Marketing Chapter 1

What is Marketing?

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

What is the function of Marketing?

To discover the needs and wants of customers and to satisfy them by delivering value through exchanges.

Marketing’s main function is to create value and build relationships with customers

When does Marketing occur?

Marketing occurs when:

1. Two or more parties have unsatisfied needs

2. They have a desire and ability to satisfy those needs

3. There is a way to communicate

4. Something of value can be exchanged

What are the 4 P’s of the Marketing Mix? Give an example of each.

The 4 P’s are controllable marketing mix factors:

• Product: A good, service, or idea offered to satisfy a need (e.g. iPhone)

• Price: What is exchanged for the product (e.g. $999)

• Promotion: Communication between buyer and seller (e.g. social media ads)

• Place: How the product gets to the consumer (e.g. Apple Store, online)

What is the difference between a Market, a Target Market, and a Market Segment?

• Market: All people who have the desire and ability to buy a product.

• Market Segment: A relatively homogeneous group of buyers who (1) have common needs and (2) will respond similarly to a marketing action.

• Target Market: One or more specific groups of potential consumers an organization directs its marketing program toward.

What is the difference between Needs and Wants?

• Needs: Basic necessities for survival (food, water, shelter, safety).

• Wants: Shaped by culture, personality, and knowledge — how people choose to satisfy needs (e.g. wanting sushi vs. just needing food).

What are Controllable factors in marketing problems?
A:

Controllable factors are the marketing mix (4 Ps) that managers can change:

• Product

• Price

• Promotion

• Place

• 💡 Marketers adjust these to influence consumer responses.

What are the Uncontrollable factors in marketing problems?

Uncontrollable factors are environmental forces outside a company’s control, including:

• Social

• Economic

• Technological

• Competitive

• Regulatory forces
  💡 Marketers must adapt to these rather than control them.