Chapter 20 - Nature and Scopes of Marketing

1. Chapter 20Natures and Scopes of Marketing Jacob, Joe, and Tiffany

2. 20.1 Jake

3. Retailers – Businesses that sell directly to final consumers. • Wholesalers – Businesses that buy products from businesses and sell them to other businesses. • Risk Taking – Assuming the risk of losses that may occur from fire, theft, damage, or other circumstances. • Grading and valuing – Grouping goods according to size, quality, or other characteristics, and determining an appropriate price for products and services. Vocabulary

4. 5) Production oriented – Decisions about what and how to produce received the most attention. 6) Sales oriented – They emphasize widespread distribution and promotion to sell their products. 7) Customer oriented – They direct the activities of the company toward satisfying customers. Vocabulary CONT

5. 8) American Marketing Association marketing definition

6. 9) What businesses have careers in marketing?

7. 10) Characteristics of marketing concepts in businesses

8. 11) Why is marketing important in the economy?

9. 20.2 Joe

10. Marketing Research –The study of a company’s current and prospective customers. • Marketing Mix – The blend of all decisions to the four elements of marketing production, price, distribution, and promotion. • Place (Distribution) – The set of activities required to transport and store products and make them available to customers. • Promotion – This means providing information to consumers that will assist them in making a decision and persuade them to purchase a product or service. Vocabulary

11. 5) How does a company use market research?

12. 6) Why target a specific market for your product?

13. 7) What are some decisions made during pricing a product?

14. 8) How do companies identify their market?

15. 20.3 Tiffany

16. Marketing Plan – A detailed written description of all marketing activities that a business wants to accomplish in order to sell its products. • Product Life Cycle – Consists of the four stages of sales, profits, and performance through which all brands of a product progress; introduction, growth, maturity, and decline. • Introduction stage –A brand-new product enters the market. Vocabulary

17. 4) Growth stage – When several brands of the new product are available. 5) Maturity stage – The product is competing with many other brands with very similar features. 6) Decline stage – Occurs when a new product is introduced that is much better or easier to use and customers begin to switch from the old, to the new product. 7) Industrial stage – Products designed for use by another business. Vocabulary CONT

18. 8) Consumer stage – Products designed for personal or home use. 9) Convenience stage – Are inexpensive items that consumers purchase regularly without a great deal of thought. 10) Shopping goods – Products that consumers purchase less frequently than convenience goods, usually have a higher price, and require buyer thought. Vocabulary CONT

19. 11) Specialty goods – Products that customers insist on having and are willing to search for until they find them. 12) Unsought goods – Customers do not shop for some products because they do not have a strong need for them. Vocabulary CONT

20. 13) What two points are emphasized in the maturity stage?

21. 14) What happens as a product progresses through the product life cycle?

22. 15) Why does a product’s life cycle influence marketing strategy?

23. 16) Describe the factors that influence consumer goods classification