Transcript Chapter 8
CHAPTER 8 PRODUCING AND MARKETING GOODS AND SERVICES THE ROLE OF MARKETING • ALL THE ACTIVITIES USED TO INSURE THE EFFECTIVE EXHANGE OF GOODS AND SERVICES BETWEEN BUSINESSES AND CONSUMERS • DEVELOP IDEA, RESEARCH WANTS AND NEEDS, SELECT NAME, DESIGN PACKAGING, ADVERTISING, WHERE AND HOW TO SELL, PRICE, CUSTOMER SERVICE, PRODUCT IMPROVEMENTS THE ROLE OF MARKETING • SATISFYING EXCHANGES BETWEEN BUSINESSES AND CUSTOMERS • MARKETERS HELP MATCH THE PRODUCTION AND CONSUMPTION DECISIONS MARKETING FUNCTIONS 1. PRODUCT/SERVICE PLANNING-GATHER INFO AND TEST IDEAS 2. PURCHASING--IDENTIFY AND OBTAIN NEEDED GOODS AND SERVICES 3. FINANCING--AVAILABLE TO HELP SUPPORT PURCHASES AND SALES 4. DISTRIBUTION--GETTING PRODUCT TO CUSTOMERS 5. PRICING--SET PRICES AND PAYMENT METHODS MARKETING FUNCTIONS 6. RISK MANAGEMENT--SAFETY IN PRODUCTS; REDUCE BUSINESS RISK 7. MARKETING INFORMATION MANAGEMENT--OBTAIN AND ORGANIZE INFORMATION TO MAKE DECISIONS 8. PROMOTION--COMMUNICATING WITH CUSTOMES TO ENCOURAGE PURCHASES IMPACT OF MKTG--INC. STANDARD OF LIVING, MADE MORE AWARE, CHOICES EFFECTIVE MARKETING • MARKETING PHILOSOPHY--1) IDENTIFY CUSTOMERS 2) DEVELOP A PRODUCT TO SATISFY CUSTOMERS 3) COMPLETE ACTIVITIES AT A PROFIT • MARKETING CONCEPT--CONSIDER NEEDS OF CUSTOMER WHEN PLANNING, PRICING, DISTRIBUTING, AND PROMOTING A PRODUCT A MARKETING STRATEGY • TARGET MARKET--CLEARLY IDENTIFIED GROUP OF CONSUMERS WITH NEEDS THE BUSINESS WANTS TO SATISFY • MARKETING MIX--(THE 4 P’s) – PRODUCT – PLACE – PRICE – PROMOTION PRODUCT DEVELOPMENT STEP 1--DEVELOP A NEW PRODUCT IDEA STEP 2--TEST THE PRODUCT WITH PROSPECTIVE CUSTOMERS STEP 3--CONSTRUCT A PRODUCT MODEL AND TEST IT STEP 4--DESIGN PRODUCTION AND MARKETING PROCEDURES STEP 5--DEVELOP BUDGETS AND FORECAST SALES STEP 6--PREPARE FACILITIES, EQUIPMENT, AND PERSONNEL PLANNING DISTRIBUTION CHANNELS • CHANNEL OF DISTRIBUTION--PATH A PRODUCT TRAVELS FROM PRODUCER TO CONSUMER • DIRECT CHANNEL--FROM PRODUCER TO CONSUMER • INDIRECT CHANNELS--MOVE THROUGH MIDDLE FIRMS (RETAILERS, WHOLESALERS) CHARACTERISTICS OF EFFECTIVE DISTRIBUTION • DIFFERENCES IN QUANTITY--ADJUSTS FROM LARGE AMOUNT PRODUCED TO SMALL QUANTITY PURCHASED • DIFFERENCES IN ASSORTMENT-- ACCUMULATES MANY VARIETIES OF PRODUCTS IN ONE PLACE • DIFFERENCES IN LOCATION--BRINGS PRODUCTS FROM ALL OVER WORLD TO CONVENIENT PLACES FOR CUSTOMES • DIFFERENES IN THE TIME--ALLOW MFGRS TO MAXIMIZE EFFICIENCY WHILE DELIVERING PRODUCTS TO CONSUMERS WHEN WANTED THE ROLE OF PRICING • PRICE DETERMINES OUR SATISFACTION • GOALS--COVER COSTS AND GENERATE A PROFIT, VIEWED AS A GOOD VALUE, NOT PUT AT COMPETITIVE DISADVANTAGE • OBJECTIVES--MAXIMIZE PROFITS, INCREASE SALES, MAINTAIN AN IMAGE FACTORS THAT INFLUENCE PRICE • SUPPLY AND DEMAND • QUANTITY OF PRODUCT PURCHASED • IF PRODUCT IS FRAGILE OR REQUIRES SPECIAL HANDLING • NUMBER OF BUSINESSES IN CHANNEL OF DISTRIBUTION • THE AMOUNT OF ADVERTISING AND COMMUNICATIONS NEEDED TO INFORM CONSUMERS PROMOTION FOR SUCCESSFUL MARKETING • MORE THAN ADVERTISING • INFORM CUSTOMERS AND PURSUADE THEM TO CHOOSE PRODUCT • REINFORCES PURCHASE DECISION • MEDIA ADVERTISING, COUPONS, CONTESTS, FREE SAMPLES, PERSONAL SELLING STEPS IN SELLING PROCESS • PREAPPROACH--GATHER INFO • APPROACH--CONTACT, DEVELOP RELATIONSHIP • DEMONSTRATION--PRESENT PRODUCT • QUESTIONING--GET INFO TO CUSTOMER • CLOSE--ASK FOR ORDER • FOLLOW-UP--CONTINUE CONTACT