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65 terms

Marketing Ch1-Ch3

Notes for Marketing Chapter 1-3
STUDY
PLAY
Marketing
An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholder.
Exchange
The trade of things of value between buyer and seller so that each is better off after the trade.
Market
People with both the desire and the ability to buy a specific product.
Target market
One or more specific groups of potential consumers toward which an organization directs its marketing program.
Marketing mix
The marketing manager's controllable factors (product, price, promotion, place, and packaging), that can be used to solve a marketing problem.
Environmental factors
In a marketing decision, the uncontrollable factors involving social, economic, technological, competitive, and regulatory forces.
Customer value
The unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service.
Relationship marketing
Linking the organization to its individual customers, employees, suppliers, other partners for their mutual long-term benefits.
Marketing program
A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
Marketing concept
The idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization's goals.
Market orientation
focuses its efforts on (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value.
Customer relationship management (CRM)
The process of identifying prospective buyers, understanding them intimately, and developing favorable long=term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.
Societal marketing concept
The view that organizations should satisfy the needs of consumers in a way that provides for society's well-being.
Macromarketing
The study of the aggregate flow of a nation's goods and services to benefit society.
Micromarketing
How an individual organization directs its marketing activities and allocates its resources to benefit its customers.
Ultimate consumers
People who use the goods and services purchased for a household.
Organizational buyers
Those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.
Utility
The benefits or customer value received by users of the product.
Profit
the reward to a business firm for the risk it undertakes in offering a product for sale, the money left over after a firm's total expenses are subtracted from its total revenues.
Corporate level
Where top management directs overall strategy for the entire organization.
Business unit
An organization that markets a set of related products to a clearly defined group of customers.
Business unit level
The level at which business unit managers set the direction for their products and markets to exploit value-creating opportunities.
Functional level
Where groups of specialists actually create value for the organization.
Cross-functional teams
A small number of people from different departments in an organization who are mutually accountable to a common set of performance goals.
Mission
A statement of the organization's scope, often identifying its customers, markets, products, technology, and values.
Stakeholders
The people who are affected by what the company does and how well it performs.
Organizational culture
A set of values, ideas, and attitudes that is learned and shared among the members of an organization.
Goals or Objectives
Convert the mission into targeted levels of performance to be achieved, often by a specific time.
Market share
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
Competencies
An organization's special capabilities, including skills, technologies, and resources that distinguish it from other organizations.
Competitive advantage
A unique strength relative to competitors, often based on quality, time, cost, or innovation.
Quality
Those features and characteristics of a product that influence its ability to satisfy customer needs.
Benchmarking
Discovering how others do something better than your own firm so you can imitate or leapfrog competition.
Strategic marketing process
An organization allocates its marketing mix resources to reach its target markets.
Marketing plan
A road map for the marketing activities of an organization for a specified future period of time, such as one year or five years.
Situation analysis
Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's plans and the external factors and trends affecting it.
SWOT analysis
an acronym describing and organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.
Market segmentation
Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.
Points of difference
Those characteristics of a product that make it superior to competitive substitutes.
Marketing strategy
The means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.
Marketing tactics
Are detailed day-to-day operational decisions essential to the overall success of marketing strategies.
Environmental scanning
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
Social forces
Include the demographics characteristics of the population and its values.
Demographics
Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.
Baby boomers
The generation of children born between 1946 and 1964
Generation X
Includes the 15 percent of the population born between 1965 and 1976.
Generation Y
Includes the 72 million Americans born between 1977 and 1994.
Blended family
One formed by the merging into a single household of two previously separated units.
Multicultural marketing
Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races.
Culture
Incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group.
Value consciousness
The concern for obtaining the best quality, features, and performance of a product or service for a given price.
Economy
The income, expenditures, and resources that affect the cost of running a business and household.
Gross income
The total amount of money made in one year by a person, household, or family unit.
Disposable income
The money a consumer has left after paying taxes to use for food, shelter, clothing, and transportation.
Discretionary Income
The money that remains after paying for taxes and necessities.
Technology
Inventions or innovations from applied science or engineering research.
Marketspace
An information and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitalized offerings.
Electronic commerce
Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services.
Intranet
An Internet/web-based network used within the boundaries of an organization.
Extranets
Use internet-based technologies, and permit communication between a company and its supplier, distributors, and other partners (such as advertising agencies).
Competition
The alternative firms that could provide a product to satisfy a specific market's needs.
Barriers to entry
Business practices or conditions that make it difficult for new firms to enter the market.
Regulation
Consists of restrictions state and federal laws place on business with regard to the conduct of its activities.
Consumerism
A grassroots movement started in the 1960s to increase the influence, power and rights of consumers in dealing with institutions.
Self-regulation
Where an industry attempts to police itself.