Chapter 14 Definitions Flashcards
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.
Relationship marketing
Marketing decisions and activities focused on achieving long-term, satisfying relationships with customers.
Customer relationship management
CRM focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships.
Customer lifetime value
A measure of a customer’s worth (sales minus costs) to a business during one’s lifetime.
Utility
The ability of a good or service to satisfy a human need.
Form utility
Utility created by converting production inputs into finished products.
Place utility
Utility created by making a product available at a location where customers wish to purchase it.
Time utility
Utility created by making a product available when customers wish to purchase it.
Possession utility
Utility created by transferring title (or ownership) of a product to a buyer.
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.
Market
A group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase such products.
Consumer markets
Consists of purchasers and or household member who intend to consume or benefit from the purchase products and who do not buy products to make profits.
Business-to-business markets
Grouped broadly into producer, reseller, governmental and institutional categories.
These markets purchase specific kinds of products for use in making other products for resale or for day-to-day operations.
Producer Markets
Consist of individuals and business organizations that buy certain products to use in the manufacture of other products
Reseller markets
Consist of intermediaries such as wholesalers and retailers, who buy finished products and sell them for a profit.
Governmental markets
Consist of federal, state, county and local governments.
They buy goods and services to maintain internal operations and to provide citizens with such products as highways, educations, water, energy and national defense.
Governmental purchases total billions of dollars each year.
Institutional markits
Include churches, not-for-profit private schools and hospitals, civic clubs, fraternities and sororities, charitable organizations and foundations.
Their goals are different from such typical business goals as profit, market share or return on investment.
Marketing strategy
A plan that will enable an organization to make the best use of its resources and advantages to meet its objectives.
Marketing mix
A combination of product, price, distribution and promotion developed to satisfy a particular target market.
Target market
A group of individuals or organizations or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group.
Undifferentiated approach
Directing a single marketing mix at the entire market for a particular product.
Market segment
A group of individuals or organizations within a market that shares one or more common characteristics.
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.
Marketing plan
A written document that specifies an organization’s resources, objectives, marketing strategy and implementation and control efforts to be used in marketing a specific product of product group.
Sales forecast
An estimate of the amount of a product that an organization expects to cell during a certain period of time based on a specified level of marketing effort.
Buying behavior
The decisions and actions of people involved in buying and using products
Consumer buying behavior
The purchasing of products for personal or household use, not for business purposes.
Business buying behavior
The purchasing of products by producers, resellers, governmental units and institutions.
Personal income
The income an individual receives from all sources less the Social Security taxes the individual must pay.
Disposable income
Personal income less all additional personal taxes, including income, estate, gift and property taxes levied by local, state and federal governments.
Discretionary income
Disposable income less savings and expenditures on food, clothing and housing.
