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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 deprivations

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Wants

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The form human needs take as they are shaped by culture and individual personality

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Demands

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Human wants that are backed by power.

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Market Offerings

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Some combination of products, services, information, or experiences offered to a market to satisfy customer needs.

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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

answer

the set of 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 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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A philosophy that holds 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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The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests

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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 marketing offer relative to those of competing offers

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customer satisfaction

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the extent to which a product's performance matches a buyer's expectations

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customer-managed relationships

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marketing relationships in which customers, empowered by today's new digital technologies, interact with companies and with each other to shape their relationships with brands

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consumer-generated marketing

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brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

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partner relationships management

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Partnering between other departments within the firm, or different firms altogether, creating a superior value delivery-network

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customer lifetime value

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The value of the entire stream of purchases that the customer would make over a lifetime of patronage

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share of customer

answer

the portion of the customers 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 of the company's customers

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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 brief summary of what a business owner wants a business to be doing

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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

answer

The process by which management evaluates the products and businesses that make up the company

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growth-share matrix

answer

a portfolio-planning method that evaluates a company's SBUs in terms of its market growth rate and relative market share

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product/market expansions 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

answer

Company growth by increasing sales of current products to current market segments without changing the product.

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market development

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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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Company growth through starting up or acquiring businesses outside the company's current products and markets.

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value chain

answer

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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value delivery network

answer

The network made up of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system in delivering customer value

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marketing strategy

answer

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

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market segmentation

answer

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

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market segment

answer

a group of consumers who respond in a similar way to a given set of marketing efforts

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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

answer

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

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price

answer

The amount of money paid for a good, service, or resource. Marketing element requiring marketers to determine the amount of money they will ask in exchange for their products.

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customer-value based pricing

answer

setting price based on buyers' perceptions of value rather than on the seller's cost

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good-value pricing

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offering just the right combination of quality and good service at a fair price

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value-added pricing

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attaching value-added features and services to differentiate a company's offers and charging higher prices

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cost-based pricing

answer

setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk

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fixed costs (overhead)

answer

costs that do not vary with production or sales level

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variable costs

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Costs that change as output changes

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total costs

answer

The sum of the fixed and variable costs for any given level of production

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experience curve (learning curve)

answer

The drop in the average per-unit production cost that comes with accumulated production experience.

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cost-plus pricing (markup pricing)

answer

adding a standard markup to the cost of the product

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break-even pricing (target return pricing)

answer

setting price to break even on the costs of making and marketing a product or setting a price to make a target return

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competition-based pricing

answer

Setting prices based on competitors' strategies, prices, costs, and market offerings

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target costing

answer

Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met

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demand curve

answer

A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged

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price elasticity

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a measure of the sensitivity of demand to changes in price.

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market-skimming pricing (price skimming)

answer

Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales

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market-penetration pricing

answer

Setting a low price for a new product in order to attract a large number of buyers and a large market share

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product line pricing

answer

Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices

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optional products

answer

optional or accessory products included with the main product

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captive products

answer

products that are required for using the main product

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product bundles

answer

combinations of products at a reduced price.

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marketing channel(distribution channel)

answer

a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.

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contact work

answer

finding and communicating with prospective buyers

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matching

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shaping and fitting the offer to the buyer's needs

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physical distribution

answer

transporting and storing goods.

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financing

answer

acquiring and using funds to cover costs of the channel work

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risk taking

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assuming the risks of carrying out the channel work

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Major channel trends

answer

vertical, horizontal and multichannel marketing systems

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marketing logistics

answer

and area of potentially high cost savings and improved customer satisfaction

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major logistics functions

answer

warehousing, inventory management, transportation, and logistics information management

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integrated supply chain management

answer

the concept that improved logistics requires teamwork in the form of close working relationships across functional areas inside the company and across various organizations in the supply chain.

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retailing

answer

includes all the activities involved in selling goods or services directly to final consumers for their personal, non business use.

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amount of service

answer

self-service, limited service, or full service

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product line sold

answer

specialty stores, department stores, supermarkets, superstores etc.

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relative prices

answer

discount stores and off-price retailers

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retail organizations

answer

corporate chains, voluntary chains, retailer co-operatives, and franchise organizations

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wholesaling

answer

All activities involved in selling goods and services to those buying for resale or business use

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merchant wholesalers

answer

takes possession of the goods

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full-service wholesalers

answer

wholesale merchants and industrial distributors

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limited-service wholesalers

answer

cash-and-carry wholesalers, truck wholesalers etc.

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promotion mix (marketing communications mix)

answer

The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

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advertising

answer

Any paid form of communication through mass media directed at identified consumers to provide information and influence their actions. It is the most known and used type of mass promotion.

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sales promotion

answer

Short-term incentives to encourage the purchase or sale of a product or service

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personal selling

answer

Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships

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public relations

answer

Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

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direct marketing

answer

Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships

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push strategy

answer

A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.

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pull strategy

answer

A promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel

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advertising

answer

Any paid form of communication through mass media directed at identified consumers to provide information and influence their actions. It is the most known and used type of mass promotion.

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salesperson

answer

An individual representing a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.

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sales force management

answer

analyzing, planning, implementing, and controlling sales force activities

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territorial sales force structure

answer

A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line

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product sales force structure

answer

A sales force organization under which salespeople specialize in selling only a portion of the company's products or lines

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customer sales force structure

answer

A sales force organization under which salespeople specialize in selling only to certain customers or industries

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trade promotions

answer

sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers

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business promotions

answer

sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople

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direct marketing forms

answer

direct-mail marketing, catalogue marketing, telephone marketing, DRTV marketing, and online marketing

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competitive advantage

answer

An advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices.

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competitor analysis

answer

The process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid

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benchmarking

answer

A technique that allows the company to compare its operations against its most successful competitors by measuring its own practices against the best practices (benchmarks) occurring in the industry in which it operates

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global firm

answer

A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors

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economic community

answer

a group of nations organized to work toward common goals in the regulation of international trade

Principles of Marketing: Chapters 1,2 11-18 – Flashcards

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