Principles of Marketing - Overall

Marketing

Marketing is 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.

Stakeholders

Buyers, sellers, or investors in a company; community residents; and even citizens of the geographic areas where goods and services are made or sold—in other words, any person or organization that has a “stake” in the outcome of marketing’s activities.

Marketing concept

A business philosophy that emphasizes an organization-wide customer orientation with the objective of achieving long-run profits

Societal marketing concept

A management philosophy that marketers must satisfy customers’ needs in ways that also benefit society and deliver profit to the firm.

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.

Exchange

The process by which some transfer of value occurs between a buyer and a seller.

Utility

The usefulness or benefit that consumers receive from an offering.

Total Quality management (TQM)

A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement of products and services.

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.

Target market

The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts.

Value proposition

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

Sustainability

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

Return on Investment (ROI)

The direct financial impact of a firm’s expenditure of a resource, such as time or money.

Customer lifetime value (CLV)

Represents how much profit a firm expects to make from a particular customer

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.

Distinctive competency

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

Value proposition

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

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.

Differential benefit

Properties of products that set them apart from competitors’ products by providing unique and value-adding customer benefits.

Marketing plan

Properties of products that set them apart from competitors’ products by providing unique and value-adding customer benefits.

Market position

The number of customers or the amount of business that a company has compared with all the companies that offer similar products or services.

Marketing mix (Four Ps)

A combination of the product itself, the price of the product, the promotional activities that communicate it, and the place(s) where it is available.

Virtual goods

Digital products consumers buy for use in online contexts.

Triple-bottom-line orientation

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

Green marketing

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

Attention economy

an approach to the management of information that treats human attention as a scarce commodity and applies economic theory to solve various information management problems.

Amafessionals

Brandfest

Instapreneur

Rentrapreneur

Protectionism

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

Embargo

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

Tariffs

Taxes on imported goods.

Import quotas

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

World Trade Organization (WTO)

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

General Agreement on Tariffs and Trade (GATT)

International treaty to reduce import tax levels and trade restrictions.

Economic communities

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

Level of economic development

The broader economic picture of a country.

Less developed country (LDC)

A country at the lowest stage of economic development.

Developing countries

Countries in which the economy is shifting its emphasis from agriculture to industry.

Developed country

A country that boasts sophisticated marketing systems, strong private enterprise, and bountiful market potential for many goods and services.

Local content rules

A form of protectionism that stipulates that a certain proportion of a product's production must consist of components and services supplied by providers in the host country or economic community.

Social Norms

Specific rules dictating what is right or wrong, acceptable or unacceptable.

Customs

Widely accepted, traditional ways of behaving or doing something that is specific to a particular society, place, or time.

Mores

The essential or characteristic customs and conventions of a society or community

Conventions

Behaviour that is considered acceptable or polite to most members of a society

Consumer ethnocentrism

Consumers’ feeling that products from their own country are superior or that it is wrong to buy products produced in another country.

Licensing

An agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time.

Franchising

A form of licensing involving the right to adapt an entire system of doing business.

Strategic alliance

Relationship developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in the target country.

Joint venture

A strategic alliance in which a new entity owned by two or more firms allows the partners to pool their resources for common goals.

Born-global firms

Businesses that expand into international markets from their inception, rather than growing

domestically first.

Dumping

A company tries to get a toehold in a foreign market by pricing its products lower than it offers them at home.

Gray market goods

Items manufactured outside a country and then imported without the consent of the trademark holder.

Counter trade

A type of trade in which goods are paid for with other items instead of with cash.

Sachet

Affordable one-use packages of cleaning products, fabric softeners, shampoo, and other items for sale to consumers in least developed and developing countries.

Oligopoly

A market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers.

Monopoly

A market situation in which one firm, the only supplier of a particular product, is able to control the price, quality, and supply of that product.

Perfect competition

A market structure in which many small sellers, all of whom offer similar products, are unable to have an impact on the quality, price, or supply of a product.

Monopolistic competition

A market structure in which many firms, each having slightly different products, offer unique consumer benefits.

Collectivist cultures

Cultures in which people subordinate their personal goals to those of a stable community.

Individualist cultures

Cultures in which people tend to attach more importance to personal goals than to those of the larger community.

Fair trade

Movement made up of a diverse network of producers, companies, shoppers, advocates, and organizations that promotes greater equity in international trading partnerships, encourages sustainable development, and secures the rights of marginalized producers and workers in developing countries.

Locavorism

The trend for shoppers to actively look for products that come from farms within 50 to 100 miles of where they live.

Sustainability metrics

Measures of sustainability, using numbers to quantify environmental, social and economic aspects of the world.