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Principles of Marketing - CLEP Book 422 terms Marketing The process of planning and executing the development, pricing, promotion, and distribution of goods and services to achieve organizational goals. This directs the flow of products within an economy from producer to consumer by anticipating and satisfying the wants of needs of the market through the exchange process. Market Made up of all the people or organizations that want or need a product and have the willingness and ability to buy. Products Goods, services, ideas, places, or persons Marketing Concept A customer-oriented business philosophy that stresses customer satisfaction as the key to achieving organizational goals. This philosophy maintains that all of the organization's efforts should be focused on identifying and satisfying the wants and needs of the customer. Six Primary Marketing Functions 1. Environmental Analysis2. Consumer Analysis3. Product Planning4. Price Planning5. Promotion Planning6. Physical Distribution (Place) Planning Environmental and Consumer AnalysisMarket research functions that provide the means to evaluate market potential and identify target markets Product, Price, Promotion, and Physical Distribution (place) planning Marketing mix variables (4Ps)Marketing Mix Combination of the 4Ps that comprise an organization's marketing program; the manner in which these factors are combined reflects the planned strategy of the organization. Market Segmentation
The process of dividing the total market into distinct submarkets or groups based on similarities in their wants, needs, behaviors, or other characteristics. Market Segments Groups of customers who are similar to each other in a meaningful way (needs and interests) and who will respond to a firm's marketing mix similarly. Target Market One particular group of potential customers that the organization seeks to satisfy with one product. It is the market at which the firm directs a marketing mix. Different marketing mixes are developed for each target market to satisfy their specific wants and needs. Thesemay be comprised of market segments or a mass market characterized by a "typical customer." Product Differentiation Exists when a product or brand is perceived as different from its competitors on any tangible or intangible characteristic. This also refers to the strategy in which one firm promotes the features of its product over the features of competitive products in the same market. Product Positioning  The decisions involved in shaping the product's image in the customer's mind. These images are defined relative to competing products. Consumer perceptions are the critical issue—not the actual difference between products.All elements of the marketing mix should be coordinated to achieve and support the firm's desired positioning of its brands.