Basic Marketing series part 3 (Basic marketing Terms)

Market: It is a place where selling,buying and exchange of goods and service takes place. Traditionally, Physical places such as shopping malls were considered as market. With the advent of Information and Technology, transaction of goods and service takes place virtually in the internet.

Market size: It is defined as the number of buyers and sellers available in a particular market.

Market share: It is defined as the percentage of sales shared by a particular company in the market. More the market share, company is more dominant in the market.

Market Penetration: Market penetration is the ratio of number of people reached to the potential buyers. Suppose a company manufactures a agricultural product in India and it sells its product to 20 million people out of 600 million farmers in India,then its market penetration is 3.33%.

Call: It is the marketing term which is used to represent direct communication with prospective customer. Telemarketing, email marketing are used to communicate customer directly.

Lead:Lead means “Prospective customer”

Lead Generation: It is simply the generation of customer interest or inquiry into the specific product or service of the company. Company can do lead generation by various ways such as by introducing a innovative product, placing advertisement on internet on pay per click basis etc. More lead generation means more interest in the product. Hence ,more sales is Guaranteed.

Prospect:  Prospect also means “Prospective customer”.

Benchmark: It is the predefined standard. When we have to achieve something in marketing, there should be some standard which the company should maintain in order to retain its loyal customers or to get new customers. Bigger companies such as BMW, Audi all maintains certain benchmark in quality of their product.

Direct Selling Agent(DSA): As the name implies, DSA meets potential customer personally and he helps the customer in buying the particular product.

Presentation: It is the process of explaining about new products and services to the potential customer usually in the interactive way.

Unique Selling Proposition or Unique selling Points(USP): USP deals the unique feature of a particular product or service that stands different from its competitors. As the result of Liberalization and Globalization, we can notice overwhelming competition in every field. So the company should give unique features to its customers. Basic concept of USP is “stay away from Crowd. Offer something unique”

Small and Medium size Enterprises:  These are class of business in which investment and number of workers working in the company is low. Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 defined micro, small and medium Enterprises.Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:(Souce: RBI website)

(i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;

(ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and

(iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

(b) Enterprises engaged in providing or rendering of services

(i) A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh;

(ii) A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore; and

(iii) A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.

More marketing terms will be discussed in upcoming articles.

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