142 – Marketing

What is marketing?
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
What are the forces that drive marketing?
Our (we are all consumers) needs and wants
What is the marketing concept?
That the whole firm is coordinated to achieve one goal – to serve its present and potential customers and to do so at a profit.
What is the common goal all departments of a firm must act together to achieve?
Customer satisfaction
What attracts buyers to one product over another?
Customers choose products based on their perception of what offers the best value to meet those wants and needs.
What is value?
the relative comparison of a product’s benefits versus its costs
What are some possible benefits to a product?
functions of the product, and emotional satisfaction
What are some possible costs of a product?
price, buyer’s time, emotional cost
What is a satisfied buyer?
Buyer who perceived the benefits from the purchase to be higher than its costs
How does marketing create value for customers?
By supplying goods that provide benefits, these goods also provide customers with utility
What is utility?
The ability of a good to satisfy a human want or need
What are the kinds of utility marketing strives to provide?
1) time utility 2) place utility 3) ownership utility 4) form utility
What is a marketing mix?
The combination of four basic components: product, price, place, and promotion
What is a marketing plan?
A detailed and focussed strategy for gearing the marketing activities to meet consumers wants and needs
Ehy do businesses develop marketing plans?
To better target those consumers that would place the highest value on their good or service
When does marketing start?
when a company identifies a need, and develops a product to meet it
What is a product?
A good, service or idea designed to satisfy the buyers’ needs and demands
What is mass-customization
A way to better satisfy customer needs, by producing large volumes of products or services, but giving customers the choice of features and options they want.
What is product differentiation
The creation of a product or image that differs enough from existing products to attract consumers
Price
The part of the marketing mix concerned with choosing the appropriate price for a product to meet the firm’s profit objectives and buyers’ purchasing objectives
Place
Refers to distribution – the part of the marketing mix concerned with getting the products to the consumer, including physical transportation, inventory control, and choice of sales channels.
Promotion
The most highly visible portion of the marketing mix – refers to the techniques for communicating information about products.
What are the most important techniques involved i promotion?
The most important techniques include advertising, personal selling, sales promotions and public relations.
What is a target market?
Any group of people who have similar wants and needs and may be expected to show interest in the same products.
What is market segmentation?
Division of markets into categories according to traits customers have in common
What are market segments divided by?
1) Geographic 2) demographic 3) psychographic 4) and product-use variables
What is a geographic variable?
Geographical units that may be considered in a segmentation strategy.
What is a demographic variable?
Characteristics of population that may be considered in developing a segmentation strategy. (eg. age, income, gender, ethnicity, marital status, etc)
What is a psychographic variable?
Psychological traits that a group has in common, including motives, attitudes, activities, interests and opinions.
What is a product-use variable?
Consumers characteristics based on the use of the product, benefits expected from it, reasons for purchasing it, and loyalty to it.