Principles of Marketing - Chapter 1 - Marketing in the Modern World

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.

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