Marketing Principles Chapter 1 Test notes
Marketing: Activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.
Goods: Tangible items with monetary value that satisfy needs (e.g., clothing, electronics).
Services: Intangible items with monetary value that satisfy needs and wants (e.g., haircuts, consulting).
Channel Management:
Process of getting goods to customers.
Involves shipment and delivery methods:
Truck
Rail
Ship
Air
Drones:
Positive: Quicker delivery, no traffic.
Negative: Weather can delay delivery.
Marketing Information Management (MIM):
Research and data gathering about customer habits, attitudes, and market trends.
Market Planning:
Developing and targeting specific marketing strategies for a select audience.
Closely related to MIM.
Target Audience:
Specific group identified based on needs and wants (e.g., age group).
Pricing:
Decisions on how much to charge for goods/services to ensure profit.
Profit: Money made after expenses.
Pricing influenced by costs and competitor pricing.
Example: Food truck pricing (e.g., Kona Ice).
Product Service Management:
Obtaining, developing, and maintaining products.
Example: iPhone 16 features (memory, cameras, accessories).
Promotion:
Efforts to inform, persuade, or remind customers about products/services.
Examples:
Television
Radio
Social Media (Facebook)
Billboards
Flyers
Word of Mouth (e.g., local restaurants).
Selling:
Providing customers with desired goods/services.
Influences purchasing decisions and future business opportunities.
Salesperson Salary Range: $55,000 - $100,000+ (varies by industry).
Perks: Travel, expense accounts, company vehicles.
Definition: A legal entity created by individuals (stockholders/shareholders) to operate for profit.
Capabilities:
Enter into contracts
Sue and be sued
Own assets
Remit federal and state taxes
Borrow money from financial institutions
Definition: Legal entities incorporated for purposes other than generating profits for owners or shareholders.
Definition: A legal relationship formed by a written agreement between two or more individuals or companies.
Characteristics:
Partners invest money in the business.
Profits and losses are shared among partners.
Definition: The simplest business form where one person owns the business and is personally responsible for its debts.
Naming: Can operate under the owner's name or a fictitious name.
Definition: The idea that businesses should satisfy customer needs and wants while generating profits.
Example: The Pompeian Olive Company.
Value Addition: Marketing functions add value to products, known as utility.
Five Types of Economic Utilities:
Form Utility: Transforming raw materials into usable goods.
Examples:
Rubber → Tires, watch bands
Plastics → Water bottles, containers
Tobacco → Chew, cigarettes
Time Utility: Availability of products/services at specific times.
Examples:
Seasonal products (salt, shovels in winter)
Seasonal coffee flavors (eggnog, peppermint)
Businesses open at convenient hours (banks, gas stations)
Place Utility: Ensuring products are available where customers can buy them.
Example: Dollar General in Penn Township studies consumer shopping habits.
Understanding different business structures (corporations, non-profits, partnerships, sole proprietorships) is essential for navigating the business landscape. Additionally, the market concept and economic utilities highlight the importance of marketing in adding value to products and meeting customer needs.
Marketing: Activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.
Goods: Tangible items with monetary value that satisfy needs (e.g., clothing, electronics).
Services: Intangible items with monetary value that satisfy needs and wants (e.g., haircuts, consulting).
Channel Management:
Process of getting goods to customers.
Involves shipment and delivery methods:
Truck
Rail
Ship
Air
Drones:
Positive: Quicker delivery, no traffic.
Negative: Weather can delay delivery.
Marketing Information Management (MIM):
Research and data gathering about customer habits, attitudes, and market trends.
Market Planning:
Developing and targeting specific marketing strategies for a select audience.
Closely related to MIM.
Target Audience:
Specific group identified based on needs and wants (e.g., age group).
Pricing:
Decisions on how much to charge for goods/services to ensure profit.
Profit: Money made after expenses.
Pricing influenced by costs and competitor pricing.
Example: Food truck pricing (e.g., Kona Ice).
Product Service Management:
Obtaining, developing, and maintaining products.
Example: iPhone 16 features (memory, cameras, accessories).
Promotion:
Efforts to inform, persuade, or remind customers about products/services.
Examples:
Television
Radio
Social Media (Facebook)
Billboards
Flyers
Word of Mouth (e.g., local restaurants).
Selling:
Providing customers with desired goods/services.
Influences purchasing decisions and future business opportunities.
Salesperson Salary Range: $55,000 - $100,000+ (varies by industry).
Perks: Travel, expense accounts, company vehicles.
Definition: A legal entity created by individuals (stockholders/shareholders) to operate for profit.
Capabilities:
Enter into contracts
Sue and be sued
Own assets
Remit federal and state taxes
Borrow money from financial institutions
Definition: Legal entities incorporated for purposes other than generating profits for owners or shareholders.
Definition: A legal relationship formed by a written agreement between two or more individuals or companies.
Characteristics:
Partners invest money in the business.
Profits and losses are shared among partners.
Definition: The simplest business form where one person owns the business and is personally responsible for its debts.
Naming: Can operate under the owner's name or a fictitious name.
Definition: The idea that businesses should satisfy customer needs and wants while generating profits.
Example: The Pompeian Olive Company.
Value Addition: Marketing functions add value to products, known as utility.
Five Types of Economic Utilities:
Form Utility: Transforming raw materials into usable goods.
Examples:
Rubber → Tires, watch bands
Plastics → Water bottles, containers
Tobacco → Chew, cigarettes
Time Utility: Availability of products/services at specific times.
Examples:
Seasonal products (salt, shovels in winter)
Seasonal coffee flavors (eggnog, peppermint)
Businesses open at convenient hours (banks, gas stations)
Place Utility: Ensuring products are available where customers can buy them.
Example: Dollar General in Penn Township studies consumer shopping habits.
Understanding different business structures (corporations, non-profits, partnerships, sole proprietorships) is essential for navigating the business landscape. Additionally, the market concept and economic utilities highlight the importance of marketing in adding value to products and meeting customer needs.
