Marketing Essentials – Ch 1

marketing
The 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
tangible
that which can be touched
services
intangible items that have monetary value and satisfy your needs and wants
intangible
not able to be touched
channel management
distribution; the process of deciding how to get goods into a customer’s hands.
market planning
involves understanding the concepts and strategies used to develop and target specific marketing strategies to a select audience
market information management
gathering and analyzing information about customers, trends, and competing products
pricing
determining how much to charge for goods and services in order to make a profit
product/service management
obtaining, developing, maintaining, & improving a product or product mix
promotion
the effort to inform, persuade, or remind potential customers about a business’s products or services
selling
provides customers with the goods and services they want; includes both the retail and wholesale markets
marketing concept
the idea that a business should strive to satisfy customers’ needs and wants while generating a profit for a firm
customer relationship management
an aspect of marketing that combines customer information (through database and computer technology) with customer service and marketing communications
competition
marketing plays an important role in the economy because it provides a means for ________ to take place
3 benefits of marketing
1. New and Improved Products 2. Lower Prices 3. Added Value and Utility
utility
added value; the attributes of a product or service that make it capable of satisfying consumers’ wants and needs
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
the exchange of a product for money; providing customers with payment options such as accepting cash, checks, or credit cards
information utility
the value added by communicating with the consumer (displays, labels, owner’s manuals, etc.)
market
all people who share similar needs and wants and who have the ability to purchase a given product
consumer market
consumers who purchase goods and services for personal use
industrial market
businesses that buy products to use in their operations; also called the business-to-business market (this can be abbreviated as b-to-b or b2b).
market share
a company’s percentage of the total sales volume generated by all companies that compete in a given market
target market
a group of consumers identified for a specific marketing program
customer profile
a clear picture of a target market that includes information such as age, income level, ethnic background, attitudes, lifestyle, and geographic residence
marketing mix
the 4 Ps; product, place, promotion, price
5 utilities
form, place, time, possession, and information