4.1 Introduction to Marketing

Flashcards covering the definitions, orientations, and measurement metrics of marketing based on the lecture notes.

Marketing

Identifying, anticipating and satisfying customers' needs profitably by getting the right product at the right price to the right place at the right time.

Market orientation

A focus on finding out what the customer wants

through market research and analysis,

then trying to make a product to meet those wants.

Product orientation

A focus on making a quality product and then trying to find customers to buy it, often neglecting customer needs in favor of the product itself.

USP

A Unique Selling Point that can be achieved through innovation in a product-orientated business approach.

Market share

The percentage of sales in the total market sold by one business.

Market share formula

$$\text{market share \%} = \frac{\text{firm's sales in time period}}{\text{total market sales in time period}} \times 100$$

Sales volume

A method of measuring market size based on the quantity of products sold to customers.

Sales value

A method of measuring market size based on the amount spent by customers on the products sold by firms in the market (also known as sales revenue).

Brand leader

The product with the highest market share.

Market growth

An increase in the size of an entire market, usually measured by the rise in total sales revenue of the market or industry.

Market growth formula

$$\frac{\text{market size in period 2} - \text{market size in period 1}}{\text{market size in period 1}} \times 100$$