---
title: "The Most Comprehensive Marketing Summary (Essential Edition)"
description: "This article provides a comprehensive summary of marketing principles, covering the birth of marketing, marketing management concepts, strategic planning, market segmentation, consumer behavior, and various marketing strategies. It also includes a correction notice regarding a previous article's attribution."
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published: "2014-10-16"
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# The Most Comprehensive Marketing Summary (Essential Edition)

> This article provides a comprehensive summary of marketing principles, covering the birth of marketing, marketing management concepts, strategic planning, market segmentation, consumer behavior, and various marketing strategies. It also includes a correction notice regarding a previous article's attribution.

**Tip: Click the blue text above to follow "FMCG Distributor Professional Consulting" for more marketing and distributor internal management insights.**

> Notice: Yesterday's headline article, "3 Ways to Increase Sales Through Channel Refinement," was an excerpt from Mr. Wei Qing's book "Terminal Sales Guide" published by Peking University Press. Due to an editorial oversight, the author and source were not credited. We hereby issue this notice to express our apologies to Mr. Wei Qing.

**1. The Birth of Marketing:** Harvard University professor He Jeteqi, 1912. Marketing.

**2. Marketing:** It is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others.

**3. Marketing Management Philosophies:**

**A. Production Concept:** Assumes that consumers prefer products that are widely available and inexpensive. Therefore, efforts should focus on reducing costs, expanding distribution, and generating wealth. This arises under seller's market conditions.

**B. Product Concept:** Assumes that consumers favor products offering the most quality, performance, and innovative features. Companies should focus on producing high-quality, high-value products and continuously improve them.

**C. Selling Concept:** Assumes that consumers will not buy enough of the company's products unless influenced by external forces. Therefore, companies should intensify selling and promotion efforts to induce purchase.

**D. Marketing Concept:** The key to achieving organizational goals lies in correctly determining the needs and wants of target markets. The marketing concept (definition) is a customer-centered, market-oriented philosophy that coordinates marketing activities to achieve overall corporate goals through customer satisfaction.

**E. Societal Marketing Concept:** The task of modern enterprises is to determine the needs, wants, and interests of target markets and to deliver satisfaction more effectively than competitors in a way that preserves or enhances consumer and societal well-being, while achieving corporate profits.

When making marketing decisions, companies must balance corporate profits, consumer wants and needs, and societal interests.

**4. The 4Cs:** Consumer wants and needs; Cost to satisfy consumer wants and needs; Convenience to buy; Communication.

**5. Strategic Planning:** Also known as corporate strategy. It involves establishing and maintaining a viable fit between the organization's objectives, resources, and changing market opportunities. Significance: a) Strategic planning is crucial for a company's survival and growth, especially in volatile market environments. b) It is fundamental; all activities must align with the mission and objectives set by the strategic plan.

**6. Major Strategic Marketing Objectives:** Profit; Market share; Sales volume; Product protection; Growth rate.

**7. Mission Statement Components:**
a) Industry scope;
b) Product and application scope;
c) Competitive scope;
d) Market segment scope;
e) Vertical scope;
f) Geographic scope.

**8. Market Growth Rate:**
**A. Problem Children:** Businesses with high market growth but low market share.
**B. Stars:** If problem children succeed, they become stars.
**C. Cash Cows:** When market growth falls below 10% but maintains a high market share, stars become cash cows.
**D. Dogs:** Businesses with low market growth and low market share.

**9. Growth Strategies Available to Companies:**
**1. Intensive Growth:**
A. Market Penetration: Managers seek to increase market share of existing products in existing markets.
B. Market Development: Managers seek new markets for existing products.
C. Product Development: Offering new products to existing markets.

**2. Integrative Growth:**
A. Backward Integration: Acquiring one or more suppliers to gain greater control or profit.
B. Forward Integration: Acquiring wholesalers or retailers, especially those with high margins.
C. Horizontal Integration: Acquiring one or more competitors, if allowed by government.

**3. Diversification Growth:**
A. Concentric Diversification: Seeking new products that have technological or marketing synergies with existing product lines, appealing to new customer types.
B. Horizontal Diversification: Finding new products that are technologically unrelated but appeal to existing customers.
C. Conglomerate Diversification: Developing new businesses unrelated to existing technology, products, or markets.

**10. Marketing Management Process:** The process of identifying, analyzing, selecting, and developing marketing opportunities to achieve corporate objectives. It involves four steps:
1. Research and analyze internal and external environments to find market opportunities.
2. Select target markets and position.
3. Determine marketing mix strategies.
4. Manage marketing activities.

**11. Environmental Analysis:** Primarily involves opportunity/threat analysis of the external environment and strength/weakness analysis of the internal environment (SWOT). The goal is to identify attractive market opportunities, avoid threats, and meet challenges.

**12. Marketing Mix:** The optimal combination of product, price, place (distribution), and promotion.

**13. The 4Ps:** Product, Price, Place (Distribution), Promotion.

**14. Competitive Marketing Strategies:** In marketing management, managers must consider not only customer needs but also the company's competitive position in the industry. Strategies and tactics must be based on competitive strength and adjusted as competitive dynamics change.

**15. Marketing Environment:** The sum of all factors and forces that affect a company's marketing activities and objectives.

**16. Microenvironment:** Actors and forces that directly affect a company's marketing activities. Macroenvironment: Larger societal forces that create opportunities and threats (including demographic, economic, natural, technological, political, and cultural environments).

**17. Relationship between Personal Disposable Income and Discretionary Income:**
1. Total income can be divided into disposable income and discretionary income.
2. Disposable income affects purchasing power and consumer spending patterns. Discretionary income is the most active factor influencing consumer spending composition.
3. Discretionary income is the remainder after subtracting necessary living expenses and other fixed expenditures from disposable income.

**18. Engel's Law:** The smaller the Engel coefficient, the higher the standard of living.

**19. Customer:** The object of a company's service; the starting point and end goal of business activities.

**20. Consumer Credit:** A purchase behavior where consumers obtain goods based on personal credit and repay the loan over time.

**21. Corporate Responses:**
1. Responses to market opportunities: timely utilization, preparation, appropriate timing, or abandonment.
2. Responses to environmental threats: resistance (using means to reverse or limit unfavorable environments), mitigation (adjusting marketing mix to adapt), or transfer (shifting investments to other industries or diversifying).

**22. Marketing Information System:** A complex of people, computers, and procedures that collects, sorts, analyzes, evaluates, and distributes timely and accurate information for marketing decision-makers.

**23. Factors Influencing Consumer Behavior:**
1. Cultural factors: culture, subculture, social class.
2. Social factors: reference groups (individuals or groups that influence behavior), family, roles and status.
3. Personal factors: economic, physiological, personality, lifestyle.
4. Psychological factors: motivation, perception, learning, beliefs and attitudes.

**24. Participants in the Consumer Buying Decision Process:** Initiator, influencer, decider, buyer, and user.

**25. Business Buying Decision Process:** Problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, and performance review.

**26. Market Segmentation:** Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing mixes.

**27. Target Market:** A set of buyers sharing common needs or characteristics that the company decides to serve.

**28. Target Market Strategies:**
1. Undifferentiated Marketing: Using one product and one marketing mix for the entire market.
2. Differentiated Marketing: Segmenting the market and targeting multiple segments with different marketing mixes.
3. Concentrated Marketing: Focusing on one or a few segments to gain a large share of a small market.

**29. Factors Influencing Target Market Strategy Choice:** Company resources, product life cycle stage, product variability, competitors' strategies, and market variability.

**30. Total Product Concept:** Includes core product, actual product, and augmented product.
1. Core product: The fundamental benefit or service.
2. Actual product: The tangible product or service that delivers the core benefit.
3. Augmented product: Additional services and benefits beyond the tangible product.

**31. Four Elements of Product Mix:** Width, length, depth, and consistency.
1. Width: Number of product lines.
2. Length: Total number of product items.
3. Depth: Number of versions or variants per product line.

**32. Packaging:**
1. Containers and wrappers for products.
2. Packaging strategies: similar packaging, multiple packaging, reusable packaging, bonus packaging, and changed packaging.

**33. Product Life Cycle:** The course of a product's sales and profits over its lifetime: introduction, growth, maturity, and decline.

**34. New Product Categories:** New-to-the-world products, new product lines, additions to existing lines, improvements/revisions, and repositioning.

**35. Law of Demand:** As price rises, quantity demanded falls; conversely, as price falls, quantity demanded rises.

**36. Discounts:**
1. Cash discount: Price reduction for prompt payment.
2. Quantity discount: Price reduction for large purchases.
3. Functional discount: Discount offered by manufacturers to intermediaries.
4. Seasonal discount: Discount for buying out of season.
5. Allowance: Another form of price reduction from the list price.

**37. Psychological Pricing:** Using consumers' psychological needs and perceptions to set prices that promote sales and increase profits.

**38. Distribution Channel:** The path or route through which products move from producers to consumers or users.

**39. Retailers:** Organizations and individuals primarily engaged in retailing. Characteristics:
1. Retailing is a major industry in the national economy.
2. Retail operations have significant time sensitivity.
3. Retail location is influenced by population distribution.
4. Consumers have high service expectations.
5. Retail institutions have a life cycle.

**40. Wholesalers:** Organizations and individuals engaged in wholesaling. Characteristics:
1. Wholesalers are in the middle of the distribution channel.
2. They serve buyers and producers.
3. They deal in large quantities.
4. Their distribution varies by size.
Significance: 1) Saves distribution costs; 2) Increases societal production to meet consumer needs; 3) Reduces time in the production process.

**41. Vertical Marketing Systems:** The most significant and efficient development in distribution channels.
1. Corporate VMS: Combines successive stages of production and distribution under single ownership.
2. Administered VMS: Coordinates production and distribution through the size and power of one member.
3. Contractual VMS: Independent firms join through contracts to achieve greater economies.

**42. Horizontal Marketing Systems:** Two or more companies at the same level join forces to exploit new opportunities or avoid risks.

**43. Promotion:** Activities that communicate product or service information to target customers to stimulate interest and purchase.

**44. Advertising:** Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

**45. Public Relations:** Activities to build a favorable image by communicating with the public through direct or indirect channels.

**46. Advertising Objectives:**
1. Informative advertising: Used in the introduction stage to create demand.
2. Persuasive advertising: Used in the growth stage to build selective demand.
3. Reminder advertising: Used in the maturity stage to keep the brand in mind.

**47. Advertising Media Types:**
**1. Newspapers:** Wide reach, geographic targeting, clear readership for specialized papers, high credibility, detailed explanations, but may be affected by other ads.
**2. Magazines:** Strong targeting, long life, repeated reading, good print quality, high retention, flexible, suitable for corporate and image ads.
**3. Television:** High penetration, flexible scheduling, entertainment value, combines sight and sound, strong impact, dramatic effects.
**4. Radio:** High penetration, can be listened to while doing other things, timely, easy to understand, good auxiliary medium, low cost, but limited for visual information.

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