Marketing Fundamentals: Key Concepts
1. Differentiating Factor?
Supporting a design to surpass others, influencing consumer choice economically, practically, or psychologically.
2. Objective Market Research
Analyzing market response to a product.
3. Purpose of Business
Facilitating exchanges between buyers and sellers.
4. Supply and Demand
Bid is the seller’s offering at a specific price. Demand is the buyer’s willingness at a fixed price. Exchange occurs at the balance point.
5. Marketing Defined
Human activity satisfying needs and wants through exchange processes.
6. Marketing Mix
Controlling product, price, promotion, and distribution to meet needs.
7. Product Concept
Anything designed to satisfy a desire or need.
8. Product Levels
Basic: Need satisfaction. Formal: Features and satisfaction. Broad: Benefits associated with purchase.
9. Product Tangibility
Real: Tangible goods. Services: Intangible activities.
10. Consumer vs. Industrial Product
Industrial products are integrated into processes; consumer products are for consumption.
11. Expanded Product
Formal product with associated purchase benefits.
12. Product Life Cycle
Introduction: Launch, promotion. Growth: Sales increase, advertising. Maturity: Stable sales. Decline: Decreasing sales.
13. Product Pricing
Cost: Cost plus profit. Competition: Based on competitors. Customer: Based on willingness to pay.
14. Market Definition
Actual or potential buyers and sellers of a product.
15. Current vs. Potential Market
Current market: Real buyers. Potential market: Possible future buyers.
16. Market Share
Company’s percentage ownership: (Company Sales / Total Sales) x 100
17. Influence of Middlemen and Prescribers
Intermediaries affect price and supply. Prescribers direct purchases.
18. Target Market
Potential buyers aimed to become real buyers.
19. Market Segmentation
Using criteria (demographic, economic, etc.) to identify target market members.
20. Buying Process Phases
- Awareness of need.
- Finding solutions.
- Evaluating alternatives.
- Buying.
- Rating.
21. Competition
Different suppliers in a market.
22. Factors Intensifying Competition
- Ease of entry.
- Rivalry among competitors.
- Existence of substitutes.
23. Barrier to Entry
- Patents.
- High capital requirements.
- Government regulations.
24. Competition Strategies
Cost Leadership: Reducing production costs. Differentiation: Offering unique products. Specialization: Focusing on a specific buyer group.
25. Promotion
Persuading consumers to purchase a product.
26. Advertising Purpose
Informing about product advantages and persuading purchase over competitors.
27. Effective Communication
- Meta-hearing.
- Message and response selection.
- Channel choice.
- Response verification.
28. Distribution
Connecting products with consumers.
29. Distribution Channels
Formulas for manufacturer-distributor contact: direct, short, intermediate, long.
30. SWOT Analysis
Evaluating competitive position by analyzing Strengths, Weaknesses, Opportunities, and Threats.