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Flashcards in Chapter 1 Deck (63):
1

What is marketing ?

Marketing is the activity, set of institutions and processes for creating, communication, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

2

What is the marketing mix?

A combination of the product itself, the price of the product, the promotional activities that introduce it and the place where it is made available, that together create a desired response among a set of predefined consumers.

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four P's

Product
price
promotion
place

4

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.

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Promotion

The coordination of a marketer's communication efforts to influence attitudes or behavior.

6

Place

The availability of the product to the customer at the desired time and location.

7

Price

The assignment of value, or the amount the consumer must exchange to receive the offering.

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Exchange

The process by which some transfer of value occurs between a buyer and a seller.

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Consumer goods

The goods individual consumers purchase for personal or family use.

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Services

Intangible products that are exchanged directly between the producer and the customer

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Business-to-business marketing

The marketing of goods and services from one organization to another.

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Industrial goods

Goods that individuals or organizations buy to further processing or for their own use when they do business.

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E-commerce

The buying or selling of goods and services electronically, usually over the internet.

14

Not-for-profit organizations

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.

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Nongovernmental organizations (NGOs)

Another name for not for profit organizations

16

Marketing concept

A management orientation that focuses on identifying and satisfying consumer needs to ensure the organizations long-term profitability.

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Need

The recognition of any difference between a consumers actual state and some ideal or desired state

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Want

The desire to satisfy needs in specific ways that are culturally and socially influenced.

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Benefit

The outcome sought by a customer that motivates buying behavior that satisfies a need or want

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Demand

Customers desired for products coupled with the resources needed to obtain them

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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.

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Marketplace

Any location or medium used to conduct an exchange

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Virtual goods

Digital products consumer buy for use in online contexts

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Rentrepreneurs

Enterprising consumer who make money by renting out their possessions when they aren't using them

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Collaborative consumption

A term used to refer to the activities practiced by rentrepreneurs.

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Utility

The usefulness or benefit that consumers receive from a product

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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

28

Production orientation

A management philosophy that emphasizes the most efficient ways the produce and distribute products

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Selling orientation

A managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory.

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Consumer orientation

A business approach that prioritizes the satisfaction of customers' needs and wants.

31

Total quality management(TQM)

A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement.

32

Instapreneur

A business person who only produces a product when it is ordered.

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Triple-bottom-line orientation

A business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices

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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

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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

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Green marketing

A marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers

37

Return on investment (ROI)

The direct financial impact of a firms expenditure of a resource, such as time or money

38

Attention economy

A company's success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs rather than just dollars.

39

Value proposition

A marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased

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Brandfests

Events that companies host to Thank customers for their loyalty.

41

Lifetime value of a customer

The potential profit a single customers purchase of a firms products generates over the customers lifetime

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Distinctive competency

A superior capability of a firm in comparison to its direct competitors.

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Marketing scorecards

Feedback vehicles that report (often in quantified terms) how the company or brand is actually doing in achieving various goals

44

Metrics

Measurements or "scorecards" that marketers use to identify the effectiveness of different strategies or tactics.

45

Differential benefit

Properties of products that set them apart from competitors products by providing unique customer benefits

46

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

47

Amafessionals

Consumers who contribute ideas to online forums for the fun and challenge rather than to receive a paycheck, so their motivation is to gain psychic income rather than financial income.

48

Consumer-generated content

Everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers.

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Social media

Internet-based platforms that allow users to create their own content and share it with others who access these sites.

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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.

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Web 2.0

The new generation of the World Wide Web that incorporates social networking and user interactivity.

52

Folksonomy

A classification system that relies on users rather than preestablished systems to sort contents

53

Wisdom of crowds

Under the right circumstances, groups are smarter than the smartest people in them, meaning that large numbers of consumers can predict successful products

54

Crowdsourcing

A practice where firms outsource marketing activities (such as selecting an ad) to a community of users.

55

Open-source model

A practice used in the software industry in which companies share their software codes with one another to assist in the development of a better product

56

Consumer addiction

A physiological or psychological dependency on goods or services including alcoholism, drug addiction, cigarettes, shopping, and use of the internet.

57

Shrinkage

Losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise.

58

Anticonsumption

The deliberate defacement of products

59

Marketing plan

A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy

60

Mass market

All possible customers in a market, regardless of the differences in their specific needs and wants; the way in which the target market perceives the product in comparison to competitors brands

61

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

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Target market

The market segments on which an organizations focuses its marketing plan and toward which it directs its marketing efforts

63

Market position

The way in which the target market perceives the product in comparison to competitors brands