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Marketing: Real People, Real Choices – Chapter 1 Terms

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Value
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The benefits a customer receives from buying a good or service.
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Marketing
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An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in a way that benefits the organizations and it’s stakeholders.
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Stakeholders
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Buyers, sellers, or investors in a company, community residents, and even citizens of the nations where goods and services are made or sold – in other words, any person or organization that has a “stake” in the outcome.
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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 management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long-term profitability.
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Need
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The recognition of any difference between a consumer’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 outcomes sought by a customer that motivates buying behavior-that satisfies a need or want.
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Demand
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Customer’s desires for products coupled with the resources need to obtain them.
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Market
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All customers and potential customers who share a common need that can be satisfied by a specific product, who have the 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 exchange.
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Virtual Goods
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Digital products consumers buy for use in online contexts.
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Utility
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The usefulness or benefits consumers receive from a product.
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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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Product
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A tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses.
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Consumer Orientation
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A business approach that prioritizes the satisfaction of customer’s needs and wants.
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Total Quality Management (TQM)
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A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement.
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Instapreneur
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A businessperson who only produces a product when it is ordered.
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Triple Bottom Line Orientation
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A business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices.
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Customer Relationship Management (CRM)
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A systematic tracking of consumers’ preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual’s unique wants and needs. CRM 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 company’s success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs, not just dollars.
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Social Marketing Concept
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A management philosophy that marketers must satisfy customers’ needs in ways that also benefit society and also deliver profit to the firm.
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Sustainability
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A product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs.
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Green Marketing
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A marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers.
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Return on Investment (ROI)
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The direct financial impact of a firm’s expenditure of a resource such as time or money.
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Popular Culture
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The music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market.
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Myths
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Stories containing symbolic elements that express the shared emotions and ideals of a culture.
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Consumer Goods
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The goods 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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Business-to-Business Marketing
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The marketing of goods and services from one organization to another.
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Industrial Goods
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Goods individuals or organizations 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 and selling of goods and services electronically, usually over the internet.
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Shrinkage
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Losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise.
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Anticonsumption
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The deliberate defacement of products.
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Not-For-Profit Organizations
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Organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members.
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Value Proposition
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A marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased.
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Brandfests
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Events companies host to thank customers for their loyalty.
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Lifetime Value of a Customer
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The potential profit a single customer’s purchase of a firm’s products generates over the customer’s lifetime.
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Distinctive Competency
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A superior capability of a firm in comparison to its direct competitors.
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Differential Benefit
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Properties of products that set them apart from competitors’ products by providing unique customer benefits.
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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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Marketing Scorecards
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Feedback vehicles that report (often in quantified terms) how the company or brand is actually doing in achieving various goals.
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Metrics
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Measurements or “scorecards” marketers use to identify the effectiveness of different strategies or tactics.
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Amafessionals
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Consumers who contribute ideas to online forums for the fun or challenge rather than to receive a paycheck, so their motivation is to gain psychic income rather than financial income.
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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 serving as wholesalers or retailers.
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Social Networking
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Online platforms that allow a user to represent him- or herself via a profile on a Web site and provide and receive links to other members of the network to share input about common interests.
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Web 2.0
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The new generation of the World Wide Web that incorporates social networking and use interactivity.
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Physical URL’s
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New apps that enable user-generated clouds of content to form around products; barcode scans allow the user to upload content or see what others have already uploaded.
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Folksonomy
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A classification system that relies on users rather than preestablished systems to sort contents.
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Wisdom of Crowds
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Under the right circumstances, groups are smarter than the smartest people in them, meaning that large numbers of consumers can predict successful products.
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Open Source Model
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A practice used in the software industry in which companies share their software codes with one another to assist the development of a better product.
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Marketing Plan
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A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy.
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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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Market Segment
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A distinctive group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market.
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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 introduce it to consumers that creates a desired response among a set of predefined consumers.
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Four P’s
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Product, Price, Promotion, & Place.
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Price
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The assignment of value, or the amount the consumer must exchange to receive the offering.
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Promotion
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The coordination of a marketer’s communication efforts to influence attitudes or behavior.
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Place
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The availability of the product to the customer at the desired time and location.
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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 sales function, or a way to move products out of warehouses to reduce inventory.