Fundamentals of marketing Flashcards

Question

demands

Answer 1

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

Answer 2

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.

Answer 3

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.

Answer 4

The act of obtaining a desired object from someone by offering something in return

Answer 5

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.

Answer 6

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.

Answer 7

Customer satisfaction depends on a product’s perceived performance in delivering value relative to a buyer’s expectation.

Answer 8

Customer satisfaction is closely linked to quality. Quality has a direct impact on product performance. Quality can be defined as “freedom from defects”.

Answer 9

Production concept Product concept Selling concept Marketing concept Holistic marketing concepts

Answer 10

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.

Answer 11

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.

Answer 12

🔹 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.

Answer 13

The Production Concept works best in markets with high demand and low competition, where efficiency and affordability are key drivers of success.

Answer 14

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.

Answer 15

✅ 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.

Answer 16

🔹 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.

Answer 17

The Product Concept works best in industries where quality and innovation matter most, such as technology, luxury goods, and healthcare

Answer 18

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.

Answer 19

✅ 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).

Answer 20

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.

Answer 21

The Selling Concept works best in industries with high competition or when businesses need to quickly increase sales.

Answer 22

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.

Answer 23

✅ 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

Answer 24

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)

Answer 25

Companies that follow the Marketing Concept focus on long-term relationships rather than just sales.

Answer 26

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.

Answer 27

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.

Answer 28

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.

Fundamentals of marketing Flashcards

(52 cards)