Exchange: mutual transfer of goods, money, services, or their equivalents; also the marketplace where such transfer occurs

. An exchange takes place every time something is sold in the marketplace. Marketing: the process of planning and executing the conception, pricing, promoting, and distributing goods/services/ideas to create exchanges that satisfy individual and organizational objectives. Marketing Mix: also known as the "4 P's", is made up of Product, Place, Price, and Promotion. Product- what to sell. Price- what to charge for it. Place- where to sell. Promotion- how to talk people into buying it (getting the word out about your product). The Marketing Concept: Give the customer what they want while achieving company goals. To make a profit a business must focus all of its efforts on satisfying the wants and needs of the customer. Who uses marketing? -Producers (manufacturing, farming, forestry, mining, fishing) -Wholesalers (parts, supplies, equipment) -Retailers (Macy's, Farm Fresh, McDonald's) Three types of business ownership... 1. Sole Proprietorship: easiest to start, been around the longest, and taxed less. However, the owners have unlimited liability and if owner dies, the business ends. 2. Partnership: has the experience of both owners. However, also has unlimited liability, and if one partner dies the business ends. 3. Corporation: owned by shareholders, who are only liable for what they invested. They have one vote for every share they own. It is easy to transfer ownership. However, this is the most complicated form of business to start, and it is taxed more.

What is marketed? Products are used to satisfy our needs and wants and include both goods and services. Goods: are the kinds of things you can touch or hold in your hand. Example: a pair of jeans, sneakers, etc. Durable Goods: products that aren't consumed or quickly disposed of, and can be used for several years. Non-Durable Goods: products which are consumed in a short period of time. These goods get used up and have to be replaced frequently. Services: work done for others as an occupation or business. They consist of a series of tasks performed for a customer. Services are the products you can't physically touch. Example: Dry Cleaners, Movie theatres, etc. Who is our market? Market: the group of all potential customers who share common needs and wants, and who have the willingness, and money to but a product. Customer: the person who is actually purchasing (paying) for the product. Consumer: the person who is actually consuming (using) the product. Mass Marketing: using a single marketing plan to reach all customers. Target Market: a specific group of consumers with similar characteristics, within a broader group of consumers who purchases a type of product. Market Segmentation: dividing the total market into smaller groups of people who share specific needs and characteristics. (Small groups with the same needs). 4 Types of Market Segmentation 1-Geographic: based on where people live. 2-Demographic: refers to the population in terms of age, gender, income, ethnic background, education, and occupation. 3-Psychographic: based on lifestyle and attitudes and values that shape it. Interests or activities people are involved in.

4- Behavioral: divides consumers into groups according to their response to a product. The 7 Functions of Marketing 1. Product Service Management: obtaining, developing, maintaining, and improving a product/service mix in response to marketing opportunities. This function plans, directs, and controls all phases of a product's life cycle from beginning to end. (Ex: generating ideas for a new product, improving an existing product, and removing products from the market.) ***Purchasing: buying goods and services used in the operation of your business. Examples: display cases, computers. ***Risk Management: preventing loss or failure of the business. Examples: theft prevention, inventory control. 2. Financing: getting the money necessary to start your business. 3. Pricing: determining and adjusting prices to maximize return and meet customers' perception of value. (How much to charge for your goods and services.)

4. Distribution: transporting, storing, locating, and/or transferring ownership of goods and services. The main goal is to move the products from producer to consumer.

5. Promotion: communicating information about goods/services/ images/ideas to remind people about the product, to persuade you to buy the product, or to inform you about why the product is the best choice. (Ex: Advertising, Publicity, Sales Promotion) 6. Selling: determining customers' needs and wants, and responding through planned personalized communication that influences purchase decisions and enhances future business opportunities. 7. Marketing Information Management: gathering, accessing, synthesizing, evaluating, and disseminating information to make a good business decision. (Ex: Who are our customers? What products do they want? Why do they want them?)

The 5 Types of Utility (ways to add or increase value of a product) Utility: the inherent quality or ability of a product to satisfy a want.

1. Form Utility: changing the form of something to make it more useful.

Example: a tree is beautiful, but if we changed the form of a tree, by cutting it down and making it into lumber, it is more useful to use then it was in the forest.

2. Place Utility: putting your product in a place that makes it more valuable or convenient to customers.

Example: the Wal-Mart in town has a greater place utility then if the store was out in the middle of no where because it is easier to get to. Also Catalog or Internet Orders.

3. Time Utility: having a product available at a certain time of the year makes it more valuable.

Example: toys released by companies at Christmas have a greater value because they are released at a time when people are buying a lot of toys.

4. Possession Utility: you are spending your hard earned money to but something, and because your money is valuable to you, then so is the product you but with it. 5. Information Utility: when information is communicated to a customer about the benefits of a product, it increases the value of that product in the customer's eyes.

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