Chapter 1 Review Guide

SECTION 1.1 • Marketing is the process of planning and executing the conception , pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

• There are seven marketing core functions. The marketing concept is a focus on customers' needs and wants while generating a profit.

SECTION 1.2 • Three benefits of marketing are new and improved products, lower prices, and added value (utility). Five economic utilities are form, place, time, possession, and information.

SECTION 1.3 • A market is all the people who share similar needs and wants and who have the ability to purchase given products.

• Market share is a firm's percentage of total sales of all competitors in a given market.

• The four Ps of the marketing mix are product, place, price, and promotion . Marketing decisions and strategies for the four Ps are based on the target market.

~ --

----

-~--~------r-=--

--=-~-

-~....=::--~~_£~,_-~.,..--"""!"'~

REVIEW VOCABULARY - -

-

~

-~

_...

--~-·~-

---~·--

I. On a sheet of paper, use each of these key terms and academic vocabulary words in a written sentence.

Key Terms Academic Vocabulary • • • • •

---~

--------

marketing (p. 4) goods and services (p. 5) marketing concept (p. 7) utility (p. 9) market (p. 13) -

-

~

--

~--

• consumer and industrial markets (p. 13) • market share (p. 14) • target market (p. 14) • customer profile (p. 15) • marketing mix (p. 16) --

• • • • • •

create (p. 5) conduct (p. 6) impact (p. 8) benefit (p. 9) similar (p. 13) element (p.16)

--

REVIEW FACTS and IDEAS 2. Define the term marketing. (1.1) 3. Identify four skills common in marketing and business administration. (1.1)

4. List the seven marketing core functions.

(1.1)

5. Explain the marketing concept. (1.1) 6. What is meant by utility? (1.2)

7. What is a market? (1.3) 8. In what ways can a market be identified?

(1.3)

9. What is market share? (1.3) 10. Define a target market. (1.3) II. What are the four components of the marketing mix? (1.3) Chapter 1 -

Marketing Is All Around Us

21

12.

13.

Workplace Skills

14.

Math Practice

The Right Choice Assume you are a

Figure the Market Share Calculate Nikon 's

salesperson in a computer store. A customer is hesitant about buying a mid-priced laptop computer you are showing. The customer's objection is that it will sell for much less in a year. Do you think the customer is correct?

What would you say?

market share if total sales in the digital camera market are $211,464,600 and Nikon 's sales are $120,305,671? Round your answer to the tenth decimal place.

Ci.U@j#8 Number and Operations: Computing Precentages To solve this

Technology Applications

problem , use the following formula:

Understanding Market Functions With two

Company's Sales 1 Whole Market's Sales Company's Market Share

or three classmates, use a word-processing program to write a short report about a new fruit beverage that you believe will be popular with teenagers. Assume your team develops this new product and wants to start selling it.

Consider all seven marketing core functions in your report and explain how each applies to the marketing of your new product.

'lllllllilil., For help, go to the Math Appendix located at the back of this book.

15.

Social Studies/History Advertising Timeline In the mid 1850s, circus entrepreneur and promoter P.T. Barnum created some of the most effective ad campaigns of the day, using newspapers ads , handbills, and posters. American marketing and advertising has a colorful history.

Research significant events in advertising history from 1800 to the present. Create a timeline on a posterboard and display it in your classroom.

~

APPiV-CONCEPTS

DEVELOP CRITICAL THINI<ING -"

16.

Marketing Concepts Select a product that you have recently purchased or a product that interests you.

Research (on the Internet, in magazines and newspapers) what type of marketing has been done for this product. List all the examples you can find. Do you think they were good marketing ideas? Why or why not?

=

~--

--

~-- ~

--~----~----~------·-··""" 11. Understand Target Markets

and the Marketing Mix Select an existing product that interests you.

Look at how it is advertised in print or on television and the Internet. Research your product's price and where it is sold. Identify its target market and the four Ps of its marketing mix. Then change the target market for the product.

Activity Show how the four Ps must be revised. Prepare a written report and an oral presentation using presentation software.

22

UNIT 1 - THE WORLD OF MARKETING

--~--

-~-

NET SAVVY

1a. Check an Online Dictionary Visit the American Marketing Association 's (AMA) Web site and use its online dictionary to review its most current definition of marketing, as well as other key marketing terms that are covered in this chapter.

STANDARDIZED TEST PRACTICE 1.

Directions Choose the letter of the best answer. Write the letter for the answer on a separate piece of paper.

What percent of 39 is 13?

A 3% B 30% c 33.33% D 300% 2.

Directions Choose either T for True or F for False as the answer. Write the letter for the answer on a separate piece of paper.

The four Ps of marketing consist of product, price, planning, and promotion.

T

CONNECTION Role Play The Importance of Marketing Situation You are to assume the role of a high school marketing student. Your sister Uudge) designs and makes purses that she has been selling to friends and family. Your sister Uudge) is now considering opening a business to sell her purses.

Activity You are to explain to your sister Uudge) about marketing and creating a marketing plan. You should also explain marketing in general. In your explanation, also include the importance of a marketing plan and the components of a marketing plan.

Relate how these can affect the success of a business.

Evaluation You will be evaluated on how well you meet the following performance indicators: • Describe marketing functions and related activities.

• Explain the nature of marketing plans.

F

• Select a target market.

• Set marketing goals and objectives.

When you sit down to take a math test, jot down important equations or formulas on scrap paper. This way, you will not forget them during the test.

• Develop a marketing plan.

For more information and DECA Prep practice, go to the Marketing Essentials OLC through glencoe.com.

glencoe.com

--d..1~

~

Chapter 1 -

Marketing