1. The Marketing Basics
Chapter 8

2. What is marketing?
The process of developing, promoting, and distributing products which could be goods or services.

3. Marketing Concept
That an organization has to satisfy its customers’ wants and needs in order to make a profit

4. The marketing process
When deciding on product decisions: A company needs to look at trends as well as gaps in the market to be filled by a new product
This information is usually gathered by doing market research
Surveys
Traffic counts

5. The market
Any group of buyers who are willing and able to buy a product are called a market
Instead of marketing to everyone, marketers will do target marketing to focus their marketing plan to customers who are more likely to buy their product.

6. Marketing Mix Four basic marketing strategies (4 P’s)
Product decision: based on what goods and services to sell
Price decision: based on marketing costs, costs to produce, and value to customer

7. Other p’s of marketing mix
Place decisions: Where the customer will shop for products and services and the process of distribution on how the company will get the product to the customer

8. 4 p’s continued Promotion: is choosing the best method to
communicate to the customer how and why the product meets their needs and wants

9. Utility
Utility – is adding value to a product to make it more useful to the customer/consumer
Place Utility: Having products available at a place convenient for them to buy them

10. Time utility
Having products available at a time when the customer needs them

11. Information Utility
Giving the customer information that would help them understand the product
Packaging, product displays, literature, salespeople

12. Possession utility
Making it easy for the customer to possess the product
Cash, credit or debit card, check, money order

13. Mr. Brown decides to build a new go kart track right in front of Oakwood on Highway 27 which would be centrally located. This would be a ___________ marketing decision.
A. product
B. price
C. place
D. promotion

14. Mary has decided to open a new italian restaurant in Somerset
Mary has decided to open a new italian restaurant in Somerset. She plans to accept all forms of payment such as credit cards, debit cards, cash, checks, etc. This would be an example of ___________ utility.
A. place
B. time
C. possession
D. information

15. The Pulaski County Tourist Center has various types of brochures at their office so that tourists know what tourist attractions are available and where they are located. This is an example of ___________ utility.
A. place
B. time
C. possession
D. information

16. Two of the main things that a company needs to consider when deciding what products and services to provide are:
A. trends and money in the market
B. trends and gaps in the market
C. product and market groupings
D. All of the above

17. The Hilton in Nashville lowers the prices of their rooms by 20% when their occupancy numbers are low. This would be an example of what type of marketing decision?
A. product
B. price
C. promotion
D. place

18. Marketing is the process of _________, __________, and __________ of goods and services to meet the customer’s wants and needs.
A. developing, analyzing, and researching
B. developing, analyzing, and distributing
C. developing, promoting, and distributing
D. promoting, marketing, and organizing

19. Planning Marketing
For most businesses to be successful, they have to have a marketing plan
A marketing plan provides direction for the marketing activities of a company
It serves as a “road map”

20. Company’s Mission Is a business’s purpose or goal
It reflects how a business should operate both internally and externally
Examples:The mission of Somerset Independent Schools is to create, implement and maintain an environment which encourages all students to reach their full potential.  This will be achieved through a commitment to school and district initiatives to reach proficiency.  We commit to a comprehensive system of support to assure this outcome. 

21. Wendy’s Mission Statement
Mission Statement We manage our business by the Golden Rule, treating others as we would like to be treated, holding ourselves to high ethical standards.
We achieve our objectives by employing the best people in the industry, training them effectively and compensating them fairly.
We constantly strive to serve the highest quality food, quickly, in a friendly manner, in in sparkling clean, Dave's Way restaurants
All of our efforts are directed toward operating profitable restaurants that exceed our guests and our employee's expectations.

22. Hilton’s Mission Statement
Our Mission To create rewarding customer experiences that build long term loyalty to our Family of Brands, drive business to our hotels, and spread the warmth of Hilton hospitality worldwide.   
  In fulfilling this mission we will,  
Recognize our team members as key to our success  
Foster an environment of collaboration and teamwork  
Continually optimize, and invest in, our processes, productivity, and quality

23. SWOT Analysis
Focusing on different internal and external factors that could affect the marketing environment
Strengths (Internal): Qualities that give a business a competitive advantage
What are Wendy’s strengths versus McDonalds?

24. Internal Factors that affect a marketing environment?
Operations (how departments interact in an organization)
Accounting – the amount of profit or loss a business may have
Public relations – the company has a good or bad publicity

25. External Factors that affect a business environment?
External suppliers of resources
Product distribution
Size of company
Demographics
Economics
Politics
Technology

26. Weaknesses (Internal)
Weaknesses: Qualities that gives a business a competitive disadvantage?
Wendy’s weaknesses vs McDonalds?
Wendys VS

27. Opportunities (external)
Features or events that could benefit the business
What features or events could benefit Wendys?

28. Threats (external)
Threats – features or events that could damage the business?
Threats to Wendys?