GUIDED NOTES POBF 3.01: UNDERSTAND PRINCIPLES OF MARKETING
FUNCTIONS OF MARKETING:
1. The process of , promoting, and distributing
products/services in order to satisfy and . Marketing involves the activities necessary in getting a product from the to the .
2. Seven functions of marketing
a. Marketing-Information Management – obtaining needed to make sound decisions. Example: and
b. Product/service management – concepts and procedures necessary to , develop, and a product or service mix in response to .
i. Risk Management – preventing or business ii. Purchasing - goods and services for use in the day-to-day
operations; where a product is
c. Financing – obtaining needed to the of a business; bank and offering to d. Pricing – determining a to for goods and services.; consider and what are and to pay.
e. Promotion - used to or people about a business’s ; involves customers to
a product.
f. Selling – determining needs and want through planned,
intended to purchase decisions and ensure
g. Distribution – the , and of goods on their way from the to the ; includes the decisions about to a product.
3. Marketing research involves in order to to problems through carefully
a. Define the problem b. the situation
c. Develop a procedure d. and information e. Propose a
a. Surveys – the most type of marketing research; gather from people a set of ; delivered by Internet or
b. Focus groups – a group of taking part in a group ; discusses with products or make for product
c. Observations – collects by the of consumers; observe how study and products
d. Experiment – presents carefully products to in order to determine which product is
5. Parts of a product
a. product is the form of a product or service
b. Product include and to the product or service
c. Include of the product or service
d. name is a company’s identification for a product or service e. Packaging is the and of a product or service
it is used.
f. Is an to , , or provide a a product or service in order to the of in a business
6. Products vs. Services
a. Similarities – Both meet the or of a market; include a of the elements ( , , .)
b. Differences –
Products Services
7. Factors Influencing Price (add your definition for these 6 items) a. Supply and
b. c. Age
d. e. Complexity
8. Pricing Formula
a. Selling - the price by the
b. Product costs – costs to the for the product or paid by the to the product
c. Operating - all expenses associated with a business d. - the amount of available to the after
all and have been paid.
9. Price = product + expenses +
10. Markup – the amount to the of a product to the price.
a. Selling = product + 11. Markdown – a from the price
12. Channels of Distribution – how products and services their customers and the businesses ; aka place function
NEEDS OF THE CUSTOMER NEEDS OF THE BUSINESS
Quantity Quantity
Assortment Assortment
Location Location
Timing Timing
13. Types of Channels
a. Direct – products move from the straight to the with other organizations involved
b. Indirect – includes or other businesses the and the
14. Promotion – any form of used to , , or
16. Promotion is the effective and the expensive form of promotion. Examples Personal - communication between the
and the ; helps to assess the of customers; face to promotion
17. Mass promotion – directed at people at the time. Examples – Advertising, , Public , and promotion
a. Advertising – most types of advertising are television, , Newspapers, , mass , outside displays and
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GUIDED NOTES POBF 3.02: UNDERSTAND BUYING BEHAVIORS
1. A marketing provides vital on how a business will its of customers that will result in making and .
2. There are two steps to a marketing strategy:
a. Target market – a group of that have wants and needs. Market segmentation is dividing the target market into smaller groups based on:
i. Demographics – age, , income, ii. Geographic -
iii. Psychographic - , attitudes and iv. Behavioral - customers the products
b. Marketing Mix (4 P’s) – the of the elements of marketing known as , (distribution), , and . Goals are to satisfy the and of the market and to
a for the company. 3. Consumer Decision Making Process
a. Recognize a b. Information
c. Select and d. Make a
e. Determine the of the 4. How does decision making occur?
a. Extensive – a level of risk, a product or service is very or has a high to the
c. Routine – when little is needed about the product being
5. Consumer buying motives – the consumers decide products and services to
a. Emotional - , beliefs and
b. - based on and
c. Patronage – based on , customer , merchandise and
6. Consumer Information Sources:
a. Product Organizations – test products and services to detect Examples: Underwriters , Association of Appliance Manufacturers, Union (independent testing organizations)
b. Media sources – provide information about products and services. i. Print = and
ii. Broadcast = and iii. Internet = websites, world wide web
c. Government agencies – consumers and may handle consumer all levels of government Federal, and Local
d. Business sources – available as a service and to products and services.
i. Advertising – main function is to
ii. Product labels – provide helpful information about of the product, how to for the product, the product was and the of the product.
iii. Customer departments – focus on customers iv. Better ( ) provides about products or services
v. Personal - “word of “ advertising 7. Retailers:
a. Traditional retailers include
i. stores – provide product lines and their service
ii. Discount - highlight their offering of prices for products
iii. Stores – provide a of products
iv. Supermarket – large, store that offer many of products v. Convenience Store – provide items, offer operating
hours and are usually located in areas b. Contemporary retailers include:
i. Specialty - provide variety of products at prices
iii. Warehouse Club – provide products in at prices
iv. Factory outlets – provide products at prices c. Non-store retailers allow purchasing of goods and services by , computer,
