Chapter 13 Flashcards
marketing
the process of discovering the needs and wants of potential buyers and customers and then providing goods and services that meet or exceed their expectations
product
in marketing, any good or service, along with its perceived attributes and benefits, that creates value for the customer
exchange
the process in which two parties give something of value to each other to satisfy their respective needs
core value proposition
a statement of the tangible results a customer receives from using your products
marketing concept
identifying consumer needs, and then producing the goods or services that will satisfy them while making a profit for the organization
production orientation
an approach in which a company works to lower production costs without a strong desire to satisfy the needs of customers
customer value
the ratio of benefits to the sacrifices necessary to obtain those benefits, as determined by the customer; reflects the willingness of customers to buy a product
customer satisfaction
the customer’s feeling that a product has met or exceeded expectations
relationship marketing
a strategy that focuses on forging long-term partnerships with customers by offering value and providing customer satisfaction
customer relationship management (CRM)
the processes used by organizations to track and organize information about current and prospective customers
environmental scanning
the process by which a company continually collects and evaluates information about its external environment
target market
the specific group of consumers toward which a company directs its marketing efforts
competitive advantage
a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition; also called differential advantage
cost competitive advantage
a company’s ability to produce a product or service at a lower cost than all other competitors in an industry while maintaining satisfactory profit margins
differential competiteve advantage
a company’s ability to provide a unique product or service with a set of features that the target market perceives as important and better than the competitor’s
niche competitive advantage
a company’s ability to target and effectively serve a single segment of the market within a limited geographic area
marketing mix
the blend of product offering, pricing, promotional methods, and distribution system that brings a specific group of consumers superior value
four Ps (4Ps)
product, price, promotion, and place (distribution), which together make up the marketing mix
product strategy
taking the good or service and selecting a brand name, packaging, colours, a warranty, accessories, and a service program
pricing strategy
setting a price based on the demand and cost for a good or service
distribution strategy
creating the means by which products flow from the producer to the consumer
promotion strategy
the unique combination of personal selling, advertising, publicity, and sales promotion to stimulate the target market to buy a product or service
social marketing
the application of marketing techniques to social issues to social issues and causes; used to convince customers of ideas, attitudes, and behaviours
buyer behaviour
the actions people take in buying and using goods and services
culture
the set of values, ideas, attitudes, and other symbols created to shape human behaviour
reference groups
formal and informal groups that influence buyer behaviour
opinion leaders
those who influence others
socialization process
the passing down of cultural norms and values to children
personality
a way of organizing and grouping how and individual reacts to situations
self-concept
how people perceive themselves
ideal self-image (normative)
the way an individual would like to be
real self-image (descriptive)
how an individual actually perceives him- or herself
perception
the process by which we select, organize, and interpret stimuli into a meaningful and coherent picture
selective exposure
the process of deciding which stimuli to notice and which to ignore
belief
an organized pattern of knowledge that an individual holds as true about the world
attitude
learned tendency to respond consistently toward a given object, idea, or concept
involvement
the amount of time and effort a buyer invests in the searches, evaluations, and decision processes of consumer behaviour
routine response behaviour
purchase of low-cost, frequently bought items with little search or decision making
limited decision making
the situation in which a consumer has previous product experience but is unfamiliar with the current brands available
extensive decision making
purchasing an unfamiliar, expensive, infrequently bought item
market segmentation
the process of separating, identifying, and evaluating the layers of a market to identify the target market
demographic segmentation
the differentiation of markets through the use of categories such as age, education, gender, income, and household size
geographic segmentation
the differentiation of markets by region of the country, city or county size, market density, or climate
psychographic segmentation
the differentiation by personality or lifestyle
benefit segmentation
the differentiation of markets based on what a product will do rather than on customer characteristics
volume segmentation
the differentiation of markets based on the amount of the product purchased
marketing research
the process of planning, collecting, and analyzing the data relevant to a marketing decision
survey research
a marketing research method in which data are collected from respondents in person, by telephone, by mail, at a mall or through the Internet to obtain facts, opinions, and attitudes
observation research
a marketing research method in which the investigator monitors respondents’ actions without interacting directly with the respondents; for example, by using cash registers with scanners
experiment
a marketing research method in which the investigator changes one or more variables - price, packaging, design, shelf space, advertising theme, or advertising expenditures - while observing the effects of these changes on another variable (usually sales)
primary data
information collected directly from the original source to get more information about an opportunity or to solve a problem
secondary data
information that has already been collected for a project, other than the current one, that can help to understand a situation or solve a problem
green marketing
the process of selling products based on their environmental benefits
loyalty cards
cards issued by a manufacturer, service organization, or retailer that give discounts to loyal and frequent shoppers
cognitive dissonance
the condition of having beliefs or knowledge that are internally inconsistent or that disagree with one’s behaviour
