Download Chapter Notes - Michael Kistler

What is marketing?
Objectives:
1.) Be able to define marketing.
2.) Explain what marketing is and describe important marketing
functions.
3.) Define the marketing concept
4.) Determine how businesses use the marketing concept
1.) Marketing – the creation and maintenance of satisfying exchange
relationships.
a. Creation – adapting and finding new products
b. Maintenance – continue identifying needs/wants
c. Satisfaction –meeting their needs/wants
d. Exchange relationship – give us money for something of value
2.) Marketing concept is using the needs of customers as the primary focus
during planning, production, pricing, distribution, and promotion of a
product.
Identify
needs of
customers
Develope
and market
products for
services
Operate a
business
profitably
3.) Implementing the Marketing Concept
a. Identify the market
i. Market – a description of a unique group of prospective
customers a business wants to serve and their location.
ii. Target market – a clearly defined segment of the market to
which a business wants to appeal.
b. Develop a Marketing Mix (4P’s)
i. Marketing Mix – Blend of four elements by the business
1. Product – Anything offered to a market by the business
to satisfy needs.
2. Placement (Distribution) – Locations of methods used to
make the product available to customers.
3. Price – The amount that customers pay and the methods
of increasing the value of the product to customers
4. Promotion – Includes the methods used and information
communicated to encourage customers to purchase and
to increase their satisfaction
4.) Marketing Functions
a. Market Planning – Identifying and understanding the market a
company wants to server. Identify strategies.
b. Product and Service Mgmt – Creating new products and/or alter
products.
c. Distribution – Determine the best method to help prospective
customers locate, obtain, and use a product.
d. Pricing – Establish and communicate value
e. Promotion – Communicate information to prospective customers.
f. Selling – Direct, personal communication with prospective customers
g. Marketing-Information Management – Obtaining, managing and
using market information to improve decision making.
h. Financing – Budgeting for necessary financing. Also, providing help
purchasing the product.
i. Risk Management – Providing security for products, personnel, and
customers and reducing the risk associated with decisions and
activities.