Chapter 2.4

Marketing Concept Media

A business that keeps the focus on satisfying customer needs.

Productivity

The rate at which companies produce goods or services in relation to the number of materials and a number of employees utilized.

Breakeven Point

The minimum sales required to cover all of the expenses of organizing, promoting, and running the event.

Opportunity Cost

The value of the next best alternative that you pass up when making a choice.

Economic Market

All the consumers who will purchase a particular product or service.

Benefits Derived

All the consumers who will purchase a particular product or service.

Comparative Advantage

The capability to produce products or services more efficiently and economically than the competition.

Emotional Purchases

Made by customers when they spend, with little thought during emotional highs and lows.

Rational Purchases

These take place when individuals recognize needs and want, assess their priorities and budget, conduct research, compare alternatives, and then purchase based on careful thought and sound reasoning.

Patronage Purchases

Based on consumer loyalty to a particular brand or product.

Target Market

A specific group of consumers a business wants to reach.

Market Segment

A group of consumers within a larger market who share one or more characteristics.

Marketing Share

The percentage of total sales of a product or service that a company expects to capture in relation to its competitors.

Mass Marketing

An attempt to appeal to a large, general group of consumers.

Target Market

A specific group of consumers a business wants to reach.

Customer Service Gap

The difference between customer expectations and the service that is actually received.

Value-based culture

One that communicates values through high performance and excellent customer service.

Grammy Awards

Awards presented by the Recording Academy of the United States to recognize "outstanding" achievements in the music industry. They are regarded by many as the most prestigious, significant awards in the music industry worldwide.

Super Bowl Game

The annual final playoff game of the National Football League to determine the league champion.

Super Bowl Commercials

High-profile television commercials featured in the U.S. television broadcast of the Super Bowl. Companies running ads during the game spend big to entertain viewers with celebrity cameos and smart punchlines, in hopes of generating buzz and sales.

FAST

Focus, Action, Search, Tenacity

Main focus of marketing concept

Maintaining important relationships with customers.

Factors that influence customer satisfaction

Price, quality, service, and product enjoyment

Three steps of consumer decision-making process

1. recognize a need or want and the opportunity to satisfy it.
2. conduct research
3. evaluate options and make a purchase decision

Primary data

Obtained for the first time and for a specific problem or issue (surveys or observation).

Secondary data

Has already been collected for another purpose, but is useful in the current study (statistics).

Employee Training Programs

Offer employees the resources to prevent or handle customer issues

Most consumers

Use the decision-making process to decide how to spend their limited resources.

Company's financial reports

Are not part of external sources of information for businesses.

Geographic segmentation

Divides markets into physical locations, such as Eastern, Northern, Southern, and Western regions of the United States or the urban and rural areas of a state.

Demographic segmentation

Based upon age, income, education, and other distinguishing characteristics of a particular market segment.

Psychographic segmentation

Focus on characteristics that cannot be measured physically such as values, interests, and lifestyle choices.

Behavioral-based segmentation

Focus on a customer's attitude toward products and services.