Chapter 1 Flashcards
marketing
An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and it’s stakeholders.
stakeholders
buyers, sellers, or investors in a company, community residents, and even citizens of the nations where foods and services are made and sold. in other words, any person or organization that has a stake in the outcome.
consumer
the ultimate user of a good or service
marketing concept
a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long term profitability.
need
the recognition of any difference between a consumer’s actual state and some ideal or desired state.
want
the desire to satisfy needs in specific ways that are culturally and socially influenced.
benefit
the outcome sought by a customer that motivates buying behavior-that satisfies a need or want
demand
customers’ desires for products coupled with the resources needed to obtain them
market
all the customers and potential customers who share a common need that can be satisfied by a specific produce, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange
marketplace
any location or medium used to conduct an exchange
virtual goods
digital products consumers buy for use in online contexts
utility
the usefulness or benefit consumers receive from a products
exchange
the process by which some transfer of value occurs between a buyer and a seller
product
a tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through exchange process; a bundle of attributes including features, functions, benefits, and uses
product orientation
a management philosophy that emphasizes the most efficient ways to produce and distribute products.
selling orientation
a managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory
consumer orientation
a business approach that prioritizes the satisfaction of customers’ needs and wants
total quality management (TQM)
a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement
instapreneur
a businessperson who only produces a product when it is ordered
triple bottom line orientation
a business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices
customer relationship management (crm)
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
value
The benefits a customer receives from buying a good or service.
attention economy
a company’s success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs rather than just dollars
social marketing concept
a management philosophy that marketers must satisfy customers’ needs in ways that also benefit society and also deliver profit to the firm
sustainability
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
green marketing
a marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers
return on investment (roi)
the direct financial impact of a firm’s expenditure of a resource such as time or money
popular culture
the music, movies, sports, books, celebrities and other forms of entertainment consumed by the mass market
myths
stories containing symbolic elements that express the shared emotions and ideals of a culture
consumer goods
the goods individual consumers purchase for personal or family use
services
intangible products that are exchanged directly between the producer and the customer
business to business marketing
the marketing of goods and services from one organization to another
industrial goods
goods individuals or organizations buy for further processing or for their own use when they do business
e commerce
the buying or selling of goods and services electronically, usually over the Internet
shrinkage
losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise
anticonsumption
the deliberate defacement of products
not for profit organizations
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
value proposition
a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased
lifetime value of a customer
the potential profit a single customer’s purchase of a firm’s products generates over the customer’s lifetime
distinctive competency
a superior capability of a firm in comparison to its direct competitors
differential benefit
properties of products that set them apart from competitors’ products by providing unique customer benefits
value chain
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
marketing scorecards
feedback vehicles that report (often in quantified terms) how the company or brand is actually doing in achieving various goals
metrics
measurements or scorecards marketers use to identify the effectiveness of different strategies or tactics
amafessionals
consumers who contribute ideas to online forums for the fun and challenge rather than to receive a paycheck, so their motivation is to gain psychic income rather than financial income
consumer generated content
everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers
social networking
online platforms that allow a user to represent himself via a profile on a Web site and provide and receive links to other members of the network to share input about common interests
Web 2.0
the new generation of the WWW that incorporates social networking and user interactivity
folksonomy
a classification system that relies on users rather than preestablished systems to sort contents
wisdom of crowds
under the right circumstances, groups are smarter than the smartest people in them, meaning that large numbers of consumers can predict successful products
open source model
a practice used in the software industry in which companies share their software codes with one another to assist in the development of a better product
marketing plan
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
mass market
all possible customers in a market, regardless of the differences in their specific needs and wants
market segment
a distinct 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
target market
the market segments on which an organization focuses its marketing plan and toward which directs its marketing efforts
market position
the way in which the target market perceives the product in comparison to competitors’ brands
marketing mix
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
four p’s
product, price, promotion, and place
price
the assignment of value, or the amount the consumer must exchange to receive the offering
promotion
the coordination of a marketer’s communication efforts to influence attitudes or behavior
place
the availability of the product to the customer at the desired time and location
