Name ___________________________ Date __________________ Period _________
Review for Unit 1 Test
Chapter 1 – Marketing is all around us
Chapter 2 – Basic Marketing Concepts
Chapter 1 – Marketing is All Around Us
1. Marketing – the process of developing, promoting, and
distributing products to satisfy customer’s needs and
wants
2. Products = Goods and Services
a. Goods – the kind of things you can touch or hold in
your hand
b. Services – kinds of things you can’t physically touch
(doctors, dentists, accountants, etc.)
3. Functions of marketing –
a. Distribution – deciding where and to whom
products need to be sold in order to reach the final
user of the product
b. Financing – getting the money that is necessary to
pay for the operation of a business
c. Marketing-Information Management – getting the
necessary information to make sound business
decisions
d. Pricing – decisions dictate how much to charge for
goods and services in order to maximize profits
e. Product/Service Management – obtaining,
developing, maintaining, and improving a product
or a product mix in response to market
opportunities
f. Promotion – communicating with potential
customers to inform, persuade, or remind them
about a business’s products and services
g. Selling – provide customers with goods and services
they want
4. Economic utilities – reflects the value that is added
when you take one product and add it to another to
make a third product that is more valuable than either
of the other products (peanut butter + jelly + bread = PB
& J Sandwich)
a. Form utility – changing raw materials or putting
parts together to make them more useful and
valuable
b. Place utility – involves having a product where
customers can purchase it
c. Time utility – having a product available at a certain
time of year or a convenient time of day
d. Possession utility – the exchange of a product for
some monetary value
e. Information utility – involves communication with
the consumer
5. Two benefits of marketing – (1) lower prices; (2) new
and improved products
6. Employment trends in marketing:
a. Marketing job opportunity are growing
b. Manufacturing job opportunities are decreasing
Chapter 2 – Basic Marketing Concepts
7. Marketing concept – states that businesses must satisfy
customer’s wants and needs in order to make a profit
8. Difference between a customer and a consumer
a. Customer – buys the product
b. Consumer – those people that actually use the
product
9. Market definition – all potential customers who share
common needs and wants and who have the ability and
willingness to buy the product
10.
Marketing mix (four p’s of marketing)_
a. Product – what product to make or sale
b. Place – (distribution) how the product gets from the
manufacturer to the consumer
c. Price – reflects what customers are willing and able
to pay for a product
d. Promotion – how businesses communicate with
customers
11. Target market – focusing all marketing decisions on
a very specific group of people who you want to reach
12. Market segmentation – analyzing a market by
specific characteristics in order to create a target
market
13. Demographics – statistics that describe in terms of
personal characteristics
a. Age
i. Baby Boomers – 1946 to 1964 76 million
members
ii. Generation X – 1965 to 1976 40 million
members
iii. Generation Y – 1977 to 1997 77 million
members
iv. Millennium generation – 1997 to present
b. Gender – male / female; sex of the target market
c. Income – disposable and discretionary income
d. Ethnic background – the race of the target market
14.
Income
a. Disposable income – money left after paying taxes
b. Discretionary income – money left after paying
taxes and basic living necessities
15. Psychographics – study of consumer’s lifestyles;
why consumers buy what they buy
16. Geographics – segmentation of the market based
on where people live
17. Product benefits – segmenting a market by product
benefits involves studying consumer’s wants and needs
emphasizing benefits not just the physical
characteristics of the product