1. Producing and Marketing Goods and Services
Chapter 8

2. 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)

3. 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

4. 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.

5. 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)

6. 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.

7. 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

8. 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?

9. 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. 4p’s 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.

10. Effective Marketing

11. Product Development
Planning, developing and testing new goods and services.
Developing products and services that consumers want.
Discovering the buying motives of the target market

12. Product Development

13. Planning distribution channels
Getting goods and services from producer to consumers
Channels of distribution
Direct
Indirect
Wholesaler/Retailer

14. 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.

15. Planning distribution channels

16. The role of pricing Goals objectives of pricing.
Maximize profits
Increase sales
Maintain an image
Factors that will influence a product’s 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.

17. Selecting promotional methods and media.
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.

18. Promotion for successful marketing