Principles of Marketing: Kotler & Armstrong 14th Edition Chapter 1

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 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 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 that holds 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
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.
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-managed relationships
Marketing relationships in which customers, empowered by today’s new digital technologies, interact with companies and with each other to shape their relationships with brands.
Consumer-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.
Customer lifetime value
The value of the entire stream of purchases that 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 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.