Marketing: Creating and Capturing Customer Value - Chapter 1

Vocabulary practice flashcards covering foundational marketing concepts, strategies, orientations, relationship management, and value-capturing frameworks from Chapter 1.

Marketing

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

Customer Value

A key marketing concept that is primarily a combination of quality, service, and price (qsp).

Needs

A state of felt deprivation for basic items such as food and clothing, as well as complex needs such as belonging.

Wants

The form that a human need takes as shaped by culture and individual personality, described in terms of objects that satisfy needs.

Demands

Human wants that are backed by buying power.

Market Offerings

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

Products

Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a need or want.

Services

Activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.

Marketing Myopia

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

Exchanges

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 who share a particular need or want that can be satisfied through exchange relationships.

Marketing Management

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

Target Markets

The consumers a company wants to sell its products and services to, and to whom it directs its marketing efforts.

Market Segmentation

The practice of dividing markets into segments of customers.

Target Marketing

The process of selecting which customer segments the company will pursue and serve.

Value Proposition

The set of benefits or values a company promises to deliver to consumers to satisfy their needs.

Production Concept

The idea that consumers will favor products that are available or highly affordable, prompting management to focus on improving production and distribution efficiency.

Product Concept

The idea that consumers will favor products that offer the most quality, performance, and features, requiring continuous product improvement.

Selling Concept

The idea that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort, often applied to unsought goods.

Marketing Concept

The idea that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

Societal Marketing Concept

The principle stating that marketing strategies should deliver value to customers in a way that maintains or improves both the consumer's and society's well-being by balancing company profit, consumer wants, and society's interests.

Sustainable Marketing

Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also improving the ability of future generations to meet their needs.

The Four Ps of Marketing

The marketing mix tools consisting of Product (need-satisfying market offering), Price (amount charged), Place (making the offering available), and Promotion (communicating with the target market).

Customer Relationship Management (CRM)

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Customer Touch Points

Any encounter where a customer directly or indirectly interacts with the company in some form.

Customer-Perceived Value

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

Customer Satisfaction

The extent to which a product's perceived performance matches a buyer's expectations, resulting in disappointment, satisfaction, or delight.

Customer-Managed Relationships

Marketing relationships in which customers, empowered by modern digital technologies, interact with companies and with each other to shape their relationships with brands.

Consumer-Generated Marketing

Brand exchanges created by consumers that result in consumers playing a bigger role in shaping their own brand experiences and those of other consumers.

Partner Relationship Management

Working closely with partners inside other company departments (cross-functional teams) and outside the company (suppliers, channel partners) to jointly bring greater value to customers.

Supply Chain

A channel that stretches from raw materials to components to final products to final buyers.

Customer Lifetime Value

The value of the entire stream of purchases that a customer would make over a lifetime of patronage.

Share of Customer

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

Cross-Selling

The practice of suggesting related products or services to a customer who is considering buying something.

Up-Selling

The practice where sellers attempt to persuade customers to buy a more expensive item.

Customer Equity

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