1. General Business Unit 2 – Business Operations
Chapter 8 – Producing & Marketing Goods & Services

2. Text Book Page 100 Page 101 Free e-mail Service – Or Is It?
Focus on Real Life
Read aloud

3. ? ? ? ? ? ? ? ? ? ? ? ? ?
Ever receive:
Telephone call from telemarketer?
Junk mail selling product
Tempted to buy?
Effective way to sell that product?

4. Marketing
All the activities used to insure the effective exchange of goods/services between businesses and consumers

5. Marketing Functions Groups of marketing activities
Must be completed for exchange to occur
Eight marketing functions

6. 8 Marketing Functions Product/Service Planning Gather info & testing
Design & develop

7. 8 Marketing Functions Purchasing
Identifies & obtains products or services needed

8. 8 Marketing Functions
Financing
Finance and credit available

9. 8 Marketing Functions
Distribution
Getting products to customers

10. 8 Marketing Functions
Pricing
Set prices
Payment methods

11. 8 Marketing Functions Risk Management
Security & safety for products & people
Reduces business risks

12. 8 Marketing Functions Marketing Information Management
Obtain and organize info to help make marketing decisions

13. 8 Marketing Functions Promotion Communicating with consumers
Encourage purchases
Selling
Providing customers with goods and services
9th Marketing function

14. Class Work
CW 8-1
Check if done
Review in class

15. Marketing Impact Increases standard of living
Businesses understand our needs
Produce goods/services we want
Aware of best products/prices
Wisely spend money
Creates millions of jobs

16. Marketing Concept
Directing all marketing activities at profitably satisfying customer needs

17. Marketing Concept Successful businesses must:
Identify customers & their needs
Develop product that satisfies consumers
Complete marketing activities effectively
Make a profit

18. Marketing Strategy
2-step process for successfully planning & marketing products/services
Target Market
Marketing Mix

19. Target Market Group of consumers that wants & needs your product
Clearly identify
“Target” product or service towards

20. ? ? ? ? ? ? ? ? ? ? ? ? ? Who is the target market?
90 day around the world cruise
50’s theme fast food restaurant
First class flight to Europe
1 bedroom, 3rd floor condo with community gym and pool

21. Class Work
CW 8-2
Check if done
Review in class

22. Marketing Mix
Combination of marketing elements designed to meet needs of target market
4 marketing mix parts (4 Ps)
Product / Place / Price / Promotion

23. Product Anything offered to target market to satisfy need Hair cut
Bananas

24. Place Locations product sold Ways made available to customers
Distribution

25. Price
What customers pay
How they pay
Cash, credit, charge card

26. Promotion Methods used to communicate info Encourages purchases
Increase customer satisfaction

27. Hand Out
HO 8-1

28. Product Development Marketers work w/engineers & scientists
Plan new product
Develop a model
Test model product
Consumer group
Identify likes/dislikes
Listen to suggestions

29. Product Development Market researchers survey customers
What like/dislike about current products
What needs not currently met w/available products
Info given to product designers
Improve or create products

30. Product Development Product planned, now: Procedures to produce
Time/money needed to set-up
Facility, materials, equipment obtained
Employees hired & trained

31. Ticket out the Door What is Marketing?
What are the Functions of Marketing?
What are the elements of a Marketing Mix?
What role does Marketing play in Product Development?

32. Class Work
CW 8-3
Present to class

33. Buying Motives Reasons for making a purchase Based on facts or logic
Rent car from closest place
Emotional – feeling & attitudes
Hotel with hot tub - romance

34. Products to Consumers How to get products to consumers
Wagon, train, boat
Truck, jet, internet

35. Channel of Distribution
Path the product travels from producer to consumer
Direct channel of distribution
Consumer buys direct from producer
Indirect channel of distribution
1+ middlemen or intermediaries

36. Wholesaler
Middle firm that assists with distribution activities between businesses

37. Intermediary
Company owns underground pipelines & storage tanks for gas
Independent trucking companies transport gas to service stations
Consumer buys from service station

38. Retailer Sells direct to consumer Sells products of many manufacturers
Prices / displays / makes easy to buy

39. Effective Distribution
Adjusts for differences in production & consumption
4 major differences to consider
Differences in:
Quantity / Assortment / Location / Time

40. Differences in Quantity
Businesses produce large quantities
Consumer only wants a few
Channel of distribution breaks into small quantites

41. Differences in Assortment
Manufacturers specialize in limited type of product
Consumers want many products from 1 source
Channels of distribution accumulate variety of products

42. Differences in Location
Products made all over
Distribution brings products from throughout the world to convenient location

43. Differences in Time Manufacturers maximize efficiency in production
Make 1 million snow shovels at 1 time
Distribution delivers shovels when consumers need
December, not July!

44. Pricing Maximize profits Limited supply – high demand
Increase price to make higher profit

45. Pricing Increase sales Large supply or strong competition
Lower price to increase sales

46. Pricing Maintain an image Prices can support an image of:
Quality / service / value
High - moderate - low
Jaguar / VW Jetta / Kia

47. Promotion
Marketing tool businesses use to communicate with consumers to persuade them to purchase its products

48. Promotion To be effective: Must be noticed
Encourage consumers to pay attention to message
Take action

49. Media Advertising Reach large # of prospective customers
TV, radio, magazines, billboards, newspapers
Sales promotions
Coupons, contests, free samples

50. Publicity Info about business, product or service, not paid for
News or Press Release
New product testing results
Consumer Reports
Car & Driver

51. Personal Selling
Direct, personal communication between salesperson & customer
Answer questions or concerns
Encourage to buy

52. Hand Out
HO 8-2

53. Text Book Page 108 Cultural Perspectives Native American Enterprise
Answer 2 ?’s
Review

54. Text Book Page 115 Page 117 Global Navigator Focus on Careers
The Global Marketing Environment
Page 117
Focus on Careers
Management

55. Movie Time Video Clips Video 8-1 ?’s Wearable Computers
Direct to Consumer Advertising
Video 8-1 ?’s
Review in class

56. Test
Next class meeting
Test on Unit 4
Chapters 7-8

57. General Business
The End