Exam 1 Study Guide - Marketing 360

Chapter 1 – Overview of Marketing * Inertia to Passion * * 80/20 Rule * “80% of profits come from 20% of consumers” * Economies of Scale * The more you make of something, the less it costs per unit * i.e. Microsoft Office 2014 * Wholesale – Costco * Understand Marketing Mix (4 P’s)/From Customer Perspective 4 Cs * Marketing Mix: A combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to consumers that creates a desired response among a set f predefined consumers * Marketing Mix consists of; Marketer | Consumer | Product | Customer Solution | Price | Customer Cost | Promotion | Communication | Place | Convenience |

* Exchange * Pg. 12 “Occurs when a person gives something and gets something else in return. The buyer receives an object, service, or idea that satisfies a need, and the seller receives something he or she feels is of equivalent value” * Trade currency * Trade services * Trade behaviors * Exchange Value * Criteria for a Market * A market consists of all the consumers who share a common need that can be satisfied by a specific product and who have the resources, willingness, and authority to make a purchase * Utility – Time, Place, Possession, Form, Info * Utility: The usefulness or benefit consumers receive from a product * Time Utility: Storing products until they are needed * Place Utility: Making products available where customers want them * Possession Utility: Allowing the consumer to won, use, and enjoy the product * Form Utility: Transforming raw materials into finished products * What is Value? Components of Value * Value: Benefits a customer receives from buying a good or service * Value from the customer’s perspective: Price and benefits