Ch. 11 & 12

marketing
a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas
exchange
the act of giving up one thing (money, credit, labor, goods) in return for something else (goods, services, or ideas)
functions of marketing
buying, selling, transporting, storing, grading, financing, marketing research, risk taking
buying
everyone who shops for products
selling
the exchange proccess
transporting
process of moving products from seller to buyer
storing
part of the physical distribution of products and includes warehousing goods
grading
standardizing products by dividing them into subgroups and displaying and labeling them so that consumers clearly understand their nature and quality
financing
for many products, especially large items such as automobiles, refrigerators, and new homes, the marketer arranges credit to expedite the purchase
market research
through research, marketers ascertain the need for new goods and services
risk taking
risk is the chance of loss associated with marketing decisions
value
a customer’s subjective assessment of benefits relative to costs in determining the worth of a product
marketing concept
the idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals
the production orientation
together with new management ideas and ways of using labor, products poured into the marketplace, where demand for manufactured goods was strong
the sales orientation
believed the most important marketing activities were personal selling and advertising
the market orientation
requires organizations to gather information about customer needs, share that information throughout the entire firm, and use it to help build long-term relationships with customers
marketing strategy
a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers
target market
a more specific group of consumers on whose needs and wants a company focuses its marketing efforts
total-market approach
firm’s try to appeal to everyone and assume that all buyers have similar needs and wants
market segment
a collection of individuals, groups, or organizations who share one or more characteristics and thus have relatively similar product needs and desires
concentration approach
a company develops one marketing strategy for a single market segment
multisegment approach
the marketer aims its marketing efforts at two or more segments, developing a marketing strategy for each
bases for segmenting markets
demographic, geographic, psychographic, behavioristic
marketing mix
refers to four marketing activities—product, price, distribution, and promotion—that the firm can control to achieve specific goals within a dynamic marketing environment
price
a value placed on an object exchanged between a buyer and a seller
distribution
making products available to customers in the quantities desired
promotion
a persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals, groups, and organizations to accept goods, services, and ideas
marketing research
s a systematic, objective process of getting information about potential customers to guide marketing decisions
primary data
observed, recorded, or collected directly from respondents
secondary data
compiled inside or outside the organization for some purpose other than changing the current situation
buying behavior
refers to the decision processes and actions of people who purchase and use products
perception
the process by which a person selects, organizes, and interprets information received from his or her senses, as when hearing an advertisement on the radio or touching a product to better understand it
motivation
an inner drive that directs a person’s behavior toward goals
learning
brings about changes in a person’s behavior based on information and experience
attitude
knowledge and positive or negative feelings about something
personality
refers to the organization of an individual’s distinguishing character traits, attitudes, or habits
social roles
a set of expectations for individuals based on some position they occupy
reference groups
include families, professional groups, civic organizations, and other groups with whom buyers identify and whose values or attitudes they adopt
social classes
determined by ranking people into higher or lower positions of respect
culture
the integrated, accepted pattern of human behavior, including thought, speech, beliefs, actions, and artifacts
test marketing
a trial minilaunch of a product in limited areas that represent the potential market
commercialization
the full introduction of a complete marketing strategy and the launch of the product for commercial success
consumer products
for household or family use; they are not intended for any purpose other than daily living
business products
used directly or indirectly in the operation or manufacturing processes of businesses
product line
a group of closely related products that are treated as a unit because of a similar marketing strategy
product mix
all the products offered by an organization
branding
the process of naming and identifying products
trademark
a brand that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by any other firm
manufacture brands
brands initiated and owned by the manufacturer to identify products from the point of production to the point of purchase
private distributer brands
are owned and controlled by a wholesaler or retailer, such as Kenmore appliances (Sears) and Sam’s grocery products (Walmart and Sam’s Wholesale Club)
generic products
products with no brand name at all
packaging
external container that holds and describes the product, influences consumers’ attitudes and their buying decisions
labeling
the presentation of important information on the package, is closely associated with packaging
quality
reflects the degree to which a good, service, or idea meets the demands and requirements of customers
price skimming
charging the highest possible price that buyers who want the product will pay
penetration price
a low price designed to help a product enter the market and gain market share rapidly
psychological pricing
encourages purchases based on emotional rather than rational responses to the price
discounts
are often employed to boost sales
marketing channel
channel of distribution, is a group of organizations that move products from their producer to customers
retailers
buy products from manufacturers (or other intermediaries) and sell them to consumers for home and household use rather than for resale or for use in producing other products
wholesalers
are intermediaries who buy from producers or from other wholesalers and sell to retailers
intensive distribution
makes a product available in as many outlets as possible
selective distribution
uses only a small number of all available outlets to expose products
exclusive distribution
when a manufacturer gives an intermediary the sole right to sell a product in a defined geographic territory
physical distribution
all the activities necessary to move products from producers to customers—inventory control, transportation, warehousing, and materials handling
materials handling
the physical handling and movement of products in warehousing and transportation
advertising
a paid form of nonpersonal communication transmitted through a mass medium, such as television commercials, magazine advertisements or online ads
advertising campaign
designing a series of advertisements and placing them in various media to reach a particular target audience
personal selling
direct, two-way communication with buyers and potential buyers
publicity
nonpersonal communication transmitted through the mass media but not paid for directly by the firm
sales promotion
involves direct inducements offering added value or some other incentive for buyers to enter into an exchange
push strategy
attempts to motivate intermediaries to push the product down to their customers
pull strategy
uses promotion to create consumer demand for a product so that consumers exert pressure on marketing channel members to make it available