chapter 10 Marketing Basics

Marketing
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 n organization.
Selling
communicating directly with potential customers to determine and satisfy their needs.
Marketing-information management
obtaining, managing and using market information to improve businesses decision making and the performance of marketing activities.
Financing
budgeting for marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the businesses products and services.
Pricing
setting a 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
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 a customers when devolving a marketing mix
Final consumers
persons who 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 the other products and services, or for resale to their customers
Consumer decision-making process
the specific sequence of steps consumers follow to make a purchase
buying motives
the reason why a consumer decides 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 reserch
finding solutions to problems through carefully designed studies involving consumers
Secondary reserch
analyzing existing information gathered for another purpose but used to solve a current problem
Primary research
studies carried out to gather new information specifically directed at a current problem
surveys
information from people using a carefully planned set of questions
Focus groups
less structure way of gathering the ideas, experiences, and opinions of consumers
Observations
collect information by recording the actions of 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 customers needs
options
when customers are offered choices of features
brand name
provides a unique identification for a company’s products
packaging
provides protection and security for the product before it is use
services
activities that are consumed at the same time they are produced
Intangible
meaning that they have no physical form
Inseparable
meaning that they are consumed at the same time they are produce
Perishable
meaning that the availability of a service must match the demand for that service at a specific time
Heterogeneous
meaning that there will be differences in the type and quality of service provided
Price
is the money a customer must pay for a product or service
selling price
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 expenses
all expenses of operating the business that are associated with the product
profit
the amount of money available to the business after all the cost and expenses have been paid
gross margin
the difference between the selling price and the product costs
markup
the amount added to the cost of the product to set the selling price
markdown
reduction from the original selling price.
distributuion
the locations and methods used to make a product or service available to the target market
Channel of Distibution
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
direct channel of distribution
products move from the producer straight to the consumer with no organizations participating
indirect channel of distribution
includes one or more other businesses between the producer and the consumer
retailers
well-known and important part of distribution channels for the consumer products
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
decoding
the receiver obtains the information from the channel and interprets it for understanding
feedback
to be sure that communication achieved the desired result, the sender needs to have a response from the receiver
Personal selling
is direct, individualized communication with prospective customers to asses 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 consumer to provide information and influence their actions
publicity