PRODUCING AND MARKETING GOoDS AND SERVICES Chapter 8 4/9/2019 PRODUCING AND MARKETING GOoDS AND SERVICES Unit 4, Marketing GOALS: List common marketing activities and define the marketing concept. Explain the two steps in marketing planning. Explain the advantage of small businesses in providing customer service.

Chapter 8 4/9/2019 MARKETING FUNCTIONS Product/service planning – assist by gathering & testing ideas Purchasing – products needed for marketing Financing – for both purchase & sale Distribution – getting products to consumer

MARKETING FUNCTIONS Pricing – prices and payment methods Risk management – safety for products & people Marketing information management – organizing info for decisions. Promotion – communicating w/customers

Chapter 8 4/9/2019 EFFECTIVE MARKETING A marketing philosophy – considers marketing activities to profitably satisfying wants/needs of customer when planning the strategy Used by successful businesses A marketing strategy – a 2 step process

Two Steps in a Marketing Strategy Chapter 8 4/9/2019 Two Steps in a Marketing Strategy Identify a Target Market – clearly identified group of consumers Develop a Marketing Mix (4 P’s of Marketing) Product Place – location where sold Price – price & payment methods Promotion – method used to communicate info

Chapter 8 4/9/2019 PRODUCT DEVELOPMENT Planning, developing, and testing new goods and services Developing products and services that consumers want Because of cost involved companies want to be sure what they are producing is what consumers will buy

DEVELOPING A NEW PRODUCT Chapter 8 4/9/2019 DEVELOPING A NEW PRODUCT 6. Prepare facilities, equipment, and personnel 5. Develop budgets and forecast potential sales 4. Design production and marketing procedures 3. Construct a product model and test it 2. Test the product idea with prospective customers 1. Develop a new product idea

PLANNING DISTRIBUTION CHANNELS Chapter 8 4/9/2019 PLANNING DISTRIBUTION CHANNELS Getting products and services to consumers Direct channels of distribution Sold directly to consumer Indirect channels of distribution Travels from wholesaler to retailer

Factors of distribution Characteristics of effective distribution Quantity - # purchased by customer Assortment – having variety in one place Location – bringing products from all over the world to 1 place Time- having products available when consumers want them

THE ROLE OF PRICING Goals and objectives of pricing Maximize profits Chapter 8 4/9/2019 THE ROLE OF PRICING Goals and objectives of pricing Maximize profits Increase sales (get item out there) Maintain an image

Factors that influence price Supply and Demand Quantity purchased by consumer Fragile products # of business in channel of distribution Amount of advertising needed

PROMOTION FOR SUCCESSFUL MARKETING Chapter 8 4/9/2019 PROMOTION FOR SUCCESSFUL MARKETING The role of promotion – to inform & persuade Selecting promotional methods and media Primarily done through media advertising Personal selling as a promotional activity

STEPS IN THE SELLING PROCESS Chapter 8 4/9/2019 STEPS IN THE SELLING PROCESS Follow-up Close Questioning Demonstration Approach Preapproach