Marketing Management EOPA

• Marketing


  A process of developing, promoting, pricing, and distributing goods and services to customers in order to satisfy customer needs and wants
• Marketing has helped consumers by:
• Financing


  Obtaining the money needed to start and operate a business
• Product/Service Management


  The process of planning, improving, and/or adding to a firm's product line
• Market Research


  Collecting and analyzing information in order to make decisions about a product/service
• Selling


  Personally communicating with the customer in order to help them purchase a product
• Distribution


  Decisions surrounding the transportation and storage of goods from producer to consumer
• Pricing


  Deciding the amount to charge customers for products/services based on demand, completion, and the costs of raw materials
• Promotion


  Informing, reminding or persuading customers about a product, the company or a social cause that is important to the company
• The channel of distribution for a product should be fast, cost effective and controlled for quality in order for a company to move their products effectively
• Factors of production


  Land, Labor, Capital and Entrepreneurship
• Supply


  The quantity of goods and services that producers are willing and able to manufacture
• Demand


  The quantity of goods and services that consumers are willing and able to purchase
• Opportunity cost


  The alternative choices given up when a choice is made
• Who makes the decisions for the 3 economic questions for each economic system?

  • Command - Government
  • Market - Consumers
  • Traditional - Based upon customs, beliefs, religion and habits
  • Mixed - Both government and consumers
• Scarcity


  The limited number of potential employees compared to a company's need for trained and educated employees
• Types of consumer products

  • Convenience - Milk, eggs
  • Shopping - Shoes, clothing, make up
  • Specialty - Laptops, cameras, high end make up
  • Unsought - Home theater system such as Bose
• Types of industrial products

  • Materials - Wood, Water
  • Parts - Bottles
  • Installation - Industrial size washing machine
  • Equipment - Vacuums, carts
  • Supplies - Office supplies such as staples, paper, pens, etc.
• Form utility


  Turning raw materials into a product that is more valuable
• Time utility


  Making products available at certain times of day or year so it is available to customers
• Information utility


  Providing instructions, warnings, etc on products to make it easier to understand or work with a product
• Place utility


  Having products available in a location easy for customers to find and purchase
• Possession utility


  Providing ways for customers to conveniently purchase a product
• Competition


  The struggle for customers between two or more companies
• Competition usually leads to lower prices and higher quality products
• Types of utility


  • Form utility
  • Time utility
  • Possession utility
  • Information utility
• Changing old wood into a tree house for little kids

  • Form utility
• Indirect competitors of Outback Steakhouse

  • Longhorn's
  • Red Lobster
  • Steak & Ale
• Direct competitors of Kroger Supermarkets

  • Wal-Mart
  • Publix
• Competition usually leads to

  Lower prices, higher quality products
• Price competition


  Competition that focuses on the sale price of a product
• Nonprice competition


  Competition that focuses on the quality or brand loyalty of a product
• Free enterprise economy


  An economy in which both consumers and private businesses make the majority of the economic decisions
• Elements of the free enterprise system

  • Risk
  • Competition
  • Profit
  • Freedom of ownership
• Freedoms in a free enterprise system

  • Freedom to own private property
  • Freedom to buy
  • Freedom to sell
• Profit


  The money earned from conducting business after all costs and expenses have been paid
• Labor costs increase


  Profit decreases
• Costs of raw materials decrease

  Profit increases
• Units sold increase


  Profit increases
• Utilities decrease


  Profit increases