Download 10 - Mrs. Meyer`s Map

Producing & Marketing Goods
and Services
Marketing Defined
An organizational function and a set of
processes for creating, communicating, and
delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders
Marketing Activities
You see:
Ads
Brand names on
packages/clothes
Product descriptions
on websites
Interactions
w/salespeople
More money is spent in business-tobusiness marketing than in marketing
products to final consumers!
Less Obvious:
Storing products
Moving products
(distribution)
Estab./accepting
credit
Arranging payment
Gathering data
Testing products
Marketing Businesses
Advertising agencies
Marketing research firms
Transportation companies
(trucking, railroad, and air
freight move products)
Shipping and delivery
companies
Financial companies
(issue/manage credit cards)
Wholesalers/retailers
(distribution)
Marketing Functions
These 7 functions
Product &
Service
Mgmt.
occur every
time a
Promotion
Distribution
product or
Marketing
Functions
service is
sold!
Pricing
Selling
Financial
Analysis
Marketing
Info. Mgmt.
7 Marketing Functions
(1 & 2)
Product/Service Management
Designing, developing, maintaining, improving, and
acquiring products and services that meet
customers’ needs
Distribution
Determines the best ways for customers to locate,
obtain, and use the products and services of an org.
7 Marketing Functions – 3 & 4
Selling
Communicating directly with potential customers to
determine and satisfy their needs
Face-to-face
Phones, instant messaging, videoconferencing,
etc.
Marketing Information Management
Obtains and organizes information needed to make
marketing decisions. (Market research)
7 Marketing Functions – 5 & 6
Financial Analysis
Budgeting for marketing activities, obtaining funds,
and providing financial assistance to customers for
purchasing products/services
Pricing
Setting and communicating the value of products and
services.
Low enough for willing customers, high enough to make a
profit
7 Marketing Functions - 7
Promotion
Involves
communication with
consumers to
encourage purchases.
 Advertising (television,
newspapers, magazines,
radio, direct mail, etc.) is
used to encourage
customers to buy.
 Other methods include
contests, product
displays, sponsorships,
and public relations
activities
Marketing Strategy
Marketing activities often cost 50% or more of
the selling price of a product or services
In order to make a profit, marketing must be
carefully planned
Consumers have many choices
Successful marketing results in satisfying
exchanges between businesses and consumers
Marketing Planning
2 steps
 Marketing Strategy- a company’s plan that identifies
how it will use marketing to achieve its goals.
Step One = Identifying a target market
A clearly identified group of consumers with
similar wants and needs that the business wants
to satisfy.
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•
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Adolescents, Children (age)
Males, Females (sex)
Middle-aged females (age & sex)
Hispanics, African Americans (ethnicity)
Physically handicap children (need)
Medical personnel (profession)
A Two-Step Marketing Strategy
 Step Two = Develop a Marketing Mix
 A combination of marketing elements designed
to meet the needs of a target market.
1. Product
2. Place (Distribution)
3. Price
4. Promotion
The Four Marketing Mix Elements
 Product
Anything offered to the target market to satisfy their needs
(services too)
 Place (Distribution)
Includes the locations where products are sold and the ways
they are made available to customers
 Price
What customers pay and the method of payment
 Promotion
Methods used to communicate info. to customers in order to
encourage purchases
Marketing Orientation
Considers the needs of customers when
developing a marketing mix.
No assumptions made about what customers
want
Use research to satisfy needs
What product/service meets needs/wants?
What price will customers pay?
Where will customers go to purchase product?
What promotions will customers respond to?
Two Types of Consumers
Final consumer – persons who buy
products and services for own use
Business consumers – persons,
companies, and org. that buy products for
the operation of a business, for
incorporation into other products and
services, or for resale to their customers.
Consumer Decision-Making
 The specific sequence of steps
consumers follow to make a purchase.
 Length of time and info. used is different for
each consumer
 5-step process:
1.
2.
3.
4.
5.
Recognize need
Gather info.
Select and evaluate alternatives
Make purchase decision
Determine the effectiveness of the decision
Consumer Decisions cont’d.
Warm – up
Activity –
Importance of need
apply the
five steps to a
Familiar or not?
Base on past experiences?
recent
decision
Sources of Info.?
purchase
you made
Buyer’s remorse?
Urgent or not?
Buying Motives
The reasons consumer decide what
products and services to purchase
Emotional – based on feelings, beliefs, and
attitudes
Home security system, card, gifts
Rational – guided by facts and logic
Cost-effective car, consider fuel and repair costs
Choosing a college, compare costs and reputation
for your major
10.1 Assessment
Pg. 242, #s 1-3
List the four P’s of the Marketing Mix and
provide an example for each according to
your business
Turn into basket
Detriments/Benefits of Marketing
Varied opinions exist
Negative view - waste of money and time
and creates an increase in price to consumers
Positive view - increases our standard of
living by helping businesses understand our
needs so they can produce the products and
services we want. It makes us aware of the
best products and prices and creates millions
of jobs.
Consumer Expectations
Consumers have choices and they want
products/services that:
best meet their needs
are available when and where they want to buy
are reasonable in price
have adequate information and service to use
the product
How do you feel when you see an ad and once you get
to the store, the product does not meet your
expectations?
A Marketing Philosophy
The marketing concept:
Considers the needs of customers when
planning, pricing, distributing, and promoting
a product or service.
Success includes:
Identifying the customers the business wants to
serve and understand their needs
Developing a product that will satisfy the customers
and complete the necessary marketing activities
effectively
Completing all of those activities at a profit
Product Development
Products not only include physical goods:
Brand name
Packaging
Accessories
Services that increase customer satisfaction
Marketers create new products through marketing
research, which is used to gather information from
customers about their wants and needs, their
experience with related products, and any
improvement they would prefer.
Planning, Developing, and Testing
New Goods and Services
Step 1 - Develop a new product idea
Step 2 - Test the product idea with prospective
customers
Step 3 - Construct a product model and test it
Step 4 - Design production and marketing
procedures
Step 5 - Develop budgets for production and
marketing costs and forecast potential sales
Step 6 - Prepare facilities, equipment, and
personnel for manufacturing
Getting Products & Services to
Customers
Channel of Distribution
The path that a product travels from
producer to consumer
Direct Channel of Distribution is the process
through which goods are bought by the consumer
directly from the producer.
• Craft Show
Indirect Channel of Distribution is the process
through which goods move through one or more
middle firms between the producer and consumer
• Retail shopping
Types of Intermediaries
Wholesaler
Middle firm that assists with distribution
activities between businesses
Retailer
A business firm that sells directly to the
consumer, collects the products of many
manufacturers, prices them, and displays
them
The Role of Pricing
Goals
Businesses hope to:
Cover their costs and generate a profit
Establish a price consumers will see as a good value
Keep a competitive advantage
Maximize Profits
Increase Sales
Maintain an Image
Steps in the Selling Process
Questioning
Help the customer get needed information
and resolve any concerns
Close
Encourage the customer to make a decision
to purchase, or arrange for follow-up contact
Follow-up
Continue contact with the customer after a
purchase to insure satisfaction, respond to
any unsatisfied needs.
Promotion
Promotions
Intended to attract customers’ interest or provide a
direct incentive for customers to buy a product
coupons, contests, free samples
Publicity
Information about a business, product, or service that
appears in the media
Personal Selling
Direct, personal communication between a salesperson
and a customer to encourage the purchase of a product
Selecting Promotional Methods
Who are the prospective customers being
targeted?
How many?
Where are they located?
What info. sources do they use?
What is the message?
Does everyone need the same info?
Is the message simple or complex?
Should the info. be repeated regularly?
What is the budget for promotion?