Market: In marketing the term market refers to the group of consumers or

organizations that is interested in the product, has the resources to purchase the
product and is permitted by law and other regulations to acquire the product.
In simple words, the set of actual and potential buyers of a product or service.
There are different types of market-
Potential market, Available market, Qualified available market, Target market and
Penetrated market.
Marketing: Marketing is managing profitable customer relationship. The two fold goal
of marketing is to attract new customer by promising superior customer value and to
keep and grow current customers by delivering satisfaction.
Broadly defined, marketing is a social and managerial process by which individuals
and groups obtain what they need and want through creating and exchanging value
with others.
In a narrow business context, marketing involves building profitable, value laden
exchange relationship with customers.
So, we can say, marketing is the process by which companies create value for
customers and build strong customer relationships in order to capture value from
customers in return.
Marketing Offer: marketing offer is some combination of products, services,
information or experience offered to a market to satisfy needs or wants of a customer.
Share of Customer: Share of customer is the portion of a customer’s total spending
for a particular company.
Market Share: Market share is the portion of total customers for a specific product in
that product category.
Marketing Management: The art and science of choosing target markets and building
profitable relationships with them.
Five step model of marketing process:
1. Understand the market place and customers needs and wants.
2. Design a customer driven marketing strategy
3. Construct a marketing program that delivers superior value.
4. Build profitable relationship and create customer delight
5. Capture value from customers to create profits and customer quality.
Partner Relationship Management: Partner relationship management (PRM) is a
business strategy for improving communication between companies and their channel
partners. Web based PRM software applications enable companies to customize and
streamline administrative tasks by making shipping schedules and other real time
information available to all the partners over the internet. Several CRM providers have
incorporated PRM features, such as web enabled spreadsheets through an extranet, in
their software applications.

 PRM is often compared to the CRM and there is some argument over
whether the complex relationships of channel partnerships make it
necessary for PRM to be a separate entity or merely a component of CRM.
Marketing Concept: The marketing concept is the philosophy that firms should
analyze the needs of their customers and then to satisfy these needs, better than the
competition. Today most firms have adopted marketing concept. ( In 1776 in the
“wealth of nations” Adam Smith wrote that the needs of producers should be
considered only with regard to meeting the needs of consumers.)
The key questions of marketing concept –
1. What do customers want?
 2. Can we develop it while they still want it?
3. How can we keep our customers satisfied?

Starting point Focus Means Ends

Market Customer needs Integrated Profit through

marketing customer
satisfaction

Production Concept: The production concept prevailed from the time of the industrial
revolution until the early 1920’s. The production concept is the idea that consumers
will buy products that are available and highly affordable/cheap. It works best in two
situations-
1. The first is when the demand for a product exceeds the supply; the
management should increase the production to response with the demand.
2. The second situation occurs when the product’s costs is too high, more
production can reduce the price.
Selling Concept: By the early 1930’s however, the mass production had become
common place, competition had increased and there was little unfulfilled demand.
Around this time firms began to practice the sales concept. Under which companies
not only would produce the products, but also would try to convince customers to buy
them through advertising and personal selling. Before producing a product, the key
question were-
1. Can we sell the product?
2. Can we charge enough for it?
The sales concept paid little attention to whether the product actually was needed; the
goal simply was to beat the competition to the sale with little regard to customer
satisfaction.
Product Concept: The product is the idea that consumers will favor products that
offer the most quality, performance and features and that the organization should
devote to making continuous product improvements. The product concept can lead to
marketing myopia.

Market Development: A strategy for company growth by offering modified or new

products to current market segments.
A market development strategy targets non-buying customers in currently targeted
segments. It also targets new customers in new segments.
Market Penetration: Making more sales to current customers without changing its
products, by adding new stores in current market areas and increasing new user and
more usage.
Or, Increasing market share of an existing product or promoting a new product
through strategies such as bundling, lower prices or volume discounts.
Market Positioning: Arranging for a product to occupy a clear, distinctive and
desirable place relative to competing products in the minds of target consumers.
  Positioning is a perceptual location. It’s where your product or service fits into
the market place. Effective positioning puts you first in line in the minds of
potential customers.
 The primary elements of positioning are-
Pricing, Quality, Service, Distribution, Packaging, Users Application, Symbol
etc.
Market Segment: A group of consumers who respond in a similar way to a given set
of marketing efforts.
In other words, A particular group that has its own distinct customer profile and
buyer characteristics so that for marketing purposes, it can be targeted separately
from other segments of the market.
Marketing Audit: A comprehensive, systematic independent and periodic examination
of a company’s environment, objectives, strategies and activities to determine problem
areas and opportunities and to recommend a plan of action to improve the company’s
marketing performance.

Marketing Control: The process of measuring and evaluating the results of

marketing, strategies and plans, and taking corrective action to ensure that objectives
are achieved.
Marketing Implementation: The process that turns marketing actions in order to
accomplish strategic marketing objectives.

Marketing Strategy: Marketing strategy is the marketing logic by which the business
unit hopes to achieve its marketing objectives.

Strategic Planning: It is the process of developing and maintaining a strategic fit

between the organizational goals and capabilities and its changing marketing
opportunities.
 It involves defining a clear company mission, setting supporting objectives,
designing a sound business portfolio and coordinating functional strategies.
Marketing Mix: Marketing mix is the combination of elements that you will use to
market your product. There are four elements: Product, Price, Place and Promotion.
They are called the four P’s of marketing mix.
CHAPTER 5 [consumer market and consumer buyer behavior]

Consumer Market: All individual and households who buy or acquire goods and
services for personal consumption.
Culture: The set of basic values, perceptions, wants and behaviors learned by a
member of society from family and other important institutions.
Post Purchase Behavior: The stage of the buyer decision process in which consumers
take further action after purchase, based on their satisfaction or dissatisfaction.
Attitude: A person’s consistently favorable or unfavorable evaluations, feelings and
tendencies toward an object or idea.
Purchase Decision: The buyer’s decision about which brand to purchase.
Need Recognition: The first stage of the buyer decision process, in which the
consumer recognizes a problem or need.
Cognitive Dissonance: Buyer discomfort by post purchase conflict.
Group: Two or more people who interact to accomplish individual or mutual goal.
New Product: A good, service or idea that is perceived by some potential customers as
new.
Subculture: A group of people with shared value systems based on common life
experiences and situations.
Complex Buying Behavior: Complex buying behavior in situations characterized by
high consumer involvement in a purchase and significant perceived differences among
brands.
Habitual Buying Behavior: Consumer buying behavior in situations characterized by
low consumer involvement and few significant perceived brand differences.
Opinion Leader: Person within a references group who, because of special skills,
knowledge, personality or other characteristics, exerts influence on others.
Consumer Buyer Behavior: The buying behavior of final consumers- individuals or
households who buy goods and services for personal consumption.
Variety Seeking Buying Behavior: Consumers buying behavior in situations
characterized by low consumer involvement but significant perceived brand
differences.

Perception: The process by which people select, organize and interpret information to
form a meaningful picture of the world

CHAPTER 6 [understanding the market place and the consumer]

Business Buyer Behavior: The buying behavior of the organizations that buy goods
and services for use in the production of other products and services or for the
purpose of reselling or renting them to others at a profit.
Business Buying Process: The decision process by which business buyers determine
which products or service their organizations need to purchase and then find, evaluate
and choose among alternative suppliers and brands.
Buyers: The people who make an actual purchase.
 Buying Center: All the individuals and units that participate in the business buying
decision process.
Government Market: Governmental units- federal, state and local – the purchase or
rent goods and services for carrying out the main functions of government.
Institutional Market: Schools, hospitals, nursing homes, prisons and other
institutions that provide goods and services to people in their care.
Modified Re Buy: A business buying situation in which the buyer wants to modify
product specification, prices terms or suppliers.

CHAPTER 7
[Designing a customer driven marketing strategy & marketing mix]

Age and the life cycle segmentation: Dividing a market into different age and life
cycle groups.
Demographic Segmentation: Dividing the market into groups based on demographic
variables such as age, sex, family size, family life cycle, income, occupation, education,
religion, race and nationality.
Behavioral Segmentation: Dividing a market into groups based on consumer
knowledge, attitude, use or response to a product.
Benefit Segmentation: Dividing a market into groups according to the different
benefits that consumers seek from the product.
Inter market Segmentation: Forming segments of consumers who have similar
needs and buying behavior even though they are located in different countries.
Differentiated (segmented) Marketing: A market coverage strategy in which a firm
decides to target several market segments and designs separate offers for each.
Gender Segmentation: Dividing a market into different groups based on gender.
Geographic Segmentation: Dividing a market into different geographical units such
as nations, states, regions, counties, cities or neighborhoods.
Income Segmentation: Dividing a market into different income groups.
Market Segmentation: Dividing a market into smaller groups of buyer’s distinct
needs, characteristics or behavior who might require separate products or marketing
mix.
Occasion Segmentation: Dividing the market into groups according to occasions
when buyers get the idea to buy actually make their purchase or use the purchased
item.
Psychographic Segmentation: Dividing a market into different groups based on
social class, life style or personality characteristics.
Local Marketing: Tailoring brands and promotions to the needs and wants of local
customer groups- cities, neighborhoods and even specific stores.
Individual Marketing: Tailoring products and marketing programs to the needs and
preferences of individual customers- also labeled “markets of one marketing”,
“customized marketing” and “one to one marketing.”
Market Positioning: Applying for a product to occupy a clear, distinctive and
desirable place relative to competing products in the minds of target consumers.
Micro Marketing: The practice of tailoring products and marketing programs to the
needs and wants of specific individuals and local customer groups- includes local
marketing and individual marketing.
Positioning Statement: A statement that summarizes company or brand positioning-
it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-
difference).
Product Position: The way the product is defined by consumers on important
attributes- the place the product occupies in consumers’ minds relative to competing
products.
Target Market: A set of buyers sharing common needs or characteristics that the
company decides to serve.
Target Marketing: The process of evaluating each market segment’s attractiveness
and selecting one or more segments to enter.

CHAPTER 8 [product, services and branding strategy]

Brand: A name, term, sign, symbol or design or a combination of these intended to

identify the goods or services of one seller or group of sellers and to differentiate them
from those of competitors.
Brand Equity: The positive differential effect that knowing the brand name has on
customer response to the product or service.
Brand Extension: Using a successful brand name to launch a new or modified
product in a new category.
Co –branding: The practice of using the established brand names of the established
brand names of two different companies on the same product.
Consumer Product: Product bought by final consumer for a personal consumption.
Convenience Product: Consumer product that the customer usually buys frequently,
immediately and with a minimum of comparison and buying effort.
Industrial product: Industrial products are those products, which are purchased for
further processing or for use in conducting a business.
Packaging: The activities of designing and producing the container or wrapper for a
product.
Private (store) Brand: A brand created and owned by a reseller of a product or
service.
Product: Product is a generic term used to identify both the tangible goods and
intangible services. A product is anything that can be offered to the market for
attention, acquisition, use or consumption that might satisfy a want or need. So
product includes physical objects, services, events, persons, places, organizations,
ideas, or mixes of these entities.

Product Line: A group of products that are closely related because they function in a
similar manner are sold to the same customer groups are marketed through the same
the same types of outlets, or fall within given price ranges.

Product mix (or product assortment): The set of all products lines and items that a
particular seller offers for sale.

Product Quality: The ability of a product to perform its functions, it includes the
product’s overall durability, reliability, precision, ease of operation and repair and
other valued attributes.
Service: Any activity or benefit that one partly can offer to another that is essentially
intangible and does not result in the ownership of anything.

Shopping Product: Consumer good that the customer, in the process of selection and
purchase characteristically compares on such bases as suitability, quality, price and
style.
Social Marketing: The design implementation and control of programs seeking to
increase the acceptability of a social idea, cause or practice among a target group.
Specialty Products: Consumers product with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort.
Unsought Product: Consumers product that the consumer either does not know
about or knows about but does not normally think of buying.

Chapter 10
[Pricing Products: Pricing Considerations & Approaches]

Commercialization: Introducing a new product into the market.

Concept Testing: Testing new-product concepts with a group of target consumers
to find out if concept have strong consumer appeal .
Decline Stage: The product life-cycle stage in which a product’s sales decline.
Fashion: A currently accepted or popular style in a given field.
Growth Stage: The product life-cycle stage in which a product’s sales start climbing
quickly.
Idea Generation: The systematic search for new-product ideas.
Idea Screening: Screening new-product ideas in order to spot good ideas and drop
poor ones as soon as possible.
Introduction Stage: The product life-cycle stage in which the new product is first
distributed and made available for purchase.
Marketing strategy Development: Designing an initial marketing strategy for a new
product concept.
Maturity Stage: The stage in the product life cycle in which sales growth slows or
levels off.
New-product Development: The development of original products, product
improvements, product modifications, and new brands through the firm’s own R&D
efforts.
Product Concept: A detailed version of the new-product idea stated in meaningful
consumer terms.
Product Development: Developing the product concept into a physical product in
order to ensure that the product idea can be turned into a workable product.
Product Life Cycle (PCL): The courses of a product’s sales and profits over its life-
time. It involves five distinct stages; product development, introduction, growth,
maturity, and decline.
Market-Penetration Pricing: Setting a low price for a new product in order to attract
a large number of buyers and a large market share.
Market-Skimming Pricing: Setting a high price for a new product to skim maximum
revenues layer by layer from the segments willing to pay the high price; the company
makes fewer but more profitable sales.
Promotional Pricing: Temporarily pricing products below the list price, and
sometimes even below cost, to increase short-run sales.
Psychological Pricing: A pricing approach that considers the psychology of prices and
not simply the economics; the price is used to say something about product.
Supply Chain Management: Managing upstream and downstream value-added flows
of materials, final goods, and related information among suppliers, the company,
resellers, and final consumers.
Supermarket: Large, low-cost, low-margin, high-volume, self-service store that carries
a wide variety of food, laundry, and household products.

Superstore: A store much larger than a regular supermarket that carries a large
assortment of routinely purchased food and nonfood items and offers services such as
dry cleaning, post offices, photo finishing, check cashing, bill paying, launch counters,
car-care, and pet care.

Advertising: Any paid form of non-personal presentation and promotion of ideas,

goods, or services by an indentified sponsor.
Pull Strategy: A promotion strategy that calls for using the sales force and trade
promotion to push the product through channels. The producer promotes the product
to wholesalers, the wholesalers promote to retailers and the retailers promote to
consumers.

Push Strategy: A promotion strategy that calls for spending a lot on advertising and
consumer promotion to build up consumer demand. If the strategy is successful,
consumers will ask their retailers for the product, the retailers will ask the
wholesalers, and the wholesalers will ask the producers.

Sales Promotion: Short-term incentives to encourage the purchase or sale of a

product or services.