MKTG 3340 Test 1 Study Guide 100% Verified

definition of marketing - two definitions: 1. process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others (Philip Kotler) 2. Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customer's point of view (Peter Drucker) five core concepts - 1. needs, wants, and demands 2. products and services 3. value, satisfaction, and quality 4. exchange, transactions, and relationships 5. markets what is a need? - state of felt deprivation including physical, social, and individual needs What is a want? - form that a human need takes, as shaped by culture and individual personality What is a demand? - human wants backed by buying power; want + buying power=demand products vs services - products: anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a need or want ex: food, electronics, cars, jewelry, clothing, machinery services: activities or benefits offered for sale that are essentially intangible and don't result in the ownership of anything ex: banking, airline, haircut, hotel customer satisfaction - depends on the product's perceived performance in delivering value relative to the buyer's expectations customer value - benefit that the customer gains from owning and using a product compared to the cost of obtaining it exchanges and transactions - trade of values between parties, usually involving money development of relationships - building long-term relationships with consumers, distributors, dealers and suppliers four Ps of marketing - price, promotion, place, product price (four Ps) - tools that determine how much and when the customer pays (list price, discounts, bundling, terms, credit) product (four Ps) - much more than the tangible item that the customer sees (product line breadth and depth, product characteristics like quality, features, design, reliability, brand, packaging, services, return and warranty policies) promotion (four Ps) - includes all communication with potential customers that are intended to influence their attitudes, beliefs, and purchase options, which many people commonly think of as marketing; (advertising, sales promotion, direct marketing, public relations, personal selling) place (four Ps) - involves how and when the customer gets the product (shelf location, display, inventory, distribution channels, transportation, territory or coverage) evolution of marketing - 5 C's of company's micro environment - company, customers, competitors, channels, constituents what are the 5 C's of a company's micro envirnoment used for? - can be used as a framework to describe and analyze the company's immediate environment company's internment environment (5 C's) - functional areas such as top management, finance, and manufacturing, marketing, etc. customers (5 C's) - buyers in markets that purchase a company's goods and services competitors (5 C's) - those who serve the target market with similar products/services channels (5 C's) - such as supplies, distributors, wholesalers, and retailers), provide the resources needed to produce goods and services and help the company to promote, sell, and distribute the final buyers constituents (5 C's) - stakeholders; any group that perceives itself having an interest in the company's ability to achieve its objectives what is the company's macro environment? - the broader corporate environment what is S.W.O.T. analysis? - It groups observations of the company and its environment into internal strengths and weaknesses and external opportunities and threats what are strengths and weaknesses of SWOT? - strengths and weaknesses are factors specific to company which contribute to company which contribute to either good performance (strengths) or poor performance (weaknesses)