Fundamentals in Marketing - Block 1: Foundations of Marketing

Vocabulary flashcards covering foundational marketing concepts, market sizing metrics (TAM, SAM, SOM), B2B versus B2C dynamics, buying centers, customer value, and satisfaction from Block 1 of Fundamentals in Marketing.

Marketing

The process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Needs

States of felt deprivation experienced by a customer, forming the basic starting point of marketing.

Wants

The specific form taken by human needs as they are shaped by culture and individual personality.

Demands

Human wants that are backed by individual buying power.

Market Offering

Some combination of products, services, or experiences offered to a market to satisfy an underlying customer need or want.

Product

A tangible good that customers purchase and prepare or use themselves.

Service

An activity, benefit, or performance that one party provides for another.

Experience

A memorable time that a customer spends engaging in a specific place or environment.

Value Proposition

The set of promised benefits a company commits to deliver to satisfy customer needs and expectations.

Exchange

The act of obtaining a desired object from someone by offering something of value in return.

Customer Satisfaction

A person's feelings of pleasure or disappointment that result from comparing a product or service's perceived performance against prior expectations.

Market

The set of actual and potential buyers of a product or service, defined by who buys, which need they have, and which offerings compete.

Market Potential

The maximum possible sales volume for all companies in an industry within a given period, under specified marketing effort and environmental conditions.

Market Volume

The actual total sales or consumption achieved by all suppliers in a market within a defined period.

Sales Volume

The actual sales quantity or revenue achieved by a specific individual enterprise within a given time period.

Market Saturation Rate

The proportion of total potential market capacity currently being utilized, calculated as: $\frac{\text{market volume}}{\text{market potential}}$

Absolute Market Share

A company's individual sales volume expressed as a percentage of the total market volume: $\frac{\text{sales volume}}{\text{market volume}}$

Relative Market Share

A company's market share evaluated directly in comparison to its largest competitor: $\frac{\text{our share}}{\text{strongest competitor's share}}$

Total Addressable Market (TAM)

The total global or theoretical customer demand for a category of offering if every single potential buyer purchased it.

Serviceable Available Market (SAM)

The segment of the Total Addressable Market (TAM) that a company is realistically able to reach given its geographic location and offering scope.

Serviceable Obtainable Market (SOM)

The realistic proportion of the Serviceable Available Market (SAM) that a firm can capture given its actual operating capacity and constraints.

Derived Demand

Business demand that ultimately originates from and depends upon the final consumer demand for end-user products.

Buying Center

All individuals and units within an organization who participate in the business-to-business purchasing decision-making process.

Users

Members of a buying organization who will personally use the acquired product or service and typically evaluate whether it makes their operational tasks easier.

Influencers

Members of a buying organization whose technical opinions and criteria help define product specifications and affect the final evaluation of alternatives.

Buyers

Organizational members possessing formal authority to handle supplier selection, contract negotiations, and procurement logistics.

Deciders

Individuals within the buying center who possess formal or informal power to make the final financial commitment and approve chosen suppliers.

Gatekeepers

Organizational actors who control access to decision-makers and regulate the flow of commercial information into the buying center.

Customer Value

The perceived difference between a customer's evaluation of all combined benefits versus all associated monetary, temporal, psychological, and physical costs relative to alternatives.

Customer Touch Points

All points of direct contact or indirect interaction where a customer encounters the brand, product, or company before, during, and after purchase.

Kotler's Asymmetry

The behavioral principle stating that failing to meet customer expectations causes disproportionately greater damage to satisfaction than exceeding expectations does to improve it.

Customer Coproduction

The active participation and work carried out by customers in the actual service delivery and overall value-creation process.

Retention Rate

The percentage or share of established customers that an enterprise successfully keeps over a given measurement period.