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58 terms

Intro To Business Chapter 10 Marketing

STUDY
PLAY
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.