Intro To Business Chapter 10 Marketing

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Marketing

An organizational function and a set of processes for creating, communication, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing Strategy

A company's plan that identifies how it will use marketing to achieve its goals.

Target Market

A specific group of customers that have similar wants and needs.

Marketing Mix

The blending of four marketing elements-product, distribution, price, and promotion

Marketing Orientation

An approach that considers the needs of customers hen developing a marketing mix.

Final Consumers

Person who buys products and services mostly for their own use.

Business Consumers

Person, companies, and organizations that buy products for the operation of a business, for incorporation into other products and services, or for resale to their customers.

Consumer Decision-Making Process

The specific sequence of steps consumers follow to make a purchase.

Buying Motives

The reason consumers decide what products and services to purchase.

Marketing Research

Finding solutions to problems through carefully designed studies involving consumers.

Product

Everything a business offers to satisfy a customer's needs.

Services

Activities that are consumed at the same time they are produced

Intangible

Something that has no physical form.

Inseparable

They are consumed at the same time they are produced.

Perishable

The availabilty of a service must match the demand for that service at a specific time.

Heterogeneous

Differences in the type and quality of service provided.

Price

The money a customer must pay for a product or service.

Distribution

The locations and methods used to make a product or service available to the target market.

Channel of Distribution

The route a product follows and the businesses involved in moving a product from the producer to the final customer.

Channel Members

The businesses that take part in a channel of distribution.

Promotion

Any form of communication used to inform, persuade, or remind.

Effective Communication

The exchange of information so there is common understanding by all participants.

Personal Selling

Direct, individualized communication with prospective customers to asses their needs and assist them in satisfying thoses needs with appropriate products and services.

Advertising

Any paid form of communication through mass media directed at identified consumer to provided information and influence their actions.

Product and Service Management

Designing, developing, maintaining, improving, and acquiring products and services that meet consumer needs.

Distriution

Involves determining the best ways for customers to locate, obtain, and use the products and services of an organization.

Selling

Communication directly with potential customers to determine and satisfy their needs

Marketing-information management

Obtaining, managing, and using market information to improve business decision-making and the performance of marketing activities.

Financial analysis

Budgeting for marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the business

Pricing

Setting and communicating the value of products and services

Emotional Buying Motives

Reasons to purchase based on feelings

Rational buying motives

Guided by facts and logic

Secondary Research

Analyzing existing information gathered for another purpose but used to solve a current problem is known as:

Primary Research

Studies carried out to gather new information specifically directed at a current problem

Surveys

gather information from people using a carefully planned set of questions

Focus Groups

Small number of consumers take part in a group discussion

Observations

Collect information by recording the actions of consumers rather than asking them questions

Experiment

presents two carefully controlled alternatives to subjects in order to determine which is preferred or has better results

Basic Product

The simplest form of a product

Product Features

Additions and improvements to the basic product

Options

When customers are offered choices of features

Brand Name

Provides a unique identification for a company's products

Packaging

Provides protection and security for the product before it is used

Guarantee or Warranty

If the product breaks or does not meet customer expectations, the company will repair, replace, or provide a refund.

Selling Price

The price paid by the customer for the product

Product costs

are the costs to the manufacturer of producing the product or the price paid by other businesses to buy the product

Operating expenses

are all expenses of operating the business that are associated with the produce

Profit

Amount of money available to the business after all costs and expenses have been paid

Gross Margin

Difference between the selling price and profit

Markup

Amount added to the cost of a product to set the selling price

Markdown

Reduction from the original selling price

Direct Channel of Distribution

products move from the producer straight to the consumer with no other organizations participating

Indirect Channel of Distribution

Includes one or more other businesses between the producer and consumer

What are the components of effective communication?

Communication begins with a person or organization (the sender) that has information to communicate to another person or organization (the receiver). The sender chooses the way (communication channel) the information will be transmitted to the receiver. Before sending the message, the send decides the form in which the information will be sent; Text, spoken words, pictures. Preparing the information to be communicated is called (encoding). The receiver obtains the information from the channel and interprets it for understanding (decoding). To be sure that the communication achieved the desired result, the send needs to have a response from the receiver (feedback). If the receiver understood the information and responds in a way the send wanted, communication was effective. If the receiver does not respond or acts in an unexpected way, communication failed.

The words in (Parentheses are important words)

Personalized promotion

Communicates directly with each customer using information tailored to that person

Mass promotion

Communicates with many people at the same time with a common message

Publicity

Non-paid promotional communication presented by the media rather than by the business

Public relations

Is an ongoing program of non-paid and paid communications.

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