Unit 6 Study Guide

determining the best ways for customers to locate and obtain P Involves careful shipping and storing of products

communicating with potential customers to determine & satisfy needs. Examples: face to face, phone, video conferences

obtaining and using info to improve business decision making. Examples: marketing research & developing databases of info about customers, c

budgeting for marketing activities. Managing payment methods for customers and ensuring the business receives payment so operations may con

setting and communicating information about the value of P Price needs to be easily identifiable. What is a fair price? High enough to ma

communicating info about P to customers & encourage them to buy. Examples: advertising, product displays, contests, sponsorships

Blending of four marketing elements – product, distribution (place), price & promotion

Product: quality, packaging, warranty, service/support

Price: discounts, financing,

Place: where?

Promotion: ads, coupons, displays, PR, endorsements

Gather information from people through questions

Consumer group discussions

Recording actions of consumers

present alternatives

everything a business offers to satisfy a customer’s needs

simplest form

additions and improvements to the basic product

choice of features

protection and security for the product before it is used

activities that are consumed at the same time they are produced

no physical form

consumed at time of production

availability must match demand

there will be differences in the type and quality of services provided

money a customer pays

The route a product follows

Products move from producer right to consumer ex. Damhorsttoys Stools

Involves wholesalers & intermediaries; Retailers are the final member ex. Starbucks

the exchange of information so there is common understanding by all participants

Sender-Communication Channel-Receiver-Feedback

Direct individualized communication with prospective customers

Any paid form of communication through mass media directed at a target market

the locations and methods used to make a product or service available to the target market

scientists, consumer surveys, FG, sales staff; most are improvements to existing products

lots of ideas developed, then they choose the best; is there a demand?; competition? resasonable cost? is it safe/legal?

target market is studied; is there a need? costs of alternatives to see which provides greatest value

procedure: facilities, equipment needed, marketing costs to make sure there is potential for profit

limited quantity is produced and marketed before lots of $$ invested

watch competitors for new products; products that are fully screened have better chance of succes

the reasons consumers decide what products and services to purchase

Specific group of consumers who have similar wants and needs

The amount added to the cost of a product to set the selling price

A reduction from the original selling price

persons who buy products and services mostly for their own use

persons, companies, and organizations that buy products for the operation of a business, for incorporation into other products and services,

gathering new information specifically directed at your current problem

analyzing existing information gathered for another purpose to solve your current problem