Business Organization and Management Chapter 10

Marketing
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy the individual and organizational objectives
7 Functions of Marketing
Selling, marketing information management, financing, pricing, promotion, product/service management, distribution
Marketing Strategy
A company’s plan that identifies how it will use marketing to achieve its goals
Target Market
A specific group of consumers that have similiar wants and needs
Marketing Mix
The blending of the four marketing elements: Product, distribution/place, price, promotion
Marketing Orientation
Considers the needs of customers when developing a marketing mix
Final Consumers
Persons that buy products and services mostly for their own use
Business Consumers
Persons, companies, and organizations that buy products for the operation of a business, for incorporation into other products and services, or for resale to their customers
Consumer Decision Making Process
Recognize a need
Gather information
Select and evaluate alternatives
Make a purchase decision
Determine effectiveness
Buying Motives
Reasons consumers decide to buy products or services to purchase. Rational or irrational
Marketing Research
Finding solutions to problems through carefully designed studies involving consumers
Product Planning Process
Idea development
Idea screening
Strategy development
Production/Financial Planning
Limited Production and Test Marketing
Full Scale Production
Services
Activities that are consumed as they are produced. Intangible, inseparable, perishable, heterogeneous
Pricing Factors
Supply/demand, uniqueness, age, season, complexity, convenience
Price
The money a customer must pay for a product or services
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
Need For Distribution Channels
Differences in:
Quantity
Assortment
Location
Timing
Channel Members
Business that take part in a channel of distribution
Promotion
Any form of communication used to inform, persuade, or remind
Effective Communication
The exchange of information so there is common understanding by all participants
Personal Selling
Direct, individualized communication with prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and services
Advertising
Any paid form of communication through mass media directed at identified customers to provide information and influence their actions