1. 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.

2. 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

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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

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

12. 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

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