Business Today

Chapter 8

Marketing

All activities ensuring effective exchange of goods/services between businesses and consumers.

Marketing Functions

Groups of activities necessary for an exchange to occur.

Product/Service Planning

Involves gathering information, testing ideas, and designing products/services.

Purchasing

Identifying and obtaining necessary products/materials or services.

Financing

Ensuring availability of financing and credit.

Distribution

Getting products to customers.

Pricing

Setting prices and payment methods.

Risk Management

Providing security for products and people, reducing business risks.

Marketing Information Management

Obtaining and organizing information for marketing decisions.

Promotion

Communicating with consumers and encouraging purchases.

Marketing Impact

Increases standard of living, creates jobs, and informs consumers about products/prices.

Marketing Concept

Focuses on considering consumers in product and service production and marketing.

Marketing Strategy

Two-step process involving target market identification and marketing mix development.

Target Market

Clearly identified group of consumers interested in the product.

Marketing Mix

Combination of elements to meet target market needs (Product, Place, Price, Promotion).

Product Development

Involves planning, prototyping, testing, and identifying customer preferences.

Buying Motive

Reasons for making a purchase, either rational or emotional.

Channel of Distribution

Path from producer to consumer, direct or indirect.

Wholesaler vs

Wholesaler assists with distribution between businesses, retailer sells directly to consumers.

Effective Distribution

Adjusts for differences in production and consumption, considering quantity, assortment, location, and time.

Goals of Pricing

Maximize profits, increase sales, and maintain an image.

Promotion

Marketing tool to communicate with consumers, persuade purchases, and reinforce decisions.

Media Advertising

Reaches prospective customers through TV, radio, magazines, etc.

Sales Promotions

Attracts customer interest or provides incentives to buy.

Publicity

Unpaid information about a business, product, or service.

Personal Selling

Direct communication between salesperson and customer to answer questions and encourage purchases.