1. Chapter 1&2 Study Guide MARKETING DYNAMICS

2.  Marketing-is the process of developing, promoting, and distributing products to satisfy customers’ needs and wants.  Goods- are the kinds things you can touch or hold in your hand.

3. Services- are the kinds of things you can’t physically touch. Services- are the kinds of things you can’t physically touch. Exchange- takes place every time something is sold in the marketplace. Exchange- takes place every time something is sold in the marketplace.

4. UUUUtility- utilities are the attributes of a product or service that make it capable of satisfying consumers’ wants and needs. ((((examples) form, time place, possession, and information. FFFForm utility- involves changing raw materials or putting parts together to make more useful.

5. Place utility- involves having a product where customers can buy it. Place utility- involves having a product where customers can buy it. Time utility- is having a product available at a certain time of year or a convenient time of day. Time utility- is having a product available at a certain time of year or a convenient time of day.

6. The Four basic Functions of Marketing Business, management, entrepreneurship- Business, management, entrepreneurship- Communication and Interpersonal Skills Communication and Interpersonal Skills Economics Economics Professional Development Professional Development

7. Possession utility- the exchange of a product for some monetary value. Possession utility- the exchange of a product for some monetary value. Information utility- involves communication with the consumer. Information utility- involves communication with the consumer.

8. The Seven Functions of Marketing Distribution Distribution Financing Financing marketing information management marketing information management pricing pricing Product service management Product service management Promotion Promotion selling selling

9. Benefits- are privileges, or monetary payments beyond salary or wages, that go with a job. Examples: include the us e of the company car, an account, and bonuses for outstanding work.

10.  Occupational area- is a category of jobs that involves similar skills and aptitudes.

11. Five job Levels in Marketing Entry- level jobs that usually require no prior experience and involve limited decision-making skills. Entry- level jobs that usually require no prior experience and involve limited decision-making skills. Career sustaining- jobs that require higher level skills.

12. Marketing Specialist- employees must show leadership ability and make many decisions on a daily basis. Marketing Specialist- employees must show leadership ability and make many decisions on a daily basis. Manager/ Owner- is the top level. People at this level are competent to run a small business or a significant part of a large business. Manager/ Owner- is the top level. People at this level are competent to run a small business or a significant part of a large business.

13. Marketing Concept- a plan that a business follows to become more successful. Marketing Concept- a plan that a business follows to become more successful. Customers- they buy the product Customers- they buy the product Consumers- are those people who actually use the product.

14. Target marketing- is focusing all marketing decisions on a very specific group of people who you want to reach. Target marketing- is focusing all marketing decisions on a very specific group of people who you want to reach. Customer profile- can include information about the target market with regard to the age, income level, ethnic background, or occupation. Customer profile- can include information about the target market with regard to the age, income level, ethnic background, or occupation.

15. 4 p’s of Marketing Mix Product Product Place Place Price Price Promotion Promotion

16. Marketing Segmentation-is a way of analyzing a market by specific characteristics in order to create a target market. Demographics- refers to statistics that describe a population In terms of personal characteristics, theses include age, gender, income, and ethnic background.

17. Baby boom generation- 76 million babies were born in the united states between 1945 and 1964. Baby boom generation- 76 million babies were born in the united states between 1945 and 1964. Generation X- 40 million Americans born between 1965 and 1976. Generation X- 40 million Americans born between 1965 and 1976.

18. Generation Y- 77 million Americans were born between 1977 and 1997. Generation Y- 77 million Americans were born between 1977 and 1997. Disposable income- is the money left after taking out taxes. Disposable income- is the money left after taking out taxes. Discretionary income- is the money left after paying for basic living necessities such as food, shelter, and clothing. Discretionary income- is the money left after paying for basic living necessities such as food, shelter, and clothing.

19. The Caucasian group is declining, while other ethnic populations increase. African-Americans, Hispanic, and Asian American populations make up 28 percent of the U.S populations, by 2025 these ethnic groups will represent 36 percent of all Americans.

20. Psychographics- involves studies of consumers based on social and psychological characteristics. Psychographics- involves studies of consumers based on social and psychological characteristics. Trends- health, eating properly, and exercising are trends setting issues for marketers in the twenty-first century. Trends- health, eating properly, and exercising are trends setting issues for marketers in the twenty-first century.

21. Math problems: Review math problem #5, pg. 10-Know how to determine the fixed cost per unit. Review math problem #5, pg. 10-Know how to determine the fixed cost per unit. Review problem #7, pg. 16- Know how to figure percent Review problem #7, pg. 16- Know how to figure percent

22. Created by: Jarnee Lartey Jan. 30, 2007