Marketing Concepts and Economic Utilities Flashcards

Vocabulary practice flashcards generated from lecture notes covering fundamental marketing concepts, utility types, market classifications, and the marketing mix.

Marketing Concept

The idea that a business should strive to satisfy customers' needs and wants while generating a profit for the company, performing better than competitors.

Goods

Physical items such as food, shoes, toys, clothes, and computers.

Services

Helpful activities such as haircuts, medical care, and customer service.

Tangible

Physical items or things that you can touch, such as food, shoes, toys, clothes, or computers.

Intangible

Things you are not able to hold or physically touch, but can perceive value from, such as computer software or customer service.

Customer

The user who purchases the product through a required monetary transaction, who can resell the product for profit, and can be an individual, company, or mass.

Consumer

The end-user of a product (such as a child using diapers) who may or may not purchase it, cannot resell for profit, and for whom a monetary transaction is optional.

Marketing

The process of planning, pricing, promoting, distributing, and selling ideas, goods, or services to create exchanges that satisfy customers.

Economic Benefits of Marketing

Key economic advantages resulting from marketing, which include new and improved products, lower prices due to increased demand, and added value and utility.

Form Utility

An economic utility that involves changing materials to make them more useful by putting parts together and producing things.

Place Utility

An economic utility focused on offering products where consumers put value and where it is convenient to purchase them, such as online, brick and mortar stores, catalogs, or door-to-door.

Time Utility

An economic utility defined by having a product available at times that are most convenient or desirable for customers to purchase.

Possession Utility

An economic utility concerning how consumers pay for goods or services, including exchanges via cash, trade, credit, layaway, check, PayPal, and Venmo.

Information Utility

An economic utility that provides consumers with instructions, directions, and manuals through packaging, ads, customer service representatives, internet, hotlines, and dial-up consulting.

Market

All people who share similar needs and wants and who have the ability to purchase the products.

Consumer Market

A market consisting of buyers who make purchases for personal use, seeking products that save time, make life easier, improve appearance, create status in the community, or provide satisfaction.

Industrial Market

Also known as Business to Business (B to B), this includes all businesses that buy products for use in their operations.

Market Share

A company's percentage ($\%$) of the total sales generated by ALL companies that compete in a given market.

Market Segmentation

The process of classifying customers by needs and wants using demographics, geographics, and behavioral shopping patterns.

Marketing Mix

The foundation marketing elements consisting of Product, Place, Price, and Promotion.