What is Invaluable for Making Good Marketing Decisions

Unit 2 –Principles of Marketing Marketing Business Explorations Name _____________________________________________________________ Date ___________________ Lesson 1 – Customer Relationships 1. Define Marketing Process of developing, promoting, and distributing products to satisfy customer’s needs and wants 2. List the Benefits of Marketing: For the Customer – Benefits include being able to locate, compare, and buy products For Businesses – Benefit is the ability to gather customer feedback. * It costs more to get new customers than keep existing ones * Satisfied customers “spread the word” about that business 3. Define the 4 Era’s that outline the progression of Marketing. Production Era (Early 1900’s) focus on producing large amounts as quickly as possible, limited customer choices, products purchased as soon as they were available Selling Era (1920-1940) production increased and supply begins to exceed demand, heavy focus on selling with advertising Marketing Era (1950-2000) products flooded market, Marketing Concept began focusing on the customer Relationship Era (2000 – Present) long term customer relationships, satisfied customers promote your business 4. Define Market – A group of people who want, have the means to purchase, and are authorized to make a purchase 5. Define Consumer Market (B2C) –Customers use or benefit from the product; don’t buy to make a profit. Typically impersonal, one time purchases 6. List the 4 elements that affect a customer’s buying behavior: Personal, psychological, social, and cultural elements 7. Define Business Market (B2B) – Purchase products to make other products, resell them, or use in day -to-day operations. Trained to negotiate, better informed about products, buy in large amounts, form long-term relationships with sellers. 8. What is CRM? - CRM Customer Relationship Management Track data to help manage customer relationships 9. Explain how technology helps businesses manage market information. Technology helps to make good marketing decisions by tracking data such as customer contact information, buying behaviors, conduct product surveys, and create social media to collect customer feedback. *Collecting information and handling it correctly is invaluable to making good business decisions. Lesson 2 – Market Segmentation and Marketing Mix 1. Define Market Strategy – Makes best use of resources to increase sales and gain competitive advantage Define Marketing Plan – Contains details on how to meet the needs and wants of customers, then identifies a target market, and develops a marketing mix 2. Define Target Market –A group of people that are similar and most likely to buy the product. 3. Define Market Segmentation – Process of dividing the market into groups of people that are similar to each other and different from everyone else  Analyze customers, not products 4. List and define 4 types of Consumer Market Segmentation 1. Demographic: age, income, gender, ethnicity, marital status 2. Geographic: places people live 3. Psychographic: attitudes, values, interests, lifestyles 4. Behavioral: how people act in relation to products like what they look for and how they use them 5. List and define 3 types of Business Market Segmentation 1. Geographic: based on where customers are concentrated 2. Customer-based: based on characterizes of customers such as size or customer type 3. Product Use-based: how customers use the product 6. List and define the 4 P’s of the Marketing Mix 1. Product – fills customer’s wants or needs 2. Pricing – how much will be charged for the good or service 3. Place – Distribution. How to get the product to the right people, in the right quantities, at the right time and place 4. Promotion – informative or persuasive communication directed toward the customer Unit 2 –Principles of Marketing Marketing Business Explorations Name _____________________________________________________________ Date ___________________ Lesson 3 – Value and Impacts of Marketing Define Economic Utility – The transformation of materials and parts into a product that has use and value to the customer. Marketing adds value by making products more useful. List and define the 5 types of economic utility. 1. Form Utility – changing a raw material or assembling parts to make a valuable product. A new product has more value than just its parts 2. Place Utility – Places products in a place where they are more likely to buy them. Convenience adds value. 3. Time Utility– product release for a certain time of year or day. Offering the product just as the need arises adds value 4. Possession Utility – Valid forms of exchange for method of payment. Purchasing options add value to customer 5. Information Utility – Communicating with the customer by sales people, displays or packaging. Customer knowledge of product adds value List the positive and negative impacts of marketing Positive: comparison shopping, employment, advertisements, and "Shock Valule" Negative: junk mail, advertisements, privacy and "Shock Value"