Download Marketing Study Guide

Business Administration
Marketing
Study Guide
1. List and explain the four P’s of the marketing mix.
a. Product – What is the product your market wants ?
b. Price – At what price is your market willing to pay
c. Place – Distribution – how will your market get the product.
d. Promotion – How will you promote to the market.
2. What is considered the fifth P’s in the marketing mix?
a. People – What people will the business hire to best serve your market.
3. What is the difference between consumers and customers?
a. Consumers: the people using and consuming a product
b. Customers: the people purchasing the product
4. Explain some of the ways one can extend the product life cycle.
a. By refining or extending it.
5. Explain the difference between refining a product and extending a product.
a. Refine: improving a product’s performance to increase value to a consumer
b. Extend: adding additional features
6. Explain the marketing functions.
a. Distribution – involves deciding where and to whom products need to be sold in
order to reach the final users.
b. Financing – getting the money that is necessary to pay for the operation of a
business.
c. Marketing Information Management – getting the necessary information to
make sound business decisions.
d. Pricing – deciding how much to charge for goods and services in order to
maximize profits.
e. Product/Service Management – obtaining, developing, maintaining, and
improving a product or a product mix in response to market opportunities.
f. Promotion – communicating with potential customers to inform, persuade, or
remind them about a business’s product.
g. Selling – provides customers with goods and services they want.
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Frey: 2014/15
Business Administration
Define the following terms:
Market: All the people that share similar wants and needs and who have the ability to purchase
a given product.
Distribution: involves deciding where and to whom products need to be sold in order to reach
the final users.
Distribution Channel: the path a product takes from the producer to the ultimate or final user
Direct channel: When the producer sells directly to the customer with no middle men being
involved.
Retailer: A business that buys goods from wholesalers or directly from manufacturers and
resells them to consumers.
Wholesaler: A business that obtains goods from manufacturers and resells them to
organizational users, other wholesalers, and retailers.
Market Share: The percentage of the total sales volume generated by all companies that
compete in a given market.
Product Line: group of similar products with obvious variations in design and quality to meet
the needs of distinct customer groups
Target Market: The group of people that is identified for a specific marketing program.
Market Segmentation: The process of classifying people who form a given market into even
smaller groups.
Customer Profile: Specific information about the target market
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Frey: 2014/15