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Marketing

Definitions

Marketing:
Marketing is managing profitable customer’s relationships. OR Marketing is the process .by which companies create value for customer’s relationship in order to capture value from customers in return. OR Marketing is the social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others.

Marketing process:

Needs:
State of felt deprivation including physical, social, and individual needs.  Physical needs: Food, clothing, shelter, safety (e.g., I am thirsty.)  Social needs: Belonging, affection  Individual needs: Learning, knowledge, self-expression

(e.Wants: Form that a human need takes.. information or experiences offer to a market to satisfy needs or wants. as shaped by culture and individual personality. Marketing myopia: Is focusing only one existing wants and loosing side of underlying (upcoming) consumer’s needs. De-marketing: Marketing to reduce demand temporarily or permanently. Target marketing: Refer to which segment to go after. services.g. Market: Market is the set of actual and potential buyer a product or service. the aim is not to destroy demand but only to reduce or shift it. Market segmentation: Refers to dividing the market into segment of customers. Marketing management: Is the art and science of choosing target market and building profitable relationship with them.) Demands: Human wants that are backed by buying power becomes demand. I want a Coke. Wants + Buying Power = Demand Marketing Offer: Some combination of products. . Customer’s value and satisfaction: Exchange and relationship: Exchange is the act of obtaining and desired object from someone by offering something in return.

Product concept: The idea that consumer’s will favor the products that offer the most in quality performance and features and that the organization should devote its energy to making continuous product improvement. design a sound business portfolio and coordinating functional strategy. Business portfolio: Is the collection of business and products that make of the company. Customer’s satisfaction: The extant to whom a product perceived performance matches buyer expectation. Like insurance. . setting. Marketing concept: The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of the target market and delivering the desired satisfaction better than competitors. Strategic planning: The process of developing and maintaining a strategic fit b/w the organization goals and capabilities and its changing marketing opportunities it involves defining a clear company mission. consumers long run interest and social long run interest. supporting objectives. the company requirements. Customers perceived value: Is the difference b/w total customer value and total customer cost. Like china products.Market management orientation: Production concept is the idea that consumer will favor products that an available and highly affordable. Selling concepts: The idea that consumers will not buy enough of the firms product unless it under takes a large scale selling and promotional efforts. Social marketing concept: Is the idea that a company should make good marketing decision by considering consumers wants. Customer’s relationship management: The overall process of building and maintaining profitable customer’s relationship wide delivery superior customer’s value and satisfaction.

Portfolio analysis: Is the process by which management evaluates the products and business making up the company. Stars are both cash generators and cash users. Stars are both cash generators and cash users. Star Product: Stars operate in high growth industries and maintain high market share. Cash cow: Stars operate in high growth industries and maintain high market share. SBU are classified as. Boston consultant growth (BCG) Matrix: Portfolio planning method that evaluates a company strategic business unit (SBU) in term of their market growth rate and relative market share. . Strategic business unit (SBU): A SBU is the unit of the company that has the separate mission and objective and that can be planned independently from the company business SBU can be a company division a product line or some time a single product.

. Market penetration: A strategy for company growth by increasing sales of current product to current market segments without changing the product. market development. Product market expansion girds: A portfolio planning tool for identifying company growth through market penetration. They hold low market share in fast growing markets consuming large amount of cash and incurring losses. Dogs: Dogs hold low market share compared to competitors and operate in a slowly growing market. Market development: A strategy for company growth by indentifying and developing new market for existing product. In general. Diversification: A strategy for company growth through starting up or acquiring business outside the company’s current products and market. product development or diversification. Product development: A strategy for company growth by modifies new products to existing market segments. they are not worth investing in because they generate low or negative cash returns.Question mark: Question marks are the brands that require much closer consideration.

place and promotion that the firm blends to produce the response it wants in the target market. product. Strategy: Is the market logic by which business unit hope to achieve its marketing objective through market segmentation. Segment: A group of consumers who respond in a similar way to a given set of marketing efforts. personal selling. pay period. design. transportation. Channels. quality. price. Target marketing: Is the process of evaluating each market segments attractiveness and selecting one or more segments to inter. credit terms. Market segmentation: Is dividing a market into distinct group of buyer who have distinct needs. .Down sizing: Is reducing business portfolio by eliminating products or business unit that a not profitable and that are no longer fit the company overall strategy. inventory. list price. Product: Price: Place: Promotion: variety. Marketing mix: The set of controllable technical tool. characteristics or behavior and who might require separate products or market mix. a distinctive and desirable place relative to competing product in the mind or targeted consumers. targeting and positioning the company decides which customers it will serve and how. features. New mix market includes public and positioning. Market positioning: Arranging for a product to accomplice a clear. sales promotion. logistics. packaging and services Discounts. location. Advertising.

competitors and publics. sells and distribute its goods to final buyer they include reseller. market services agency and financial intermediaries like banks. physical distribution firms.4cs of marketing: Product: Price: Place: Promotion: Customers solution Customers cost Conveyance Communication Micro environment: The actors closed to the company that affect its ability to served its customers. market intermediaries. . the company suppliers. Market intermediaries: Firms that help the company to promotes. customers markets. Consumer market: Consumer markets consist of individual and household those buy goods and services for personal consumption.

Natural environment: Natural resources that are needed as input by marketers or that are affected by marketing activities. density. reseller and government. Competitors market: Consist of two or more seller who provides goods and services. political and cultural forces. age. race. Government market: Are made up of government agencies that but goods and services to produce public services. Technological environment: Forces that create new technologic. occupation and other states. Macro environment: The larger social forces that affect the micro environment are known as macro environment it includes demographic. Political environment: Laws. creating new product and market opportunities. natural. economic. gender. location. producer. Economic environment: Factors that affect consumers buying power and spending patterns. Demographic: The study of human population in term of size. .Business market: Business market consist that buy goods and services for further processing (raw material) or for use in product. government agencies and pressure groups that influence and limits various organization and individuals in a gives society. International market: Consist of buyer in other countries including consumers. technological. Reseller market: Reseller market consist that buy goods and services to resale at a profit.

and behavior. individual and household who buys goods and services for personal consumption. Consumer market: All the individual and house hold who buy or acquire goods and services for personal consumption.Cultural environment: Is made up institutions and other forces that affect society basic value. perceptions. Consumers buying behavior: The buying behavior of final consumer. preferences. Characteristics affecting consumers: .

personality or other characteristics exerted influence on other. social. perception. Opinion leader: Person within a reference group who because of special skills. economic situation. wants. Types of buying decision behavior: . life style and personality. Social class: Relatively permanent and ordered division in a society whose number share similar values interest and behavior. personal.Buyer characteristics: Purchase is influence strongly by cultural. knowledge. by number of society from family and other important institution. occupation. Cultural: The set of basic values. behavior. psychological characteristics. Role and status: Personal factors: A buyer decision also is influence by personal characteristics such as buyer’s age and life cycle stage.

Complex buying behavior: Consumer buying behavior in behavior situation characterized by high consumer involvement in a purchase in significant perceived difference among brand. Dissonance reducing buying behavior: Consumer buying behavior characterized by involvement but few perceived difference among brand. Variety seeking buying behavior: Consumer buying behavior in situation characterized by low consumer ivolvement but significant perceived brand difference. Habitual buying behavior: Consumer buying behavior in situation characterized by low consumer ivolvement and few perceived brand difference. .