Introduction to Marketing Concepts and Processes (Chapter 1)

Vocabulary-style flashcards covering the key definitions, frameworks, and diagrams from Chapter 1 on core marketing concepts.

Marketing

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

Marketing Process (Figure 1.1)

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

Needs

States of felt deprivation, including physical needs (food, clothing, warmth, safety), social needs (belonging, affection), and individual needs (knowledge, self-expression).

Wants

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

Demands

Human wants that are backed by buying power.

Market Offerings

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

Marketing Myopia

The mistake of paying more attention to the specific products a company offers than to the customer needs, benefits, and experiences produced by these products.

Exchange

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

Market

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

Modern Marketing System (Figure 1.2)

A system involving suppliers, the company, competitors, marketing intermediaries, and final consumers, where each party adds value and operates under major environmental forces.

Marketing Management

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

Market Segmentation

Refers to dividing the markets into segments of customers.

Target Marketing

Refers to selecting which market segment or segments to go after and serve well and profitably.

Value Proposition

The set of benefits or values a brand promises to deliver to consumers to differentiate and position itself in the marketplace and satisfy customer needs in a superior way.

Selling Concept

An inside-out perspective starting at the factory that focuses on existing products and heavy selling/promoting to achieve profits through sales volume.

Marketing Concept

An outside-in perspective starting in the market that focuses on customer needs through integrated marketing to achieve profits through customer satisfaction.

Selling and Marketing Concepts Contrasted (Figure 1.3)

A comparison showing that the selling concept focuses on factory production and selling existing products for sales volume, whereas the marketing concept focuses on market needs and customer satisfaction.

Four Ps of Marketing

The major marketing mix tools used to build an integrated marketing program: Product, Price, Place, and Promotion.

Customer Relationship Management (CRM)

The process of delivering superior customer value and satisfaction to build and maintain profitable customer relationships.

Customer-Perceived Value

The customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers.

Customer Satisfaction

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

Customer Delight

Achieved when a company promises only what it can deliver and then delivers more than it promises.

Customer-Engagement Marketing

Making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement.

Consumer-Generated Marketing

Brand exchanges created by consumers—both invited and uninvited—by which consumers play an increasing role in shaping their own brand experiences and those of other consumers.

Partner Relationship Management

Working closely with others both inside cross-functional teams and outside the firm (suppliers, distributors, retailers) to jointly engage and bring more value to customers.

Customer Lifetime Value (CLV)

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

Share of Customer

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

Customer Equity

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