Business Chapter 11: Customer-Driven Marketing

Marketing

a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas

Exchange

the act of giving up one thing (money, credit, labor, goods) in return for something else (goods, services, ideas)

Value

a customer's subjective assessment of benefits relative to costs in determining the worth of a product

Marketing contract

an idea that an organization should try and satisfy customers' needs through coordinated activities that also allow it to achieve its own goals

Marketing Orientation

an approach requiring organizations to gather information about customer needs, share that information throughout the firm, and use that information to help build long-term relationships with customer

Marketing Strategy

a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers

Market

a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas

Target market

a specific group of consumers on whose needs and wants a company focuses its marketing efforts

Total-market approach

an approach whereby a firm tries to appeal to everyone and assumes that all buyers have similar needs

Market segmentation

a strategy whereby a firm divides the total market into groups of people who have relatively similar product needs

Market segment

a collection of individuals, groups, or organizations who share one or more characteristics and thus have relatively similar product needs and desires

Concentration approach

a market segmentation approach whereby a company develops one marketing strategy for a single market segment

Multisegment approach

a market segmentation approach whereby the marketer aims its efforts at two or more segments, developing a marketing strategy for each

Marketing mix

the marketing activities- product, price promotion, and distribution-that the firm can control to achieve specific goals within a dynamic marketing environment

Distribution

making products available to customers in the qualities desired

Promotion

a persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals, groups, and organizations to accept goods, services, and ideas

Marketing research

a systematic, objective process of getting information about potential customers to guide marketing decisions

Primary data

marketing information that is observed, recorded, or collected directly from respondents

Secondary data

information that is compiled inside or outside an organization for some purpose other than changing the current situation

Buying behavior

the decision processes and actions of people who purchase and use products

Perception

the process by which a person selects, organizes, and interprets information received from his or her senses

Motivation

inner drive that directs a person's behavior toward goals

Learning

changes in a person's behavior based on information and experience

Attitude

knowledge and positive or negative feelings about something

Personality

the organization of an individual's distinguishing character traits, attitudes, or habits

Social roles

a set of expectations for individuals based on some position they occupy

Reference groups

groups with whom buyers identify and whose values or attitudes they adopt

Social classes

a ranking of people into higher or lower positions of respect

Culture

the integrated, accepted pattern of human behavior, including thought, speech, beliefs, actions, and artifacts