MARKETING

Marketing- The process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy individual and
organizational goals.
Market-A collection of buyers or sellers who transact over a particular product (K)
Need - A basic human requirement, such as food, air, water, clothing, and shelter, as well as
recreation, education, and entertainment.
Want- Need directed towards specific objects that can satisfy the need (K)
Demand- A demand is a want backed by the ability to pay (K)
Eg. I need food (Need); I want to eat a burger (want); I want to and can afford a Mac Aloo
Tikki (Demand)
Types of Demand:

latent demandwhen customers have a strong need that can't be satisfied by existing
offerings
increasing demandwhen customers become aware of a product, begin to like it, and
start asking for it
irregular demandwhen demand varies by season, day, or hour
full demandwhen customers want everything a company has to offer
overfull demandwhen customers' demands exceed the company's ability to satisfy
those demands
declining demandwhen demand diminishes
unwholesome demandwhen customers want unhealthy or dangerous products
negative demandwhen customers avoid a product
no demandwhen customers have no awareness of

Product.-Any offering that can satisfy a customer's need or want. Products come in 10 forms:
goods, services, experiences, events, persons, places, properties, organizations, information,
and ideas.
Exchange- The core of marketing, exchange entails obtaining something from someone else
by offering something in return.
Value - The ratio between what a customer gets and what he or she gives in return.
Marketing Mix- The set of toolsproduct, price, place, and promotionthat a company
uses to pursue its marketing objectives in the target market.
Marketing Concept - The belief that a company can achieve its goals primarily by being
more effective than its competitors at creating, delivering, and communicating value to its
target markets. The marketing concept rests on four pillars: (1) identifying a target market,

(2) focusing on customer needs, (3) coordinating all marketing functions from the customer's
point of view, and (4) achieving profitability.
Product concept- The belief that consumers favour products those offer the most quality,
performance, or innovative features.
Production Concept- The belief that customers prefer products those are widely available
and inexpensive.
Selling Concept- The belief that companies must sell and promote their offerings
aggressively because consumers will not buy enough of the offerings on their own.
Relationship Marketing- Building long-term, mutually satisfying relations with key parties
such as customers, suppliers, and distributorsto earn and retain their long term business.
CONSUMER BEHAVIOUR
It is the study of how individuals, groups and organizations select, buy, use and dispose of
goods, services, ideas or experiences to satisfy their needs and wants (K)
Stages of adoption- There are 5 stages which includes 1) problem recognition 2) Information
Search 3) Evaluation 4) Trials 5) Adoption
Reference groups- A persons reference groups are all the groups that have a direct (face toface) or indirect influence on a customers attitude. Some of the primary groups include
friends, family, neighbours and secondary groups include religious, professional and tradeunion groups which tend to be more formal and require less continuous interaction (K)
Aspirational groups- Groups that a person hopes to join
BRAND
Brand-A company or product name, term, sign, symbol, designor combination of these
that identifies the offerings of one company and differentiates them from those of
competitors.
Brand Equity- Added value endowed on product and services by the brand. It may be
reflected in the way consumers think, feel and act with respect to a brand as well as in the
prices, share and profitability the brand commands for the firm. (K)
Brand Promise It is a marketers vision for what the brand must do for its consumers. (K)
Brand Extension- When a firm uses an established brand to introduce a new product, the
product is called a brand extension.
SEGMENTATION, TARGETING AND POSITIONING (STP)
Segmentation- Companies cannot connect with all customers in large, broad, or diverse
markets. But they can divide such markets into groups of consumers or segments with

distinct needs and wants. A company then needs to identify which market segments it can
serve effectively. A market segment consists of a group of customers who share a similar set
of needs and wants. Segmentation can be geographic, behavioural, psychographic or
demographic (K)
Targeting- This is a 3 step process:
Identify and profile distinct groups of buyers who differ in their needs and preferences
Select one or more market segments to enter
Establish and communicate the distinctive benefits of the market offering (K)
Positioning The positioning identifies the way a firm wants customers to think about their
product/brand to maximize their product interest
The positioning defines how the product will be differentiated to compete in an
increasingly competitive marketplace
DISTRIBUTION
Marketing Channel - Intermediary companies between producers and final consumers that
make products or services available to consumers. Also called trade channels or distribution
channels.
Levels -A zero-level channel, also called a direct marketing channel, consists of a
manufacturer selling directly to the final customer. The major examples are door-to-door
sales, home parties, mail order, telemarketing, TV selling, Internet selling, and manufacturerowned stores. One level has one intermediary and so on.
Push strategy- A push strategy uses the manufacturers sales force, trade promotion money,
and other means to induce intermediaries to carry, promote, and sell the product to end users
Pull strategy- A pull strategy uses advertising, promotion, and other forms of communication
to persuade consumers to demand the product from intermediaries
Sales PromotionMISCELLANE
OUS
Direct
Marketing
Tele Marketing
Electronic Markets/ Electronic commerce
Break Even
analysis
Channel
Conflict
Every Day Low prices (ELDP)
Focus groups
Integrated marketing communication

POP (point of purchase)