Marketing Chapter 1 Review Flashcards

Marketing Overview

• Marketing encompasses the planning, pricing, promoting, distributing, and selling of goods or services aimed at satisfying consumer needs and wants.
• Goods are tangible products with monetary value, while services are intangible offerings that fulfill consumer desires.

Key Marketing Processes

• Channel Management: Refers to strategizing the distribution methods to deliver goods to consumers effectively.
• Market Planning: Involves developing and targeting marketing strategies to a specific audience based on market research.
• Marketing Information Management: The research, storage, and analysis of consumer and market data, allowing informed marketing decisions.
• Pricing: Setting prices for goods and services to ensure profitability while considering consumer expectations.
• Product/Service Management: Focuses on the lifecycle management of a product or service, including development and improvement based on market needs.

Promotional Activities

• Promotion: Engaging in efforts to inform, persuade, or remind consumers about products or services.
• Selling: Directly providing goods or services to consumers, fulfilling their demands.

Marketing Concept

• A fundamental principle that emphasizes the necessity for businesses to cater to consumer needs and wants while also achieving profitability.

Customer Engagement Strategies

• Customer Relationship Management (CRM): The integration of customer data and technology to enhance customer service and marketing communications.
• Utility: Refers to the value a product or service provides, including various types such as form, place, time, possession, and information utility.

Types of Utility

• Form Utility: Involves transforming raw materials into valuable products.
• Place Utility: Ensures product availability where customers can access them easily.
• Time Utility: Guarantees product availability during relevant times, like seasonally or according to consumer convenience.
• Possession Utility: Facilitates the legal transfer of ownership from seller to buyer.
• Information Utility: Provides communication about product features and benefits to consumers.

Market Classification

• Market: A collective of individuals who share similar needs and have purchasing capability.
• Consumer Market: Comprised of individuals buying goods and services for personal use.
• Industrial Market: Businesses that procure products for operational purposes.

Market Analysis Concepts

• Market Share: Indicates a company’s proportion of total sales volume relative to competitors in a specific market.
• Market Segmentation: The categorization of consumers based on shared needs and preferences to target marketing efforts more effectively.
• Target Market: The specific group of people most likely to purchase a product or service.

Customer Profiling and Marketing Mix

• Customer Profile: A detailed outline of a target market, including demographic, geographic, and psychographic factors.
• Marketing Mix: Comprises the four P's (Product, Place, Price, Promotion) utilized by marketers to strategize and attract potential customers.

Detailed Aspects of Marketing Mix

• Product: Involves decisions about product design, features, branding, packaging, and warranties.
• Place: Addresses decision-making regarding sales channels and market reach, including local and global venues.
• Price: Should align with consumer willingness to pay and competitive pricing; can vary with promotional strategies.
• Promotion: Involves tactics such as advertising, personal selling, and publicity to effectively communicate with potential customers.