BUSI 2204 Final

Customer Lifetime Value

The value of the entire stream of purchases a customer makes over a lifetime of patronage.

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.

Market

The set of all actual and potential buyers of a product or service.

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 experience and those of other consumers.

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.

Product Concept

A detailed version of the new product idea stated in meaningful consumer terms.

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 Equity

The total combined customer lifetime values of all the company’s customers.

Exchange

The act of obtaining a desired object from someone by offering something in return.

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.

Market Offerings

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

Digital and Social Media Marketing

Using digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs to engage consumers anywhere, at any time, via their digial devices.

Marketing Management

The art and science of choosing target markets and building profitable relationships with them.

Demands

Human wants that are backed by buying power.

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.

Share of Customer

The portion of the customer’s purchasing that a company gets in product categories.

Selling Concept

The idea that customers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.

Customer Satisfaction

The extent to which a product’s perceived performance matches a buyer’s expectations.

Partner Relationship Management

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

Wants

The form human needs take as they are shaped by culture and individual personality.

Marketing

The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.

Production Concept

The idea that consumers will favour products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency.

Needs

States of felt deprivation.

Growth-Share Matrix

A portfolio-planning method that evaluates a company’s SBUs (Strategic Business Units) in terms of market growth rate and relative market share.

Differentiation

Actually differentiating the market offering to create superior customer value.

Positioning

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Market Penetration

Company growth by increasing sales of current products to current market segments without changing the product.

Diversification

Company growth through starting up or acquiring businesses outside the company’s current products and markets.

Market Implementation

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.

Value Chain

The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.

Strategic Planning

The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

Marketing Control

Setting specific marketing goals, and then measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.

Market Development

Company growth by identifying and developing new market segments for current company products.

Product Development

Company growth by offering modified or new products to current market segments.

Value Delivery Network

A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value.

Portfolio Analysis

The process by which management evaluates the products and businesses that make up the company.

Market Segment

A group of consumers who respond in a similar way to a given set of marketing efforts.

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.

Business Portfolio

The collection of businesses and products that make up the company.

Marketing Return on Investment (Marketing ROI)

The net return from a marketing investment divided by the costs of the marketing investment.

Marketing Strategy

The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.

Product/Market Expansion Grid

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviours and who might require separate marketing strategies or mixes.

Market Targeting (Targeting)

Evaluating each market segment’s attractiveness and selecting one or more segments to serve.

Mission Statement

A statement of the organization’s purpose— what it wants to accomplish in the larger environment.

SWOT Analysis

An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T).

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.

Baby Boomers

The 9.4 million people born during the years following World War II and lasting until 1965 - active, affluent.

Generation Z

People born between 1998 and 2016 who make up the kid, tween, and teen markets - attitudes, access to information, technical sophistication, brand consciousness.

Generation X

The 55 million people born between 1965 and 1980 in the “birth dearth” following the baby boom - time poor, service dependent, tend to be forgotten.

Millenials (or Generation Y)

The 8.6 million children of the baby boomers born between 1981 and 1997 - struggling, entrepreneurial, heighthened social responsibility.

Cultural Environment

Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviours.

Public

Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.

Marketing Intermediaries

Firms that help the company to promote, sell, and distribute its goods to final buyers.

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 activities.

Demography

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

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 various organizations and individuals in a given society.

Environmental Sustainability

Developing strategies and practices that create a world economy that the planet can support indefinitely.

Macroenvironment

The larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.

Ethnographic Research

A form of observational research that involves sending trained observers to watch and interact with consumers in their “natural environments.”

Behavioural Targeting

Using online consumer tracking data and analytics to target advertisements and marketing offers to specific consumers.

Causal Research

Marketing research to test hypotheses about cause-and-effect relationships.

Marketing Research

The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Big Data

The huge and complex data 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.

Customer Relationship Management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Observational Research

Gathering primary data by observing relevant people, actions, and situations.

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 behaviour.

Artificial Intelligence (AI)

Technology by which machines think and learn in a way that looks and feels human but with a lot more analytical capacity.

Secondary Data

Information that already exists somewhere, having been collected for another purpose.

Sample

A segment of the population selected for marketing research to represent the population as a whole.

Focus Group Interviewing

Personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer “focuses” the group discussion on important issues.

Experimental Research

Gathering primary data by selecting matched groups of subjects, giving them different ­treatments, controlling related factors, and checking for differences in group responses.

Marketing Analytics

The analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.

Marketing Research

The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Marketing Information Systems (MIS)

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.

Exploratory Research

Marketing research to gather preliminary information that will help define problems and suggest hypotheses.

Internal Databases

Collections of consumer and market information obtained from data sources within the company network.

Survey Research

Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behaviour.

Primary Data

Information collected for the specific purpose at hand.

Competitive Marketing Intelligence

The systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.

Online Marketing Research

Collecting primary data through internet and mobile surveys, online focus groups, consumer tracking, experiments, and online panels and brand communities.

E-Procurement

Purchasing through electronic connections between buyers and sellers—usually online.

Reference Group

A group that serves as direct or indirect point of comparison or reference in forming a person’s attitudes or behaviour.

Modified Rebuy

A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.

Consumer Market

All the individuals and households that buy or acquire goods and services for personal consumption.

Belief

A descriptive thought that a person holds about something.

Influencer Marketing

Enlisting established influencers or creating new influencers to spread the word about a company’s brands.

Online Social Networks

Online social communities—blogs, online social media, brand communities, and other online forums—where people socialize or exchange information and opinions.

Cognitive Dissonance

Buyer discomfort caused by postpurchase conflict.

Subculture

A group of people with shared value systems based on common life experiences and situations.

Culture

The set of basic values, perceptions, wants, and behaviours learned by a member of society from family and other important institutions.

Lifestyle

A person’s pattern of living as expressed in his or her activities, interests, and opinions.

Derived Demand

Business demand that ultimately comes from (derives from) the demand for consumer goods.

New Product

A good, service, or idea that is perceived by some potential customers as new.

Attitude

A person’s consistently favourable or unfavourable evaluations, feelings, and tendencies toward an object or idea.