Textbook Notes (368,775)
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MGTA02H3 (363)
Chapter 5

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Management (MGT)
Bill Mc Conkey

Chapter 5: Understanding Marketing: Markets Segmentation and Market Research Terms: Marketing: planning and executing the development, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy both buyers’ and sellers’ objectives Marketing Concept: the idea that the whole firm is directed toward serving present and potential customers at a profit Value: relative comparison of a product’s benefits versus its costs Utility: ability of a product to satisfy a human want or need Consumer Goods: products purchased by individuals for their personal use Industrial Goods: products purchased by companies to use directly or indirectly to produce other products Service: intangible products, such as time, expertise, or an activity that can be purchased Marketing Managers: managers responsible for planning and implementing all the marketing- mix activities that result in the transfer of goods or services to customers Marketing Plan: a detailed strategy for gearing the marketing mix to meet consumer needs and wants Marketing Mix: the combination of product, price, place, and promotion strategies used in marketing a product Product: a good, service, or idea that satisfies buyers’ needs and demands Product Differentiation: the creation of a product or product image that differs enough from existing products to attract consumers Price: that part of the marketing mix concerned with choosing the appropriate price for a product to meet the firm’s profit objectives and buyers’ purchasing objectives Distribution: that part of the marketing mix concerned with getting products from the producer to the buyer, including physical transportation and choice of sales outlets Promotion: techniques for communicating information about products Target Market: any group of people who have similar wants and needs and Market Segmentation: dividing a market into categories according to traits customers have in common Geographic Variables: geographical units that may be considered in a segmentation strategy Demographic Variables: characteristics of populations that may be considered in developing a segmentation strategy Psychographic Variables: psychological traits that a group has in common, including motives, attitudes, activities, interests, and opinions Product-use Variables: consumer characteristics based on the use of a product, benefits expected from it, reasons for purchasing it, and loyalty to it Market Research: the systematic study of what buyers need and flow best to meet those needs Secondary Data: information already available to market researchers as a result of previous research by the firm or other agencies Primary Data: information developed through new research by the firm or its agents Observation: a market research technique involving viewing or otherwise monitoring consumer buying patterns Survey: a market research technique based on questioning a representative sample of consumers about purchasing attitudes and practices Focus Group: a market research technique involving a small group of people brought together and allowed to discuss selected issues in depth Experimentation: a market research technique in which the reactions of similar people are compared under different circumstances Consumer Behaviour: the study of the process by which customers come to purchase and consume a product or service Rational Motives: those reasons for purchasing a product that involve a logical evaluation of product attributes such as cost, quality, and usefulness Emotional Motives: those reasons for purchasing a product that involve non-objective factors Industrial Market: businesses that buy goods to be converted into other products that will be sold to ultimate consumers Reseller Market: intermediaries like wholesalers and retailers who buy finished products and resell them Institutional Market: non-government organizations such as hospitals, churches, and schools Marketing Concept:  The firm is directed toward serving present and potential customers while making a profit  Business doesn’t sell what it has (product focus)  Business sells what customers wants (customer focus) Value = Benefits / Costs 4 Kinds of Utility: 1. Time: make products available when consumer wants them 2. Place: makes products available where c
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