Chapter 8 Intro to Business

1. Chapter 8Intro 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?