Fundamentals of Selling - Chapter 2: Relationship Marketing

Vocabulary flashcards covering core marketing and personal selling concepts from Chapter 2 of Fundamentals of Selling by Charles M. Futrell.

Purpose of Business

To increase the general well-being of humankind through the sales of goods and services.

Two Basic Functions of Business

1. Production of goods or creation of services. 2. Marketing those goods and services.

Marketing

A process of planning the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges that satisfy individual and organizational objectives.

Production Concept

A business philosophy where companies are production-oriented, operating under the assumption that customers want their product simply because it is made.

Selling Concept

A business orientation focused on the product, short-run planning, sales volume, and seller needs, relying on product demonstrations and unsophisticated sales techniques.

Marketing Concept

A business philosophy focused on determining customers' wants first, delivering products to satisfy those wants, long-run planning, and profit-oriented management.

Good

A physical object that can be purchased.

Service

An action or activity performed for a fee, or an activity offered by a seller in conjunction with the purchase of a product (such as delivery, repair, or assistance).

Value-Added

Benefits received by a customer that are not included in the purchase price of a good or service.

Product

A bundle of tangible and intangible attributes, including package, color, and brand, plus the services and even the reputation of the seller.

Consumer Product

A product produced for, and purchased by, households or end consumers for their personal use.

Industrial Product

A product sold primarily for use in producing other products, conducting operations, or reselling to other users (also known as a business product or organizational product).

Price

The value or worth of a product that attracts the buyer to exchange money or something of value for the product.

Household

A decision-making unit that buys goods and services for personal use.

Firm

An organization that produces goods and services.

Government

An organization that functions to provide goods and services to households and firms, and to redistribute income and wealth.

Resellers

Intermediaries, such as wholesalers or retailers, who purchase products and sell them to organizations and/or individuals.

Wholesaler

A distributor primarily engaged in buying, taking title to, storing, and physically handling goods in large quantities, and reselling them in smaller quantities to retailers, wholesalers, or manufacturers.

Promotion

An element of the marketing mix that increases sales by communicating product information to potential customers.

Personal Selling

Personal communication of information to persuade a prospective customer to buy something—a good, service, idea, or something else—that satisfies an individual's needs.

Advertising

Nonpersonal communication of information paid for by an identified sponsor (individual or organization) through media such as television, radio, direct mail, catalogs, newspapers, and billboards.

Publicity

Nonpersonal communication of information that is not paid for by an individual or organization, appearing in media such as television, radio, and newspapers.

Sales Promotion

Activities or materials used to create sales for goods or services, categorized into consumer sales promotion and trade sales promotion.

Consumer Sales Promotion

Promotional activities directed toward end consumers, including free samples, coupons, contests, and demonstrations.

Trade Sales Promotion

Promotional incentives that encourage wholesalers and retailers to purchase and sell aggressively, such as sales contests, displays, special purchase prices, and free merchandise.

Relationship Marketing

The creation of customer loyalty by targeting major customers to sell to now and in the future through long-term collaborative relationships.

Follow-Up

Maintaining contact with a customer in order to evaluate product effectiveness and customer satisfaction.

Marketing Group Role Structure

The organizational framework showing how marketing acts as the direct link connecting Top Management, functional departments, and salespeople to customers.

Marketing Mix Elements

The four controllable elements of a firm's marketing effort: Product, Price, Place, and Promotion.