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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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The Marketing Process

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Creating value for customers, marketers capture value from customers in return.

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Customer Needs

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States of felt deprivation.

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Customer Wants

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

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Customer Demands

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Human wants that are backed by buying power.

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Market Offerings

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Some combinations of products, services, information, or experiences offered to a market to satisfy a need or want.

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Market 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. Answering who and how are we targeting.

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Market Segmentation

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Dividing the market into segments of customers (different needs, characteristics, or behaviors, and who might require separate products or marketing programs).

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Target Marketing

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Selecting which segments it will go after.

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Value Proposition

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Set of benefits or values it promises to deliver to consumers to satisfy their needs.

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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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Marketing Mix (Four P's)

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-Product ;; Customer Solution -Price ;; Customer Cost -Place ;; Convenience -Promotion ;; Communication

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Integrated Marketing Program

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Comprehensive plan that communicates and delivers the intended value to chosen customers.

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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 (not just money, but time invested, options, energy, etc).

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Customer Satisfaction

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The extent of which a product's perceived performance matches a buyer's expectations.

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Customer-Managed Relationships

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Marketing relationships in which customers, empowered by todays' 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 Relationship Management

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Working closely with 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 the customer would make over a lifetime of patronage.

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Share of Customer

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The portion of the 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 of the company's customers.

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Lifetime Value Analysis

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Costumer lifetime value is the value of the entire stream of purchases that the costumer would make over a lifetime of patronage.

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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 organization's purpose--what it wants to accomplish in the larger environment.

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Market Oriented Mission Statement

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Defines the business in terms of satisfying basic customer needs.

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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 that make up the company.

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Growth-Share Matrix

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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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BCG Growth-Share Matrix

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One of four strategies for each SBU: Build Share: invest more Hold Share: invest enough to hold the share Harvest Share: milking its short--term cash flow regardless of the long-term effect. Divest Share: Selling it or phasing it out and using resources elsewhere.

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Star

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High-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.

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Cash Cows

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Low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment.

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Question Marks

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Low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.

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Dogs

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Low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.

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Problems with Matrix Approaches

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Difficult, time-consuming, and costly to implement. Provide little future advise.

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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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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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Identifying and developing new markets for its current products

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Product Development

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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

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The series of internal 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 company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system.

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Marketing Strategy

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

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Market Segment

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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

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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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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 set of tactical marketing tools--product, price, place, and promotion-- that the firm blends to produce the response it wants in the target market.

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Product

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The goods-and-services combination the company offers to the target market.

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Price

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The amount of money customers must pay to obtain the product.

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Place

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Includes company activities that make the product available to target consumers.

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Promotion

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Activities that communicate the merits of the product and persuade target customers to buy it.

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SWOT Analysis

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An overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).

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Marketing Strategy

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Consists of specific strategies for target markets, positioning, the marketing mix, and marketing expenditure levels.

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Marketing Implementation

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The process that turns marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.

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Marketing Control

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Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.

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Operating Control

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Checking ongoing performance against the annual plan and taking corrective action when necessary.

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Return on Marketing Investment (or marketing ROI)

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The net return from a marketing investment divided by the costs of the marketing investment.

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Return on Marketing Investment

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Views marketing expenditures as investments that produce returns in the form of more profitable customer relationships.

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Marketing Environment

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The actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

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Microenvironment

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The actors close to the company that affect its ability to serve its customers--the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

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Macroenvironment

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The larger societal forces that affect the microenvironment--demographic, economic, natural, technological, political, and cultural forces.

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Marketing Intermediaries

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Firms that help the company to promote, sell, and distribute its goods to final buyers.

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Public

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Any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. Seven Types: 1. Financial Publics 2. Media Publics 3. Government Publics 4. Citizen-Action Publics 5. Local Publics 6. General Public 7. Internal Public

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Demography

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The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

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Baby Boomers

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The 78 million people born during years following World War II and lasting until 1964.

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Generation X

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The 45 million people born between 1965 and 1976 in the "birth dearth" following the baby boom.

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Millennials or Generation Y

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The 83 million children of the baby boomers, born between 1977 and 2000.

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Economic Environment

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Economic factors that affect consumer purchasing power and spending patterns.

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Natural Environment

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Natural resources that are needed as inputs by marketers or that are affected by marketing activities. Trends: Increased shortages of raw material Increased population Increased government intervention Increased environmental sustainable strategies.

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Environmental Sustainability

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Developing strategies and practices that create a world economy that the planet can support indefinitely.

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Technological Environment

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Forces that create new technologies, creating new product and market opportunities.

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Political Environment

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Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.

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Cultural Environment

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Institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors.

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Views on Responding

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Uncontrollable: React and adapt to forces in the environment Proactive: Aggressive actions to affect forces in the environment Reactive: Watching and reacting to forces in the environment.

Principles of Marketing; Quiz on Chapters 1-3 – Flashcards

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