Chapter 12: Building Customer Relationships Through Effective Marketing Flashcards
Ch 12
marketing mix
a combination of product, price, distribution, and promotion developed to satisfy a particular target market
Ch 12
place utility
utility created by making a product available at a location where customers wish to purchase it
Ch 12
sales orientation
marketing approach from 1920-1950s; characterized by increased advertising, enlarged sales forces, and occasionally, high-pressure selling techniques
Ch 12
possession utility
utility created by transferring title (or ownership) of a product to a buyer
Ch 12
business buying behavior
the purchasing of products by producers, resellers, governmental units, and institutions
Ch 12
online information services
a tool that allows marketers the ability to communicate online with customers, suppliers, and employees that improves the capability of a firm’s marketing information system and helps track its customers’ changing desires and buying habits
Ch 12
marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Ch 12
market
a group of individuals and/or organizations that need products in a given category and that have the ability, willingness, and authority to purchase such products
Ch 12
pricing ingredient
controllable element of the marketing mix concerned with both base prices and discounts of various kinds in order to achieve particular goals
Ch 12
consumer market
market consisting of purchasers and/or household members who intend to consume or benefit from the purchased products and who do not buy products to make profits
Ch 12
technological forces
technological changes that can create new marketing opportunities or cause products to become obsolete almost overnight
Ch 12
utility
the ability of a good or service to satisfy a human need
Ch 12
legal and regulatory forces
laws that protect consumers and competition and government regulations that affect marketing
Ch 12
disposable income
personal income less all additional personal taxes
Ch 12
customer relationship management (CRM)
using information about customers to create marketing strategies that develop and sustain desirable customer relationships
Ch 12
producer market
market consisting of individuals and business organizations that buy certain products to use in the manufacturing of other products
Ch 12
undifferentiated approach
directing a single marketing mix at the entire market for a particular product
Ch 12
market segment
a group of individuals or organizations within a market that share one or more common characteristics
Ch 12
governmental market
market consisting of federal, state, county, and local governments, who buy goods and services to maintain internal operations and to provide citizens with such products as highways, education, water, energy, and national defense
Ch 12
promotion ingredient
controllable element of the marketing mix that focuses on providing information to target markets
Ch 12
buying behavior
the decisions and actions of people involved in buying and using products
Ch 12
marketing strategy
a plan that will enable an organization to make the best use of its resources and advantages to meet its objectives
Ch 12
marketing information system
a system for managing marketing information that is gathered continually from internal and external forces
Ch 12
form utility
utility created by converting production inputs into finished products
Ch 12
internal sources
data sources consisting of sales figures, product and marketing costs, inventory levels, and activities of the sales force
Ch 12
differentiated market segmentation
type of market segmentation where multiple marketing mixes are focused on multiple market segments
Ch 12
single-source data
information provided by a single firm on household demographics, purchases, television viewing behavior, and responses to promotions such as coupons and free samples
Ch 12
relationship marketing
establishing long-term, mutually satisfying buyer-seller relationships
Ch 12
market segmentation
the process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market
Ch 12
institutional market
market consisting of churches, not-for-profit private schools and hospitals, civic clubs, fraternities and sororities, charitable organizations, and foundations
Ch 12
consumer buying behavior
the purchasing of products for personal or household use, not for business purposes
Ch 12
database
collection of information arranged for easy access and retrieval used in marketing research
Ch 12
competitive forces
the actions of competitors, who are in the process of implementing their own marketing plans
Ch 12
marketing mix
the combining of a product, price of product, the means of distribution, and the promotion of a product in a way that reaches the firm’s target market
Ch 12
marketing plan
a written document that specifies an organization’s resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group
Ch 12
production orientation
marketing approach in early 1900s; emphasis was placed on increased output and production efficiency
Ch 12
marketing concept
a business philosophy that a firm should provide goods and services that satisfy customers’ needs through a coordinated set of activities that allow the firm to achieve its objectives
Ch 12
customer lifetime value
a measure of a customer’s worth (sales minus cost) to a business over one’s lifetime
Ch 12
concentrated market segmentation
type of market segmentation where a single marketing mix is directed at a single market segment
Ch 12
time utility
utility created by making a product available when customers wish to purchase it
Ch 12
marketing research
the process of systematically gathering, recording, and analyzing data concerning a particular marketing problem
Ch 12
business-to-business market (aka industrial market)
broad marketing group for those who purchase specific kinds of products for use in making other products for resale or for day-to-day operations
Ch 12
personal income
the income an individual receives from all sources less the Social Security taxes the individual must pay
Ch 12
sales forecast
an estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort
Ch 12
distribution ingredient
controllable element of the marketing mix involving transportation, storage, and selection of intermediaries
Ch 12
economic forces
the effects of economic conditions on customers’ ability and willingness to buy
Ch 12
political forces
influences that arise through the actions of elected and appointed officials
Ch 12
product ingredient
controllable element of the marketing mix which includes decisions about its design, brand name, packaging, warranties, etc.
Ch 12
discretionary income
disposable income less savings and expenditures on food, clothing, and housing
Ch 12
sociocultural forces
influences in a society and its culture that result in changes in attitudes, beliefs, norms, customs, and lifestyles
Ch 12
external sources
data sources relating to the organization’s suppliers, intermediaries, and customers; competitors’ marketing activities; and economic conditions
Ch 12
marketing environment
the external and generally uncontrollable forces that affect a firm’s marketing activities and influence decisions about marketing-mix ingredients
Ch 12
target market
a group of individuals and/or organizations for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group
Ch 12
reseller market
market consisting of intermediaries such as wholesalers and retailers, who buy finished products and sell them for a profit
