Intro To Business Chapter 10


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

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Intro To Business Chapter 10

  1. 1. Intro to BusinessChapter 10 - Marketing<br />Lesson 10-2<br />
  2. 2. Create and Improve Products<br />Plan Marketing Research<br />1. Define the marketing problem<br />2. Study the situation<br />3. Develop a data collection procedure<br />4. Gather and analyze information<br />5. Propose a solution<br />Secondary research – analyzing existing information gathered for another purpose but used to solve a current problem<br />Primary research – Studies carried out to gather new information specifically directed at a current problem<br />
  3. 3. Types of Research Studies<br />Surveys – gather information from people using a carefully planned set of questions<br />Focus groups – a small number of consumers take part is a group discussion<br />Observations – collect information by recording the actions of consumers rather than asking them questions<br />Experiments – Presents two controlled alternatives in order to determine which is preferred <br />
  4. 4. Product Planning<br />Parts of a product<br />Basic product – simplest form of a product, not unique and usually available from several companies<br />Product features – additions and improvements to the basic product<br />Options – offered choices of features<br />Brand name – unique identification for a company’s product<br />Packaging – provides protection and security for the product<br />Guarantee/Warranty – If product breaks or does not meet customer expectations, company will repair, replace or provide refund.<br />
  5. 5. Product Planning Procedures<br />Idea Development<br />Idea Screening<br />Strategy Development<br />Production and Financial Planning<br />Limited Production and Test Marketing<br />Full-Scale Production<br />
  6. 6. Services<br />Services are activities that are consumed at the same time they are produced. They are:<br />Intangible – no physical form<br />Inseparable – consumed at the same time they are produced<br />Perishable – availability of service must match the demand for that service at a specific time<br />Heterogeneous – differences in the type and quality of service provided<br />
  7. 7. Intro to BusinessChapter 10 - Marketing<br />Lesson 10-3<br />
  8. 8. Pricing Factors<br />
  9. 9. Age<br />Season<br />Complexity<br />Uniqueness<br />Convenience<br />Supply & Demand<br />Pricing Factors<br />When products are first introduced into the market<br />Products that are used during a particular time of the year.<br />Products that are highly complex and technical products<br />When a product has few close competitors because it is different from others on the market.<br />A product that is easily available.<br />The quantity of a product a producer is willing to produce and that a customer is willing to purchase at given prices<br />
  10. 10. Price a Product<br />Selling price =<br /> Product Costs <br /> + Operating Expenses<br /> + Profit<br />
  11. 11. Price of a ProductConnect the term to its definition<br />The amount of money available to the business after all costs and expenses have been paid<br />Cost to the manufacturer of producing the product or price paid by other businesses to buy the product<br />Price paid by the customer<br />All expenses of operating the business that are associated with the product<br />Selling Price <br />Product cost <br />Operating Expenses <br />Profit <br />
  12. 12. Markup – the amount added to the cost of the product to set the selling price<br />Markdown – reduction from the original selling price<br />
  13. 13. Channels of Distribution<br />Distribution involves determining the best methods and procedures to use so customers can find, obtain, and use a product or service<br />Distribution – locations and methods used to make a product or service available to the target market.<br />Channel of Distribution – the route a product follows and the businesses involved in moving a product from producer to final consumer<br />
  14. 14. Need for Distribution Channels<br />Differences in <br />Quantity<br />Assortment<br />Location<br />Timing<br />Distribution channels take large quantities and breaks them into quantities customers want to buy.<br />
  15. 15. Channels of Distribution - DIRECT<br />
  16. 16. Channel of Distribution - INDIRECT<br />
  17. 17. Introduction to BusinessChapter 10 - Marketing<br />Lesson 10-4<br />
  18. 18. Promotion<br />Any form of communication used to inform, persuade, or remind.<br />Newspapers<br />Television<br />Radio program<br />Mailing<br />Buses/vehicles<br />Billboards<br />Internet ads<br />It is used to influence knowledge, beliefs, and actions of products, services, or ideas.<br />
  19. 19. Effective Communication<br />Group Activity<br />
  20. 20. The Communication Process<br />Effective Communication is <br />The exchange of information <br />so there is <br />COMPLETE UNDERSTANDING <br />by all participants<br />
  21. 21. Communication channel<br />INFORMATION <br />decode<br />RECEIVER<br />Feedback<br />encode<br />SENDER<br />
  22. 22. Advertising media/Internet<br />INFORMATION –<br />Promotional message <br />decode<br />CONSUMER<br />Feedback<br />Encode <br />BUSINESS<br />
  23. 23. Types of Promotion<br />