Marketing 301 Chapter 1

Satisfying Customer Needs
develops products that provide superior customer value and prices and distributes and promotes them effectively
Marketing Mix
a set of marketing tools that work together to satisfy customer needs and build customer relationships
Marketing
the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
Needs
states of felt deprivation
Wants
the form human needs take as they are shaped by culture and individual personality
Demand
human wants that are backed up by buying power
Market Offerings
some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Marketing Myopia
the mistake of paying more attention to the specific products a company offers that to the benefits and experiences produced by these products
Exchange
the act of obtaining a desired object from someone by offering something in return
Market
the set of all actual and potential buyers of a product or service
Marketing Management
the art and science of choosing target markets and building profitable relationships with them
Five Concepts in Which Organizations Carry Out Marketing Strategies
Production Concept
Product Concept
Selling Concept
Marketing Concept
Social Marketing Concept
Production Concept
the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency
Product Concept
the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements
Selling Concept
the idea that consumers will not buy enough of the firm’s product unless the firm undertakes a large-scale selling and promotion effect
Marketing Concept
a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering he desired satisfaction better than competitors do
Social Marketing Concept
the idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests
Four Ps
Product
Price
Place
Promotion
Customer Relationship Management
the overall process of building and maintain profitable customer relationships by delivering superior customer value and satisfaction
Customer-Perceived Value
the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
Customer Satisfaction
depends on the product’s perceived performance relative to a buyer’s expectations
Customer-Generated Marketing
brand exchanges created by consumers themselves—both invited and uninvited by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers
Partner Relationship Management
working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Market Segmentation
Selects customers by dividing market into segments of customers
Target Marketing
selecting segments to go after
Vale Proposition
the set of benefits or values it promises to deliver to consumers to satisfy their needs
Customer-driven
research customers and understanding their needs better then they do
Sustainable Marketing
socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs
Shared Value
recognizes societal needs that define markets
Customer Evangelist
spread word about the good experience with the company or about the product to others
Basic Relationships
company with low-margin customers
Full Partnerships
few customers and high margins
Frequency Marketing Programs
reward customers who buy frequently or in large amounts
Club Marketing Programs
offer members special benefits and create member communities
Customer Lifetime Value
losing a customer means losing more than a single sale. It means losing the entire stream of purchases the customer would make over a lifetime of patronage
Share of Customer
the portion of the customer’s purchasing that a company gets in its product categories
Customer Equity
the total combined customer lifetime values of all of the company’s current and potential customers; a measure of the future value of the company’s customer base