Marketing I

Chapter 1 – Marketing is All Around Us

Study Guide

1) Define the term “Marketing”. Explain each part of the definition (as reviewed in class).

The activity of creating, communicating, delivering, exchanging offerings with value for customers. The activity, set of institutions,
and processes for product, promotion/public relations, distribution, and selling that price for customers.

2) What is the difference between goods and services?

A good is a tangible item with monetary value, and a service is an intangible item with monetary value.

3) List and explain the 7 Functions of Marketing.

1. Distribution - how a seller gets the product to the customer (cargo ships, train, trucks, etc.)
2. Marketing Info Management - the gathering of information from customers (surveys, reviews)
3. Market Planning - analysis of target market data in order to create a plan
4. Pricing - establishing and communicating the monetary value of a product using competitors
5. Product Service Management - changing a product in order to suit the market better
6. Promotion - Informing, Persuasion, and reminders about a company’s products toward customers
7. Selling - Pre-planned and personalized communication intended to affect customer’s decisions.

4) What is the “Marketing Concept”?

It is that businesses must give customers what they want and need in order to make profit.

5) What are the 3 economic benefits of marketing?

1. New and Improved Products
2. Lower Prices
3. Economic Utility

6) What is the definition of “Economic Utility”? Describe each utility (form, possession, information, place, time) and identify which 4
utilities are directly related to marketing?
The utilities are form, time, possession, place and information. The four utilities directly related to marketing are time,
possession, place, and information. Form Utility entails changing materials or putting parts together to make them better. Time
Utility involves the company taking advantage of the time, whether it be a season, or some event. Possession Utility handles the
 exchange of goods or services for monetary value, offering many ways of payment. Place Utility is the actual place where you
can purchase the goods, whether it be online or a physical store.The Information Utility is the communication of what a product
or service is to the customer.

7) What is a “Market”?
All the potential customers who are capable and willing of buying a company’s product or service.

8) Define Consumer Market and Organizational Market. How do they differ?

A consumer market consists of customers who use products for personal use. Organizational Market consists of businesses buying
other businesses products for use in their own business.

9) What is a Target Market? What is a Customer Profile?

It is the strategy where all decisions are focused on a specific group of people. Customer profile is the age, income, occupation, attitudes,
lifestyles, and location of the target market.

10) What is the difference between a customer and a consumer? Explain.

A customer is the person who purchases the product, though they may not be the ones using it. A consumer is the person who uses the
product.

11) Explain the 4 P’s of the Marketing Mix. How are each of them used?
The Four P’s are Price, Promotion, Place, and Product. Price is used to determine what price the customer is willing to pay and how it
compares to competitors. Promotions are all the activities used to get customers to buy a company's products. Place is the place where
the customer can actually buy the product. And lastly, Product is the thing that companies make or sell, product features, brand names,
packaging service, and warranty are all a part of it as well.