BUS203 Study Guide

Unit 1: The Definition and Principles of Marketing

1a. Define marketing and explain its function in society

  • What are the four components of marketing?
  • How do marketers provide value to their customers?
  • How would you describe the different eras of marketing over time?

Marketing involves creating a product or service that meets consumers' needs, communicating the benefits to the consumer, getting those products and services to their end-users, and having some kind of exchange or transaction for the offerings.

However, the process must also include some kind of value. Consumers will consider the price of the product, the benefits they receive, and the time and effort they put into the process. Since each consumer has different needs and levels of acceptance, the value received will vary from consumer to consumer.

Throughout time, marketing has evolved from being focused entirely on the product, to focusing on the sales process, to emphasizing the marketing function, to our current era of relationship marketing and customer service.

To review, read What is Marketing?.

 

1b. Explain the 4 Ps of marketing and how to incorporate the marketing mix into the strategic planning process

  • How does the marketing mix enable companies to meet their objectives and goals?
  • What are the steps involved in bringing a new product to market?
  • What is the evolutionary process of the product life cycle?

The marketing mix is comprised of Product, Price, Place, and Promotion. The integration of these factors into marketing activities enables companies to meet their marketing objectives. The first step in introducing a new product is to generate ideas that could meet consumer needs and provide profit for the organization. Ideas are then screened to determine if they actually meet consumer needs, fit with the company's existing products, image, and other filtering factors. Next, product features are determined, followed by the actual development of the product. Extensive product testing is generally done, with the product launch following. A new product will be evaluated on a regular basis to determine if changes are needed.

The product life cycle includes four stages – introduction, growth, maturity, and decline – that a product may go through over time. Each stage is characterized by different levels of sales, marketing, and growth, with strategies varying throughout. The amount of time spent in each stage can vary from product to product, and not all products will experience each stage.

To review, read The Marketing Mix and Developing and Managing Offerings.

 

1c. Define advertising and sales

  • How would you describe the nature of advertising and the elements of an integrated marketing communications (IMC) strategy?
  • How would you explain the communication process?
  • What kinds of promotional methods are available to companies?

Advertising is a paid message, by an identified sponsor, that reaches a large group of people at the same time. The message can promote a product or a service and may use a variety of media outlets including traditional avenues such as television, radio, and newspapers, and online and digital outlets such as social media and mobile devices.

An integrated marketing communications strategy seeks to unify the information disseminated among the various media outlets and present a consistent message across all platforms. This helps to create an image for a product or brand and solidify that image in the minds of consumers. Think about brands you are familiar with, such as Disney or Geico. While they use a variety of media outlets to connect with their customers, their image and message are clear.

Sales promotions are activities that go beyond advertising and marketing efforts and encourage consumers to buy a product immediately. Generally, a sales promotion is a short-term activity and may include discounts, coupons, and other incentives. Some of the more common activities include in-store displays, sampling, rebates, contests, BOGOs, and other similar tactics. Consider your own recent purchases. Were they a result of an incentive that motivated you to make the purchase? As you explore this topic, see how you can relate your own consumer behavior to the marketing messages you see and hear.

To review, read Integrated Marketing Communications and the Changing Media Landscape.

 

1d. Understand the main components included in an organization's strategic marketing plan

  • What is the role of marketing in an organization?
  • What are the elements of a Marketing Plan? How would you describe them?

Marketing is an integral part of any organization's business activities. The focus should be on meeting the needs of the customer and seeking to communicate product features and benefits in the most efficient and cost-effective manner. Many organizations begin by developing a mission statement that generally states how the company will form relationships with their customers, how they inspire their employees, and how they relate to other stakeholders with whom they interact. Some companies' mission statements, however, focus on the products manufactured by that organization, such as Apple.

After a mission statement has been developed, companies create a Marketing Plan. This document is designed to enable companies to plan their strategies for creating and delivering a product or service that will provide value to customers and other stakeholders. Individual elements of the marketing plan are explored in greater detail throughout the course. However, as a foundation, it is important to become familiar with the contents of a plan. Plans include an exploration of the company's industry and marketplace, the competition, market research, trends, target markets, consumer wants and needs, and the most effective ways of communicating the product's features and benefits.

To review, read What is Marketing?.

 

Unit 1 Vocabulary

This vocabulary list includes terms that might help you with the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

Try to think of the reason why each term is included.

  • advertising
  • communicating
  • creating
  • decline
  • delivering
  • exchanging
  • growth
  • integrated marketing communications
  • introduction
  • marketing orientation
  • maturity
  • mission statement
  • place
  • price
  • product
  • product development and testing
  • product life cycle
  • product orientation
  • promotion
  • promotional mix
  • sales orientation
  • sales promotions
  • service/value era
  • the marketing mix
  • the marketing plan