CHAPTER 8. PURCHASING AND PRODUCTION.

1. Components - factory - put together (assemble) - line production - mass production

2. Purchasing - buying raw materials (person: Buyer/Purchasing Officer)

Purchase essentials: price, place, quality, quantity, times, terms;

Documents: Contract for Sale …/ Terms and Conditions of Sale

3. Production: JMB (job, mass, batch): job production, mass production, batch production.

4. Production Management: Production Engineering + Planners + Controllers + Inspectors.

5. Innovations: robotics, automatics.

CHAPATER 9. MARKETING.

1. Marketing includes:

- market research which involves product policy;

- helping to produce the right product at the right price;

- persuasion through advertising and packaging;

- distribution (distribution channels);

2. Types of markets: open-air markets, consumer markets, industrial markets.

3. The marketing mix: the four Ps: product - price - promotion - place.

4. Product differentiation and product development.

5. Product-oriented firms and market-oriented firms.

6. Costs of products:

- direct costs: raw materials, pay, energy (variable costs);

- indirect costs: (fixed costs/overheads): rent for offices and factories, management salaries, administrative costs (they have to be paid no matter whether a product is made);

7. Promotion & advertising - informative and persuasive function.

- medium and message

8. Market research.

- desk research

- field research

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