1) Mary gave birth to Jesus in Bethlehem and placed him in a manger because there was no room for them in the inn.
2) Angels appeared to shepherds in the fields and told them that the Savior, Messiah, and Lord had been born in Bethlehem. They were given a sign to find the baby wrapped in cloth and lying in a manger.
3) The shepherds went to Bethlehem and found Mary, Joseph, and the baby Jesus lying in the manger just as the angels had said. They spread the word of what they had witnessed.