2. A. Products- Include goods, services and ideas
I. Marketing- is the process of creating, distributing, promoting and pricing goods, services, and ideas to facilitate relationships with customers and stakeholders in the global marketplace
A. Products- Include goods, services and ideas
1. Goods- Are physical (tangible) entities you can touch (eg. Food, Clothes, Cars, etc.)
2. Services- Are intangible entities you can’t touch (eg. Haircut, Car Wash, etc.
3. Ideas- Include concepts, philosophies (eg. Philosophies of churches, political parties, etc. )

3. B. Marketing Focuses on Customers
1. Customers are the purchasers of goods/services and are the focal point of all marketing elements
2. A market is a group of individuals or organizations that have a need for a specific product/service (eg. Consumers who buy anti- aging cream)
3. Target Market- Is the specific group of customers within a market that organizations focus their marketing efforts on (eg. Baby Boomers who buy anti-aging cream)

4. C. There are 2 categories of markets:
1. Consumer Market individuals/households
2. Business Market organizations (businesses) that purchase goods for resale, direct use in producing other goods/services or general daily business operations

5. E. Identifying the Target Market- Marketers identify their target markets by using the following variables:
1. Geographics- Some marketers focus on customers in a specific geographic area (snow shovels, snow boots, etc.)
2.Demographics- Which describes potential customers in terms of personal characteristics (eg. Age, gender, income, ethnicity, educational level, etc.)
3. Psychographics- Which studies consumers based on lifestyles (eg. Hobbies, activities, etc.)

6. 2.The 2nd type of force in the marketing environment are Economic Forces- which are changes in economic conditions that affect demand and supply in the global marketplace; these changes in economic conditions are called Business Cycles
a. Prosperity- is an economic period when unemployment is low, total income is relatively high, which results in consumers having more buying power
b. Recession- during this period, consumers buying power declines as unemployment rises
c. Depression- during this period unemployment is extremely high, wages are low, total disposable income is minimal, consumer buying power at an all time low
d. Recovery-during this period unemployment begins to decline, total income rises, and consumers buying power starts to increase again

7. Competitive Structures
IV. Three general types of competitive structures:
A. Monopoly is a competitive structure where a company offers a product that has no close substitutes, making that company the sole source of supply
1. In reality most monopolies today are local utility companies that are heavily regulated by local, state and federal agencies

8. B. Oligopoly a competitive structure where a few sellers control the supply of a product/service
1. Products/services can be homogenous (same) or differentiated (eg. Steel-homogenous; Automobiles and Cell Phones-differentiated)
C. Monopolistic Competition a competitive structure where a company has many competitors and tries to establish a marketing strategy to differentiate its product/service (eg. Cosmetic companies)
D. Pure Competition a competitive structure with an extremely large number of sellers, none strong enough to influence price or supply (eg. Vegetable farm, etc.)

9. I. Marketing Mix- (4P’s) are the elements of the marketing process
A. Product- Is there a demand (want/need) for the product in the marketplace
B. Place- Where to sell the product to ensure it gets to the right customer
C. Price- To determine the price of the product, a marketer must consider the following:
1.Competitors price’s
2.Marketplace demand
3.Research/Production Costs
D. Promotion- All activities that make customers aware of a product (Commercials-TV/Radio, Billboards, etc.)

10. II. There are 2 categories of products, Consumer Products/Business Products
A. There are 4 categories of consumer products, which are classified according to consumer buying behavior;
a.Convenience Products
Relatively inexpensive
Buyers spend very little time comparing products or purchasing the product (eg. Milk, eggs, bread, etc.)
These types of products are sold at various retail outlets (eg. WaWa, Grocery Stores, Gas Stations, etc.)

11. b. Shopping Products- Items which buyers spend a lot of time comparing prices, brands, warranties, etc.
. More expensive than convenience products
. Not purchased frequently (eg. Cars, clothes, appliances, etc.)

12. c. Speciality Products- are items with unique characteristics
Buyers spend a lot of time to obtain the item
These purchases are planned, there are no alternatives (eg. Ferrari, Baseball signed by Babe Ruth, etc.)
d. Unsought Products-Products a customer buys when they have to solve a problem
These are products consumers have no knowledge of
These are products consumers do not normally think
of purchasing ( eg. Emergency Auto Repair, etc.)