BUSINES W10-11: Marketing

Marketing

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing Concept

The business philosophy that a company must determine and satisfy customer needs and wants in order to make a profit, as opposed to simply trying to sell whatever it makes.

Utility

The power of a good or service to satisfy a human need. Marketing creates 3 of the 4 types of utility.

Form Utility

Value added by converting raw materials and parts into finished goods (created by production).

Place Utility

Consumer value added by making a product available in a convenient location.

Time Utility

Consumer value added by making a product available at a convenient time.

Possession Utility

Consumer value created when someone takes ownership of a product by paying the asking price.

Competitive Advantage

A feature or aspect of a product or company that sets it apart from its rivals and makes it more appealing to customers.

Product Differentiation

A strategy of establishing a competitive advantage by creating a unique benefit for a product that justifies a higher price.

Marketing Strategy

The overall plan for marketing a product, which involves identifying target markets and developing a marketing mix.

Marketing Mix (The Four Ps)

The blend of 4 key marketing elements used to satisfy the demands of a chosen market segment:

• Product: The ideas, goods, or services offered.
• Price: The amount of money charged for the product.
• Promotion: Activities used to inform and persuade prospective customers.
• Place (Distribution): How the product gets to the customer.

Marketing Research

The process of gathering information about marketing problems and opportunities.

Market

The group of people who need or want a product and who have the money and authority to buy it.

Consumer Market

The population of individuals who buy goods or services for their personal or household use.

Industrial/Organizational Market

Customers who buy goods or services for resale or for use in conducting their own business.

Market Segments

Groups of individuals or organizations within a market that share certain common characteristics.

Target Markets

Specific groups of customers to whom a company wants to sell a particular idea, good, or service.

Market Segmentation

The process of subdividing a market into distinct customer groups to better tailor marketing efforts.

Demographics

The study of the numerical characteristics of a population, such as age, gender, income, education, and occupation.

Disposable Personal Income

The money a person or family has to spend after paying taxes.

Discretionary Income

The money left over from disposable personal income after paying for necessities, which can be spent on nonessentials.

Behavioristic Segmentation

Classifying customers based on their knowledge of, attitude toward, use of, or response to a product.

Psychographics

The classification of customers on the basis of their psychological makeup, including their lifestyle, social roles, attitudes, interests, and opinions.

Rational Motive

A reason for purchasing based on logical reasoning and facts (e.g., cost, dependability, usefulness).

Emotional Motive

A reason for purchasing that arises from feelings rather than reason (e.g., sensory satisfaction, fear, pride, sociability, emulation).