GLOSSARY OF MARKETING:

MARKET-Market is any structure that allows buyers and sellers to exchange any type of goods,
services and information. A regular gathering of people for the purchase and sale of provisions,
livestock, and other commodities. A place where goods are offered for sale. For example: super
market, vegetable market and cosmetic market

VIRTUAL MARKET-It is the online market that allows buyers and sellers to exchange goods, services
and information. For example: when one shops at eBay.com or any other internet shopping site.

BUSINESS-Business is an economic activity, which is related with continuous and regular production
and distribution of goods and services for satisfying human wants. For example: We also have many
other household requirements to be satisfied in our daily lives. We met these requirements from
the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers.
The shopkeeper, the wholesaler, the manufacturer are doing business and therefore they are
called as Businessman.

MARKETING- According to American Marketing Association (AMA)”Marketing is a continuous

process which requires planning, conception of idea, its execution, product/ service, Its price,
promotion and distribution to create exchange for value delivered and satisfy both individual and
organizational goals”.
Marketing is a process of satisfying customer demand for a product or service or solution beyond
his/her expectations, taking into consideration customer value and social responsibility as
compared with competitors.
SELLING-Selling emphasize on profits. Its seeks to quickly converts “products” into “cash”. It
concerns itself with the tricks and techniques of pushing the products to the buyer.

DIFFERENCE BETWEEN MARKETING AND SELLING-

MARKETING SELLING
Emphasis is on consumer needs wants Emphasis is on the product
Company first determines customers needs Company Manufactures the product first
and wants and then decides out how to
deliver a product to satisfy these wants
Profit generation through customer Profit generation through sales volume .
satisfaction.
Planning is long-run-oriented in today’s Planning is short-run-oriented in terms of
products and terms of new products, today’s products and markets
tomorrow’s markets and future growth
Consumer determine price, price determines Cost determines Price
cost
All departments of the business integrated Different departments work as in a highly
manner, the sole purpose being generation separate water tight compartments
of consumer satisfaction
Emphasis on innovation on every existing Emphasis on staying with existing technology
technology and reducing every sphere, on and reducing costs
providing better costs value to the
customer by adopting a superior technology

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CUSTOMER-A person, company, or other entity which buys goods and services produced by another
person, company, or other entity. He is the recipient of goods. For example: when we do shopping
in the market or buy the product (but may or may not use the product) is termed as customer.

CONSUMER-An individual who buys products or services for personal use. A consumer is someone
who can make the decision whether or not to purchase an item at the store, and someone who can
be influenced by marketing and advertisements. For example: when we do shopping in the market
and buys clothes for our personal use, he/she called as consumer. Consumer is the ultimate user of
the product.

NEED –Needs are the basic requirements necessary for organisation to live a healthy life. Needs are
required for survival. For example: water, food, shelter.

WANT-wants are specific needs for an object. For example I want to have a BMW car.

DESIRE-A strong feeling of wanting to have something or wishing for something to happen. For
example: Desire is a term used to indicate what someone wants. There are many things that
people desire including money, love, food, and possessions

DEMAND-demand is the desire to own anything, the ability to pay for it, and the willingness to pay
during a specific period. Basically Demand refers to how much (quantity) of a product or service is
desired by buyers. Demand is an amount of thing which a person is willing to buy at a given price.
For example: A mobile cost of Rs15000 and at this price a person wants to buy.
Demand= Need+ Want +Ability to pay.
CUSTOMER SATISFACTION-It is a measure of how products and services supplied by a company
meet or surpass customer expectation. Customer satisfaction is defined as "the number of
customers, or percentage of total customers, whose reported experience with a firm, its products, or
its services (ratings) exceeds specified satisfaction goals.

BUYER-A "buyer" or merchandiser is a person who purchases finished goods, typically for resale, for
a firm, government, or organization. In example of a hospital buying the product, hospital is
customer, purchase dept. is buyer and laboratory or any such dept., where the product is used is
consumer

SELLER-A party that makes offers or contracts to make a sale to an actual or potential buyer. Also
called vendor. He is the provider of good and services. For example: the person from whom we buy
the product is a seller.

EXCHANGE-An act of giving one thing and receiving another (esp. of the same type or value) in
return. Give something and receive something of the same kind in return. For example: when we
buy some product from the seller then in exchange we give them some amount of money in return.

DEMARKETING- Demarketing basically refers to when a company discourage its customers to buy
the product produced by them. There are many reasons of adopting this strategy. It’s because of
shortage of supply, want to promote their other products and the company is not having so much
profit with the sale of that product. For example: in case of Tata Nano, when the demand for Tata
Nano increased from its supply level then Tata started promoting their other products and
completely stopped the promotion of Tata Nano.

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GREEN MARKETING-It is the marketing of products that are presumed to be environmentally safe.
Thus green marketing incorporates a broad range of activities, including product modification,
changes to the production process, packaging changes, as well as modifying advertising. Green
marketing refers to the process of selling products and/or services based on their environmental
benefits. Such a product or service may be environmentally friendly in it or produced and/or
packaged in an environmentally friendly way.

CUSTOMER VALUE-It is defined as the difference between what a customer gets from a product, and
what he or she has to pay in order to get it.

RETAILER-A merchant who sells goods at retail. A retailer purchases goods or products in large
quantities from manufacturers or directly through a wholesaler, and then sells smaller quantities to
the consumer for a profit. For example: BIG-BAZAR is a well-known chain of retailer.

WHOLESALER-Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to

retailers, to industrial, commercial, institutional, or other professional business users, or to other
wholesalers and related subordinated services. In general, it is the sale of goods to anyone other
than a standard consumer

AGENT-An Agent is one who acts for, or in the place of, another, by authority from him; one
entrusted with the business of another.

SUPPLIER-Suppliers are individuals or businesses that provide goods or services to vendors.

Suppliers do not generally interact with consumers directly, leaving that task to vendors or shop
owners.

MARKETING MIX (4 P’S) - The marketing mix is a business tool used in marketing products. The
marketing mix is often crucial when determining a product or brand's unique selling point (the
unique quality that differentiates a product from its competitors), and is often synonymous with the
four Ps: product, price, place, promotion:

PRODUCT-A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible
good or an intangible service. Intangible products are service based like the tourism industry,
the hotel industry and the financial industry. Tangible products are those that have an
independent physical existence. Typical examples of mass-produced, tangible objects are the
motor car and the disposable razor.

PRICE-The price is the amount a customer pays for the product. The price is very important as it
determines the company's profit and hence, survival.
Price= Cost +Profit

PLACE-It refers to providing the product at a place which is convenient for consumers to access.
Place is synonymous with distribution

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PROMOTION-It represents all of the methods of communication that a marketer may use to provide
information to different parties about the product. Promotion comprises elements such as:
advertising, public relations, personal selling and sales promotion.

PARTICIPANTS IN BUYING PROCESS: These are the following different roles that persons can
play in a buying decision:
1. Initiator: The initiator is a person who first suggests or thinks of the idea of buying the
particular product. For example, publisher of a book initiates the professor to ask the students of his
class to purchase the book. Here publisher is the initiator, the first person to initiate the buying
process.
2. Influencer: Influencer is a person who explicitly or implicitly has some influence on the final
buying decision of others. Students are influenced by the advice of the professor while taking a
decision to purchase a book. Here professor is the influencer.
3. Decider: The decider is a person who ultimately determines any part or whole of the buying
decision, i.e., whether to buy, what to buy, how to buy, when to buy or where to buy. Children are
the deciders for buying the toys, house lady for kitchen provisions, and head of the family for
durable or luxury items.
4. Buyer: The buyer is the person who actually purchase. Buyer may be the decider or he may be
some other person. Children (deciders) are the deciders for purchasing the toys, but purchases are
made by the parents.
5. User: User is the person who actually uses or consumes the services or products.

SEGMENTATION, TARGETING & POSITIONING-

S - Segmentation
T - Targeting
P - Positioning
Segmentation-The division of a broad market into small segments comprising of individuals who
think on the same lines and show inclination towards similar products and brands is called Market
Segmentation.
Market Segmentation refers to the process of creation of small groups (segments) within a large
market to bring together consumers who have similar requirements, needs and interests.
The individuals in a particular segment respond to similar market fluctuations and require identical
products.
In simpler words market segmentation can also be called as Grouping.
For example: Kids form one segment; males can be part of a similar segment while females form
another segment. Students belong to a particular segment whereas professionals and office goers
can be kept in one segment.
Targeting-Once the marketer creates different segments within the market; he then devises various
marketing strategies and promotional schemes according to the tastes of the individuals of particular
segment. This process is called targeting. Once market segments are created, organization then targets
them.
Targeting is the second stage and is done once the markets have been segmented.
Organizations with the help of various marketing plans and schemes target their products amongst the
various segments.
For example: Nokia offers handsets for almost all the segments. They understand their target
audience well and each of their handsets fulfils the needs and expectations of the target market.
Tata Motors launched Tata Nano especially for the lower income group.
Positioning-Positioning is the last stage in the Segmentation Targeting Positioning Cycle.

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Once the organization decides on its target market, it strives hard to create an image of its product in
the minds of the consumers. The marketers create a first impression of the product in the minds of
consumers through positioning.
Positioning helps organizations to create a perception of the products in the minds of target audience.
For example: Ray Ban and Police Sunglasses cater to the premium segment while Vintage or
Fastrack sunglasses target the middle income group. Ray Ban sunglasses have no takers amongst
the lower income group.
Garner offers wide range of merchandise for both men and women.
Each of their brands has been targeted well amongst the specific market segments. (Men, women,
teenagers as well as older generation)
Men - Sunscreen lotions, Deodorant
Women - Daily skin care products, hair care products.

DIFFERENT TYPES OF MARKET-

1) MASS MARKET-A mass market can be defined as a term used for the largest
group of consumers for a specified products. A mass market is broad in nature
and is not categorized by demographics. Mass market is the extreme opposite
of niche markets. Examples of Products which target a Mass Market –
Ambassador Car.
2) NICHE MARKET-A niche market is one where a very small market segment exists. A niche market
is the subset of the market on which a specific product is focusing. So the market niche defines the
specific product features aimed at satisfying specific market needs, as well as the price range,
production quality and the demographics that is intended to impact. It is also a small market
segment. For example, sports channels like STAR Sports, ESPN, STAR Cricket, and Fox
target a niche of sports lovers, Tractors are a niche market. They are applicable only to agricultural
lands.

3) SEGMENT MARKETING -Segment marketing is the practice of defining your customers needs and
wants by placing them in specialized groups that receive different attention and different levels of
marketing. The way customers are segmented by a company can vary from business to business but
generally include areas such as income, regional location, sex, socioeconomic factors, and previous
buying or business associations.

MARKETING RESEARCH-Marketing research is the systematic gathering, recording, and analysis of

data about issues relating to marketing products and services. The goal of marketing research is
to identify and assess how changing elements of the marketing mix impacts customer
behaviour.
STEPS ARE:
 Define the problem
 Determine research design
 Identify data types and sources
 Design data collection forms and questionnaires

 Determine sample plan and size

 Collect the data

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 Analyze and interpret the data

 Prepare the research report

PRIMARY DATA –It is data that has not been previously published, i.e. the data is derived from a
new or original research study and collected at the source, e.g., in marketing, it is information that
is obtained directly from first-hand sources by means of surveys, observation or experimentation.

SECONDARY DATA- It refers to the statistical material which is not originated by the investigator
himself but obtained from someone else's records. This type of data is generally taken from
newspapers, magazines, bulletins, reports, journals etc. e.g. if the data published by RBI on
currency, National Income, Exports or Imports.

QUESTIONNAIRE-Questionnaire is a research instrument consisting of a series of questions and

other prompts for the purpose of gathering information from respondents. A questionnaire is a
written list of questions which are answered by a lot of people in order to provide information for a
report or a survey.

SCHEDULES-schedule is a structure of set of questions on a given topic which are asked by the
interviewer or investigator personally. The order of questions, the language of the questions and the
arrangement of parts of the schedule are not changed. However, the investigator can explain the
questions if the respondent faces any difficulty

DIFFERENCE BETWEEN QUESTIONNAIRES AND SCHEDULES

QUESTIONNAIRE SCHEDULES
Questionnaire can be sent via mail
It is a cheaper method
Questionnaire can be returned without
answering all the questions
Questionnaire can be filled by anyone
Respondent should be literate & co-
operative in Questionnaire
Success of Questionnaire depends on
its design
Schedule is done only Personally
It is expensive method
Enumerator ensures the filling all the
questions.
Schedule is always filled by
enumerator.
Schedule can be filled by illiterate
In case of Schedule it depends on
honesty & competency of Enumerator.

GENERIC PRODUCTS-Generic brands of consumer products (often supermarket goods) are

distinguished by the absence of a brand name. It is often inaccurate to describe these products as
"lacking a brand name", as they usually are branded, albeit with either the brand of the store in
which they are sold or a lesser-known brand name which may not be aggressively advertised to the
public. They are identified more by product characteristics.

GREY MARKET-Grey market, also known as parallel market, is the trade of a commodity through
distribution channels which, while legal, are unofficial, unauthorized, or unintended by the original
manufacturer. The term Grey economy, however, refers to workers being paid under the table,

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without paying income taxes or contributing to such public services as Social Security and
Medicare. It is sometimes referred to as the underground economy or "hidden economy."
PRODUCT MIX- It is the set of all products and items a particular seller offers for sale. Product mix
dimension are :

WIDTH-different product lines

LENGTH-total number of items in a mix
DEPTH-variants offered of each product in the line
CONSISTENCY-how closely related the product lines are in end use

PRODUCT LINE-A group of closely-related product items.

PRODUCT ITEM-A specific version of a product that can be designated as a distinct offering among
an organization’s products.

EXAMPLE OF PRODUCT MIX AND PRODUCT LINES IS:

Apple Computer-Apple has several product lines spanning computers, mobile broadband-capable
telephones and downloadable music players. In the computer line, product width would include
desktops, notebooks, tablets, accessories and software. Product depth would include the variety
of products within each of the above categories, e.g. Several laptops of varying sizes and power,
desktops of varying sizes, and two tablet computer models. The iPod family of handheld media
devices includes legacy iPods (Classic, Nano and Shuffle) and the newer iPod Touch. Many of
these products are interactive with one another, and the distinctions among the various lines are
blurred due to this interactivity. Apple is continually adding new products that extend its product
lines in both width and depth.

NEW PRODUCT-A new product can be defined as a good, service or idea that is “perceived' by
some potential customers as new. New product is developed with a series of new brand ideas
and meanings to the consumer. A new product development (NPD) is the term used to describe
the complete process of bringing a new product to market.

TEST MARKETING-Product development stage where the product and its marketing plan are exposed
to a carefully chosen sample of the population for deciding if to reject it before its full scale launch.
Test marketing is an experiment conducted in a field laboratory (the test market) comprising of
actual stores and real-life buying situations, without the buyers knowing they are participating in an
evaluation exercise. It simulates the eventual market-mix to ascertain consumer reaction. Depending
on the quality and quantity of sales data required for the final decision, test marketing may last from
few weeks to several months.

PRODUCT LIFE CYCLE (PLC) - The period of time over which an item is developed, brought to market
and eventually removed from the market. First, the idea for a product undergoes research and
development. If the idea is determined to be feasible and potentially profitable, the product will be
produced, marketed and rolled out. Assuming the product becomes successful; its production will
grow until the product becomes widely available. Eventually, demand for the product will decline and
it will become obsolete.

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STAGES ARE:

1. Introduction: The Introduction stage is probably the most important stage in the PLC. In fact,
most products that fail do so in the Introduction stage. This is the stage in which the product is
initially promoted. Public awareness is very important to the success of a product. If people don't
know about the product they won't go out and buy it.
2. Growth: If you are lucky enough to get your product out of the Introduction stage you then
enter this stage. The Growth stage is where your product starts to grow. In this stage a very large
amount of money is spent on advertising. You want to concentrate of telling the consumer how
much better your product is than your competitors' products.
3. Maturity: The third stage in the Product Life Cycle is the maturity stage. If your product completes
the Introduction and Growth stages then it will then spend a great deal of time in the Maturity stage.
During this stage sales grow at a very fast rate and then gradually begin to stabilize. The key to
surviving this stage is differentiating your product from the similar products offered by your
competitors.
4. Decline: This is the stage in which sales of your product begin to fall. Either everyone that wants
to has bought your product or new, more innovative products have been created that replace yours.
Many companies decide to withdrawal their products from the market due to the downturn. The
only way to increase sales during this period is to cut your costs reduce your spending.

BRAND-A brand is a "Name, term, design, symbol, or any other feature that identifies one seller's
good or service as distinct from those of other sellers." Branding began as a way to tell one
person's cattle from another by means of a hot iron stamp. For example: cold drink is a product
and coca-cola is brand.

BRAND EXTENSION-Brand Extension is the use of an established brand name in new product
categories. This new category to which the brand is extended can be related or unrelated to the
existing product categories. A renowned/successful brand helps an organization to launch products
in new categories more easily. For example: Nike’s brand core product is shoes. But it is now
extended to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that
gives rise to a brand extension is referred to as parent brand.

COST-A cost is the value of money that has been used up to produce something, and hence is not
available for use anymore. Cost refers to the amount paid to produce a good or service. The cost
represents the sum of the value of the inputs in production - land, labour, capital and enterprise.

PRICE-Price is the quantity of payment or compensation given by one party to another in return for
goods or services. In modern economies, prices are generally expressed in units of some form of

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currency. Price refers to the amount of money that consumers have to give up to acquire a
good or service.
Price= Cost + Profit

MAXIMUM RETAIL PRICE-A maximum retail price is an upper limit on the price of a good set by the
manufacturer or distributor of a good on retailers or final point-of-sale purchases. The maximum
retail price is the price above which retailers are prohibited from adopting when selling the product
to consumers.

PRICE SKIMMING -Price skimming is a pricing strategy in which a marketer sets a relatively
high price for a product or service at first, then lowers the price over time. Price skimming is a
product pricing strategy by which a firm charges the highest initial price that customers will pay. For
example: Mobile phones, when cell phones are introducing in the market, their price is high.

PENETRATION PRICING-Penetration pricing is the pricing technique of setting a relatively low

initial entry price, often lower than the eventual market price, to attract new customers. The
strategy works on the expectation that customers will switch to the new brand because of the
lower price.

PROMOTION-Promotion is one of the market mix elements. The specification of five promotional
mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct
marketing, and publicity.[1] A promotional mix specifies how much attention to pay to each of the
five subcategories, and how much money to budget for each. A promotional plan can have a wide
range of objectives, including: sales increases, new product acceptance, creation of brand equity,
positioning, competitive retaliations, or creation of a corporate image. Fundamentally,
however there are three basic objectives of promotion. These are:
To present information to consumers as well as others.
To increase demand.
To differentiate a product.

PROMOTION MIX-There is five main aspects of a promotional mix. These are:

Advertising - Presentation and promotion of ideas, goods, or services by an identified sponsor.
Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store
displays, posters, motion pictures, Web pages, banner ads, and emails. (Always in Paid Form non
personal)

Personal selling - A process of helping and persuading one or more prospects to purchase a
good or service or to act on any idea through the use of an oral presentation. Examples: Sales
presentations, sales meetings, sales training and incentive programs for intermediary salespeople,
samples, and telemarketing. Can be face-to-face or via telephone.

Sales promotion - Media and non-media marketing communication are employed for a pre-
determined, limited time to increase consumer demand, stimulate market demand or improve
product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins,
self-liquidating premiums, trade shows, trade-ins, and exhibitions.

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Public relations - Paid intimate stimulation of supply for a product, service, or business unit by
planting significant news about it or a favourable presentation of it in the media. Examples:
Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions,
speeches, issue advertising, and seminars.

Direct Marketing is a channel-agnostic form of advertising that allows businesses and

nonprofits to communicate straight to the customer, with advertising techniques such as mobile
messaging, email, interactive consumer websites, online display ads, fliers, catalogue distribution,
promotional letters, and outdoor advertising.

CHANNELS OF DISTRIBUTION-Distribution is the process of making a product or service available for

use or consumption by a consumer or business user, using direct means, or using indirect means
with intermediaries. Distribution channels move products and services from businesses to
consumers and to other businesses. Also known as marketing channels, channels of distribution
consist of a set of interdependent organization such as wholesalers, retailers, and sales agents and
involved in making a product or service available for use or consumption

INDUSTRIAL MARKETING-Industrial marketing (or business to business marketing) is the

marketing of goods and services by one business to another. Industrial goods are those an
industry uses to produce an end product from one or more raw materials.

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