purchase its products
• The Role of Promotion
• Attract new customers
• Inform customers
• Persuade customers
• Reinforce the decisions
• Remind them how it meets their needs

15

• Selecting Promotional Methods and Media
• Media Advertising information paid by company
  to reach large audiences
• Sales Promotions coupons, contests, and free
  samples
• Publicity appears in media, not paid for by
  company
• Personal Selling direct, personnel
  communication between salesperson and customer

16
Steps in the Selling Process

• Preapproach
• Approach
• Demonstration
• Questioning
• Close
• Follow-Up
• Figure 8-4 page 111