Marketing Textbook

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
Demands
Human wants that are backed 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 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 ill favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution effectively
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 products unless the firm undertakes a large-scale selling and promotion effort
Marketing concept
A philosophy in which 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
The idea that a company’s marketing decisions should consider consumer’ wants, the company’s requirements, consumers’ long-run interest, 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 marketing offer relative to those of competing offers
Customer satisfaction
The extent to which a product’s perceived performance matches a buyer’s expectations
Customer-engagement marketing
Making the brand a meaningful part of consumers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community
Consumer-generated marketing
Brand exchanges created by consumers themselves-both invited and uninvited-by which consumers are playing an increasing role in shaping their ow brand experiences and those of other consumers
Partner relationship management
Working closely with partners in other company departments and outside company to jointly bring greater value to customers
Customer lifetime value
The value of the entire stream of purchases a customer makes 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 the company’s customers
Digital and Social Media Marketing
Using digital marketing tools such as Websites, social media, mobile apps and ads, online video, e-mail, and blogs that engage consumers anywhere, at any time, via their digital devices
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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 organization’s purpose-what it wants to accomplish in the larger environment
Business portfolio
The collection of businesses and products that make up a company
Portfolio analysis
The process by which management evaluates the products and businesses that make up the company
Growth-share matrix
A portfolio-planning method that evaluates a company’s SBUs in terms of market growth and relative market share
Product/market expansion grid
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
Market penetration
Company growth by increasing sales of current products to current market segments without changing the product
Market development
Company growth by identifying and developing new market segments for current company prodcuts
Product development
Company growth by offering modified or new products to current market segment
Diversification
Company growth through starting up or acquiring businesses outside the company’s current products and markets
Value chain
The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products
Marketing startegy
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
Market segementation
Diving a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Market segment
A group of consumers who respond in a similar way to a given set of marketing efforts
Market targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Differentiation
Actually differentiating the market offering to create superior customer value
Marketing mix
The set of tactical marketing tools-product, price, place, and promotion-that the firm blends to produce the response it wants in the target market
SWOT analysis
An overall evaluation of the company’s strengths, weaknesses, opportunities, and threats
Marketing implementation
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
Marketing control
Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved
Marketing return on investment
The net return from a marketing investment divided by the costs of the marketing investment
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Marketing environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers
Microenvironment
The actors close to the company that affect its ability to serve its customers-the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Macroenvironment
The larger societal forces that affect the microenvironment-demographic, economic, natural, technological, political, and cultural forces
Marketing intermediaries
Firms that help the company to promote, sell, and distribute its goods to final buyers
Public
Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives
Baby boomers
The 78 million people born during the years following World War II and lasting until 1964
Generation X
The 49 million born between 1965 and 1976 in the “birth dearth” following the baby boom
Millenials
The 83 millions children of the baby boomers born between 1977 to 2000
Generation Z
People born after 2000 who make up the kids, tweens, and teens market
Economic environment
Economic factors that affect consumer purchasing power and spending patterns
Natural environment
The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activites
Environmental sustainability
Developing strategies and practices that create a world economy that the planet can support indefinitely
Technological environment
Forces that create new technologies, creating new product and market opportunities
Political environment
Laws, government agencies, and pressure groups that influence and limit organizations and individuals in a given society
Cultural environment
Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors
chapter 4
Big data
The huge and complex sets generated by today’s sophisticated information generation, collection, storage, and analysis technologies
customer insights
Fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships
Marketing information system
People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights
internal databases
collections of consumer and market information obtained from data sources within the company network
competitive marketing intelligence
The systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in marketing environment
Marketing research
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
Exploratory Research
Marketing research to gather preliminary information that will help define problems and suggest hypothesis
Descriptive Research
Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of customers
Causal Research
Marketing research to test hypotheses about cause-and-effect relationships
Secondary data
Information that already exists somewhere, having been collected for another purpose
Primary data
Information collected for the specific purpose at hand
Observational Research
Gathering primary data by observing relevant people, actions, and situations
Ethnographic research
A form of observational research that involves sending trained observers to watch and interest with consumers in their “natural environments”
Survey research
Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
Experimental research
Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking or differences in group responses
Focus group interviewing
Personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product, services, or organization.
Online marketing research
Collecting primary data online through internet surveys, online focus groups, Web-based experiments, or tracking of consumers’ online behavior
Online focus groups
Gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior
Consumer buyer behavior
The buying behavior of final consumers-individuals and households that buy goods and services for personal consumption
Consumer market
All the individuals and households that buy or acquire goods and services for personal cosumption
Cross-cultural marketing
Including ethnic themes and cross-cultural perspectives within a brand’s mainstream marketing, appealing to consumer similartities across sub-cultural segments rather than differences
Word of mouth influence
The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior
Opinion leader
A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others
Motive
A need that is sufficiently pressing to direct the person to seek satisfaction of the need
Perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world
Complex buying behavior
Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands
Dissonance-reducing buying behavior
Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands
Habitual buying behavior
Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences
Variety-seeking buying behavior
Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences
Need recognition
The first stage of the buyer decision process, in which the consumer recognizes a problem or need
Information search
The stage of the buyer decision process in which the consumer is motivated to search or more information
Purchase decision
The buyer’s decision about which brand to purchase
Post purchase behavior
The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction
Cognitive dissonance
Buyer discomfort caused by postpurchase conflict
Adoption process
The mental process through which an individual passes from first hearing about an innovation to final adoption
Business buyer behavior
The buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
Business buying process
The decision process by which business buyers determine which product and services their organization need to purchase and then find, evaluate, and choose among alternative suppliers and brands
Derived demand
Business demand that ultimately comes from the demand for consumer goods
Supplier development
Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others
Straight rebuy
A business buying situation in which the buyer routinely reorders something without any modifications
Modified rebuy
A business buying situation in which the buyer routinely wants to modify product specifications, prices, terms, or suppliers
New task
A business buying situation in which the buyer purchases a product or service for the first time
Systems selling
Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
Buying center
All the individuals and units that play a role in the purchase decision-making process
Users
Members of the buying organization who will actually use the purchased product or service
Influencers
People in an organization’s buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives
Buyers
People in an organization’s buying center who make an actual purchase
Deciders
People in an organization’s buying center who have a formal or informal power to select or approve
Gatekeepers
people in an organization’s buying center who control the flow of information to others
Institutional market
Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care
Business Buying process
Problem recognition –>General Need description –>Product specification –>Supplier search –>Proposal solicitation –>supplier selection –>order routine specification –> performance review