1: Definitions Flashcards
Needs
States of felt deprivation.
Marketing
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Wants
The form human needs take as shaped by culture and individual personality.
Demands
Human wants that are backed by buying power.
Marketing offering
Some combination of products, services, information or experiences offered to a market to satisfy a need or want.
Marketing myopia.
The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by those products.
Exchange
The act of obtaining a desired objects from someone by offering something in return.
Marketing management
The art and science of creating target markets and building profitable relationships with them.
Production concept
The idea that consumers will favour products that are available and highly affordable and that the organisation should therefore focus on improving production and distribution efficiency.
Production concept
The idea that consumers will favour products that offer the most quality, performance and features and that the organisation should therefore devote its energy to making continuous product improvements.
Selling concept
The idea that consumers will not buy enough of the firms products unless it undertakes a large-scale selling and promotion effort.
Marketing concept
The marketing management philosophy holds that achieving organisational goals depends on knowing the needs and wants of target markets in delivering the desired satisfaction better than competitors do.
Social marketing concept
The idea that a company’s marketing decisions should consider consumers wants, the company’s requirements, consumers long-term interest and society’s long-term interest.
Customer-perceived value
The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relatives to those of competing offers.
Customer satisfaction
The extent to which a product’s perceived performance matches a buyers expectation.
Customer lifetime value
The value of the entire stream of purchases a customer makes over a lifetime of patronage.
Share of customer
The portion of the customer’s purchasing that a company gets in its product categories.
Customer equity
The total combined customer lifetime value of all of the company’s customers.
Strategic planning
The process of developing and maintaining a strategic fit between the organisation’s goals and capabilities in its changing marketing opportunities.
Mission statement
A statement of the organisations purpose - what it wants to accomplish in the larger environment.
Business portfolio
The collection of businesses and products that make up the company.
Portfolio analysis
The process by which management evaluates the products and businesses that make up the company.
Growth-share matrix
A portfolio-planning method that evaluates a company’s strategic business units in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks or dogs.
Market penetration
A strategy for company growth by increasing sales for current products to current market segments without changing the product.
Market development
A strategy for company growth by identifying and developing new market segments for current company products.
Product development
A strategy for company growth by offering modified or new products to current markets.
Diversification
A strategy for company growth through starting up or buying businesses outside of its current products and markets.
Downsizing
Reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy.
Value chain
This series of departments that carry out value-creating activities to design, produce, market, deliver and support a firm’s products.
Marketing strategy
The marketing logic by which the company hopes to create customer value and achieve profitable relationships.
Market segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics or behaviours and who might require separate products or marketing programmes.
Market segment
A group of consumers who respond in a similar way to a given set of marketing efforts.
Market targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Positioning
Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target customers.
Differentiation
Actually differentiating the market offering to create superior customer value.
Marketing mix
The set of controllable tactical marketing tools - price, product, place and promotion - that the firm blends to produce the response it wants in the target market.
SWOT-analysis
An overall evaluation of the company’s overall strengths, weaknesses, opportunities and threats.
Marketing environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customer.
Microenvironment
The actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors and public.
Macroenvironment
Th larger societal forces that affect the microenvironment - demographic, economic, ecological, technological, political and cultural forces.
Customer relationship management (CRM)
Managing detailed information about individual customers and carefully managing customer ‘touch points’ to maximise customer loyalty.
Consumer buyer behaviour
The buying behaviour of final customers - individuals and households that buy goods and services for personal consumption.
Consumer market
All individuals and households who buy or acquire goods and services for personal consumption.
Subculture
A group of people with shared value systems based on common life experiences and situations.
Social grade
Relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviours.
Opinion leader
Person within a reference group who, because of special skills, knowledge, personality or other characteristics, exerts social influence on others.
Brand personality
The specific mix of human traits that may be attributed to a particular brand.
Motive (drive)
A need that is sufficiently pressing to direct the person to seek to satisfy it.
Perception
The process by which people select, organise and interpret information to form a meaningful picture of the world.
Complex buying behaviour
Consumer buying behaviour in situations characterised by high involvement in a purchase and significant perceived differences among brands.
Dissonance-reducing buying behaviour
Consumer buying behaviour in situations characterised by high involvement but few perceived differences among brands.
Habitual buying behaviour
Consumer buying behaviour in situations characterised by low consumer involvement and few significantly perceived brand differences.
Variety-seeking brand behaviour
Consumer buying behaviour in situations characterised by low consumer involvement but significant perceived brand differences.
Alternative evaluation
The stag of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set.
Post-purchase behaviour
The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction o dissatisfaction.
Cognitive dissonance
Buyers discomfort caused by post-purchase conflict.
Adoption process
The mental process through which an individual passes from first learning about an innovation to final adoption.
Business buyer behaviour
The buying behaviour of the organisations that buy goods and services for use in the production of other products and services or to resell or rent them to others at a profit.
Business buying process
The decision process by which business buyers determine which products and services their organisations need to purchase.
Derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
Straight rebuy
A business buying situation in which the buyer routinely reorders something without any modifications.
Modified rebuy
A business buying situation in which the buyer wants to modify product specifications, prices, terms and suppliers.
New-task
A business buying situation in which the buyer purchases a product or service for the first time.
Users
Members of the buying organisation who will use the product or service.
Influencers
People in an organisation’s buying centre who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.
Buyers
Members of the buying organisation who make a purchase.
Deciders
People in an organisation’s buying centre who have formal or informal power to select or approve the final suppliers.
Gatekeepers
People in an organisation’s buying centre who control the flow of information to others.
Problem recognition
The first stage of the buying process in which someone in the company recognises a problem or need that can be met by acquiring a good or service.
General need description
The stage in the business buying process in which the company describes the characteristics and quantity of the needed item.
E-procurement
Purchasing through electronic connections between buyers and sellers - usually online.
Institutional market
Schools, hospitals, nursing homes, prisons nod other institutions that provide goods and services to people in their care.
Government market
Government units - national, regional and local - that purchase or rent goods and services to carrying out the main functions of government.
Market segmentation
Dividing a market into smaller groups with distinct needs, characteristics, or behaviour that might require separate marketing strategies or mixes.
Market targeting (targeting)
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Differentiation
Actually differentiating the market offering to create superior customer values.
Positioning
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Geographic segmentation
Dividing a market into different geographical units such as nations, provinces, region, cities or neighbourhoods.
Demographic segmentation
Dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, market area, education, generation and nationality.
Age and life-cycle segmentation
Dividing a market into different age and life-cycle groups.
Gender segmentation
Dividing a market into different groups based on gender.
Income segmentation
Dividing a market into different income groups.
Psychographic segmentation
Dividing a market into different groups based on social grade, lifestyle or personality characteristics.
Behavioural segmentation
Dividing a market into groups based on consumer knowledge, attitudes, uses or responses to a product.
Target market
A set if buyers sharing common needs or characteristics that the company decides to serve.
Undifferentiated (mass) marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after in the whole market with one offer.
Differentiated (segmented) marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
Product positioning
The way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds relative to competing products.
Competitive advantage
An advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices.
Value proposition
The full positioning of a brand - the full mix of benefits upon which it is positioned.
Positioning statement
A statement that summarises company or brand positioning, including target segment and need, brand, concept and point of difference.
Global firm
A firm that, by operating in more than one country, gains, marketing, production, R&D and financial advantages that are not available to purely domestic competitors.
Economic community
A group of nations organised to work towards common goals in the regulation of international trade.
Countertrade
International trade involving the direct or indirect exchange of goods for other goods instead of cash.
Exporting
Entering a foreign market by selling goods purchased in the company’s home country, often with little modification.
Joint venturing
Entering a foreign market by joining with foreign companies to produce or market a product or services.
Licensing
A method of entering a foreign market in which the company enters into an arrangement with a license in the foreign market.
Contract manufacturing
A joint venture in which a company contracts with manufacturers in a foreign market to produce its product or provide its service.
Management contracting
A joint venture I which the domestic firm supplies management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products.
Joint ownership
A joint venture In which a company joins investors in a foreign market to create a local business in which they share joint ownership and control.
Direct investment
Entering s foreign market by developing foreign-based assembly or manufacturing facilities.
Standardised global marketing
An international marking strategy for using basically the same marketing strategy and mix in all the company’s intonational markets.
Adapted global marketing
An international marketing strategy for adjusting the marketing strategy and mix elements to each international target market, bearing more costs but hoping for a larger market share and return.
Sustainable marketing
Marketing that meets the present needs of costumes and businesses while also preserving and enhancing the ability of future generations to meet their needs.
Consumerism
A organised movement of citizens and government agencies to improve the rights and power of buyers an relation to sellers.
Environmentalism
An organised movement of concerned citizens, businesses and government agencies to protect and improve people’s current and future living environment.
Environmental sustainability
A management approach that involves developing strategies that both sustain the environment and produce profits for the company.
Social marketing
A principle of sustainable marketing which holds that a company should make marketing decisions by considering consumers’ wants, the company requirements, and consumers’ and society’s long-term interests.
