Chapter Five: Marketing in Small Business

The effort to identify and satisfy customers' needs and wants. This involves understanding your target audience, their needs, wants, pricing, and competitive landscape.

A state of deprivation of some basic satisfaction. This could be a lack of food, clothing, shelter, safety, etc.

A desire for specific satisfiers of needs, often shaped by social influences. These involve preferences and are not essential for survival.

Wants for specific products that are backed by the willingness and ability to buy them. This means there is a market demand.

Anything that can be offered to satisfy a need or want. Products can be tangible (like a phone) or intangible (like a service).

A consumer's assessment of a product's overall capacity to satisfy their needs.

The amount of money spent on acquiring a product or service.

The act of obtaining a desired product from someone by offering something in return. This usually involves an exchange of value.

A marketing philosophy focused on producing high-quality products, assuming customers value quality and can discern it.

A marketing philosophy that prioritizes marketing and selling efforts, assuming customers need to be persuaded to purchase.

A marketing philosophy centered on fulfilling the needs and wants of target markets better than competitors, prioritizing customer satisfaction.

A marketing philosophy that considers not only customer satisfaction but also the well-being of society and the environment.

The systematic process of collecting, analyzing, and reporting data relevant to specific marketing issues facing a company.

The first step in the marketing research process involves defining the problem and setting specific objectives to be achieved through research.

The second step involves developing a detailed plan to gather the necessary information to address the research objectives.

The third step entails gathering the information based on the planned approach, using various techniques like surveys, interviews, and observations.

Involves gathering and analyzing information to understand the market, identify opportunities, and make informed decisions. This process helps businesses to identify their target market, understand customer needs, and develop effective marketing strategies.

Developing a research plan involves outlining the methodology, data collection techniques, and budget for the research. This plan ensures that the research is conducted in a systematic and efficient manner.

Secondary data refers to pre-existing information that has been collected for other purposes. This data can be readily available from sources like government publications, industry reports, or online databases. This data provides a foundation for understanding the market context.

Primary data is original data collected specifically for the current research purpose. This data is gathered through methods like surveys, interviews, focus groups, or experiments. This data provides insights directly relevant to the research question.

A segment of the market is identified based on characteristics like demographics, geographic location, psychographics, or behavioral patterns. This segmentation strategy helps businesses target their marketing efforts effectively to specific groups of customers.

Understanding the geographic location of potential customers is crucial. This information helps businesses determine the most effective distribution channels and marketing strategies for reaching customers in specific areas.

The final step involves analyzing the collected data, drawing conclusions, and presenting the findings to management. The data provides actionable insights that inform decision-making and guide marketing strategies.

The process of studying competitors to identify their strengths and weaknesses.

The task of gathering and analyzing information that helps managers understand their marketing environment and adjust marketing plans. It includes daily information about developments in the market.

A comprehensive plan outlining how a new business will compete in its chosen market niche. It covers aspects like products, pricing, channels, and promotion.

A type of growth strategy where a company expands by taking over functions previously handled by suppliers or distributors.

A type of vertical growth where a company takes over the functions of its suppliers.

A type of vertical growth where a company takes over the functions of its distributors.

Gathering information and analyzing it to understand market opportunities, penetration strategies, and market development metrics.

Information sources for market intelligence can include existing competitors, trade publications, reports from financial analysts, government data, and potential customers.

The highest possible price a seller can charge for a product.

Setting a lower price than competitors to gain market share and attract customers.

Adding a specific amount to the unit cost to determine the selling price.

Setting a price based on a percentage added to the unit cost.

Considering competitors' pricing strategies as the primary factor in determining the selling price.

A psychological pricing strategy where prices are set slightly below a whole number (e.g., $4.99 instead of $5.00)

The distribution strategy that focuses on getting the product to the customer.

All the activities used to inform and persuade customers about a product or service.

A marketing strategy that focuses on existing products in existing markets, aimed at encouraging current customers to buy more or expanding the market through aggressive marketing efforts.

A growth strategy that expands a firm's products or services into new geographic locations or offers new products/services to existing markets.

A diversification strategy that involves venturing into a new industry related to the current one.

Developing new products or services closely related to existing offerings, targeting the same customer segment.

Expanding your customer base or niche to include new market segments, while maintaining your existing product/service.

A diversification strategy that involves moving into completely unrelated industries.

The actual value assigned to a product or service in an exchange.

A marketing strategy that focuses on setting a price for a product or service, considering factors like cost, customer willingness to pay, and competitor pricing.