Chapter 1 Welcome To The World of Marketing: Create and Deliver Value – Flashcards
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Marketing
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is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large
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customer value
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the benefits a customer receives from buying and using a good or service in relation to the costs and sacrifices of buying and using it
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target market
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the group (s) of consumers or customers on which an organization focuses its marketing plan and toward which it directs its marketing efforts
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stakeholder
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people or organizations who influence or are influenced by marketing decisions
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exchange
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the process by which some transfer of value occurs between a buyer and a seller
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consumer
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the ultimate user of a good or service
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marketing concept
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a business orientation that focuses on achieving organizational objectives by understanding customer needs, and creating and delivering value in exchanges that satisfy their needs of all parties
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need
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the recognition of any difference between a customer's actual state and some ideal or desired state
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want
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the desire to satisfy needs in specific ways that are culturally and socially influenced
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benefit
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the outcome sought by a customer that motivates buying behaviour (satisfies need or want)
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demand
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customers' desire for products couples with the resources to obtain them
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market
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all the customers and potential customers who share a common need that can be satisfied by a specific product, who have resources to exchange for it, who are willing to make the exchange and who have the authority to make the exchange
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marketplace
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any location or medium used to conduct an ecvhange
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lifetime value of a customer
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how much profit companies expect to make from a particular customer, adding the contribution of each and every purchase s/he will make from them now and in the future and subtracting the cost to the company of maintaining this relationship
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product
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any good, service or idea that can be marketed
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consumer goods
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the tangible products that individual consumers purchase for personal or family use
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services
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intangible products that are exchanged directly between the producer and the customer
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popular culture
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the music, movies, sports, books, celebrities and other forms of entertainment consumed by mass market
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business to business marketing
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the marketing of those goods and services that business and organization customers need to producer other goods and services, for resale or to support their operation
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industrial goods
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goods individuals or organization buy for further processing or for their own use when they do business
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e-commerce
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the buying or selling of g & s electronically, usually over the Internet
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not-for-profit organizations
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organizations with charitable, educational, community and other public service goals that buy G & S's to support their functions and to attract and serve their members
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market segment
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a distinct group of customers within a larger market who have similar needs, wants, preferences and behaviours, who seek similar product solutions and whose needs differ from other customers in the larger market
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market segmentation
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a process of dividing the overall market into groups of consumers who seek very different solution for their needs and wants than other groups of consumers
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mass market
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all possible customers in a market, regardless of the differences in their specific needs and wants
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positioning
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how an organization wants its brand to be known to its customers as being different and better than the competing brands
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distinctive competency
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a capability of a firm that is superior to that of its competition
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differential benefit
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providing an outcome or result valued by customers that competitors are not able to offer as well
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brand personality
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a distinctive image that captures a G or S's character and benefits
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marketing mix
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a combination of the product itself, the price of the product, the place where it is made available and the activities that introduct it to consumers, which creates a desired response among a set of predefined consumers
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1) Product 2) Price 3) Promotion 4) Place
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What are the 4 P's?
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Price
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The seller's assignment of the value to a product
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Distribution aka channels of distribution
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the availability of the product to the customer at the desired time and location
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communication
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the coordination of the communication efforts by a market to influence consumers or organizations about G, S or ideas
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value chain
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a series of activities involved in designing, producing, marketing, delivering and supporting any product. each link in the chain has the potential to either add or remove value from the product the customer eventually buys
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consumer-generated content
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everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development or service as wholesalers or retailes
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online social networking
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using internet technology to keep in contact with friends, relatives and business associates
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open source model
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a practice used in the software industry which companies share their software codes with anyone to assist in the development of a better product
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triple bottom line
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a business perspective that measures economic, social and environmental value creation
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customer relationship management (CRM)
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a systematic tracking of consumers' preferences and behaviours over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs. _ allows firms to talk to individual customers and to adjust elements of their marketing programs in light of how each customer reacts
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attention economy
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a perspective that customer spending, and hence the economy is driven by psychological attachment to brands, the relevance of information and solutions. Consumers choose where to spend their attention and their money
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social marketing concept
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a management philosophy that marketers must satisfy customers' needs in ways that benefit society and also deliver profit to the firm
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sustainable development
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meeting present needs without compromising the ability of future generations to meet their needs
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green marketing
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the development of marketing strategies that support environment stewardship
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ROI (return on investment)
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the revenue or profit margin generated by an investment, divided by the cost of the invesntment
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production orientation
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a management philosophy that emphasizes the most efficient ways to produce and distribute products
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selling orientation
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a managerial view of marketing as a selling function, or a way to move products out of warehouses to reduce inventory
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customer orientation
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a management ohilosophy that focuses on ways to satisfy customers' needs and wants
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business ethics
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rules and conduct for an organization
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code of ethics
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written standards of behaviour to which everyone in the organization must subscribe
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consumer addiction
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physiological or psychological dependency on G or S's
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consumerism
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a social movement that attempts to protect consumers from harmful business practices
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Value proposition
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benefits offered in relation to the costs and sacrifices
