Intro to Marketing Study Guide

Marketing

The process of advertising selling and maintaining a product or service for customers

Products

can be broken down into two categories: goods and services

Goods

tangible items that can be sold

Services

intangible products that satisfy customers needs

Tangible

things that can be touched

Intangible

things that cannot be touched

Exchange

The act of giving one thing and receiving another in return; often refers to trading goods or services.

Marketing concept

The idea that businesses should always satisfy customers wants and needs

Utility

an attribute of goods or services that make a customer want them

Form Utility

changing raw materials to make them useful

Place Utility

having a product available, where customers can buy it

Time Utility

having a product available at a specific time of day or year

Possession Utility

Exchange of a product for monetary value

Information Utility

Communication with the customer through a product

Market

people who share similar wants and needs

Market Share

total sales percentage by all companies in a market

Target Market

Group of people most likely to become customers

Demographics

statistics that describe a population based on personal customer characteristics (age general income)

Psychographics

grouping people with similar interests and attributes

Geographics

segmentation of the market based on where people live

The Marketing Mix (5 P’s)

product, price, place, promotion, and people

Marketing Plan

A plan that directs a company activities

SWOT acronym

strengths, weaknesses, opportunities, threats

7 Functions of Marketing

financing, pricing, selling, promotion product/service management, channel management, marketing info

Example of a good

Chick Fil A fries

Example of a service

getting hair done

Form Utility example

making a rocking chair out of wood/tree

Place Utility example

catalogues, the internet, retail stores

Time utility example

certain themed items for different times of the year (Christmas, Halloween, Thanksgiving.)

Possession utility example

check, cash, card, payment plans

Information utility example

Price tags, coupons, sale signs, store associates

One economic benefit of marketing

large production quantities = lower costs

Nick works for a large retail company. He spent his time studying data about the company’s product sales and their customers. Which of the 7 functions of marketing is this?

marketing information management

UPS and FedEx do all the shipping for Nick’s company. Which of the 7 functions of marketing is this?

Channel management distribution

Nick has determined that the line of iPhone 4 covers need to be discontinued because they are no longer big sellers. Which of the 7 functions of marketing is this?

product/service management

Nick has determined that the price of the new iPhone 5 cover needs to be higher because they are popular and selling well. Which of the seven functions of market is this?

pricing