Introduction to Marketing: Principles and Concepts

Vocabulary terms and definitions covering the fundamental concepts of marketing, management orientations, and the marketing process based on Armstrong & Kotler and Kotler et al.

Market

The collective of all potential customers who are interested in, can afford, and are legally allowed to buy a specific product or service, along with the platform where they interact with sellers.

Marketing (Armstrong & Kotler 2022)

The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.

Need

A state of felt deprivation including physical needs (food, clothing, shelter), social needs (belonging, affection), and individual needs (learning, knowledge, self-expression).

Want

The form that a human need takes as it is shaped by culture and individual personality, such as a McDonald's menu.

Demand

Human wants that are backed by buying power.

Marketing offering

The means by which needs and wants are fulfilled, including products (goods, persons, places, organizations, information, ideas), services, and experiences.

Service

An activity or benefit offered for sale that is essentially intangible and does not result in the ownership of anything.

Supply

The quantity of offerings made available to the consumers at a certain price.

Marketing management

The art and science of choosing target markets and building profitable relationships with them.

Production Concept

The idea that consumers will favor products that are available and highly affordable, requiring the organization to focus on improving production and distribution efficiency.

Product Concept

The idea that consumers will favor products that offer the most quality, performance, and features, requiring the organization to devote energy to continuous product improvements.

Selling Concept

An inside-out view that focuses on existing products and heavy promotion efforts to sell what the company makes, rather than making what the customer wants.

Marketing Concept

An outside-in philosophy focused on satisfying customer needs as a path to profits by knowing target market needs and delivering satisfaction better than competitors.

Societal Marketing Concept

The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Integrated Marketing Program

A comprehensive plan that communicates and delivers intended value to chosen customers by blending each tool of the marketing mix.

Marketing Mix (4Ps)

The set of tactical marketing tools—Product, Price, Place, and Promotion—that the firm blends to produce the response it wants in the target market.

7Ps of Marketing

An expanded marketing mix used specifically for services, adding People, Process, and Physical evidence to the original 4Ps (Product, Price, Place, Promotion).