General Business
Unit 2 – Business Operations
Chapter 8 – Producing &
Marketing Goods & Services
Text Book
 Page
100
 Free
 Page
e-mail Service – Or Is It?
101
 Focus
on Real Life
 Read aloud
?????????????
 Ever
receive:
 Telephone
call from
telemarketer?
 Junk mail selling product
Tempted to buy?
 Effective way to sell that product?

Marketing
 All
the activities used to
insure the effective exchange
of goods/services between
businesses and consumers
Marketing Functions
 Groups
of marketing
activities
 Must be completed for
exchange to occur
 Eight
marketing functions
8 Marketing Functions
 Product/Service
 Gather
Planning
info & testing
 Design & develop
8 Marketing Functions
 Purchasing
 Identifies
& obtains products
or services needed
8 Marketing Functions
 Financing
 Finance
and credit available
8 Marketing Functions
 Distribution
 Getting
products to customers
8 Marketing Functions
 Pricing
 Set
prices
 Payment methods
8 Marketing Functions
 Risk
Management
 Security
& safety for products
& people
 Reduces business risks
8 Marketing Functions
 Marketing
Information
Management
 Obtain
and organize info to
help make marketing decisions
8 Marketing Functions

Promotion
 Communicating with consumers
 Encourage purchases
 Selling


Providing customers with goods and services
9th Marketing function
Class Work
 CW
8-1
 Check
if done
 Review in class
Marketing Impact
 Increases
standard of living
 Businesses

understand our needs
Produce goods/services we want
 Aware
of best products/prices
 Wisely
 Creates
spend money
millions of jobs
Marketing Concept
 Directing
all marketing
activities at profitably
satisfying customer needs
Marketing Concept
 Successful
businesses must:
 Identify
customers & their needs
 Develop product that satisfies
consumers

Complete marketing activities
effectively
 Make
a profit
Marketing Strategy
 2-step
process for successfully
planning & marketing
products/services
 Target
Market
 Marketing Mix
Target Market
 Group
of consumers that
wants & needs your product
 Clearly
identify
 “Target” product or service
towards
?????????????
 Who
 90
is the target market?
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
Class Work
 CW
8-2
 Check
if done
 Review in class
Marketing Mix
 Combination
of marketing
elements designed to meet needs
of target market
4

marketing mix parts (4 Ps)
Product / Place / Price / Promotion
Product
 Anything
offered to target
market to satisfy need
 Hair
cut
 Bananas
Place
 Locations
product sold
 Ways made available to
customers
 Distribution
Price
 What
customers pay
 How they pay
 Cash,
credit, charge card
Promotion
 Methods
used to
communicate info
 Encourages
purchases
 Increase customer satisfaction
Hand Out
 HO
8-1
Product Development
 Marketers
work w/engineers &
scientists
 Plan
new product
 Develop a model
 Test model product

Consumer group
 Identify
likes/dislikes
 Listen to suggestions
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
Product Development
 Product
planned, now:
 Procedures
to produce
 Time/money needed to set-up
Facility, materials, equipment
obtained
 Employees hired & trained

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?
Class Work
 CW
8-3
 Present
to class
Buying Motives
 Reasons
 Based

for making a purchase
on facts or logic
Rent car from closest place
 Emotional

– feeling & attitudes
Hotel with hot tub - romance
Products to Consumers
 How
to get products to
consumers
 Wagon,
train, boat
 Truck, jet, internet
Channel of Distribution
 Path
the product travels from
producer to consumer
 Direct channel of distribution
 Consumer
 Indirect
 1+
buys direct from producer
channel of distribution
middlemen or intermediaries
Wholesaler
 Middle
firm that assists with
distribution activities between
businesses
Intermediary
 Company
owns underground
pipelines & storage tanks for gas
 Independent trucking companies
transport gas to service stations
 Consumer
buys from service station
Retailer
 Sells
direct to consumer
 Sells
products of many
manufacturers
 Prices / displays / makes easy
to buy
Effective Distribution
 Adjusts
for differences in
production & consumption
 4 major differences to consider
 Differences

in:
Quantity / Assortment / Location /
Time
Differences in Quantity
 Businesses
produce large
quantities
 Consumer

only wants a few
Channel of distribution breaks
into small quantites
Differences in Assortment
 Manufacturers
specialize in
limited type of product
 Consumers
want many products
from 1 source

Channels of distribution accumulate
variety of products
Differences in Location
 Products
made all over
 Distribution
brings products
from throughout the world to
convenient location
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!
Pricing
 Maximize
 Limited

profits
supply – high demand
Increase price to make higher
profit
Pricing
 Increase
sales
 Large
supply or strong
competition

Lower price to increase sales
Pricing
 Maintain
 Prices

an image
can support an image of:
Quality / service / value
High - moderate - low
 Jaguar / VW Jetta / Kia

Promotion
 Marketing
tool businesses use
to communicate with
consumers to persuade them
to purchase its products
Promotion
 To
be effective:
 Must
be noticed
 Encourage consumers to pay
attention to message
 Take action
Media Advertising
 Reach
large # of prospective
customers
 TV,
radio, magazines, billboards,
newspapers
 Sales
promotions
 Coupons,
contests, free samples
Publicity
 Info
about business, product or
service, not paid for
 News
or Press Release
 New product testing results
Consumer Reports
 Car & Driver

Personal Selling
 Direct,
personal communication
between salesperson & customer
 Answer
questions or concerns
 Encourage to buy
Hand Out
 HO
8-2
Text Book
 Page
108
 Cultural

Perspectives
Native American Enterprise
Answer 2 ?’s
 Review

Text Book
 Page
115
 Global

The Global Marketing
Environment
 Page
117
 Focus

Navigator
on Careers
Management
Movie Time
 Video
Clips
 Wearable
Computers
 Direct to Consumer Advertising
 Video
8-1 ?’s
 Review
in class
Test
 Next
class meeting
 Test on Unit 4
 Chapters
7-8
General Business
The End