Chapter 1: Marketing: Creating Customer Value and Engagement

Vocabulary flashcards covering fundamental marketing concepts, management philosophies, customer relationship strategies, and key figures from Chapter 1 of Principles of Marketing.

Marketing

A process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Needs

States of felt deprivation.

Wants

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

Demands

Human wants that are backed by buying power.

Market

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

Selling Concept

An inside-out perspective that starts with the factory, focuses on existing products, and calls for heavy selling and promotion to achieve profitable sales volume.

Marketing Concept

An outside-in perspective that starts with a well-defined market, focuses on customer needs, and integrates all marketing activities to achieve profits by creating customer satisfaction.

Societal Marketing Concept

The principle holding that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Marketing Mix (Four Ps)

The set of tactical marketing tools—product, price, promotion, and place—that the firm blends to produce the response it wants in the target market.

Integrated Marketing Program

A comprehensive plan that communicates and delivers intended value to chosen customers.

Strangers

A customer relationship group characterized by low potential profitability and short-term projected loyalty.

Butterflies

A customer relationship group characterized by high potential profitability but short-term projected loyalty.

True Friends

A customer relationship group characterized by high potential profitability and long-term projected loyalty.

Barnacles

A customer relationship group characterized by low potential profitability despite long-term projected loyalty.

Figure 1.1: The Marketing Process Framework

A five-step process model showing how marketers create value for customers and build customer relationships in order to capture value from customers in return.

Figure 1.3: Selling and Marketing Concepts Contrasted

A diagram contrasting the inside-out selling concept (focusing on products and sales volume) with the outside-in marketing concept (focusing on customer needs and satisfaction).

Figure 1.4: Three Considerations Underlying the Societal Marketing Concept

A triangular model illustrating the balance between society (human welfare), consumers (want satisfaction), and company (profits).

Figure 1.5: Customer Relationship Groups

A classification matrix that categorizes customer relationship groups based on potential profitability and projected loyalty into Strangers, Butterflies, True friends, and Barnacles.

Figure 1.6: An Expanded Model of the Marketing Process

A comprehensive flowchart illustrating the detailed steps, marketing mix elements, customer relationship strategies, and external environment factors involved in creating and capturing customer value.