Marketing: Real People, Real Choices - Chapter 1

Consumer

The ultimate user of a good or service

Four Ps

Product, price, promotion, place

Marketing Mix

A combination of the product itself, the price of the product, the promotional activities that introduce it and the place where it is made available, that together create a desired response among a set of predefined consumers. (the 4 Ps)

Product

A tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including feature, functions, benefits, and uses.

Marketing

Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Promotion

The coordination of a marketer's communication efforts to influence attitudes or behavior.

Place

The availability of the product to the customer at the desired time and location.

Price

The assignment of value, or the amount the consumer must exchange to receive the offering

Exchange

The process by which some transfer of value occurs between a buyer and a seller.

Consumer Goods

The goods individual consumers purchase for personal or family use.

Services

Intangible products that are exchanged directly between the producer and the customer.

Business to Business Marketing

The marketing of goods and services from one organization to another.

Industrial Goods

Goods that individuals or organizations buy for further processing or for their own use when they do business.

E-Commerce

The buying and selling of goods and services electronically usually over the internet.

Not-for-profit Organizations

Organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members.

Marketing Concept

A management orientation that focuses on identifying and satisfying consumer needs to ensure the organization's long-term profitability.

Non-governmental Organizations (NGO)

Another name for non-profit organizations.

Need

The recognition of any difference between a consumer's actual state and some ideal or desired state.

Want

The desire to satisfy needs in specific ways that are culturally and socially influenced.

Benefit

The outcome sought by a customer that motivates buying behavior that satisfies a need or want.

Demand

Customers' desires for products coupled with the resources needed to obtain them.

Market

All customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange.

Marketplace

Any location or medium used to conduct an exchange.

Virtual Goods

Digital products consumers buys for use in online contexts

Rentrepreneurs

Enterprising consumers who make money by renting out their possessions when they aren't using them.

Collaborative Consumption

A term used to refer to activities practiced by rentrepreneurs.

Utility

The usefulness or benefit that consumers receive from a product.

Form Utility

Benefit marketing provides by transforming raw products into finished products

Place Utility

Benefit marketing provides by making products available where customers want them

Time Utility

Benefit marketing provides by storing products until they are needed

Possession utility

Benefit marketing provides by allowing the consumer to own, use and enjoy the product

Stakeholders

Buyers, sellers, or investors in a company; community residents; and even citizens of nations where goods and services are made or sold-- in other words, any person or organization that has a "stake" in the outcome.

Production Orientation

A management philosophy that emphasizes the most efficient ways to produce and distribute products.

Selling Orientation

A managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory.

Consumer Orientation

A business approach that prioritizes the satisfaction of customers' needs and wants.

Total Quality Management (TQM)

Management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement.

Instapreneur

A businessperson who only produces a product when it is ordered.

Triple-bottom-line orientation

A business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices.

Customer Relationship Management

Systematically tracking customer's preferences & behaviors over time to tailor value proposition

Societal Marketing Concept

Management philosophy that marketers must satisfy customers' needs in ways that also benefit society and also deliver profit to the firm.

Sustainability

A product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs.

Green Marketing

A marketing strategy that supports environmental stewardship thus creating a differential benefit in the minds of consumers.

Return on Investment (ROI)

The direct financial impact of a firm's expenditure of a resource such as time or money.

Attention Economy

Company's success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs rather than just dollars.

World Trade

The flow of goods and services amount different countries--the value of all the exports and imports of the world's nations.

Countertrade

A type of trade in which goods are paid for with other items instead of with cash.

GATT

General Agreement on Tariffs and Trade--treaty after WWII to reduce import tax levels and trade restrictions.

Myths

Stories containing symbolic elements that express shared emotions and ideals of a culture

Popular culture

Entertainment that the mass market consumes

Stakeholders

Buyers, sellers or investors in a company

Value

Benefits a customer receives from buying a good or service

Shrinkage

Inventory losses due to shoplifting or theft

Anticonsumption

When people deliberately destroy or deface products

Value proposition

Marketplace offering that fairly and accurately sums up the value the customer will receive

Brandfests

Events that thank customers for their loyalty

Lifetime value of a customer

Potential profit a single customer's purchase of a firm's profits generates over the customer's lifetim

Distinctive competency

Superior capability of a firm in comparison to its direct competitors

Differential benefit

Properties of products that set them apart from competitors products by providing unique customer benefits

Value chain

Series of activities involved in designing, producing, marketing, delivering and supporting any product.

Marketing scorecards

Feedback vehicles that report how the company or brand is actually doing in achieving its goals

Metrics

Measurements that marketers use to identify the effectiveness of different strategies or tactics

amafessionals

Consumers who contribute ideas to online forums for the fun or challenge

folksonomy

Classification system

mass market

All possible customers in a market, regardless of the differences in their specific needs and wants.

market segment

a distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market.

target market

the segment(s) on which an organization focuses its marketing plan and toward which it directs its marketing efforts

market position

how the target market perceives the product in comparison to competitors' brands.

price

The assignment of value, or the amount the consumer must exchange to receive the offering.

product

is a good, a service, an idea, a place, a person— whatever is offered for sale in the exchange.

promotion

The coordination of a marketer's communication efforts to influence attitudes or behavior.

place

The availability of the product to the customer at the desired time and location.