Principles of Marketing Chapter 1 Vocab

physical functions
activities that enable the flow of goods from manufacturer to consumer
marketing concept
an organizational philosophy dedicated to understanding and fulfilling consumer needs through the creation of value
value
the benefits that exceed the cost of products, services, or other items
customer relationships
created when businesses and consumers interact through a sales transaction of a product or service and continue based on ongoing interaction between the business and the consumer
customer relationship management
the activities that are used to establish, develop, and maintain customer relationships
sales orientation
reflect a business focus on advertising and personal selling to create demand and move product inventory
need
a necessity to meet an urgent requirement
customer lifetime value
the present value of all profits expected to be earned from a customer over the lifetime of the customer’s relationship with a company
4 p’s
the most common classification of a marketing mix and consist of price, product, place, and promotion
utility
the satisfaction received from owning or consuming a product or service
want
a desire for something that is essential
demand
the financial capacity to buy what one wants
brand
a promise to deliver specific benefits associated with products or services to customers
facilitating functions
activities that assist in the execution of exchange and physical functions
marketing
an organization function and a collection of processes designed to plan for, create, communicate, and deliver value to customers and to build effective customer relationships in ways that benefit the organization and its stakeholder
consumer orientation
reflects a business focus on satisfying unmet consumer needs and wants
marketing functions
activities performed both by consumers and by businesses involved in value creation for specific products or services
relationship orientation
reflects a business focus on creating value-added relationships with suppliers and consumers
production orientation
reflects a business focus on efficient production and distribution with little emphasis on any marketing strategy
exchange functions
activities that promote and enable transfer of ownership