Marketing Principles and Strategies

This flashcard set covers the fundamental definitions, elements, concepts, and market classifications from the Chapter 1 lecture on Marketing Principles and Strategies.

Marketing

The process of continuously and profitably satisfying target customer’s needs, wants and expectations superior to competition.

Continuously

A key element of marketing that refers to maintaining a relationship rather than just conducting one-time transactions.

Profitably

A business’s ability to generate revenue that exceeds its expenses, calculated using the formula: $Profit = Sales - Expenses$.

Satisfying

The act of identifying what drives the customers to buy or not to buy products or services.

Target Customer

Pertains to a particular customer group or groups who will consume the product and services.

Needs

Basic or minimum consumer requirements on the product or service.

Wants

Features or benefits that may not be necessary but are nice to have.

Expectations

Values or intangibles associated with products or services.

Superior to Competition

Preparing an offering in such a way that the customer will choose a company over its competitors.

Edwin Bautista's definition of Marketing

Marketing starts and ends with customers.

Kotler's definition of Marketing

A societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

The Marketing Concept

The idea that success depends on doing better than competitors at understanding, creating, delivering, and communicating value to target customers.

The Product Concept

The idea that success depends on creating the best, most innovative product for the lowest price.

The Sales Concept

The idea that success depends on a good sales team equipped with the right tools and incentives.

The Production Concept

The idea that success depends on low production costs, highly efficient processes, and mass distribution.

The Selling Concept

A business orientation that assumes consumers will not buy enough products unless the company undertakes large-scale promotional and aggressive sales efforts.

The Societal Marketing Concept

A business philosophy where a company balances company profits, consumer satisfaction, and the long-term well-being of society.

Market (Etymology)

Comes from the Old French word marché, which originated from the Latin mercatus, referring to 'trading' or 'a marketplace for buying and selling.'

Market (Kotler definition)

A set of all actual and potential buyers of a product.

Family Market

A market where the exchange of goods or services is confined within a family or close members of the family.

Local Market / Domestic Market

Participation of both buyers and sellers belonging to a local area such as a town or village; often involves perishable goods like fruits and fish.

National Market

A market for certain types of commodities that have demand throughout the entire country.

International Market

A market where the buyers and sellers of goods are from different countries, involving transactions beyond national boundaries.

Commodity Market

A place where produced goods or consumption goods are bought and sold.

Produce Exchange Market

An organised market where commodities or agricultural produce are bought and sold on a wholesale basis, usually dealing with a single commodity.

Manufactured Goods Market

A market specifically dealing with manufactured items such as leather goods or machinery.

Bullion Market

A type of market that deals specifically with the purchase or sale of gold and silver.

Money Market

A market where short term securities are exchanged to provide finance to industries, banks, and government agencies.

Foreign Exchange Market

An international market that assists exporters and importers in converting their currencies into foreign currencies.

The Stock Market

A market where the sales and purchases of shares, debentures, and bonds are conducted; also known as the Securities market.

Perfect Market

A market with a large number of buyers/sellers, uniform prices, identical products, and perfect market knowledge among participants.

Imperfect Market

A market where products are similar but not identical, prices are not uniform, and there are restrictions on goods movement.

Regulated Markets

Markets that are organised, controlled, and regulated by statutory measures, such as the Stock Exchanges of Mumbai or Chennai.

Unregulated Market

A free market not regulated by statutory measures where demand and supply determine the price, quality, and commission.

Wholesale Market

A market where goods are supplied in bulk quantities to dealers or retailers rather than directly to customers.

Retail Market

A market where goods are purchased from producers or wholesalers and sold to customers in small quantities.

Financial Market

A market for financial instruments such as shares, debentures, treasury bills, and commercial papers.

Marketing Environment

The internal and external factors and forces that affect an organization's ability to build and maintain good relationships with its customers.