Marketing 201 chapter 1

consumer
the ultimate user of a good or service
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
marketing mix
a combination of the product, the promotional activities that introduce it and the place where it is made available that together create a desired response among a set of predefined consumers
Four P’s
product, price, promotion, and place
product
a tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses
promotion
the coordination of a marketer’s communication efforts to influence attitudes or behavior
place
the availability of the product to the customer at the desired time and location
price
the assignment of value, or the amount the consumer must exchange to receive the offering
exchange
the process by which some transfer of value occurs between a buyer and a seller
consumer goods
the goods individual consumers purchase for personal or family use
services
intangible products that are exchanged directly between the producer and the consumer
business-to-business marketing
the marketing of goods and services from one organization to another
not-for-profit organizations
organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members
nongovernmental organizations (NGOs)
another name for not-for-profit organizations
marketing concept
a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long-term profitability
need
the recognition of any difference between a consumer’s actual state and some ideal or desired state
want
the desire to satisfy needs in specific ways that are culturally and socially influenced
benefit
the outcome sought by a consumer that motivates buying behavior that satisfies a need or want
demand
customers’ desires for products coupled with the resources needed to obtain them
market
all the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange
marketplace
any location of medium used to conduct an exchange
virtual goods
digital products consumers buy for use in online contexts
rentrepreneurs
enterprising consumers who make money by renting out their possessions when they aren’t using them
collaborative consumption
term used to refer to the activities practiced by rentrepreneurs
utility
the usefulness or benefit that consumers receive from a product
stakeholders
buyers, sellers, or investors in a company, community residents, and even citizens of the nations where goods and services are made or sold- in other words, any person or organization that has a “stake” in the outcome
production orientation
a management philosophy that emphasizes the most efficient ways to produce and distribute products
selling orientation
a managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory
consumer orientation
a business approach that prioritizes the satisfaction of customers’ needs and wants
Triple-Bottom-Line orientation
a business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices
societal marketing concept
a management philosophy that marketers must satisfy customers’ needs in ways that also benefit society and also deliver profit to the firm
sustainability
a product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs
return on investment (ROI)
the direct financial impact of a firm’s expenditure of a resource, such as time or money
value proposition
a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased
lifetime value of a customer
the potential profit a single customer’s purchase of a firm’s products generates over the customer’s lifetime
distinctive competency
a superior capability of a firm in comparison to its direct competitors
metrics
measurements or “scorecards” that marketers use to identify the effectiveness of different strategies or tactics
differential benefit
properties of products that set them apart from competitors’ products by providing unique customer benefits
value chain
a series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has the potential to either add or remove value from the product the customer eventually buys
consumer-generated content
everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers
social media
internet-based platforms that allow users to create their own content and share it with others who access these sites
social networking platforms
online platforms that allow a user to represent him or herself via a profile on a website and provide and receive links to othe members of the network to share input about common interests
crowdsourcing
a practice where firms outsource marketing activities (such as selecting an ad) to a community of users
marketing plan
a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
mass market
all possible customers in a market, regardless of the differences in their specific needs and wants; the way in which the target market perceives the product in comparison to competitors’ brands
market segment
a distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market
target market
the market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts
market position
the way in which the target market perceives the product in comparison to competitors’ brands