Lesson 1: Introduction to Marketing

marketing
process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers
goods
tangible items that have monetary value and satisfy your needs and wants
services
intangible items that have monetary value and satisfy your needs and wants
business, management, entrepreneurship
understanding the basics of business, management, and entrepreneurship that affect business decision making
communication and interpersonal skills
understanding concepts, strategies, and systems needed to interact effectively with others
economics
understanding the economic principles and concepts that are basic to marketing
professional development
understanding concepts and strategies needed for career exploration, development, and growth
4 foundations of marketing
business, management, entrepreneurship; communication and interpersonal skills; economics; professional development
7 functions of marketing
distribution, financing, marketing information management, pricing, product/service management, promotion, selling
distribution
process of deciding how to get goods in customers’ hands
financing
getting the money that is necessary to pay for setting up and running a business
marketing information management
gathering, storing, and analyzing information about customers to make good business and marketing decisions
product/service management
obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities
promotion
effort to inform, persuade, or remind potential customers about a business’s products or services
marketing concept
idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the firm
utilities
attributes of a product or service that make it capable of satisfying consumers’ wants and needs
5 economic utilities involved with all products
form, place, time, possession, information
form utility
changing raw materials or putting parts together to make them more useful
place utility
having a product where customers can buy it
time utility
having a product available at a certain time of year or a convenient time of day
possession utility
exchange of a product for money
information utility
communication with the consumer
disposable income
money left after taxes are subtracted
discretionary income
money left after basic living expenses have been met
Henry Ford approach
company produces and sells a product with little or no thought to what people really want
market/marketplace
environment where exchanges of goods and services are made
market
group of people with similar needs and wants and the means to purchase those items
market
the process of informing and persuading potential customers–getting a product or service from its production to the customer
consumer market
consists of consumers who purchase goods and services for personal use
industrial market
includes all business that buy products for use in their operations
market share
percentage of the total sales volume generated by all companies that compete in a given market
market segmentation
process of classifying customers by needs and wants
target market
group that is identified for a specific marketing program
customer profile
list of information about the target market that helps develop a clear picture of a company’s target market
marketing mix
includes 4 basic marketing strategies called the 4 Ps: product, place, price, and promotion that are tools marketing professionals or businesses use and control in order to influence potential customers
SWOT analysis
self-analysis that examines strengths, weaknesses, opportunities, threats
internal analyses
centers around the 3 Cs: company, customers, and competition
internal company analysis
usually done to examine the parts of a business’s operation
customer analysis
includes research on the buying habits, interests, satisfaction, wants, and needs of the target market
competitive positioning
analysis performed to determine how the company compares to the competition, or the company’s market share
environmental scan
methodological look at the world that typically includes 4 areas: political, economic, socio-cultural, and technological
marketing plan
formal, written document that directs a company’s activities for a specific period of time
business plan
outline for a company or business and what it hopes to accomplish in the short and long term
executive summary
brief overview of the entire marketing plan
situation analysis
study of the internal and external factors that affect marketing strategies
marketing strategy
identifies target markets and sets marketing mix choices that focus on those markets
sales forecasts
projection of probable, future sales in units or dollars
performance standard
expectation for performance that reflects the plan’s objectives
market segmentation
process of classifying people who form a given market into smaller groups
demographics
statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, ethnic background, education, and occupation
geographics
segmentation of the market based on where people live
psychographics
grouping people with similar lifestyles, as well as shared attitudes, values, and opinions
mass marketing
using a single marketing strategy to reach all customers
customer
one who purchases a good or service
consumer
one who uses a good or service
behavioral
segmentation of the market based on product-related behaviors, such as consumer shopping patterns (as consumers often identify themselves by the brands and products they purchase) and usage rates