Marketing: The process of determining customer needs and wants and then developing goods and services that meet or exceed these expectations.
• Market: Is a group of potential customers with similar needs who are willing to exchange
something of value with sellers offering various goods and services.
• Gross Domestic Product: Total value of all goods and services produced in a country for
• Gross National Income or GDP: same as GDP but excludes income earned by
• Gross National Income Per Capita: GNI divided by the population.
• Purchasing Power Parity (PPP): GNI per capita compared to the CPI gives you an idea
of the purchasing power of the individual.
• Consumer Price Index (CPI): Price of a basket of goods in a giving economy.
• Generic Market; is a market with broadly similar needs. The sellers offering various,
often diverse ways at satisfying those needs. (Entertainment)
Product market; is a market with very similar needs and sellers offering various close
substitute ways of satisfying those needs.
MICRO marketing: is the performance of activities that seek to accomplish an organization’
s objectives by anticipating customer or client needs and directing a flow of need
satisfying goods and services from producer to customer or client.
MACRO marketing: is a social process that directs an economy’s flow of goods and
services from producers to consumers in a way that effectively matches supply and
demand and accomplishes the objectives of society.
Marketing Concept: an organization which aims all it’s efforts toward its customers , for a
Marketing Ethics; the moral standards that guide marketing decisions and actions.
The Marketing Mix: The ingredients that go into a marketing program; price, product, place, promotion.
Product; concerned with developing the right product fit with the target market.
Components; Processed items that become part of a larger finished product are called: Goods; Physical things that are seen and touched, that are tangible and that you own once you buy them are called:
Place; concerned with getting the right product to the target market.
Distribution Channels; is any series of firms that participates in the flow of products from producer to final user or consumer.
Vendor Analysis; Formal rating of suppliers on all relevant areas of performance.
Promotion; is concerned with telling the target market or others in the channel of distribution
about the right product. Everything the customer sees, hears and feels about a marketing
mix is called
The three Basic Promotional Objectives are; Informing, persuading, and Reminding.
Advertising; Any paid form of non-personal presentation of ideas, goods or services by an identified sponsor is called:
Public relations; Managing peoples' perception of a company's image is called: Personal Selling; face to face selling between buyer and seller..
Pioneering; Advertising that tries to develop primary demand for a product category rather then demand for a specific brand.
Institutional advertising; Advertising that focuses on the name and/or prestige of an organization is called.
Reminder Advertising; Advertising to keep the product’s name before the public.
Bargaining Process; different suppliers offer different prices and buyers choose best price Direct Advertising; Aims at immediate buying action.
Communication process; Source – Encoding – Message Channel – Decoding – Receiver
Price; setting must consider the competition as well as all the marketing mix costs.
Skim Pricing; Setting price high and therefore targeting the high end customers. Penetration Pricing; Setting prices low and therefore trying to get a larger market share.
Marketing Plan: is a written statement of a marketing strategy and the time related details for carrying out the strategy
Segmenting; clustering people with similar needs into a market segment.
Segment; sub group within a broad target market.
Market Segment; A group of similar customers who will respond to a marketing mix in a similar way are called:
Positioning; refers to how customers think about proposed or present brands in the market.
A Market Positioning Map
• Narrowing down to a superior marketing mix.
Differentiation; marketing mix that is distinct from and better than what is available from a competitor
• An effective marketing strategy matches a firm’s resources and it’s objectives with
Attractive Opportunities; are those opportunities that a firm has a chance of pursuing given it’s resources and objectives.
Breakthrough Opportunities; opportunities that help innovators develop hard to copy marketing strategies that will be very profitable for a long time. ( best kind of opportunity )
Imitators; want to copy and thus share in the innovator's profits if they can. Competitive Advantage; is a marketing mix that the target market sees as better then the competition, and that is hard to imitate.
Marketing Strategy; Specifies a target market and a related marketing mix.
Market Penetration; trying to increase sales of a firm’s present products in its present
Market Development; trying to increase sales by selling present products in new markets. Product Development; Offering new or improved products for existing markets. Diversification; Moving into a totally new line of business.
Product Introduction; New product into new market.
Pushing; Using normal promotional effort, personal selling, advertising, and sales promotion to
help sell the whole marketing mix to possible channel members.
Pulling; Using promotion to get consumers to ask middlemen for the product.
Bargaining Process; different suppliers offer different prices and buyers choose best price. Reciprocating; Trading sales for sales, that is , “if you buy from me, I will buy from you”
Electronic Data Interchange (EDP); An approach that puts information in a standardized format easily shared between different computer systems.
Target Market; a fairly homogeneous group of customers to whom the company wishes to appeal.