Ch 10 business

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 objectives.
product/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 of an organization
selling
communicating directly with potential customers the determine and satisfy their needs
marketing-information management
obtaining, managing, and using market information to improve business decision-making
financing
budgeting or marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the business’
pricing
setting and communicating the value of products and services
promotion
communicating information about products and services to potential customers
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 similar wants and needs
marketing mix
the blending of four marketing elements-product, distribution, price, and promotion
marketing orientation
considers the needs of customers when developing a marketing mix
Final consumers
persons who buy products or 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
Customer decision-making process
a specific sequence of steps consumers follow to make a purchase
buying motives
the reasons consumers decide what products and services to purchase
emotional buying motives
reasons to purchase based on feelings, beliefs, and attitudes
rational buying motives
guided by facts and logic
marketing research
finding solutions to problems through carefully designed studies involving consumers
surveys
gather information from people using a carefully planned set of questions
focus groups
a small number of consumers take part in a group discussion
observations
collect information by recording the actions of the consumers rather than asking them questions
experiment
presents two carefully controlled alternatives to subjects in order to determine which is preferred or has better results
product
everything a business offers to satisfy a customer’s needs
basic product
the simplest form of a product
product features
additions and improvements to the basic product
options
When customers are offered choices of features called
brand name
provides a unique identification for a company’s products
packaging
provides protection and security for the product before it is used
services
activities that are consumed at the same time they are produced
intangible
items that have no physical form
perishable
the availability of a service must match the demand for that service at a specific time
heterogeneous
there will be differences in the type and quality of service provided
price
the money a custimer must pay for a product or service
selling price
the price paid by the customer for the product
product costs
the costs to the manufacturer of producing the product or the price paid by other businesses to buy the product
operating expense
all expenses of operating the business that are associated with the product
profit
the amount of money available to the business after all costs and expenses have paid
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
markdown
a reduction from the original 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
channel members
the businesses 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
encoding
preparing the information to be communicated
personalized promotion
communicates directly with each customer using information tailored to that person
mass promotion
communicates with many people at the same time with a common message
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 consumers to provide information and influence their actions
publicity
non-paid promotional communication presented by the media rather than by the business or organization that is being promoted
public relations
an ongoing program of non-paid and paid communications
sales promotion
includes activities and materials designed to reinforce a company’s brand and image