Business 19

Product Development
process of creating or improving a product
Steps in product development and what’s involved in each
Develop an idea for new product that customers want to buy- research
Turn idea into workable product design- make models, determine needed resources, determine costs to make and compare to price
Produce product and make it available for consumers at a reasonable price- build/remodel manufacturing facilities, purchase raw materials, train employees, promote, distribute, and sell
Logistics
all activities designed to facilitate the movement, transport, and storage of materials required for production, as well as delivery of finished goods
Supply Chain
the links of the process to manufacture products (primary, secondary, tertiary)
Distribution
The set of activities required to transport and store products and make available to consumers
Secondary Sector
makes, builds, and assembles products
Inventory System
The software used to plan and track inventory balances and activities
overheads
Costs from the general running of a business, like rent and rates
lean production
an approach to production that seeks to minimize waste and inefficiency
capacity utilization
The extent to which an organization actually uses its installed productive capacity, or the extent to which potential output levels are being met or used
Marketing mix and 4 elements
aka the four P’s- product, price, place, promotion
four life cycle stages
Intro, growth, maturity, decline
maturity
sales stabilize, less expenditure on promotion is needed, and revenue & profit should be high
introduction
a brand-new product enters the market and initially, there is only one brand of the product available for consumers to purchase.
maturity
there are many competing brands with very similar features and customers have a hard time identifying differences among the brands.
The place decision in the marketing mix involves determining what?
where products would be conveniently available for customers to buy
The price decision in the marketing mix involved determining what?
The cost to make it
The amount of profit desired
The price competitors charge
The price customers are willing to pay
The promotion decision in the marketing mix involves determining what?
what the target audience is and whether to use above or below the line promotion
The product decision in the marketing mix involves determine what?
the functions and features of a good or service that would satisfy the needs of the customer.
also packaging, quality, warranties, after-sales service, and branding.
Three sectors and which kelloggs is apart of
The Primary Sector provides raw materials such as oil and coal. The Secondary Sector industries make, build, and assemble products. the Tertiary Sector industries don’t produce goods. Kelloggs is secondary
Turnover
total value of all sales made in given period