CLEP Principles of Marketing Study Notes

CLEP Principles of Marketing Study Notes - PART I Marketing...

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PART I Marketing - process of determining goods or services that there is a demand for, and then developing, pricing, distributing, and promoting those products and services to make a profit. Bring product/service to market. Market - customers for a product or service, or the town, region, or country where a demand for a specific product or service exists and people who have ability to buy. Commodities offered for sale are known as products , and can include goods, services, information, places, etc. Loss Leader - pricing strategy which involves selling products/services at a price that will generate little or no profit and in some cases not even cover all associated costs.Selling at below cost. The idea is to attract customers to the business via a bargain who may then purchase other products/services. Selling other items that generate high profits makes up for the Loss Leader pricing. Marketing Concept – management philosophy that states an organization should try to provide products that satisfy customer s' needs while achieving its own goals 6 Primary Marketing Functions : 1. Environmental Analsysis (Market Research Function) - used to determine market potential for product & identify specific target markets. Collects info about forces in marketing environment & analyzing data to determine possibilities in market linked to environmental chances. Environmental Scanning - Collecting information about the forces in the marketing environment. (i.e, threats/opportunities) . Data is used for Environmental Analysis. Organizations can perceive forces as unchangeable, try to adapt to them, or try to mold forces (i.e, if law reduces product marketability, can try to lobby for chg in legislation, etc.) 2. Consumer Analysis (Market Research Function)(same as above) – both environmental & consumer analysis involve factors which cannot be directly controlled by the organization. Next 4 are also the variables that make up Marketing Mix: (known as 4 P’s): 3. Price – establishing the value the customer receives in a sale. Critical component as customers are concerned about the value obtained in an exchange. Sometimes lower prices are used to win customers, and other times high prices are necessary to maintain the prestigious image of a product. 4. Product – Designing a product (i.e,, good/service/idea) that fits customers’ needs and making something which has their desired characteristics 5. Promotion – i nvolves informing one or more groups of people about an organization and its products. Activities aimed at increasing public awareness about an organization or one of its products, keeping interest strong in an established product, educating consumers about product features, etc. 6. Physical Distribution - making products available in the desired quantities to as many customers as possible while keeping inventory, transportation, and storage costs as low as possible.
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