Fundamentals of Marketing – Lecture Notes

Vocabulary flashcards covering key terms and concepts from the marketing lecture, including needs, utilities, market types, SMART goals, historical eras, orientations, and customer relations.

Marketing (AMA definition)

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing (simple process view)

Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Need

State of felt deprivation; basic requirement for survival.

Want

Form that a human need takes as shaped by culture and individual personality.

Demand

Human wants backed by purchasing power (ability and willingness to buy).

Hierarchy of Needs

Maslow’s five-level framework: physiological, safety, love & belonging, esteem, self-actualization.

Stated Need

Need clearly expressed by the customer to the company.

Real Need

Actual need of the customer that may not be explicitly stated.

Unstated Need

Benefit not requested but naturally expected by consumers.

Delight Need

Extra benefit that exceeds expectations and makes the customer happy.

Secret Need

Need the customer prefers not to disclose but hints at; often linked to esteem or self-actualization.

Product

Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need, including objects, services, persons, places, ideas, and organizations.

Service

Intangible activities and benefits offered for sale that do not result in ownership of anything.

Customer Value

Benefits a customer gains from owning and using a product compared to the cost of obtaining it.

Customer Satisfaction

Outcome when perceived product performance matches or exceeds buyer expectations.

Utility

Want-satisfying power of a good or service.

Form Utility

Value created by converting raw materials into finished goods.

Time Utility

Value created by making products available when consumers want them.

Place Utility

Value created by making products available where consumers want them.

Ownership / Possession Utility

Value created when title of goods or services is transferred to the user.

Exchange

Act of obtaining a desired object from someone by offering something in return.

Transaction

Trade of values between parties, usually involving money and a response.

Relationship (marketing)

Building long-term, mutually beneficial connections with customers, distributors, dealers, and suppliers.

Market (general)

Set of actual and potential buyers who share a particular need or want that can be satisfied by a company’s offerings.

Actual Buyers

People currently purchasing a product or service.

Potential Buyers

Individuals who may purchase in the future because they share the need or want.

Physical Market

Place where buyers and sellers meet face-to-face to transact, e.g., shopping malls.

Virtual / Internet Market

Online platform where sellers offer goods and services without physical interaction.

Auction Market

Market where buyers and sellers state highest bids and lowest offers until a price is agreed (e.g., stock exchange).

Consumer Market

Market for goods and services purchased for personal and family consumption.

Industrial Market

Business-to-business market for goods and services used in production or operations.

Black Market

Illegal market trading in prohibited goods such as drugs and weapons.

Market for Intermediate Goods

Market dealing in raw materials requiring further processing into finished goods.

Financial Market

Marketplace for trading liquid assets such as shares and bonds.

Ultimate Goal of Marketing

To build and maintain long-lasting relationships with customers.

Marketing Goal

Broad, long-term aim guided by the SMART principle.

Marketing Objective

Specific, short-term, measurable target supporting the goal.

SMART Principle

Criteria that goals/objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound.

Vision

Preferred future; broad statement of what an organization wants to become.

Mission

Overall purpose of an organization—who it is, what it values, what it does, for whom, and the benefit offered.

Strategy (marketing)

Specific steps detailing who will do what, by when, and at what cost to accomplish objectives.

Production Era

1800s–1930s period when products were assumed to sell themselves; focus on mass production.

Sales Era

1930s–1960s period marked by aggressive selling to overcome competition and surplus supply.

Marketing Concept Era

1960s period when marketers began identifying and satisfying consumer needs and wants.

Customer Relationship Era

Current period emphasizing the customer as central to all marketing efforts.

Production Orientation

Management focus on producing as much as possible at lowest cost when demand exceeds supply.

Product Orientation

Focus on product improvements and innovations to outperform competitors.

Sales Orientation

Emphasis on aggressive selling and promotions when supply exceeds demand.

Marketing Orientation

Outside-in approach of understanding customer needs and delivering satisfaction better than competitors.

Relationship Marketing Concept

Approach centered on establishing, maintaining, and strengthening long-term customer relationships.

Societal Marketing Concept

Idea that marketing decisions should balance consumer wants, company interests, and society’s long-term welfare.

Corporate Social Responsibility (CSR)

Company’s commitment to manage business processes responsibly in relation to society and the environment.

Customer Relations

Special bond between buyers and a brand developed through beneficial marketing, sales, and service interactions.

Customer Acquisition

Process of gaining new customers, often expensive and challenging.