What is Marketing? Chapter 1 Section 1

Marketing The process of developing, promoting, and distributing goods and services to satisfy customers’ needs and wants Goods – tangible products – sports equipment Services – intangible products – theater tickets

Marketing Concept The idea that organizations need to satisfy their customers while also trying to reach their organizations’ goals. To make a profit, businesses must focus their efforts on customers’ needs and wants

Market Consists of potential customers with shared needs who have the desire and ability to buy a product. Identifying the market is important because businesses need to know whom they need to satisfy.

Needs and Wants Needs – Basic necessities such as food, clothing, or shelter Wants – Desires based on personality, experiences, or information about a product

Target Market A specific group of consumers that an organization selects as the focus of its marketing plan.

Marketing Mix Product Decisions Price Decisions Place Decisions Promotion Decisions

Economics of Marketing Gross Domestic Product – value of all goods and services produced within the country Free Enterprise System – Business make all economic decisions – profit is their motivation

Free Enterprise Systems Profit – money left after all costs and expenses of a business Risk - financial, poor weather, performer illness, injury to spectators

Free Enterprise System Competition – struggle among companies for customers Price Competition – supply and demand Non-price Competition – quality, service, image

Property Ownership Copyrights – protection of a creator’s intellectual property – books, films, video games, and music. Life of the author plus 70 years

Property Ownership Patents – inventions – products – protected for 20 years Trademarks – words, names, symbols, sounds or colors that distinguish goods are services. Trademarks can be renewed over and over. 10 year term

Types of Business Ownership Sole Proprietorship Partnership Corporation Subchapter S Corporation