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