Marketing Principles Overview

Dividing a total market into groups with similar characteristics.

Dividing a market based on values, attitudes, and interests.

Gather information from primary sources (direct customer feedback) and prioritize current customer needs.

Responsible for pricing, product development, and strategy, not production or finance.

Exceed customer expectations, not just satisfy them.

Creating, communicating, delivering, and exchanging offerings with value for customers.

Understanding and meeting customer needs and expectations.

The core elements of a marketing strategy go beyond the 4 Ps; the combination of products, prices, place (distribution), and promotion (marketing communications).

A strategy where businesses focus on understanding and satisfying customers over time, building lasting relationships.

Presenting a new product idea to potential customers to gauge their initial interest and feedback.

Defining the problem or situation and understanding the current state of affairs.

Determining the best pricing strategy for a product.

Building strong relationships with customers.

Profit orientation - Businesses aim to make a profit by selling goods and services.

Learning as much as possible about customers.

Production era focused on producing goods efficiently and meeting consumer demand.

The most effective way to compete is to understand and meet customer needs by offering high-value products and services.

Restaurants, like other businesses, thrive by being customer-focused, adapting products to meet specific needs.

The combination of all factors – product, price, promotion, and place – considered by consumers when making purchase decisions.

Creating real or perceived differences between your product and competitors' offerings.

Products consumers buy after comparing quality, price, and style from multiple sellers.

Products consumers are willing to make extra effort to acquire due to their unique value.

Products consumers are unaware of or haven't considered buying.

Continuously developing and adding to a product line to maintain customer interest and meet evolving needs.

A distribution strategy where a producer grants only a limited number of retailers the right to sell their products. This often leads to higher prices and better service. It also creates a sense of exclusivity for consumers.

The process of selling goods and services directly to consumers through an online platform (website, mobile app).

A form of direct marketing that involves using the telephone to contact potential or existing customers to sell goods or services.

Products that are frequently purchased, readily available, and require minimal effort to select.

A method of marketing and distribution where salespeople directly approach customers at their homes, workplaces, or other locations.

A marketing strategy that involves reaching individual consumers directly through various channels, such as mail, email, telemarketing, or catalogs.

Small, standalone retail spaces often found in malls, airports, or other high-traffic locations. They offer limited product selection and can be more flexible than traditional stores.

A distribution system where all the organizations involved in the distribution chain are owned by the same company. This provides tight control over the entire process.

They add value by making goods more accessible to consumers, often exceeding the cost of their services.

Retailers sell directly to consumers, while wholesalers sell to retailers or other businesses.

Producers, not marketers, typically provide possession utility, meaning the good is ready for use.

They offer time, place, possession, information, and service utilities to make goods more accessible.

Independently owned and take title to the goods they handle, buying and selling them.

Discount stores, supermarkets, and department stores all offer diverse merchandise to consumers.

Sells discontinued or flawed items directly from the manufacturer at a discount.

They succeed by offering low prices, sometimes sacrificing extra services.

Financial managers are primarily concerned with ensuring a company has enough money (capital) to operate smoothly and achieve its goals. This is called being adequately capitalized.

The finance department handles activities related to managing credit, which includes collecting payments from customers who have purchased goods or services on credit.

Profitable businesses typically pay taxes because they generate income beyond their expenses. Taxes are a significant expense for companies.

An internal auditor ensures that a company's accounting practices and financial records are accurate and follow established accounting rules.

A company can fail financially if it doesn't have enough capital to cover its expenses and invest in growth. This lack of capital is called undercapitalization.

Financial managers are responsible for various financial tasks like budgeting, managing cash flow, controlling costs, and handling taxes and credit.

Financial managers analyze and interpret financial data to make sound financial decisions that support the business.

A cash flow problem occurs when a company spends more cash than it receives. This can lead to difficulty meeting obligations and investing in the business.