Marketing ch.1,2,7,8 – Flashcards
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Marketing
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The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
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Needs
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states of felt deprivation.
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Wants
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The form human needs take as shaped by culture and individual personality.
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Demands
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Human wants that are backed by buying power.
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Market Offering
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Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
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Marketing Myopia
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The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.
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Exchange
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The act of obtaining a desired object from someone by offering something in return.
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Market
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The set of all actual and potential buyers of a product or service.
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Marketing Management
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The art and science of choosing target markets and building profitable relationships with them.
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Production Concept
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The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.
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Product Concept
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The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.
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Selling Concept
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The idea that the consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.
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Marketing concept
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The marketing management philosophy that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
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Societal Marketing Concept
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A principal of enlightened marketing that holds that a company should make good marketing decisions by considering consumers' wants, the companies requirements, consumers long-run interests, and society's long-run interest.
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Customer Relationship Management
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The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
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Customer Perceived Value
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The customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers.
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Customer Satisfaction
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The extent to which a product's perceived performance matches a buyer's expectations.
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Partner Relationship Management
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Working closely to partners in other company departments and outside the company to jointly bring greater value to customers.
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Customer Lifetime Value
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The value of the entire stream of purchases that a customer would make over a lifetime of patronage.
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Share of customer
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The portion of a customer's purchasing that a company gets in its product categories.
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Customer Equity
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The total combined customer lifetime values of all the company's customers.
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Internet
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A vast public web of computer networks that connects users of all types all around the world to each other and to an amazingly large information repository.
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Strategic Planning
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The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
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Mission Statement
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A statement of the organizations purpose.
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Business Portfolio
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The collection of businesses and products that make up the company.
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Portfolio analysis
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The process by which management evaluates the products and businesses making up the company.
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Growth Share Matrix
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A portfolio-planning method that evaluates a company's strategic business units in terms of their market growth rate and relative market share. SBU's are classified as cash cows, question marks, or dogs.
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Product/market expansion grid
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A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
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Market Penetration
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A strategy for company growth by identifying and developing new market segments for current company products.
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Product Development
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A strategy for company growth by offering modified or new products to current market segments.
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Diversification
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A strategy for growth through starting up or acquiring businesses outside the companies current products and markets.
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Downsizing
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Reducing the businesses portfolio by eliminating products of business units that are not profitable or that no longer fit the company's overall strategy.
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Value Chain
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The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.
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Value-delivery network
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The network made up of the companies, and ultimately customers who "partner" with each other to improve the performance of the entire system.
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Marketing Strategy
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a company's plan that identifies how it will use marketing to achieve its goals
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Marketing Segmentation
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identifying target markets and developing products that appeal to them.
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Market Segment
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A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
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Market Targeting
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The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
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Positioning
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Placing a product at a certain point or location within a market in the minds of prospective buyers.
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Differentiation
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Actually differentiating the market offering to create superior customer value.
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Marketing Mix
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The blending of four marketing elements-product, place, price, and promotion
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SWOT analysis
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A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.
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Marketing Implementation
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The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.
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Marketing Control
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The process of measuring and evaluation the results of marketing strategies and plans, and taking corrective action to ensure that objectives are achieved.
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Marketing Audit
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a comprehensive systematic, independent, and periodic examination of a company's environment, obj, strats, and activities to determine problem areas and opportunities and to recommend plan of action to improve the companies marketing performance
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Return on Marketing Investment
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The net return from a marketing investment divided by the costs of the marketing investment.
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Market Segmentation
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The process of dividing the total market into groups whose members have similar characteristics
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Geographic Segmentation
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Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods
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Demographic Segmentation
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segmenting markets by age, gender, income, ethnic background, and family life cycle
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Age and life-cycle segmentation
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Dividing the market into different age and life-cycle groups.
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Gender Segmentation
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Dividing the market into different groups based on gender.
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Income segmentation
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Dividing the market into different income groups.
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Psychographic Segmentation
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Dividing the market into different groups based on social class, lifestyle, or personality characteristics.
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Behavioral Segmentation
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Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product
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Occasion segmentation
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Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
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Benefit segmentation
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Dividing the market into groups according to the different benefits that the consumers seek from the product.
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Intermarket segmentation
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Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries
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Target Market
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A set of buyers sharing common needs or characteristics that the company decides to serve.
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Undifferentiated Marketing
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A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
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Differentiated Marketing
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A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
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Concentrated Marketing
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Niche Marketing, Targets one or a few small segments
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Micromarketing
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The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups- includes local marketing and individual marketing
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Local Marketing
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Tailoring brands and promotions to the needs and wants of local customer groups- cities, neighborhoods, and even specific stores
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Individual Marketing
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Tailoring products and marketing programs to the needs and preferences of individual customers-also labeled "markets-of-one marketing" "customized marketing" and "one-to-one marketing"
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Product Position
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The way the product is defined by consumers on important attributes- the place that product occupies in consumers' minds relative to competing products
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Competitive Advantage
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achieved by a firm when it can produce a superior product and/or bring the product to market at a lower price than most, or all, of its competitors
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Value Proposition
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The full positioning of a brand-the full mix of benefits upon which is positioned
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Positioning Statement
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a statement that summarizes company or brand positioning -it takes this form: to (target segment and need) our (brand) is (concept) that (point-of-difference)
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Product
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anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
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Consumer Product
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Product bought by final consumer for personal consumption.
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Convenience Product
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Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort
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Shopping Product
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consumer goods that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style
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Specialty Product
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Consumer product with unique characteristics or brand identificaton for which a significant group of buyers is willing to make a special purchase effort
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Unsought Product
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consumer product that the consumer either does not know about or know about but does not normally think of buying
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Industrial product
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Product bought by individuals and organizations for further processing or for use in conducting a business
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Social Marketing
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the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society. include public campaigns to reduce smoking, over eating
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Product Quality
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the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
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Brand
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name, symbol, or design used to identify a product.
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Product Line
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A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
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Product Mix
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the combination of product lines offered by a manufacturer
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Brand Equity
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The positive differential effect that knowing the brand name has on customer response to the product or service
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Private Brand
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products packaged with the retailer's rather than the manufacturer's name on them. (store brand)
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Co-branding
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The practice of using the established brand names of two different companies on the same product.
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Line Extension
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extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
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Brand Extension
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using an existing brand to brand a new product in a different product category.
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Service intangibility
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a major characteristic of services that cannot be seen, tasted, felt, heard, or smelled before they are bought
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Service Inseparability
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a major characteristic of services- they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines
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Service Variability
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a major characteristic of services- their quality may vary greatly, depending on who provides them and when, where, and how.
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Service Perishability
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a major characteristic of services-they cannot be stored for later sale or use
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Service-profit Chain
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The chain that links service firm profits with employee and customer satisfaction
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Internal Marketing
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Orienting and motivating customer-contact employees and supporting service people to work as a team
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Interactive Marketing
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Training service employees in the fine art of interacting with customers to satisfy their needs.
