Presentation on theme: "Producing and Marketing Goods and Services Chapter 8."— Presentation transcript:
Producing and Marketing Goods and Services Chapter 8
The Role of Marketing Marketing: is all the activities used to insure the effective exchange of goods and services between businesses and consumers. Beginning the first idea for development of a new product or service. Determines the wants and needs of consumers and to test new ideas When a product is near completion, marketers select: Products name Design package Begin to develop advertising Next decisions are: Where the product will be sold How to get the products from place to place. (selling location)
The Role of Marketing Final steps before sale : Help set the price Decide what forms of payments After products are sold : Provide customer service Work on product improvements When Marketers work well: Customers get the products and services they want at an affordable price Business sell their product at a profit Leads to a satisfying exchanges between businesses and customers. What marketers are unsuccessful: Sometimes products can not be sold at a profit Often customers have needs that can not find satisfactory products and services
The Role of Marketing Marketing is especially important in capitalistic of free enterprise economic systems. Based on voluntary exchange. Business are free to decide what they want to produce and sell Consumers are free to buy what they want and to choose a price they are willing to pay Without marketers it would be more: expensive and time consuming for business to sell what they produced Consumers would have a harder time finding what they need.
Marketing Functions Marketers perform countless number of activities Some work directly for a business that produces the goods and services Marketing researchers and sales people Some operate their own service businesses Advertising agencies and transportation companies Costumers perform marketing activities Ex: U-Haul (instead of paying for a delivery service you do it yourself by renting a trailer)
Marketing Functions Marketing Functions: (groups of marketing activities) must be completed for an exchange to occur: Product/Service Planning: assist in the design and development by gathering information and testing ideas. Purchasing: identifies and obtains the products (services) needed for marketing activities. Financing: makes sure financing and credit are available to support both the purchase and sale products. Distribution: involves getting products to customers. Pricing: sets prices and payment methods Risk Management: Provides security and safety for products and people, and reduces business risks Marketing Information Management: Obtains and organizes information needed to make marketing decision. Promotion: Involves communicating with consumers to encourage purchases.
Effective Marketing It was once believed Marketing was not important. All they needed to do was produce good products and the customer would find them and pay enough for the company to make a profit. Competition Gave customers choices that best met their needs. Business have realized today that they will be more successful if they understand and use marketing well. Marketing Philosophy
A Marketing Philosophy The most successful business think of the customer as they produce and market products and services. Marketing Concept: Considers the needs of costumers when planning, pricing, distributing, and promoting a product or service. Identify the customers they want to serve and understand their needs. Develop a product that will satisfy the customers and complete the necessary marketing activities effectively. Complete all of those activities at a profit. Think of your favorite restaurant or clothing store. What do they offer that keeps you coming back?
Marketing Strategy Marketing Strategy: Business people who believe in the marketing concept use a two-step process. First Step: Target Market: clearly identified group of consumers with needs that the business wants to satisfy. Second Step: Marketing Mix: is a combination of marketing elements designed to meet the needs of a target group. 4ps of marketing Product: is anything offered to the target market to satisfy their needs, including both products and services Place: (distribution) includes the locations where the products are sold and the ways they are made available to customers. Price: Is what customers pay and the method of payment. Promotion: Is the methods used to communicate information to customers in order to encourage purchases and to increase satisfaction.
Planning distribution channels Getting goods and services from producer to consumers Channels of distribution Direct Indirect Wholesaler/Retailer
Planning distribution channels Characteristics of effective distribution. Differences in quantity Business usually produce enough for thousands of customers Difference in assortment Manufacturers tend to specialize in a limited line of products, customers usually want to buy from a single source. Differences in location Distribution brings products from all over the world to locations convenient for consumers Differences in time Effective distributors lets manufacturers maximize efficiency while delivering products to consumers when they want them.
The role of pricing Goals objectives of pricing. Maximize profits Increase sales Maintain an image Factors that will influence a products price the quantity purchased by a customer the level of customer service offered whether the product is fragile or requires special handling. the number of businesses in the channel of distribution. The amount of advertising and communications needed to inform customers.
The role of promotion. Selecting promotional methods and media. Who are the prospective customers being targeted? How many? Where are they located? What information sources do they use? What is the message? Does everyone need the same information? Is the message simple or complex? Should the information be repeated regularly? What is the budget for the promotion? Personal selling as a promotional activity. Effective personal selling follows these important steps: preapproach, approach, demonstration, questioning, close and follow-up.