Marketing Study Guide: Exam I
Chapter 1: Developing Customer Relationships and Value through Marketing
Provide a definition of marketing to a friend. How does it compare to the AMA’s
Marketing is the process of planning and executing the conception, pricing, and
promotion, and distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational objectives.
Marketing focuses on discovering and satisfying consumer needs.
As defined by AMA:
Marketing is an organizational function and a set of processes for creating,
communicating and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders.
Describe a market and a target market.
Potential customers make up a market which is 1. people, 2. with the desire and 3.
with the ability to buy a specific product. Marketing must concentrate its efforts
on certain needs of a specific group of potential customers. This is a target market
--one or more specific groups of potential customers toward which an
organization directs its marketing program.
Compare the controllable marketing mix factors with the uncontrollable
environmental factors. Why can you control the marketing mix?
idea to satisfy consumer’s needs), price, promotion (a means of communication
between the seller and buyer), and place. These are what a person can take to
solve a marketing problem. They are, in other words, under the control of the
marketing department in an organization.
The uncontrollable environmental factors can be placed into five groups: social,
economic, technological, competitive, and regulatory forces. Examples are what
consumers themselves want or need. These factors are uncontrollable and serve as
accelerators or brakes on marketing.
Once the target market is specified, the firm must take steps to satisfy their needs.
These controllable factors are the marketing actions of price, promotion, place,
and product that he or she can take to solve a marketing problem.
Describe the various orientations/eras that have affected American business.
How did marketing become so important? There were four eras:
Production Era: Goods were scarce in this era so buyers were
willing to accept any goods that were produced and make do
with them as best as they could. The notion was that products
would sell themselves so the major concern was production, not
marketing. This era continued though the 1920’s.
Sales Era: In this era, firms discovered that they could produce
more goods than their regular buyers could consume.
Competition grew. Therefore, more salespeople were hired to