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