Studied by 18 people
Marketing
The dynamic activities that focus on the customer to generate a profitable exchange
The Goal of Marketing
To meet customers' needs (goods and services you need) and wants (goods and services you do not need but would like to have) with products that customers can and will buy
Dynamic
constantly changing
Customer
an individual or group who buys products
Target Market
The specific group of customers whose needs a company will focus on satisfying
The Four Ps of Marketing
Product, Place, Price, and Promotion
Product
Anything that can be bought or sold
Good
A physical item
Service
An action that is done for you
Idea
A concept, cause, issue, image, or philosophy that can be marketed
Place
The process of making products available to customers
Distribution
the process of physically delivering goods to customers
Price
The amount of money requested or exchanged for a product
Marketing Plan
A guide for a company's product which includes Market Opportunities and Analysis, Strategy, and an Action Plan
SWOT Analysis
An analysis of a company's strengths, weaknesses, opportunities, and threats
Forecast
A prediction of future sales or revenue
Need
Something that is necessary for survival
Want
Something a person desires but could function without
Economic Needs and Wants
Needs and wants that you can satisfy by buying something
Economic Goods and Services
The products that you buy to satisfy economic needs
Exchange
To trade something of value for something you want
Money
A consistent item people accept in exchange for goods or work
Value
How much something is worth
Time Value of Money
The greater potential worth in the future than it does today
Store of Wealth
Money's ability to keep and store wealth for long periods of time.
Business
The general term for all the activities involved in the development and exchange of products
Profit
The money that a business has left after all the expenses and costs of running the business are paid
Sole Proprietorship
A business owned by one person [who] has all the responsibility and gets all the profits from the business
Partnership
A business owned by a small number of people, usually two or three
Legal Entity
An artificial person that exists separately from [other people]
Corporation
A legal entity established for the purpose of doing business [who] can buy property, run a business, manufacture products, earn money, lose money, sue, and be sued
Stockholders
People who own a corporation
Stock
The right of partial ownership in a corporation
Two Categories of Business Organizations
For-profit and not-for-profit
For-Profit
A business organization whose goal is to make a profit for the owners
Not-for-Profit
A legal entity whose goal is to benefit society
NPO Categories
Social services, recreation and sport, arts and culture, food and health, housing, religion, and education
Functions of Business
Production, Finance, Marketing, and Management
Production
Any activity related to making a product
Finance
All activities involving money
Management
All activities required to plan, organize, lead, and control a business
Utility
Making a product more useful or accessible
Marketing Concept
An approach to business that says that the way to make a profit is to focus on customer satisfaction
Customer Satisfaction
The positive feeling a customer gets when the product purchased meets or exceeds the customer's expectations
Total Company Approach
The idea that all company employees can have an effect on the customers
Elements of the Marketing Concept
Customer satisfaction, Total Company Approach, Profit
Marketing Function
The function a company takes to learn about customer needs and wants through production, finance, and management
Channel-Management
Handles activities involved in getting products from producers to customers
Marketing-information Management
Also called marketing research; gathers, analyzes, and distributes information about markets, competition, and customers.
Market Planning
This function is used to determine and target marketing strategies to select audiences
Pricing
All activities involved in setting prices for products
Product/Service Management
The function of developing new products and improving an old product
Promotion
the nonpersonal communication with customers that is designed to influence them to purchase products
Selling
The function which consists of personal communications with customers [...] including helping customers in a store, making sales presentations, answering questions on the phone, and demonstrating how a complex product works
Scarcity
A condition in which there are not enough resources to meet needs
Traditional Economy
An economy in which people perform activities the way they have always been done. In these economies, elders often answer questions facing communities according to long-held beliefs and practices.
Command Economy
An economy in which the national government answers economic questions. The goal of this economy is to ensure all members of the nation share limited resources, get a job, and receive other social services
Mixed economy
An economy in which both the government and individuals make economic decisions. Government and individuals take actions to ensure each other are in balance.
Market Economy
Private property, economic freedom, and market forces are properties of this type of economy.
Private Property
The right of individuals to own land, goods, and make products.
Economic Freedom
The ability of individuals to make their own decisions: what to buy, how to use products, and what to sell.
Market Forces
Supply and Demand, Profit, and Competition are the three most significant origins of work in a market economy.
Profit Motive
The drive to earn more money
Law of Demand
The economic principle that says when prices fall, demand rises.
Law of Supply
The economic principles that says when prices are high, supply will rise.
Productivity
The amount of product a worker produces per hour
Competition
The rivalry between two or more businesses to attract scarce (limited) customer dollars
Business Opportunity
The chance for success provided by the combination of a product idea and a market that is willing and able to buy the product.
Strategy
A plan developed to reach a goal
Target Market
The specific group of customers whose wants and needs you will try to meet with a specific marketing mix
Qualities of a Target Market
Clearly defined wants and needs that your company meet, money to buy your product, willingness and authority to buy your product, enough customers in the market to be profitable
Marketing Mix
The decisions made about the product, place, price, and promotion for one product
Product Strategies
All decisions made about what product to offer
Price Strategies
All the decisions made about pricing a product
Place Strategies
All decisions made about where the product will be sold
Promotion Strategies
All the decisions made about how to tell customers about the company and the product
Mass Market
All the customers for a specific type of product
Mass Marketing
The development of only one marketing mix for a specific product [...] assumed everyone has exactly the same wants and needs for the product
Nature of Consumer Markets
Diverse, consisting of many groups of consumers with different needs
Target Marketing
The development of a unique marketing mix for a specific market
Approaches to Choosing a Target Market
(1) Choosing a target market first, (2) developing a great product idea and finding a target market, (3) develop the idea with the target market in mind, (4) create a new market for an old product
Market Niche
A small segment of the market whose needs are not being met
Market Segmentation
The process of dividing a large market into smaller parts
Segmentation Variable
A customer characteristic that is used to segment a market
Categories of Market Segmentation
Geography, Demographics, Psychology, Behavioral
Geographic Segmentation
Segmenting a market based on where customers live
Census
A count of the people in a country made by the government
Demographic Information
Statistics that describe the characteristics of a population
Generation
A group of people born during a particular period of history
Discretionary Income
The income left after taxes and after the necessities of life have been paid for
Psychographic Segmentation
Segmenting a market based on psychological characteristics of customers
Behavioral Segmentation
Segmenting a market based on the way customers use a product
Market Segment Profile
A detailed description of the typical consumer in a market segment
Categories of Customer Influences
(1) Psychological, (2) social, (3) situational
Psychological Influences
The influences that come from within a person
Buying Motive
The reason that a customer seeks a product
Social Influence
The influences that come from the society in which you live
Categories of Social Influence
(1) Culture, (2) family, (3) friends and coworkers
Reference Group
The people who influence your buying decisions
Peer Pressure
The social influence that comes from the people your age with whom you interact daily
Note 
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