Chapter 12 Flashcards
marketing
The process of creating value for customers and building relationships with those customers in order to capture value back from them.
needs
Differences between a person’s actual state and their ideal state; they provide the basic motivation to make a purchase.
wants
Specific goods, services, experiences, or other entities that are desirable in light of a person’s experiences, culture, and personality.
exchange process
The act of obtaining a desired object or service from another party by offering something of value in return.
transaction
An exchange of value between parties.
utility
The power of a good or service to satisfy a human need.
marketing concept
An approach to business management that stresses customer needs and wants, seeks long-term profitability, and integrates marketing with other functional units within the organization.
relationship marketing
A focus on developing and maintaining long-term relationships with customers, suppliers, and distribution partners for mutual benefit.
customer loyalty
The degree to which customers continue to buy from a particular retailer or buy the products of
a particular manufacturer or service provider.
marketing function
selecting which products to offer, how much to charge for them, how to distribute them to customers, and how to promote them to potential buyers.
customer relationship management (CRM)
A type of information system that captures, organizes, and capitalizes on all the interactions that a company has with its customers.
social commerce
The creation and sharing of product-related information among customers and potential customers.
voice of the customer (VoC)
Everything that current and potential customers are saying and writing about a company and its products; also refers
to efforts to capture all this feedback.
attribution
The contribution a given marketing activity makes to sales and other marketing goals.
marketing research
The collection and analysis of information for making marketing decisions.
permission-based marketing
A marketing approach in which firms first ask permission to deliver messages to an audience and then promise to restrict their communication efforts to those subject areas in which audience members have expressed interest.
customer experience
The cumulative effect of the customer journey from presales exploration through purchase through product use and ownership.
touchpoint
Any point of interaction—online, on the phone, or in person— between a company and its current and potential customers.
consumer market
Individuals or households that buy goods and services for personal use.
organizational market
Companies, government agencies, and other organizations that buy goods and services either to resell or to use in the creation of their own goods and services
cognitive dissonance
Tension that exists when a person’s beliefs don’t match his or her behaviors; a common example is buyer’s remorse, when someone regrets a purchase immediately after making it.
strategic marketing planning
The process of examining an organization’s current marketing situation, assessing opportunities and setting objectives, and then developing a marketing strategy to reach those objectives.
market penetration
Selling more of a firm’s existing products in the markets it already serves.
product development
Creating new products for a firm’s current markets.
market development
Selling existing products to new markets.
diversification
Creating new products for new markets.
market share
A firm’s portion of the total sales in a market.
marketing strategy
An overall plan for marketing a product; includes the identification of target market segments, a positioning strategy, and a marketing mix.
market
A group of customers who need or want a particular product and have the money to buy it.
market segmentation
The division of a diverse market into smaller, relatively homogeneous groups with similar needs, wants, and purchase behaviors.
demographics
The study of the statistical characteristics of a population.
psychographics
Classification of customers on the basis of their psychological makeup, interests, and lifestyles
geographic segmentation
Categorization of customers according to their geographical location.
behavioral segmentation
Categorization of customers according to their relationship with products or response to product characteristics.
target markets
Specific customer groups or segments to whom a company wants to sell a particular product.
positioning
Managing a business in a way designed to occupy a particular place in the minds of target customers.
marketing mix
The four key elements of marketing strategy: product, price, distribution, and customer communication.
product
A bundle of value that satisfies a customer need or want.
price
The amount of money charged for a product or service.
distribution channels
Systems for moving goods and services from producers to customers; also known as marketing channels.
promotion
A wide variety of persuasive techniques used by companies to communicate with their target markets and the general public.
marketing analytics
A range of analytical tools and techniques that help marketers plan and evaluate marketing activities.
