Principles of Business - Chapter 11 Vocab

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

Value

A customer’s estimation of the worth of a product based on a comparison of its cost and benefits, including quality, relative to other products

Relationship Marketing

Establishing long-term, mutually satisfying buyer-seller relationships

Customer Relationship Management (CRM)

Using information about customers to create marketing strategies that develop and sustain desirable customer relationships

Customer Lifetime Value (CLV)

A measure of a customer’s worth (sales minus costs) to a business over one’s lifetime

Utility

The ability of a good or service to satisfy a human need

Form Utility

Utility created by converting production inputs into finished products

Place Utility

Utility created by making a product available at a location where customers wish to purchase it

Time Utility

Utility created by making a product available when customers wish to purchase it

Possession Utility

Utility created by transferring title (or ownership) of a product to a buyer

Marketing Concept

A business philosophy that a firm should provide goods and services that satisfy customers’ needs through a coordinated set of activities that allow the firm to achieve its objectives

Market

A group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase them

Marketing Strategy

A plan that will enable an organization to make the best use of its resources and advantages to meet its objectives

Marketing Mix

A combination of product, price, distribution, and promotion developed to satisfy a particular target market

Target Market

A group of individuals or organizations, or both, which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group

Undifferentiated Approach

Directing a single marketing mix at the entire market for a particular product

Market Segment

A group of individuals or organizations within a market that share one or more common characteristics

Market Segmentation

The process of dividing a market into segments and directing a marketing mix at a particular segment rather than at the total market

Marketing Plan

A written document that specifies an organization’s resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group

Sales Forecast

An estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specific level of marketing effort

Marketing Information System

A system for managing marketing information that is gathered continually from internal and external sources

Marketing Research

The process of systematically gathering, recording, and analyzing data concerning a particular marketing problem

Buying Behavior

The decisions and actions of people involved in buying and using products

Consumer Buying Behavior

The purchasing of products for personal or household use, not for business purposes

Business Buying Behavior

The purchasing of products by produces, resellers, governmental units, and institutions

Personal Income

The income an individual receives from all sources less the social security taxes the individual must pay

Disposable Income

Personal income less all additional personal taxes

Discretionary Income

Disposable income less savings and expenditures on food, clothing, and housing