1. Chapter 8 Intro to Business
Producing and Marketing goods and Services

2. 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.:)

3. 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.:)

4. 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.:)

6. 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.:)

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

8. 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):)

11. 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.:)

12. 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.:)

13. 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?