Intro to Marketing

consumers

the ultimate user of a good or service

customer experience (CX or CEX)

a customer's overall assessment of every interaction the customer has experienced with a business, from navigating the company website to talking to customer service to the packaging the product arrives in

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 mix

a combination of the product itself; the price of the product, the promotional activities that introduce it, and the places where it is made available that together create a desired response among a set of predefined consumers

four Ps

product, price, promotion, and place

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 features, functions, benefits, and uses

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

channel of distribution

the series of firms or individuals that facilitates the movement of a product from the producer to the final customer

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 or selling of goods and services electronically, usually over the Internet

not-for-profit organizations, or nongovernmental organizations (NGOs)

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

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 the 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.

utility

the usefulness or benefit that consumers receive from a product

form utility

the benefit marketing provides by transforming raw materials into finished products, as when a dress manufacturer combines silk, thread, and zippers to create a bridesmaid's gown.

place utility

the benefit marketing provides by making products available when and where customers want them. The most sophisticated evening gown sewn in New York's garment district is of little use to a bridesmaid in Kansas City if it isn't shipped to her in time.

time utility

the benefit marketing provides by storing products until they are needed. Some women rent their wedding gowns instead of buying them and wearing them only once (they hope!).

possession utility

the benefit marketing provides by allowing the consumer to own (at a reasonable price), use, and enjoy the product. The bridal store provides access to a range of styles and colors that would not be available to a woman outfitting a bridal party on her own.

stakeholders

buyers, sellers, or investors in a company; community residents; and even citizens of the 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

customer orientation

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

total quality management (TQM)

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

triple-bottom-line orientation

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

societal marketing concept

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

sustainability

a design and manufacturing focus that meets present needs without compromising the ability of future generations to meet their needs

Green marketing

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

accountability

a process of determining just how much value an organization's marketing activities create and their impact on the bottom line

ROI (return on investment)

the direct financial impact of a firm's expenditure of a resource, such as time or money

user-generated content, or consumer-generated content

Marketing content and activities created by consumers and users of a brand such as advertisements, online reviews, blogs, social media, input to new product development, or serving as wholesalers or retailers

branded content

marketing communication developed by a brand to provide educational or entertainment value rather than to sell the brand in order to develop a relationship with consumers; may indicate the brand is the sponsor

corporate citizenship, or corporate social responsibility

refers to a firm's responsibility to the community in which they operate and to society in general

Big Data

a broad term for datasets so large or complex that traditional data processing applications are inadequate.; term to describe the voluminous data that a business gathers daily

mobile marketing

interacting with consumers via mobile phones, tablets, and wearable screens such as smart watches

artificial intelligence (AI)

allows machines to learn from experience and perform human-like tasks; allows marketers to provide customers with a satisfactory experience online or in a physical store

the internet of things (IoT)

a network of physical objects that use sensors software, and connections to exchange and collect data

service-dominant logic

a firm's mindset for understanding the exchange process, acknowledging that all firms are service firms and that a firm has more opportunities with the service-dominant logic

Co-creation of value

the process when a company and their customers work together to create a product

value proposition

a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased

brandfests

events that companies host to thank customers for their loyalty

competitive advantage

a firm's edge over its competitors that allows it to have higher sales, higher profits, and more customers and enjoy greater success year after year

a distinctive competency

a 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

A series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has the potential to either add or remove value from the product the customer eventually buys.

inbound logistics

bringing in materials or component parts necessary to make the product

operations

converting the materials into another form or the final product

outbound logistics

shipping out the final product

marketing

promoting and selling the final product

service

meeting the customer's needs by providing any additional support required

haul videos

videos consumers post on YouTube that detail the latest stuff they bought

social networking platforms

online platforms that allow a user to represent him or herself via a profile on a website and provide and receive links to other members of the network to share input about common interests

recommendation engines

computer system that has access to customer's forcer shopping behavior in order to make a recommendation for future purposes

Folksonomy

a classification system that relies on users rather than preestablished systems to sort contents

wisdom of crowds

under the right circumstances, groups are smarter than the smartest people in them, meaning that large numbers of consumers can predict successful products

crowdsourcing

a practice where firms outsource marketing activities (such as selecting an ad) to a community of users

consumer addiction

a physiological or psychological dependency on goods or services including alcoholism, drug addiction, cigarettes, shopping, and use of the internet

anticonsumption

the deliberate defacement of products

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

disruptive marketing

process whereby marketers, by understanding customer needs and identifying what is missing, step "outside the box" to displace something well established, such as filling a need with a totally new product

stakeholders

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.

customer co-creation

When consumer interacts with the marketer to influence the product

green marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products

distinctive competency

a superior capability of a firm in comparison to its direct competitors

Web 1.0

a term to refer to the World Wide Web during its first few years of operation between 1991 and 2003

Web 2.0

a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet

consumer addition

a physiological or psychological dependency on products or services

Greenhouse Effect

the turning of our atmosphere into a kind of greenhouse as a result of the addition of carbon dioxide and other greenhouse gases

climate change

a significant change in the measures of climate, including major changes in temperature, precipitation, or wind patterns, that occurs over several decades or longer

Arab Spring

a series of anti-government protests and uprisings in a number of Arab countries facilitated by new social media tools available to people in the region

World trade

the flow of goods and services among 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

General Agreement on Tariffs and Trade (GATT)

international treaty to reduce import tax levels and trade restrictions

World Trade Organization

an organization that replaced GATT; the WTO sets trade rules for its member nations and mediates disputes between nations

World Bank

An international lending institution that seeks to reduce poverty and better people's lives by improving economies and promoting sustainable development

International Monetary Fund (IMF)

An international organization that seeks to ensure the stability of the international monetary exchange by controlling fluctuations in exchange rates

foreign exchange rates

(forex rate) The price of a nation's currency in terms of another currency

balance of payments

A statement of how much trade a country has going out compared to how much it has coming in. If a country is buying more than it is selling, it will have a negative balance of payments

protectionism

a policy adopted by a government to give domestic companies an advantage

import quotas

limitations set by a government on the amount of a product allowed to enter a country

embargo

a quota completely prohibiting specified goods from entering or leaving a country

tariffs

taxes on imported goods

economic communities

groups of countries that band together to promote trade among themselves and to make it easier for member nations to compete elsewhere

Brexit

Term used to refer to the U.K.'s (Britain's) exit from the European Union.

external environment

the uncontrollable elements outside an organization that may affect its performance either positively or negatively

gross domestic product (GDP)

the total dollar value of goods and services produced by a national within its borders in a year

economic infrastructure

the quality of a country's distribution, financial, and communications systems

level of economic development

the broader economic picture of a country

standard of living

an indicator of the average quality and quantity of goods and services consumed in a country