Marketing Essentials

Chapter 1: Marketing Is All Around Us

Chapter Summaries

Section 1.1

  • Marketing is defined as 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 functions of marketing: distribution, financing, marketing information management, pricing, product/service management, promotion, and selling.
  • 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).
  • Utility is the value that the functions of marketing add to a product or service. Five economic utilities are form, place, time, possession, and information.

Section 1.3

  • A market is defined as all people who share similar needs and wants and who have the ability to purchase given products.
  • The consumer market consists of consumers who buy goods and services for personal use. The industrial, or business-to-business, market includes businesses that buy products and services for use in their operations.
  • Market share is a firm's percentage of the total sales in a given market.
  • A target market is the group of people identified for a specific marketing program.
  • 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.

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