Marketing Fundamentals: Customers, Research, Branding, and Product Development

Marketing

All the activities businesses undertake to identify customers' problems, needs, and wants and to promote, sell, and deliver products.

Target Customer

A buyer most likely to purchase a specific product because of their wants, needs, and preferences.

Demographics

Measurable characteristics used to describe a population, such as age, income, gender, and location.

Customer Profile

A fictional description of a specific sample customer based on demographic and psychographic information.

Psychographics

Characteristics related to people's interests, activities, values, and lifestyles.

Customer Acquisition Cost (CAC)

The average marketing, advertising, and sales cost of acquiring a customer.

Market Segmentation

Dividing potential customers into groups based on shared demographic and psychographic characteristics.

Customer Lifetime Value (CLV)

The estimated amount of money a customer will spend with a business over time.

Consumer Behavior

The study of why and how consumers make purchasing decisions.

Situational Factors

Temporary conditions, such as timing, store design, and product availability, that influence purchasing decisions.

Personal Factors

Individual characteristics, such as age, income, education, occupation, and lifestyle, that influence purchasing decisions.

Purchasing Pattern

A consumer's typical routine for making purchases, including timing, frequency, and quantity.

Psychological Factors

A consumer's values, beliefs, perceptions, motivations, and past experiences that influence purchasing decisions.

Consumer Protection Laws

Laws designed to protect consumers from fraudulent or unsafe products and deceptive business practices.

Social and Cultural Factors

The influence of family, peers, social status, cultural norms, and media on purchasing decisions.

Cialdini's Principles of Influence

Seven psychological principles that explain why people may be influenced to comply with a request.

Market Research

The process of collecting detailed information about markets, products, and customer behavior to guide marketing decisions.

Desirability

The extent to which a product creates value for customers by achieving problem-solution fit.

Quantitative Data

Numerical data that answers questions such as how many, how much, and how often.

Feasibility

The ability to produce and provide a product using available resources, technology, expertise, and time.

Qualitative Data

Descriptive, nonnumerical data that answers questions such as why and how.

Viability

The potential for a product to be profitable in a market.

Primary-Source Research

Collecting new data directly from customers or the market.

A/B Testing

An experiment that compares customer responses to two alternatives.

Secondary-Source Research

Gathering existing information from external sources.

Data Visualization

The use of charts and graphs to communicate patterns, trends, and insights.

Business Hypothesis

An assumption about a customer, product, or market that can be tested with data.

Product Development

The process of creating or improving a product through research and iteration.

Branding

The process of developing an identity for a business or product.

Minimum Viable Product (MVP)

A basic version of a product used to test an idea with potential customers.

Brand Identity

The names, ideas, symbols, and designs used to distinguish a business or product.

Product-Market Fit

A situation in which customer demand for a product is sufficient to generate profit.

Trademark

A legally protected name, symbol, design, or other feature that identifies a business or product.

Value Proposition

A statement explaining who a product serves, what problem or need it addresses, and how it is superior to alternatives.

Generic Product

A product sold without a brand name, usually to appeal to price-sensitive customers.

Product Positioning

The way a business attempts to influence how customers perceive its product relative to competitors.

Product Life Cycle

The stages a product passes through as customer demand changes over time.