Chapter 1&2 Study Guide Chapter 1&2 Study Guide

MARKETING DYNAMICS

Marketing-is the process of Marketing-is the process of developing, promoting, and developing, promoting, and distributing products to satisfy distributing products to satisfy customers’ needs and wants.customers’ needs and wants.

Goods- are the kinds things you Goods- are the kinds things you can touch or hold in your hand.can touch or hold in your hand.

Services- are the kinds of things Services- are the kinds of things you can’t physically touch.you can’t physically touch.

Exchange- takes place every Exchange- takes place every time something is sold in the time something is sold in the marketplace. marketplace.

Utility- utilities are the attributes of a Utility- utilities are the attributes of a product or service that make it product or service that make it capable of satisfying consumers’ capable of satisfying consumers’ wants and needs.wants and needs.

(examples) form, time place, (examples) form, time place, possession, and information.possession, and information.

Form utility- involves changing raw Form utility- involves changing raw materials or putting parts together to materials or putting parts together to make more useful.make more useful.

Place utility- involves having a Place utility- involves having a product where customers can product where customers can buy it.buy it.

Time utility- is having a product Time utility- is having a product available at a certain time of available at a certain time of year or a convenient time of year or a convenient time of day. day.

The Four basic Functions of The Four basic Functions of MarketingMarketing Business, management, Business, management,

entrepreneurship-entrepreneurship-

Communication and Interpersonal Communication and Interpersonal Skills Skills

EconomicsEconomics

Professional Development Professional Development

Possession utility- the exchange Possession utility- the exchange of a product for some monetary of a product for some monetary value.value.

Information utility- involves Information utility- involves communication with the communication with the consumer. consumer.

The Seven Functions of The Seven Functions of MarketingMarketing

Distribution Distribution FinancingFinancing marketing information marketing information

management management pricingpricing Product service management Product service management PromotionPromotion selling selling

Benefits- are privileges, or Benefits- are privileges, or monetary payments beyond monetary payments beyond salary or wages, that go with a salary or wages, that go with a job. job.

Examples: include the us e of Examples: include the us e of the company car, an account , the company car, an account , and bonuses for outstanding and bonuses for outstanding work. work.

Occupational area- is a Occupational area- is a category of jobs that involves category of jobs that involves similar skills and aptitudes.similar skills and aptitudes.

Five job Levels in Marketing Five job Levels in Marketing

Entry- level jobs that usually Entry- level jobs that usually require no prior experience and require no prior experience and involve limited decision-making involve limited decision-making skills.skills.

Career sustaining- jobs that Career sustaining- jobs that require higher level skills. require higher level skills.

Marketing Specialist- employees Marketing Specialist- employees must show leadership ability and must show leadership ability and make many decisions on a daily make many decisions on a daily basis.basis.

Manager/ Owner- is the top level. Manager/ Owner- is the top level. People at this level are competent to People at this level are competent to run a small business or a significant run a small business or a significant part of a large business. part of a large business.

Marketing Concept- a plan that a Marketing Concept- a plan that a business follows to become business follows to become more successful.more successful.

Customers- they buy the product Customers- they buy the product

Consumers- are those people who Consumers- are those people who actually use the product. actually use the product.

Target marketing- is focusing all Target marketing- is focusing all marketing decisions on a very marketing decisions on a very specific group of people who you specific group of people who you want to reach.want to reach.

Customer profile- can include Customer profile- can include information about the target market information about the target market with regard to the age, income level, with regard to the age, income level, ethnic background, or occupation. ethnic background, or occupation.

4 p’s of Marketing Mix 4 p’s of Marketing Mix

ProductProduct Place Place Price Price Promotion Promotion

Marketing Segmentation-is a way of Marketing Segmentation-is a way of analyzing a market by specific analyzing a market by specific characteristics in order to create a characteristics in order to create a target market.target market.

Demographics- refers to statistics Demographics- refers to statistics that describe a population In terms of that describe a population In terms of personal characteristics, theses personal characteristics, theses include age, gender, income, and include age, gender, income, and ethnic background. ethnic background.

Baby boom generation- 76 Baby boom generation- 76 million babies were born in the million babies were born in the united states between 1945 and united states between 1945 and 1964.1964.

Generation X- 40 million Generation X- 40 million Americans born between 1965 Americans born between 1965 and 1976.and 1976.

Generation Y- 77 million Americans Generation Y- 77 million Americans were born between 1977 and 1997. were born between 1977 and 1997.

Disposable income- is the money left Disposable income- is the money left after taking out taxes.after taking out taxes.

Discretionary income- is the money Discretionary income- is the money left after paying for basic living left after paying for basic living necessities such as food, shelter, necessities such as food, shelter, and clothing.and clothing.

The Caucasian group is declining, The Caucasian group is declining, while other ethnic populations while other ethnic populations increase.increase.

African-Americans, Hispanic, and African-Americans, Hispanic, and Asian American populations make Asian American populations make up 28 percent of the U.S up 28 percent of the U.S populations, by 2025 these ethnic populations, by 2025 these ethnic groups will represent 36 percent of groups will represent 36 percent of all Americans. all Americans.

Psychographics- involves Psychographics- involves studies of consumers based on studies of consumers based on social and psychological social and psychological characteristics . characteristics .

Trends- health, eating properly, Trends- health, eating properly, and exercising are trends and exercising are trends setting issues for marketers in setting issues for marketers in the twenty-first century. the twenty-first century.

Math problems:Math problems:

Review math problem #5, pg. Review math problem #5, pg. 10-Know how to determine the 10-Know how to determine the fixed cost per unit.fixed cost per unit.

Review problem #7, pg. 16-Review problem #7, pg. 16-Know how to figure percentKnow how to figure percent

Created by: Jarnee Created by: Jarnee Lartey Lartey

Jan. 30, 2007 Jan. 30, 2007