Business Chapter 10

Marketing
the activity, set of institution, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Marketing functions
function occur every time a product or service is developed or sold
Product and Service Management
Designing, developing, maintaining, improving, and acquiring products and services that meet consumer needs
Distribution
involves determining the best ways for customers to locate, obtain, and use the products and services that meet consumer needs
Marketing Strategy
a company’s plan that identifies how it will use marketing to achieve its goals
Target Market
a specific group of consumers who have similar wants and needs
Marketing Mix
the blending of four marketing elements
marketing orientation
considers the needs of customers when developing a marketing mix
Final consumers
persons who buy products and services mostly for their own use
Consumer decisions making process
the specific sequence of steps consumers follow to make a purchase
Buying motives
the reasons consumers decide what products and services to purchase
Marketing Research
finding solutions to problems through carefully designed studies involving consumers
Experiment
two carefully controlled alternatives to subjects in order to determine which is preferred or has better results
Basic Product
not unique item, usually available by several companies
Services
activities that are consumed at the same time they are produced
Pricing factors
decisions about a fair price
Product costs
the cost to the manufacturer of producing the product or the price paid by other businesses to by the product
gross margin
the difference between the selling price and the product costs
Markup
the amount added to the cost of a product to set the selling price
distribution
the locations and methods used to make a product or service available to the target market
Channel of Distribution
the route a product follows and the businesses involved in moving a product from the producer to the final consumer
Wholesalers
intermediaries between manufacturers and retailers
Retailers
the final business organization in an indirect channel of distribution for consumer products
Promotion
any form of communication used to inform persuade or remind
Personalized Promotion
communicated directly with each customer using information tailored to that person
Mass promotion
communicates with many people at the same time with the common message
Advertising
any paid form of communication through mass media directed at identified consumers to provide information and influence their actions
Personal Selling
direct, individualized communication with prospective customers to assess their needs and assist them in satisfying those needs with appropriate products or services
Public relations
an ongoing program of non-paid and paid communications
Merchandising
a set of promotional activities designed to generate sales in the retail setting
No
Is marketing non-paid promotional communication presented by the media?
Yes
Is a marketing mix the blending of product, distribution, price, and promotion?
No
Does a focus group involve observing the actions of consumers?
Yes
Is it easier to control the quality of a service than the quality of a product?
Yes
Does convenience affect the price consumers are willing to pay for a product?
no
Is a product’s route from the producer to the consumer its stream of revenue?
No
Does personal selling always involve face-to-face contact with the customer?
Yes
Is mass promotion less expensive than personalized promotion?
Pricing
Setting and communicating the value of products and services
Brand Name
A unique identification for a company’s products
Services
An activity consumed at the same time it is produced
Target Market
a specific group of consumers with similar wants and needs
Markup
an amount added to the cost of a product to establish the selling price
Promotion
Communication used to inform, persuade, or remind