Understanding Marketing Processes and Consumer Behavior

Define marketing and explain its functions.

     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. Marketing can be divided into eight functions: buying, selling, transporting, storing, standardizing financing, risk taking, and researching.

Discuss how and why market segmentation is used for target marketing.

     Businesses have learned that their marketing is more successful when it is targeted toward specific market segments. Markets may be segmented by geographic, demographic, psychographic, or product&-use variables.

Describe the role of market research in marketing.

     Market research is the study of what buyers need and how best to meet those needs. This process involves a study of the current situation, selection of a research method, collection of data, analysis of data, and preparation of a report that includes recommendations for action. The four most common research methods are observation, survey, focus groups, and experimentation.

Describe the factors that influence the consumer buying process.

     A number of personal and psychological considerations, along with many social and cultural influences, determine consumers' behavior. When making buying decisions, consumers first determine their problem (need) then collect as much information as they think necessary before making their purchase. Post&-purchase evaluations are also important to marketers because they influence future buying patterns.

Explain how international and cultural differences affect marketing strategies.

     Because consumer behavior, languages, and customs in other nations differ from those of the United States,  international marketing&-the use of marketing strategy to support global, rather than just domestic, business operations &- often requires marketers to reconsider the marketing mix. New products, prices that reflect higher transportation costs, culture&-specific advertising, and the use of foreign firms to distribute the product may all be necessary.

Identify potential problems and strategies in the marketing activities of small businesses.

     Small businesses face special marketing challenges if they are to survive and grow. Every aspect of the marketing mix should be addressed and planned for prior to a new&-business start&-up. Small businesses should be aware of their market potential; price carefully, plan on promotional costs as part of their start&-up costs, and choose an accessible location.