Marketing Basics – Chapter 1

Marketing (simpler definition)
The creation and maintenance of satisfying exchange relationships
Marketing
Planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to created exchanges that satisfy individual and organizational objectives
Marketing Mix
Describes how a business blends the four marketing elements of product, distribution, price, and promotion
Product
What a business offers customers to satisfy needs. Products include goods and services
Distribution
Involves the locations and methods used to make products available to customers
Price
The amount that customers pay for products
Promotion
Describes the way to make customers aware of products and encourage them to buy
Discretionary income
The amount of money individuals have available to spend after paying for the necessities of life and other fixed expenses, such as housing and car payments
Demographics
Common characteristics of a group, such as age range, marital status, gender, ethnic background, income level, and education level
Sports Marketing
Using sports to market products
Gross Impression
The number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainer
Entertainment Marketing
Influencing how people choose to spend their time and money on entertainment is the purpose of entertainment marketing
What are the two ways Entertainment Marketing is discussed?
1. Entertainment will be looked at as a product to be marketed and 2. Marketing will be examined in light of how it uses entertainment to attract attention to other products
Entertainment
Whatever people are willing to spend their money and spare time viewing rather than participating in
Ratings
The number of viewers the programming attracted. The pricing of commercial time slots are tied to ratings
Break-even point
The point at which gains equal losses
Market Research
The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service
Target Market
A target market or target audience is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise
Relationship marketing
A strategy designed to foster customer loyalty, interaction and long-term engagement. It is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests and by promoting open communication.