Fundamentals of marketing Flashcards
What is the main difference between marketing and advertising?
Marketing is a broad process that involves identifying, creating, and delivering value to customers, while advertising is a subset of marketing focused on paid promotions.
What are the key components of marketing
Market research, branding, pricing, product development, distribution, sales, and customer relationship management.
What is the main objective of marketing
To build and maintain relationships with customers, satisfy their needs, and increase brand awareness
What is the main objective of advertising?
To persuade and attract potential customers to buy a product or service through promotional messages.
What is the difference in cost between marketing and advertising?
Marketing includes both paid and unpaid strategies, while advertising usually requires a budget for paid placements.
How does the timeframe differ between marketing and advertising?
Marketing is long-term and continuous, focusing on brand building, while advertising is often short-term and campaign-based.
What are some examples of marketing activities?
Market research, influencer partnerships, product packaging, customer loyalty programs, and social media engagement.
What are some examples of advertising?
Google Ads, TV commercials, billboards, sponsored social media posts, and newspaper ads.
define marketing
“Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.”
consumer market
A consumer market consists of individuals or households who buy goods and services for personal use. These purchases are influenced by needs, preferences, and emotions.
✅ Examples:
Buying a smartphone from Apple
Purchasing clothes from H&M
Ordering food from Domino’s
Industrial Market (B2B Market)
An industrial market involves businesses that purchase goods and services for production, resale, or operational purposes. These transactions are based on logic, efficiency, and cost-effectiveness.
✅ Examples:
A car manufacturer buying steel for production
A restaurant purchasing raw ingredients from a wholesale supplier
A company buying software for employee management
Marketing eg 1
Coca-Cola – Emotional Branding & Consistency
✅ Strategy: Coca-Cola uses emotional marketing by associating its brand with happiness, togetherness, and celebrations.
✅ Example: The “Share a Coke” campaign personalized bottles with names, making it a viral hit.
Marketing eg 2
Strategy: Apple creates a premium image through sleek product design, innovative technology, and exclusive events.
✅ Example: The hype around iPhone launches builds anticipation and demand, leading to massive first-day sales.
Marketing eg 3
Spotify – Data-Driven Marketing
✅ Strategy: Spotify uses AI and data to personalize music recommendations and user engagement.
✅ Example: “Spotify Wrapped” provides users with personalized music stats, making it a viral marketing success.
What is marketed ?
- Goods and services
Example: iPhones, McDonald’s meals, Netflix subscriptions
🔹 Explanation: Tangible products & intangible services sold to consumers
What is marketed ?
- Ideas and Information
Example: “Go Green” campaigns, Road safety awareness, Political ideologies
🔹 Explanation: Concepts marketed to influence behavior or beliefs
What is marketed ?
- Events
Example: FIFA World Cup, Met Gala, Coachella
🔹 Explanation: Promotion of organized gatherings to attract attendees
What is marketed ?
- People/persons
Example: Celebrities like Cristiano Ronaldo, Elon Musk, or political figures
🔹 Explanation: Branding individuals to boost influence or popularity
What is marketed ?
- Experiences
Example: Disneyland, Luxury cruise vacations, Adventure tourism
🔹 Explanation: Selling memorable and immersive experiences
What is marketed ?
- places
Example: “Incredible India” campaign, Dubai tourism, New York City attractions
🔹 Explanation: Promoting locations for tourism, investment, or living
What is marketed ?
- properties
Example: Real estate ads for apartments, commercial spaces, or land sales
🔹 Explanation: Marketing physical or financial property ownership
What is marketed ?
- Organisations
Example: Red Cross (NGO), Google (Tech company), Universities
🔹 Explanation: Branding institutions for reputation, recruitment, or fundraising
Needs
Human needs refer to states of felt deprivation, meaning people experience a lack of something essential for their well-being. These needs are fundamental and drive consumer behavior.
Types of Human Needs:
1️⃣ Physical Needs – The basic necessities required for survival.
🔹 Examples: Food, clothing, warmth, and safety.
2️⃣ Social Needs – The desire for connection and belonging in society.
🔹 Examples: Friendships, love, and family relationships.
3️⃣ Individual Needs – The need for personal growth, learning, and self-expression.
🔹 Examples: Gaining knowledge, creativity, personal achievements.
wants
Wants are the forms that human needs take when shaped by culture, society, and individual personality. While needs are fundamental (e.g., food, shelter, belonging), wants are influenced by external factors and personal preferences.
Characteristics of Wants:
✅ Shaped by Culture – Different cultures influence wants differently.
🔹 Example: A person in the U.S. may want a burger, while someone in Japan may want sushi.
✅ Driven by Individual Personality – Personal preferences shape wants.
🔹 Example: One person may want a luxury car, while another prefers an eco-friendly bicycle.
✅ Unlimited Wants, Limited Resources – People always desire more, but they have limited money, time, or access.
🔹 Example: A person may want the latest iPhone but can only afford a mid-range phone.
Marketers study consumer wants to create products and services that align with cultural trends and personal preferences, maximizing customer satisfaction.
demands
What Are Demands?
When wants are supported by buying power, they turn into demands—the specific products and services consumers are willing and able to purchase.
Consumer Decision-Making:
🔹 Consumers see products as bundles of benefits, meaning they evaluate different options based on the value they provide.
🔹 They choose products that offer the best combination of benefits for their money.
Example:
✅ A person wants a smartphone.
✅ If they have the budget for an iPhone, their want becomes a demand for an iPhone.
✅ If not, they may choose a different brand that offers similar benefits within their budget
product
Anything that can be offered to a market to satisfy a need or want.
The concept of product is not limited to physical objects – anything capable of satisfying a
need can be called a product.
services
In addition to tangible goods, products also include services, which are activities or benefits
offered for sale that are essentially intangible and do not result in the ownership of anything.
Exchange
The act of obtaining a desired object from someone by offering
something in return
Transaction
A trade between two parties that involves at least two things of
value, agreed – upon conditions a time of agreement, and a place
of agreement.
value
Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the products.
Customers act on perceived value.
Value is a combination of quality, service and price.
Customer satisfaction
Customer satisfaction depends on a product’s perceived performance in delivering value relative to a buyer’s expectation.
Quality
Customer satisfaction is closely linked to quality.
Quality has a direct impact on product performance.
Quality can be defined as “freedom from defects”.
Company orientation towards the
Marketplace
5 philosophies
Production concept
Product concept
Selling concept
Marketing concept
Holistic marketing concepts
Define production concept
The Production Concept is a marketing philosophy that assumes consumers prefer products that are widely available and affordable. This approach focuses on high production efficiency, cost reduction, and mass distribution to maximize sales.
key assumptions of production concept
Consumers prioritize availability and low cost over other factors.
Businesses should focus on mass production and cost-cutting to increase profits.
Higher production leads to lower costs per unit, making products more affordable.
Eg of production concept
🔹 Companies like Ford (during the early 20th century) used mass production techniques to make cars widely available at low prices.
🔹 Fast-food chains like McDonald’s focus on standardized production to serve millions of customers efficiently.
marketing relevance of production concept
The Production Concept works best in markets with high demand and low competition, where efficiency and affordability are key drivers of success.
Define product concept
The Product Concept is a marketing philosophy that assumes consumers prefer products with the highest quality, best performance, or most innovative features. Businesses that follow this concept focus on continuous product improvement to attract and retain customers.
key features of product concept
✅ Consumers prioritize quality, performance, and innovation over price and availability.
✅ Companies focus on product development and technological advancements.
✅ Success depends on creating superior products that outperform competitors.
Examples of product concept
🔹 Apple iPhones – Apple continuously improves its products by adding better cameras, faster processors, and new features to attract customers.
🔹 Dyson Vacuum Cleaners – Known for innovation, Dyson invests in new technology and powerful suction features to differentiate from competitors.
marketing relevance of product concept
The Product Concept works best in industries where quality and innovation matter most, such as technology, luxury goods, and healthcare
define selling concept
The Selling Concept is a marketing strategy based on the idea that consumers will not buy enough of a product unless the company actively promotes and sells it. This approach focuses on aggressive sales techniques, advertising, and promotions to increase demand.
key features of selling concept
✅ Assumes that products do not sell on their own, and strong sales efforts are needed.
✅ Focuses on short-term sales goals rather than long-term customer relationships.
✅ Often used for unsought products (items consumers don’t think of buying, like insurance or gym memberships).
examples of selling concept
HDFC & SBI (Credit Cards) – Promote “Lifetime Free Credit Card” offers through telemarketing, SMS, and emails to push sign-ups.
Airtel & Jio (Telecom) – Use aggressive advertising, data offers, and cashback deals to attract new customers.
marketing relevance in selling concept
The Selling Concept works best in industries with high competition or when businesses need to quickly increase sales.
define marketing concept
The Marketing Concept is a customer-centered approach where businesses identify the needs and wants of their target market and deliver better satisfaction than competitors. The goal is to build long-term customer relationships and achieve profitability through customer loyalty.
key features of marketing concept
✅ Customer Focus – Understand and meet customer needs.
✅ Competitive Advantage – Deliver superior value compared to competitors.
✅ Profit through Satisfaction – Customer satisfaction leads to repeat business and loyalty
examples of market concept
McDonald’s – Adapts menus based on local preferences (e.g., McAloo Tikki in India), ensuring customer satisfaction across different cultures.
Starbucks – Builds a strong brand by prioritizing customer experience through customized drinks, loyalty rewards, and a comfortable café atmosphere.
(ind- kesar flavour/ ibn batuta in dubai - grandiuer cafe atmos)
relevance of marketing concept
Companies that follow the Marketing Concept focus on long-term relationships rather than just sales.
holistic marketing
The Holistic Marketing Concept is a broad approach where businesses integrate all aspects of marketing to create a unified strategy. It focuses on how different marketing activities are connected and how they work together to build a strong brand and customer experience.
Components of Holistic Marketing:
Internal Marketing – Ensuring employees are motivated and aligned with company values.
🔹 Example: Google – Creates a positive work environment to keep employees engaged and productive.
Integrated Marketing – Coordinating all marketing efforts (advertising, PR, digital, etc.) for a consistent message.
🔹 Example: Coca-Cola – Uses consistent branding across social media, TV ads, and sponsorships.
Relationship Marketing – Building strong, long-term customer relationships.
🔹 Example: Amazon – Personalized recommendations and loyalty programs (Prime) keep customers engaged.
Societal Marketing – Emphasizing corporate social responsibility (CSR) and ethical practices.
🔹 Example: Patagonia – Focuses on sustainability and environmental initiatives to attract eco-conscious customers.
importances of marketing
Creates Brand Awareness – Helps businesses reach their target audience, making their brand recognizable and memorable.
Increases Sales & Revenue – Attracts potential customers and encourages purchases, directly boosting business earnings.
Builds Customer Loyalty & Relationships – Establishes trust through consistent engagement, leading to repeat customers and brand advocates.
Understands & Satisfies Customer Needs – Conducts market research to tailor products and services, ensuring customer satisfaction.
Gives a Competitive Advantage – Differentiates a business from its competitors through unique value propositions and branding.
Supports Business Growth & Expansion – Opens new market opportunities and helps companies scale through strategic campaigns.
Enhances Customer Engagement – Encourages interaction through ads, social media, and promotions, fostering stronger connections.
