Chapter 11 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 its stakeholders.
Utility
The ability of goods and services to satisfy consumer “wants.”
Marketing concept
A business philosophy that makes customer satisfaction–now and in the future–the central focus of the entire organization.
Customer relationship management (CRM)
The ongoing process of acquiring, maintaining, and growing profitable customer relationships by delivering unmatched value.
Value
The relationship between the price of a good or a service and the benefits that it offers its customers.
Customer satisfaction
When customers perceive that a good or service delivers value above and beyond their expectations.
Customer loyalty
When customers buy a product from the same supplier again and again–sometimes paying even more for it than they would for a competitive product.
Marketing plan
A formal document that defines marketing objectives and the specific strategies for achieving those objectives.
Market segmentation
Dividing potential customers into groups of similar people, or segments.
Target market
The group of people who are most likely to buy a particular product.
Demographic segmentation
Dividing the market into smaller groups based on measurable characteristics about people, such as age, income ethnicity, and gender.
Geographic segmentation
Dividing the market into smaller groups based on where consumers live. This process can incorporate countries, cities, or population density as key factors.
Psychographic segmentation
Dividing the market into smaller groups based on consumer attitudes, interests, values and lifestyles.
Marketing mix
The blend of marketing strategies for product, price, distribution and promotion.
Market share
The percentage of a market controlled by a given marketer.
