Chapter 1: Marketing: Creating and Capturing Customer Value

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

Wants backed by buying power.

Market Offerings

Products, services, and experiences offered to satisfy needs or wants.

Customer Value

Customers' expectations about the value and satisfaction of market offerings.

Exchanges and Relationships

The trade of value between buyer and seller.

Markets

The set of all actual and potential buyers of a product or service.

Marketing Management Orientation

Choosing whom to serve and how to bring value to customers.

Market Segmentation

Dividing the market into distinct groups with different needs.

Target Marketing

Selecting which segments to pursue.

Value Proposition

The set of benefits that a company promises to deliver to customers.

Production Concept

Focus on improving production and distribution efficiency.

Product Concept

Focus on making continuous product improvements.

Selling Concept

Focus on large-scale selling and promotion efforts.

Marketing Concept

Focus on understanding customer needs and delivering superior value.

Societal Marketing Concept

Making marketing decisions that consider consumer wants and long-term societal welfare.

The Marketing Mix (4 Ps)

The combination of product, price, place, and promotion to deliver value.

Customer Relationship Management (CRM)

Building and maintaining profitable customer relationships.

Customer-Perceived Value

The evaluation of benefits and costs of a marketing offer compared to competitors.

Customer Satisfaction

The extent to which perceived performance matches buyer expectations.

Customer Lifetime Value (CLV)

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

Share of Customer

Increasing the share of a customer’s purchases in a product category.

Customer Equity

The total combined customer lifetime values of all current and potential customers.

The Digital Age

The transformation of customer engagement through the internet and social media.

Rapid Globalization

The increasing interconnection of companies with global markets.

Ethics and Social Responsibility

The expectation for companies to practice socially responsible marketing.

Triple Bottom Line

Evaluating success based on people, planet, and profits.