Lessons 10-2, 10-3, & 10-4

1. Intro to BusinessChapter 10 - Marketing Lesson 10-2

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

3. 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

4. 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.

5. Product Planning Procedures Idea Development Idea Screening Strategy Development Production and Financial Planning Limited Production and Test Marketing Full-Scale Production

6. 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

7. Intro to BusinessChapter 10 - Marketing Lesson 10-3

8. Pricing Factors

9. Age Season Complexity Uniqueness Convenience Supply & Demand Pricing Factors When products are first introduced into the market Products that are used during a particular time of the year. Products that are highly complex and technical products When a product has few close competitors because it is different from others on the market. 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

10. Price a Product Selling price = Product Costs + Operating Expenses + Profit

11. Price of a ProductConnect the term to its definition 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 Selling Price Product cost Operating Expenses Profit

12. Markup – the amount added to the cost of the product to set the selling price Markdown – reduction from the original selling price

13. 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

14. Need for Distribution Channels Differences in Quantity Assortment Location Timing Distribution channels take large quantities and breaks them into quantities customers want to buy.

15. Channels of Distribution - DIRECT

16. Channel of Distribution - INDIRECT

17. Introduction to BusinessChapter 10 - Marketing Lesson 10-4

18. 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.

19. Effective Communication Group Activity

20. The Communication Process Effective Communication is The exchange of information so there is COMPLETE UNDERSTANDING by all participants

21. Communication channel INFORMATION decode RECEIVER Feedback encode SENDER

22. Advertising media/Internet INFORMATION – Promotional message decode CONSUMER Feedback Encode BUSINESS

23. Types of Promotion