Business Ch 5 Flashcards
Who were the entrepreneurs we read about this unit and what are they known for?
Frederic Tudor: He traded ice from Massachusetts to Calcutta
Kevin Esparza: sold handmade ice pops to raise funds to help his mom with rent, food, and mom’s medical condition
What is the process of marketing?
Set of activities related to creating, communicating, delivering, and exchanging offerings that have value for others
Define the exchange process and its main goal
Activity in which two or more parties give something of value to each other to satisfy perceived needs.
Customer (buyer): has a want or need and is willing to
give money or resources to meet the need
* Product: a good, service, or idea to fill the want or need
* Provider (seller): has the need-satisfying thing
* Transaction: terms of trade value-for-value
Goal is to maximize rewards and minimize costs
Define the economic utilities created by the marketing function
Utility: The power of a good or service to satisfy a want or need.
Form utility: Converting raw materials and other inputs into finished goods and services. A customer sees value in the completed good rather than the individual parts
Time utility: Availability of a good or service when customers want to purchase it
Place utility: Availability of a product in a location convenient for customers.
Possession utility: Transfer of goods and services from the
seller to the buyer; also called ownership utility
Describe the seven (7) functions of marketing
Distribution- The process of getting goods and services to customers
Financing- Getting the money necessary for setting up and running a business
Marketing Information Management- Gathering and analyzing information about consumers, trends, competitors
Pricing- Deciding how much to charge for a product/service to make a profit
Product/Service Management- Obtaining, developing, maintaining, and improving a product
Promotion- The effort to inform, persuade, or remind customers about your products/services
Selling- Providing customers with the goods and services they choose to buy
Define a target market
Group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences
What are the four parts of the marketing mix?
Product- Defines the product or service and what sets it apart from competitors, including the market positioning, features, packaging, design, etc.
Price- Sets an amount that buyers are willing to pay while considering manufacturing costs, competitors’ prices, quality, distribution, product development, etc.
Place- Determines where consumers can find the product.
Promotion- Efforts to inform the audience about the product or service, including advertising, sales promotions, personal selling, and public relations
Define the marketing concept
Identify: Understand customer wants and needs, identify whom to target and how to reach them
Satisfy: Make the right product or service available to the right people at the right time, make everyone feel better off at the exchange
Retain Customers: Give customers a reason to keep coming back, find new opportunities to win their business
Marketing
What are the steps in the marketing research process?
DEFINE THE PROBLEM
Identify what you are trying to find out from your
research
Identifies the main problem
Defines the nature and scope
DESIGNING THE RESEARCH PROJECT
Plan for how you will gather the information you need
Formulate a hypothesis
Select types of research appropriate for the situation
Define the two types of data
Primary Data
Observed or collected first-hand
More expensive and complex
Secondary Data
May come from inside or outside the
organization
Not conducted first-hand
Lower cost and effort
Define consumer behavior and the factors that influence it
Actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions
Personal factors - needs and motives, perceptions, attitudes, self-concept
Interpersonal factors - cultural, social, and family influences
External factors - economic events
What is relationship marketing?
goes beyond the effort of simply making a sale
Developing and maintaining long term, cost-effective exchange relationships with partners
Consumers enter into relationships only if there is some benefit to them
Relationship marketing seeks to achieve customer satisfaction
Define integrated marketing communications
coordination of all promotional activities— media advertising , direct mail, personal selling , sales promotion, and public relations—to produce a unified, customer-focused message
Define the promotional mix and the difference between personal selling and nonpersonal selling
Combination of personal and nonpersonal selling components designed to meet the needs of target customers, effectively and efficiently communicate the message to them
Personal selling - the most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer
Nonpersonal selling - advertising , sales promotion, direct marketing , and public relations
What are the goals of promotion?
Creating awareness
Getting people to try products
Providing information
Keeping loyal customers
Increasing the amount and frequency of use of products
Identifying potential customers
Teaching the customer
