Marketing: Creating and Capturing Customer Value Flashcards

This set covers definitions and concepts from Chapter 1 regarding marketing strategies, customer relationship management, and marketing management orientations.

Marketing (New View)

A focus on the consumer that involves managing profitable customer relationships by creating value for customers and building strong customer relationships to capture value from them in return.

Marketing Process

The multi-step process of understanding the marketplace and customer needs, designing a customer-driven marketing strategy, and constructing a marketing program that delivers superior value.

Need

A state of felt deprivation, which includes physical, social, and individual requirements.

Physical needs

Basic human requirements such as food, clothing, shelter, and safety.

Social needs

Needs related to belonging and affection.

Individual needs

Needs for learning, knowledge, and self-expression.

Wants

The form that a human need takes as it is shaped by culture and an individual's personality.

Market segmentation

The process of dividing the market into distinct segments of customers.

Target marketing

The process of selecting one or more market segments to cultivate.

Differentiation

Creating superior customer value by actually differentiating the market offering.

Positioning

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

Customer satisfaction

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

Customer Delighted

The state where a product’s performance exceeds the expectations of the customer, often leading to consumer loyalty.

Customer lifetime value

The entire stream of purchases that a customer would make over a lifetime of patronage, represented by a value such as $\text{Value} = 100/\text{week} \times 50 \text{ weeks} \times 10 \text{ years} = 50,000$ in the case of a supermarket.

Customer Equity

The total combined customer lifetime values of all the company's current and potential customers.

The Production Concept

The marketing management orientation that holds that consumers will favor products that are available and highly affordable.

The Product Concept

The marketing management orientation that holds that consumers will favor products that offer the most in quality, performance, and innovative features.

Selling Concept

The idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort, focusing on profits through sales volume.

Marketing Concept

The idea that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do, focusing on profits through customer satisfaction.

Societal marketing concept

The idea that a company should make marketing decisions by considering consumers’ wants, the company’s profits, and society’s long-run interests.