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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