Marketing ch.1,2,7,8

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 shaped by culture and individual personality.
Demands
Human wants that are 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
The mistake of paying more attention to the specific products a company offers than 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.
Production Concept
The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.
Product Concept
The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.
Selling Concept
The idea that the consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.
Marketing concept
The marketing management philosophy that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
Societal Marketing Concept
A principal of enlightened marketing that holds that a company should make good marketing decisions by considering consumers’ wants, the companies requirements, consumers long-run interests, and society’s long-run interest.
Customer Relationship Management
The overall process of building and maintaining 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 market offering relative to those of competing offers.
Customer Satisfaction
The extent to which a product’s perceived performance matches a buyer’s expectations.
Partner Relationship Management
Working closely to partners in other company departments and outside the company to jointly bring greater value to customers.
Customer Lifetime Value
The value of the entire stream of purchases that a customer would make over a lifetime of patronage.
Share of customer
The portion of a customer’s purchasing that a company gets in its product categories.
Customer Equity
The total combined customer lifetime values of all the company’s customers.
Internet
A vast public web of computer networks that connects users of all types all around the world to each other and to an amazingly large information repository.
Strategic Planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
Mission Statement
A statement of the organizations purpose.
Business Portfolio
The collection of businesses and products that make up the company.
Portfolio analysis
The process by which management evaluates the products and businesses making up the company.
Growth Share Matrix
A portfolio-planning method that evaluates a company’s strategic business units in terms of their market growth rate and relative market share. SBU’s are classified as cash cows, question marks, or dogs.
Product/market expansion grid
A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Market Penetration
A strategy for company growth by identifying and developing new market segments for current company products.
Product Development
A strategy for company growth by offering modified or new products to current market segments.
Diversification
A strategy for growth through starting up or acquiring businesses outside the companies current products and markets.
Downsizing
Reducing the businesses portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy.
Value Chain
The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.
Value-delivery network
The network made up of the companies, and ultimately customers who “partner” with each other to improve the performance of the entire system.
Marketing Strategy
a company’s plan that identifies how it will use marketing to achieve its goals
Marketing Segmentation
identifying target markets and developing products that appeal to them.
Market Segment
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
Market Targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Positioning
Placing a product at a certain point or location within a market in the minds of prospective buyers.
Differentiation
Actually differentiating the market offering to create superior customer value.
Marketing Mix
The blending of four marketing elements-product, place, price, and promotion
SWOT analysis
A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.
Marketing Implementation
The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.
Marketing Control
The process of measuring and evaluation the results of marketing strategies and plans, and taking corrective action to ensure that objectives are achieved.
Marketing Audit
a comprehensive systematic, independent, and periodic examination of a company’s environment, obj, strats, and activities to determine problem areas and opportunities and to recommend plan of action to improve the companies marketing performance
Return on Marketing Investment
The net return from a marketing investment divided by the costs of the marketing investment.
Market Segmentation
The process of dividing the total market into groups whose members have similar characteristics
Geographic Segmentation
Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods
Demographic Segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle
Age and life-cycle segmentation
Dividing the market into different age and life-cycle groups.
Gender Segmentation
Dividing the market into different groups based on gender.
Income segmentation
Dividing the market into different income groups.
Psychographic Segmentation
Dividing the market into different groups based on social class, lifestyle, or personality characteristics.
Behavioral Segmentation
Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product
Occasion segmentation
Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
Benefit segmentation
Dividing the market into groups according to the different benefits that the consumers seek from the product.
Intermarket segmentation
Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries
Target Market
A set of buyers sharing common needs or characteristics that the company decides to serve.
Undifferentiated Marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
Differentiated Marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
Concentrated Marketing
Niche Marketing, Targets one or a few small segments
Micromarketing
The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups- includes local marketing and individual marketing
Local Marketing
Tailoring brands and promotions to the needs and wants of local customer groups- cities, neighborhoods, and even specific stores
Individual Marketing
Tailoring products and marketing programs to the needs and preferences of individual customers-also labeled “markets-of-one marketing” “customized marketing” and “one-to-one marketing”
Product Position
The way the product is defined by consumers on important attributes- the place that product occupies in consumers’ minds relative to competing products
Competitive Advantage
achieved by a firm when it can produce a superior product and/or bring the product to market at a lower price than most, or all, of its competitors
Value Proposition
The full positioning of a brand-the full mix of benefits upon which is positioned
Positioning Statement
a statement that summarizes company or brand positioning -it takes this form: to (target segment and need) our (brand) is (concept) that (point-of-difference)
Product
anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
Consumer Product
Product bought by final consumer for personal consumption.
Convenience Product
Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort
Shopping Product
consumer goods that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style
Specialty Product
Consumer product with unique characteristics or brand identificaton for which a significant group of buyers is willing to make a special purchase effort
Unsought Product
consumer product that the consumer either does not know about or know about but does not normally think of buying
Industrial product
Product bought by individuals and organizations for further processing or for use in conducting a business
Social Marketing
the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society. include public campaigns to reduce smoking, over eating
Product Quality
the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
Brand
name, symbol, or design used to identify a product.
Product Line
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
Product Mix
the combination of product lines offered by a manufacturer
Brand Equity
The positive differential effect that knowing the brand name has on customer response to the product or service
Private Brand
products packaged with the retailer’s rather than the manufacturer’s name on them. (store brand)
Co-branding
The practice of using the established brand names of two different companies on the same product.
Line Extension
extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Brand Extension
using an existing brand to brand a new product in a different product category.
Service intangibility
a major characteristic of services that cannot be seen, tasted, felt, heard, or smelled before they are bought
Service Inseparability
a major characteristic of services- they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines
Service Variability
a major characteristic of services- their quality may vary greatly, depending on who provides them and when, where, and how.
Service Perishability
a major characteristic of services-they cannot be stored for later sale or use
Service-profit Chain
The chain that links service firm profits with employee and customer satisfaction
Internal Marketing
Orienting and motivating customer-contact employees and supporting service people to work as a team
Interactive Marketing
Training service employees in the fine art of interacting with customers to satisfy their needs.