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Chapter 2 Marketing Basics
Pricing
Pricing directly affects the bottom line of
any business. The pricing function handles all
activities involved in setting acceptable prices
for products. This includes researching and
analyzing pricing of competitors. It also involves
using financial information to set prices that
cover costs and include a reasonable profit, as
well as adjust prices when conditions change.
Product/Service Management
The product/service management func-
tion determines which products a business
should offer to meet customer needs. Activi-
ties can include developing a new product
or service or improving a current one. In
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deciding which products to carry or services
to offer in a store. Other decisions are about
which brands, quantities, colors, sizes,
features, or options to offer.
Promotions
Promotions refer to the nonpersonal
communications with customers designed
to influence purchasing. Activities for
promotions include creating and running
advertising, designing in-store displays and
promotions, or monitoring sales incentives. It
may also include public relations efforts, such
as sending press releases or running a press
conference.
Selling
The selling function includes all
personal communications with customers.
Selling activities include helping customers
in a store, making sales presentations or
product demonstrations, and providing any
form of customer service.
Checkpoint 2.2
1. Explain the importance of customer satisfaction.
2. List the four functions of business.
3. List the seven functions of marketing.
4. What is another term for marketing-information management?
5. Give examples of selling activities.
Build Your Vocabulary
As you progress through this course, develop a personal glossary of personal marketing terms and
add it to your portfolio. This will help you build your vocabulary and prepare you for a career. Write a
definition for each of the following terms, and add it to your personal marketing glossary.
marketing concept
customer satisfaction
profit
channel
channel management
marketing-information management (MIM)
market planning
product/service management
selling
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