Marketing Book Study Guide Exam 1 Marketing Marketing the activity set of institutions and processes for creating capturing communicating delivering and exchanging offerings that have value for customers clients partners and society at large AMA Definition Marketing requires a plan Marketing Plan specific marketing activities for a given period of time it is broken down into various components Conception and design Cost Price Where and how it will be promoted How it will get to the consumer In any exchange both parties are to be satisfied with the transaction Transactions aren t limited to currency or items The transaction can be information i e Amazon using your info to suggest future purchases Understanding consumers needs and wants is key to marketing success The Marketing Mix The Four P s of Marketing Product Place Price Promotion The marketing mix is used to set a controllable set of activities to respond to the wants and needs of its target market Product the purpose of the product service or idea is to create value for the user through an experience quenched need or substitute for work added time Price everything a buyer gives up time money energy in exchange for the product Price is based on the buyer s belief in a products value the key to determining price is figuring out how much customers are willing to pay so they are satisfied with the purchase and the seller achieves a reasonable profit Place refers to all activities used to get products to customers when they want it supply chains management logistics Supply chain management is key to the place concept in marketing efficiencies in locations delivery time storage manufacturing dates and service levels are all key and can add value to a product organization Promotion Communication by a marketer that informs persuades and reminds potential buyers about a product or service in order to influence their opinions and elicit a response Marketing by Individuals and Organizations Business to consumer marketing B2C the process where businesses sell to consumers Retailers act as marketing intermediaries by buying large quantities of products and selling them to individuals in smaller quantities Business to business marketing B2B is when a business sells products to another business Consumer to consumer C2C Marketing when consumers sell trade to consumers Ebay and Craigslist Individuals constantly market themselves when applying for jobs and other activities Supply Chain members often market within themselves in order to maintain clients