Business Test CH_10

Marketing plan

is a document describing business and marketing objectives and the strategies and tactics to achieve them First step is identify target market; market identification

Database marketing

is a system of gathering, storing, and using customer data for marketing directly to customers based on their histories

Customer relationship management (CRM) system

is a system to track contact and other information for current and potential customers

Marketing concept

is an approach to business that focuses on satisfying customers as the means of achieving profit goals

Product

is anything that can be bought or sold

Psychographic segmentation

is dividing the market by certain preferences or lifestyle choices

Demographic segmentation

is dividing the market of potential customers by their personal statistics

Mass marketing

is marketing to a larger group of people who might buy a product

Geographic segmentation

is segmenting a market based on where customers live

Price

is the amount of money requested or exchanged for a product

Marketing strategy

is the plan that helps a business meet its overall goals and objectives

Influence:

is the power to sway or produce an effect

Promotion

is the process of communicating with potential customers to influence their buying behavior

Market segmentation

is the process of dividing the market into smaller groups

Target market

is the specific group of customers whose needs a company will focus on satisfying

Routine Purchase:

little thought or planning; familiar products purchased often

Personal influences

make each individual unique

Consists of dynamic activities that identify, anticipate, and satisfy customer demand while making a profit.

marketing

Approach to business that focuses on satisfying customers as the means of achieving profit goals.

marketing concept

Plan that helps a business meet its overall goals and objectives.

marketing strategy

Marketing to a larger group of people who might buy a product.

mass marketing

Government market includes

national, state, and local governments -Buy a wide range of goods and services

Marketing consists

of dynamic activities that identify, anticipate, and satisfy customer demand while making a profit

Four Ps of marketing are the elements

of product, price, place, and promotion

Influence that makes each individual unique.

personal influence

Includes the activities involved in getting goods and services to customers.

place

Process of communicating with potential customers in an effort to influence their buying behavior.

promotion

Influence that comes from within a person or why a person has specific needs and wants.

psychological influence

Focuses on building long-term relationships with customers.

relationship selling

Levels of decision making for consumer purchases

Impulse purchases, Routine purchases, Limited Buying Decision, and Extensive buying decision.

Business-to-business (B2B) influences:

Internal influences, External influences, and situational influences.

Repeat Purchase

Little research and thought, typical for items purchased on a regular basis.

4. Explain the concept of market identification.

Market identification is the first step in developing a marketing strategy, it's when you identify the target market.

Institutions

are public or private nonprofit organizations -Buy goods and services to support their activities

Customer profile

is a detailed description of the typical consumer in a market segment

B2C influence that comes from the environment. B2B influence that comes from the environment in which the business exists.

situational influence

Influence that comes from the society in which a person lives.

social influence

Specific group of customers whose needs a company will focus on satisfying.

target market

New Purchase

Great deal of research and planning, including product specifications and expectations

Steps in decison making process

1. Define the problem or the challenge 2. Research alternatives 3. Choose the best alternative 4. Implement the decision 5. Evaluate the decision

The seven functions of marketing

1. Market Planning 2. Channel Management 3. Product/Service management 4. Pricing 5. Selling 6. Marketing information management(MIM) 7. Promotion

List the seven functions of marketing and describe their related activities.

1.Market Planning - business document outlining your marketing strategy and tactics 2. Channel Management - is the process of managing online distribution channels in order to sell hotel inventory to various agents across the globe 3. Product/Service management - is a marketing function that involves obtaining, developing, maintaining, and improving product service mix in response to market opportunities. 4. Pricing - discover or establish the price of 5. Selling - give or hand over (something) in exchange for money. 6. Marketing information management (MIM) - where marketing data is collected, stored, analyzed and distributed to marketers in accordance with their needs 7. Promotion - is the process of communicating with potential customers to influence their buying behavior

Extensive Buying Decision

A great deal of research, time, and planning; usually an expensive good or service

1. How is marketing related to the other functions of business?

Because in order for a business to be successful all the functions must work together, marketing also helps with identifying the best potential customers, researching how to improve a product, and how to find new ways to sell the product.

Three basic types of customers:

Business-to-consumer (B2C) market Business-to-business (B2B) market Government and institutions

Elements of marketing concept

Customer satisfaction, Total Company Approach, Profit

Explain the difference between market segmentation and mass marketing.

Market segmentation is the process of dividing the market into smaller groups whereas mass marketing is marketing to a larger group of people who might buy a product.

What is Maslow's Hierarchy of Needs?

Maslow's Hierarchy of Needs includes Self-actualization, esteem needs, belongingness and love needs, safety needs and physiological needs. It is a description of the needs that motivate human behavior.

Levels of decision making for business purchases

New Purchase, Repeat Purchase, and Modified Purchase.

Limited buying decision:

New purchase and one one that requires some amount of research and planning

Business-to-consumer (B2C) influences

Social influences, Psychological influences, Situational influences and Personal influences.

Modified Purchase

Some planning and research; used when purchasing a familiar product with certain changes and modifications.

Impulse Purchase:

Spur-of-the movement purchase. An item that is bought without previous planning or consideration of the long-term effects.

Define and explain the importance of a target market.

Target market is a specific group of customers whose needs a company will focus on satisfying, this helps the business help and reach people who like their product and encourage them even more to buy the product and also get feedback from them.

5. List the four variables used to identify market segments.

The four variables used to identify market segments are Geographic segmentation, Demographic segmentation, Psychographic segmentation, and Behavioral segmentation.

2. What are the three elements of the marketing concept?

The three elements of the marketing concept are customer satisfaction, profit, and total company approach.

Place can be

changed based on where a product is offered

Product can be

changed by adding new features

Promotion can be

changed to appeal to the target market

Price can be

changed to match new features

External influences

come from outside the business

Situational influences

come from the environment

Situational influences

come from the environment in which the business exists

Social influences

come from the society in which a person lives

Psychological influences

come from within a person or why a person has specific needs and wants

Internal influences

come from within the business itself

System to track contact and other information for current and potential customers.

customer relationship management(CRM) system

System of gathering, storing, and using customer data for marketing directly to customers based on their histories.

database marketing

Behavioral segmentation

divides a market by the relationships between customers and the good or service

Marketing mix is the strategy for using the

elements of product, price, place, and promotion

Relationship selling

focuses on building long-term relationships with customers

Marketing elements of product, price, place, and promotion.

four Ps of Marketing

Place

includes activities involved in getting goods and services to customers

Motivator or change factor that comes from within a business itself.

internal influence