Marketing Production Distribution 1 Marketing Goal to create

Marketing, Production & Distribution 1

Marketing • Goal: • to create products meeting consumer wants and needs based on the marketing mix • to guide products through the product life cycle, capitalizing on opportunities in each stage • to understand consumers through marketing research g n i t e k r a M 2

The Marketing Mix • Consists of four interrelated marketing strategies used to meet consumer needs 1. Product – is a good and/or service designed to meet consumer wants and needs – is determined by conducting studies and surveys 2. Price – must be low enough to attract consumers – must be high enough to cover costs and create profit 3. Promotion – activities to persuade consumers they need the product – includes packaging, commercials, trials, etc. g n i t e k r a M 4. Place – is a location where products and/or services are sold – includes stores and location within a store 3

Product Life Cycle aw n; r d o : i s t u n Foc r atte ct e du m o o r t cus uild p ness b e r a aw Stage 1 Introduction Focus : evalu ate cost/p rofit relatio nship; decide produ ct’s fu ture Stage 4 Decline Focu satis s: build fact c ion; ustom com er reco peti tors gniz Stage 2 mar enterin e ket g Growth Stage 3 Maturity t a e b s: u ; c n o F o i t ti e ; t p c u m co od r p ove sales r p im se a e r inc 4

Understanding Consumers • Means understanding the needs they attempt to meet when making purchases, including: • physical • for necessities, safety, security and health • includes food, clothing, transportation, etc. • social • to feel loved and accepted • includes fancy clothing, make-up, cologne, etc. • psychological • for prestige and approval • includes luxury items which make the consumer feel important g n i t e k r a M Remember Maslow’s hierarchy of needs pyramid? These apply for consumers too. 5

Production & Distribution • Goal: • to produce and distribute goods and services in the most efficient and cost-effective manner • Consists of three roles: 1. facilities – physical elements needed for production • need a good layout and location n o i t u b i r t s i D & n o i t c u d o Pr 2. processing – changing or combining resources to create a product or service • adds value by transforming resources into products 3. people – invaluable human resource • plan, operate and supervise the process 6

Production • Must be effective and efficient by doing the following: • • forecasting demand scheduling production of goods and services managing inventory controlling quality 7

Distribution • Is getting produced goods and services to consumers in a timely manner • Is typically from producers to wholesalers and retailers • Uses the following four modes of transportation: • • waterways railroads trucks airlines 8