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What are some basic terms and definitions associated with marketing?

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Quick Answer

Some basic marketing terms are "marketing concept," "marketing mix" and "market segmentation." Marketing concept is the idea that a company should find out what the customer needs and base product development on that. A marketing mix is a way to make marketing decisions based on "the four P's": product, promotion, place and price. Market segmentation is the practice of dividing customers into groups that share demographics and preferences in order to target the best-fitting products to each group.

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Full Answer

"Brand identity" is how the company wants consumers to think of its brand. For example, a company may want consumers to associate its brand or products with reliability, luxury or fun. "Image advertising" promotes a brand or products based on brand image or brand identity, rather than product features and functions.

"Actual product" is the part of a product that the customer uses, as opposed to aspects of the products such as packaging and branding. For an oven, the actual product includes features such as a temperature dial and oven racks, but not the brand label or shipping materials. "Total product" refers to the actual product and all other associated aspects.

"Product Life Cycle" or "PLC" refers to the idea that every product goes through a series of stages, each requiring the marketer to use a different marketing approach. In the first stage, Introduction, the marketer must make consumers aware of the product's existence. In the growth stage, when sales of the product increase rapidly, the marketer may need to compete with rival products for market share. Maturity stage advertising focuses on reinforcing an established product with customers. As a product reaches the decline stage, when sales decrease because of changing trends, obsolescence or market saturation, the marketer may reduce advertising or remove the product altogether.

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