Presentation on theme: "Chapter 8 Producing and Marketing Goods and Services"— Presentation transcript:
1Chapter 8 Producing and Marketing Goods and Services
2MarketingMarketing – 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 consumers2. to test new ideas with consumersMarketers 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.
3Marketing functionsMarketing 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 products4. distribution – getting the product to the customers5. pricing – setting prices and payment methods.6. risk management – provides security and safety for products and people, reduces risks7. marketing information management – obtains or organizes information to make marketing decisions.8. promotion – involves communicating with consumers.
4Impact 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.
5MARKET 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 serve2. develop a product to satisfy the customers andcomplete necessary marketing activities.3. complete all activities at a profit
6A Marketing Strategy2 step process for successfully planning and marketing products and services1. identify a target market develop a marketing mixmarketing mix: a combination of marketing elements designed to meet the needs of the target market
74 Ps of MarketingProduct – anything offered to the target market to satisfy needsPlace – Distribution – includes locations where products are sold and ways they are made available.Price – what customers pay and method of paymentPromotion – methods used to communicate information to customers to encourage purchase and increase their satisfaction
8Product Development Steps – page 106 1. Develop a new product idea 2. test the idea with prospective customers3. construct a product model and test it4. design production and marketing procedures5. develop budgets and forecast sales6. prepare for manufacturingPlanning, Developing and Testing New Goods and ServicesDeveloping products and services that consumers want
9Buying Motives – reasons for making a purchase Can be rational based on facts or logicCan be emotional, based on feelings and attitudes
10Planning Distribution Channels How do we get product to customers?Channel of Distribution – path that a product travels from producer to consumerDirect channel of distribution – process through which goods are bought by the consumer directly from the producerIndirect channel of distribution – process through which goods move through one or more middle firms between producer and the consumer
11Wholesaler -- middle firm that assists with distribution activities between businesses Retailer – a business firm that sells directly to the consumerEffective Distribution Characteristics (pages )1. Differences in Quantity2. Differences in Assortment3. Differences in Location4. Differences in Time
12THE ROLE OF PRICING (page 110) Price – what we pay for products and servicesGoals and Objectives of PricingGOALS1. cover cost and make a profit2. want a prices that consumers view as a good value3. price that won’t put them at a competitive disadvantageOBJECTIVES1. maximize profits2. increase sales3. maintain an image
13Factors that influence prices 1. the quantity purchased2. the level of customer service offered3. product special handling or if its fragile4. No. of businesses in channel of distribution5. amount of advertising needed
14Promotion for Successful Marketing Promotion -- the marketing tool businesses use to communicate with consumers to persuade them to purchase its productsThe Role of PromotionAttract new customersInform customersPersuade customersReinforce the decisionsRemind them how it meets their needs
15Selecting Promotional Methods and Media Media Advertising – information paid by company to reach large audiencesSales Promotions – coupons, contests, and free samplesPublicity – appears in media, not paid for by companyPersonal Selling – direct, personnel communication between salesperson and customer
16Steps in the Selling Process PreapproachApproachDemonstrationQuestioningCloseFollow-UpFigure 8-4 page 111