What is Marketing? Chapter 1 Section 1

What is Marketing?
Chapter 1
Section 1
• The process of developing,
promoting, and distributing
goods and services to satisfy
customers’ needs and wants
• Goods – tangible products –
sports equipment
• Services – intangible products –
theater tickets
Marketing Concept
• The idea that organizations
need to satisfy their customers
while also trying to reach their
organizations’ goals.
• To make a profit, businesses
must focus their efforts on
customers’ needs and wants
• Consists of potential customers
with shared needs who have the
desire and ability to buy a
• Identifying the market is
important because businesses
need to know whom they need
to satisfy.
Needs and Wants
• Needs – Basic necessities such
as food, clothing, or shelter
• Wants – Desires based on
personality, experiences, or
information about a product
Target Market
• A specific group of
consumers that an
organization selects as
the focus of its marketing
Marketing Mix
• Product Decisions
• Price Decisions
• Place Decisions
• Promotion Decisions
Economics of Marketing
• Gross Domestic Product – value
of all goods and services
produced within the country
• Free Enterprise System –
Business make all economic
decisions – profit is their
Free Enterprise Systems
• Profit – money left after all
costs and expenses of a
• Risk - financial, poor weather,
performer illness, injury to
Free Enterprise System
• Competition – struggle among
companies for customers
• Price Competition – supply and
• Non-price Competition – quality,
service, image
Property Ownership
• Copyrights – protection of a
creator’s intellectual property –
books, films, video games, and
music. Life of the author plus
70 years
Property Ownership
• Patents – inventions – products –
protected for 20 years
• Trademarks – words, names,
symbols, sounds or colors that
distinguish goods are services.
Trademarks can be renewed
over and over. 10 year term
Types of Business
• Sole Proprietorship
• Partnership
• Corporation
• Subchapter S Corporation