Marketing (Chapter 1) Exam 1

Consumer
The ultimate user of a good or service
Marketing
An organizational function and a set of processes creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
Marketing Mix
A combination of of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to consumers that creates 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 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 customer
Business-to-business marketing
The marketing of goods and services from one organization to another
industrial goods
Goods individuals or organizations buy for further processing or for their own use when they do business
not-for-profit organizations
The 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 organizations 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 customer that motivates buying behavior- that satisfies a need or want.
Demand
Customers’ desire 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 or medium used to conduct an exchange
Virtual goods
Digital product consumers buy for use in online contexts
Rentrepreneurs
Enterprising consumers who make money by rending out their possessions when they aren’t using them.
Collaborative Consumption
A term used to refer to the activities practiced by rentrepreneurs.
Utility
The usefulness or benefit 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 warehouse is 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 that 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.
Social media
Internet-based platforms that allow users to create their own content and share it with other users 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 other members of the network to share input about common interests
crowdsourcing
A practice in which 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 fro 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
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.