Chapter 8 Intro to Business Producing and Marketing goods and Services

Role of Marketing Idea for development of a new product. Select product name Where products sold and how to get them there. (Channels of Distribution) Set price and how people can pay for it. (cash and carry/credit) Customer service and product improvement after product is sold.:)

Marketing Functions Product/Service Planning-assists in design and development by gathering information and testing ideas. Purchasing-identify and obtain the products needed for marketing activities. Financing-make sure financing and credit are available for purchase and sale of products. Distribution-getting products to customers. Pricing-set prices and payment method. Risk Management-provides security and safety for products and people and reduces business risk. Marketing Information Management-obtains and organizes information needed to make marketing decisions. Promotion-communicating with consumers to encourage purchase.:)

A Marketing Philosophy The philosophy of business is known as the marketing concept , which considers the needs of customers when planning, pricing, distributing, and promoting a product or service. To be successful, the business must be able to: Identify customers they want to serve and understand their needs. Develop a product that will satisfy the customer and complete the necessary marketing activities. Complete these activities at a profit.:)

A Marketing Strategy Is a two step process that involves: Target Market-A clearly identified group of consumers with needs that the business want to satisfy. Marketing Mix-a combination of marketing elements designed to meet the needs of a target market. The 4 P’s of Marketing: Product-anything offered to the target market to satisfy their needs (products or services). Place-locations where product sold convenient to customers. Price-what customers are able to pay and method of payment. Promotion-methods used to communicate information to customers in order to encourage purchase.:)

Six Steps of Product Development Buying Motives-the reasons for making a purchase. (sometimes rational and logical, sometimes not):)

Getting Products and Services to Consumers Channel of Distribution-is the path that a product travels from producer to consumer. Direct Channel of Distribution-from producer to consumer. Indirect Channel of Distribution-goods move through one or more middle firms between producer to consumer. Wholesaler-a middle firm that assists with distribution activities between businesses. Retailer-sells directly to consumer (may obtain goods from wholesaler or producer) collect products of many manufacturers and resells them. (Wal-Mart, Target, Meijers):)

Characteristics of Effective Distribution 4 important differences to consider in developing an effective channel of distribution. Differences in Quantity-adjusts the large quantity produced to the small quantity purchased. Differences in Assortment-accumulate many varieties of products in one place. Differences in Location-brings products from all over the world to convenient locations. Differences in Time-having the right products at the right time.:)

The Role of Pricing Objectives of Pricing-one of three goals Maximize Profits-“how?” Increase Sales-”how?” Maintain Image-”how?” (Kobe!) Factors that will influence Price Quantity-Walmart???? Customer Service Offered Fragile and requires special handling. Businesses in the channel of distribution-direct vs. indirect. Amount of advertising and Communications necessary to inform consumers.:)

The Role of Pricing Promotional methods (3) Who are prospective customers being targeted? How many and where? What is the Message? What is the budget for promotion?