Marketing 131 Definitions

Marketing
A social and managerial process, allowing parties to satisfy wants and needs through creating and exchanging value.
= Value
Percieved Benefits – Percieved Costs
Segmentation
Targeting
Positioning
Marketing Strategy:
Product
Price
Place
Promotion
Marketing Mix:
Market
The set of actual and potential buyers of a product.
Need
State of felt deprivation including physical, social, and individual needs.
Wants
Specific form of a need that is shaped by culture and personality. The manner in which an individual chooses to fulfill their needs.
Demand
A “want” backed by buying power.
Market Offering
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
Marketing Myopia
A short-sighted inward looking approach to marketing. Focus on wants and lose sight on needs. The mistake of paying too much attention to products and not customers.
Target Market
A group of similar characteristics likely to be affected by a market offering.
Segmentation
Dividing a market into groups characterized by relevant characteristics.
Value Proposition
The value of percieved benefits a marketer promises.
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
Marketing Management Philosophies:
Touchpoint
Any aspect of the integrated marketing mix that reaches the customer.
Loyalty Program
A type of marketing program that bestows benefits on members.
Marketing Channel
A channel of distribution that connects marketers to customers. The set of interdependent organizations that help make a product available.
Supply Chain
The chain of processes from raw materials to sales.
Customer Equity
Total combined lifetime value of all customers.
Strategic Planning
Managing and maintaining a strategic fit between goals and capabilities.
Mission Statement
A statement of the organization’s purpose – what it aims to accomplish.
Positioning
A marketing strategy to differentiate itself and create a strong, positive mental image. Developing a percieved space in consumer’s minds.
Customer Solution
Customer Cost
Convenience
Communication
4 C’s of Marketing:
Exploratory Research
Initial research to define problems and suggest hypotheses.
Descriptive Research
Research to better describe problems/situations/markets such as market potential.
Casual Research
Market research to test hypotheses about cause-and-effect relationships.
Observational Data
Gathering primary data by observing relevant people, actions, and situations.
Ethnographic Data
Studying consumers as they interact with products and services.
Survey Research Data
Gathering data by askings questions about knowledge, attitudes, etc.
Experiemental Data
Giving similar groups different experiments and observing the difference.
Focus Group
A small, moderated group discussion during the product development stages.
Neuromarketing
Measuring brain activity to learn how consumers feel about/respond to marketing activities.
Consumer Behaviour
The buying behaviour of individuals who buy for their own consumption.
Consumer Market
All individuals within a geographic area who have money and the power to spend it.
Culture
The set of basic values, perceptions, wants and behaviours learned by society.
Subculture
A group of people with shared value systems based on experiences/situations
Social Class
A segment of society based on income, education, occupation and standing.
Opinion Leader
A person who has the ability to influence consumer choices.
Social Network
A virtual online community created by social media.
Geographic
Demographic
Psychographic
Usage Behaviour
Segmentation Types:
Product
Anything that can be offered to a market for attention, acquisition, use or consumptions.
Service
Any intangible activity or benefit that one party can do for another.
Product Line
A group of products with similar use, price range or target market.
Product Mix
The set of all product lines that a particular seller offers.
Brand
A name, term, symbol, or any other feature that distinguishes two goods.
Brand Equity
The dollar amount attributed to the value of the brand, based on intangible qualities.
Development
Introduction
Growth
Maturity
Decline
Product Life Cycle:
Styles
A basic and distinctive mode of expression.
Fashions
A currently accepted or popular style in a given field.
Fads
A fashion that enters quickly with great zeal, peaks fast and declines early.
Price
The amount of money a customer pays to receive a product/service.
Breakeven Pricing
Setting a price such that revenues will equal costs.
Price Elasticity
A measure of the sensitivity of demand to changes in price.
Price Skimming
Setting a high price for a new product to skim maximum revenues layer by layer as price drops.
Penetration Pricing
Setting a low price to attract customers, then slowly raising it.
Prestige Pricing
Offering a high level of prestige for a high price.
Psychological Pricing
Adjusting prices for psychological effect.
Promotional Pricing
Temporarily reducing prices to increase short-run sales.
Geographic Pricing
Adjusting prices to account for the geographic location of customers.
Dynamic Pricing
Continually adjusting prices to meet needs of different situations.
Direct Marketing Channel
A marketing channel that has no intermediary levels.
Indirect Marketing Channel
A marketing channel that has at least one intermediary level.
Specialty
Department
Supermarket
Convenience
Category Killer
Service Retailer
Types of Retailers:
Vertical Marketing System
A distribution channel structure in which producers, wholesalers and retailers act as a unified system.
Intensive
Exclusive
Selective
Distribution Strategies:
Advertising
Sales Promotion
Personal Selling
Direct Response Marketing
Public Relations
Marketing Communications Mix:
Advertising
Any paid form of non-personal presentation and promotion of an idea, product, or service.
Sales Promotion
Short-term incentives designed to encourage immediate purchase.
Personal Selling
Personal presentation from the firm’s sales representatives.
Direct Response Marketing
Direct communications with carefully chosen customers to obtain immediate response.
Public Relations
Building a good relationship with the public, a strong corporate image, handling rumours and bad press, etc.
Integrated Marketing Communications
Coordinating all marketing efforts to ensure messages are clear and consistent.
Push Strategy
Using the sales force and trade promotion to push product through channels.
Pull Strategy
Using advertising and customer promotion to build customer demand.
Slice of Life
Lifestyle
Fantasy
Image
Personality Symbol
Tecnical Expertise
Scientific Evidence
Testimonial
Types of Ads:
Reach
The percentage of people in the target market exposed to an advertisement.
Frequency
How many times the average person in a target market sees an advertisement.
Impact
The qualititative value of an advertising message’s exposure.
Cost Per Thousand Impressions
CPM
Trade Promotion
Sales promotions which provide retailers/channel partners with incentives.