Marketing Concepts and Vocabulary Flashcards

Vocabulary flashcards covering key concepts from Chapters 1 through 8 of marketing principles notes.

Marketing

Engaging customers and managing profitable customer relationships, with the aim to create value for customers and capture value from them in return.

Needs

States of felt deprivation, including physical, social, and individual needs.

Wants

The form human needs take as shaped by culture and individual personality.

Demands

Human wants backed by buying power.

Market offerings

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

Marketing myopia

Focusing on the specific products a company offers rather than on the customer experiences and benefits those products produce.

Value proposition

The set of benefits or values a company promises to deliver to satisfy customers' needs.

Production concept

The philosophy that consumers will favor products that are available and highly affordable.

Product concept

The philosophy that consumers will favor products that offer the most quality, performance, and features.

Selling concept

The idea that consumers will not buy enough of the firm's products unless the company undertakes a large-scale selling and promotion effort.

Marketing concept

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 idea that marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Customer-perceived value

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

Customer lifetime value

The value of the entire stream of purchases a customer makes over a lifetime of patronage.

Customer equity

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

Strategic planning

Creating and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

Growth-share matrix (BCG)

A portfolio planning method that classifies units as stars, cash cows, question marks, or dogs, based on market growth rate and relative market share.

Market penetration

Growth by increasing sales of current products to current segments without changing the product.

Market development

Growth by identifying and developing new markets for current products.

Product development

Growth by offering modified or new products to current segments.

Diversification

Growth by starting up or acquiring businesses outside current products and markets.

Value chain

A series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.

Value delivery network

The network made up of the company, suppliers, distributors, and ultimately customers who partner to improve the system's performance.

SWOT analysis

An overall evaluation of the company's strengths, weaknesses, opportunities, and threats.

Return on marketing investment (marketing ROI)

The net return from a marketing investment divided by the costs of the marketing investment.

Microenvironment

Actors close to the company that affect its ability to serve customers: the company, suppliers, marketing intermediaries, competitors, publics, and customers.

Macroenvironment

The larger societal forces that affect the microenvironment: demographic, economic, natural, technological, political, and cultural.

Engel's laws

Differences noted over a century ago by Ernst Engel in how family spending varies with income: as income rises, the percentage spent on food falls, and the percentage spent on housing stays about the same.

Environmental sustainability

Developing strategies and practices that create a world economy the planet can support indefinitely.

Customer insights

Fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships.

Marketing information system (MIS)

People and procedures for assessing information needs, developing the needed information, and helping decision makers use it to generate and validate actionable customer and market insights.

Ethnographic research

Sending trained observers to watch and interact with consumers in their 'natural environments.'

Focus group interviewing

Bringing 6 to 10 people together with a trained moderator to talk about a product, service, or organization.

Behavioral targeting

Using online consumer tracking data to target ads and offers to specific consumers.

Neuromarketing

Using brain measurement tools (such as EEG) to learn how consumers feel and respond.

Opinion leader

A person within a reference group who, because of special skills, knowledge, or personality, exerts social influence on others.

Selective attention

Screening out most of the information to which people are exposed.

Selective distortion

Interpreting information in a way that supports what people already believe.

Selective retention

Remembering good points about a brand they favor and forgetting good points about competing brands.

Cognitive dissonance

Buyer discomfort caused by postpurchase conflict.

Undifferentiated (mass) marketing

Ignoring segment differences and targeting the whole market with one offer.

Differentiated (segmented) marketing

Targeting several market segments and designing separate offers for each.

Concentrated (niche) marketing

Going after a large share of one or a few smaller segments or niches.

Micromarketing

Tailoring products and marketing programs to suit the tastes of specific individuals and locations.

Competitive advantage

An advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices.

Positioning statement

Summarizes company or brand positioning: 'To (target segment and need), our (brand) is (concept) that (point of difference).'

Brand equity

The differential effect that knowing the brand name has on customer response to the product and its marketing.

Line extension

Extending an existing brand name to new forms, colors, sizes, or flavors in a product category.

Brand extension

Extending an existing brand name to new product categories.

Convenience products

Consumer products bought frequently and immediately with minimal effort.

Shopping products

Less frequently purchased consumer products compared on suitability, quality, price, and style.

Specialty products

Consumer products with unique characteristics or brand identification for which a significant group is willing to make a special purchase effort.

Service-profit chain

Linking service firm profits with employee and customer satisfaction.