Chapter 1: What Is Marketing? Vocabulary Flashcards

Vocabulary flashcards defining core concepts, business orientations, and key terms from Chapter 1 of Principles of Marketing.

Marketing (Strategic Definition)

The strategic process by which organizations build trust, shape perceptions, and influence decisions through personalized experiences, storytelling, and value creation.

Marketing (General Definition)

A set of activities related to creating, communicating, delivering, and exchanging offerings that have value for others.

Marketing Concept

A business philosophy articulated by Philip Kotler stating that the key to achieving organizational goals is to identify the needs and wants of target markets and deliver the desired satisfactions more effectively and efficiently than competitors.

Need

A state of felt deprivation, encompassing physical, social, and individual necessities required to live or function.

Want

The form taken by human needs as they are shaped by culture, lifestyle, and individual personality.

Demand

Human wants that are backed by buying power, combining both the willingness and ability to pay for a product.

Exchange Process

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

Customer

A person or organization with a want or need who buys a product and is willing to give money or personal resources to obtain it.

Consumer

The person who actually uses or consumes a product.

Product

A physical good, service, experience, or idea designed to fill a customer's want or need.

Provider

The company or organization (seller) that offers a product to satisfy a customer's need.

Transaction

The terms around which both buyer and seller agree to trade value-for-value, most often exchanging money for a product.

Theodore Levitt

An influential economist and Harvard Business School professor who stated that the purpose of all business is to 'find and keep customers.'

Advertising

The use of paid notices in different forms of media to draw public attention to a company, product, or message, usually for the purpose of selling products or services.

Branding

The practice of creating a name, symbol, or design that identifies and differentiates a product from other products.

Sales

The process of actually selling products or services, leading directly up to the point where the exchange of value occurs.

Product Concept

A business orientation focused on creating technically superior or innovative products under the assumption that superior features alone drive sales.

Sales Concept

A business orientation that emphasizes aggressive sales processes, promotions, and techniques under the assumption that good salespeople can sell anything.

Production Concept

A business orientation prioritizing efficiency, scale, and cost savings to offer products at the lowest possible price.

Customer Relationship Management (CRM)

A business philosophy where the entire organization is aligned around understanding and serving customer needs across multiple channels to identify, satisfy, and retain customers.

Customer Lifetime Value (CLV)

A prediction of the net profit associated with a customer over the entire duration of their relationship with a brand.

Engagement Marketing

A strategy that invites customers to become co-creators in a brand's journey by generating ideas, producing user-generated content, and building community.

GoPro Million Dollar Challenge

A 2024 user-generated content campaign that invited users to submit footage captured with HERO8 Black and MAX cameras, drawing over 42,000 submissions from 170 countries.

Business-to-Business (B2B) Marketing

Marketing focused on selling products or services to other companies or institutions for business operations or production.

Business-to-Consumer (B2C) Marketing

Marketing focused on selling products or services directly to individual end-user consumers.

Cause Marketing

A marketing strategy centered on a societal or charitable cause, exemplified by the Terry Fox Foundation raising over $850 million for cancer research as of 2023.