INTRO TO BUSINESSCHAPTER 10 - MARKETING

Lesson 10-2

Create and Improve Products Plan Marketing Research

1. Define the marketing problem 2. Study the situation 3. Develop a data collection procedure 4. Gather and analyze information 5. Propose a solution

Secondary research – analyzing existing information gathered for another purpose but used to solve a current problem

Primary research – Studies carried out to gather new information specifically directed at a current problem

Types of Research Studies

Surveys – gather information from people using a carefully planned set of questions

Focus groups – a small number of consumers take part is a group discussion

Observations – collect information by recording the actions of consumers rather than asking them questions

Experiments – Presents two controlled alternatives in order to determine which is preferred

Product Planning

Parts of a product Basic product – simplest form of a product, not unique and

usually available from several companies Product features – additions and improvements to the

basic product Options – offered choices of features

Brand name – unique identification for a company’s product

Packaging – provides protection and security for the product

Guarantee/Warranty – If product breaks or does not meet customer expectations, company will repair, replace or provide refund.

Product Planning Procedures

Idea Development Idea Screening Strategy Development Production and Financial Planning Limited Production and Test Marketing Full-Scale Production

Services

Services are activities that are consumed at the same time they are produced. They are:

Intangible – no physical form Inseparable – consumed at the same

time they are produced Perishable – availability of service must

match the demand for that service at a specific time

Heterogeneous – differences in the type and quality of service provided

INTRO TO BUSINESSCHAPTER 10 - MARKETING

Lesson 10-3

Pricing Factors

Supply & Demand

Uniqueness

Age Season

Complexity

Convenience

Supply &

Demand

Complexity

Age

Convenience

Uniqueness

Season

Pricing Factors

A product that is easily available.

The quantity of a product a producer is willing to produce and

that a customer is willing to purchase at

given prices

Products that are highly complex and technical products

When products are first introduced into

the market

When a product has few close competitors because it is different from others on the

market.

Products that are used during a

particular time of the year.

Price a Product

Selling price =Product Costs

+ Operating Expenses + Profit

Price of a ProductConnect the term to its definition

Selling Price

Product cost

Operating Expenses

Profit

The amount of money available to the business after all costs and expenses have been paid

Cost to the manufacturer of producing the product or price paid by other businesses to buy the product

Price paid by the customer

All expenses of operating the business that are associated with the product

Markup – the amount added to the cost of the product to set the selling price

Markdown – reduction from the original selling price

Channels of Distribution

Distribution involves determining the best methods and procedures to use so customers can find, obtain, and use a product or service

Distribution – locations and methods used to make a product or service available to the target market.

Channel of Distribution – the route a product follows and the businesses involved in moving a product from producer to final consumer

Need for Distribution ChannelsDifferences in Quantity Assortment Location Timing

Distribution channels take large quantities and breaks them into quantities customers want to buy.

Channels of Distribution - DIRECT

Producer

Consumer

Channel of Distribution - INDIRECT

Producer

Wholesaler

Retailer

Consumer

INTRODUCTION TO BUSINESSCHAPTER 10 - MARKETING

Lesson 10-4

Promotion

Any form of communication used to inform, persuade, or remind. Newspapers Television Radio program Mailing Buses/vehicles Billboards Internet ads

It is used to influence knowledge, beliefs, and actions of products, services, or ideas.

Effective Communication

Group Activity

The Communication Process

Effective Communication is

The exchange of information so there is

COMPLETE UNDERSTANDING by all participants

SENDER

encode

Communication channel

INFORMATION RECEIV

ER

decode

Feedback

Advertising media/Internet

INFORMATION –Promotional message CONSUME

R

decode

FeedbackEncode

BUSINESS

Types of Promotion

Personalized

Promotion

Mass Promotion

Mass Personalizat

ion