Chapter 1: Marketing: The Art and Science of Satisfying Customers

Utility
Want-satisfying power of a good or service.
Marketing
An organizational function and 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.
Exchange Process
Activity in which two or more parties give something of value to each other to satisfy perceived needs.
Production Orientation
Business philosophy stressing efficiency in producing a quality product, with the attitude toward marketing that “a good product will sell itself.”
Sales Orientation
Belief that consumers will resist purchasing nonessential goods and services with the attitude toward marketing that only creative advertising and personal selling can overcome consumers’ resistance and persuade them to buy.
Seller’s Market
A market in which there are more buyers for fewer goods and services.
Buyer’s Market
A market in which there are more goods and services than people willing to buy them.
Consumer Orientation
Business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and designing a system for satisfying them.
Marketing Concept
Companywide consumer orientation with the objective of achieving long-run success.
Relationship Marketing
Development and maintenance of long-term, cost-effictive relationships with individual customers, suppliers, employees, and other partners for mutual benefit.
Marketing Myopia
Management’s failure to recognize the scope of its business.
Bottom Line
Reference to overall company profitability.
Person Marketing
Marketing efforts designed to cultivate the attention, interest, and preferences of a target market toward a person (perhaps a political candidate or celebrity).
Place Marketing
Marketing efforts to attract people and organizations to a particular geographic area.
Cause Marketing
Identification and marketing of a social issue, cause, or idea to selected target markets.
Event Marketing
Marketing of sporting, cultural, and charitable activities to selected target markets.
Organization Marketing
Marketing by mutual-benefit organizations, service organizations, and government organizations intended to persuade other to accept their goals, receive their services, or contribute to them in some way.
Transaction-Based Marketing
Buyer and seller exchanges characterized by limited communications and little or no ongoing relationships between the parties.
Mobile Marketing
Marketing messages transmitted via wireless technology.
Interactive Marketing
Buyer-seller communications in which the customer controls the amount and type of information received from a marketer through such channels as the Internet and virtual reality kiosks.
Social Marketing
The use of online social media as a communications channel for marketing messages.
Strategic Alliances
Partnerships in which two or more companies combine resources and capital to create competitive advantages in a new market.
Wholesalers
Intermediaries that operate between producers and resellers.
Exchange Functions
Buying and selling.
Ethics
Moral standards or behavior expected by a society.
Social Responsibility
Marketing philosophies, policies, procedures, and actions that have the enhancement of society’s welfare as a primary objective.
Sustainable Products
Products that can be produced, used, and disposed of with minimal impact on the environment.
1. Marketing: The Art and Science of Satisfying Customers