Chapter 1 Marketing: Creating Customer Value and Engagement

Practice flashcards covering the core vocabulary and concepts from Chapter 1 of the MAR 3023 Intro to Marketing lecture at FGCU.

Marketing

The set of strategies and activities by which companies acquire and engage customers, build strong customer relationships, and create superior customer value in order to capture value from customers in return.

Needs

States of felt deprivation, such as physical needs for food and shelter, social needs for belonging, and individual needs for esteem.

Wants

The form human needs take as they are shaped by culture and individual personality, such as wanting a Starbucks cold brew rather than just water.

Demands

Human wants that are backed by buying power, such as buying a $7 cold brew with the mobile app.

Marketing Myopia

The mistake of focusing too narrowly on the product itself rather than the customer benefit or problem it solves, like railroad companies failing to realize they were in the transportation business.

Exchange

The foundation of all marketing; the act of obtaining a desired object from someone by offering something in return.

Market

The full set of actual and potential buyers of a product.

Target Market

The specific group of customers a company decides to serve after evaluating which segments offer the best opportunity.

Value Proposition

The set of benefits or values a brand promises to deliver to consumers to satisfy their needs and differentiate itself from competitors.

Production Concept

A management philosophy that consumers favor products that are available and affordable, focusing the organization on production and distribution efficiency.

Product Concept

The idea that consumers favor products with the most quality, performance, and features, which can lead to marketing myopia if the focus is only on the product.

Selling Concept

A management philosophy that consumers will not buy enough of the firm's products unless it undertakes a large-scale, aggressive promotion and 'push' effort.

Marketing Concept

A philosophy that achieving organizational goals depends on knowing the customer first and building what they want, focusing on a 'pull' strategy.

Societal Marketing Concept

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

The Marketing Mix (4 Ps)

The set of tactical marketing tools, consisting of Product, Price, Place, and Promotion, that the firm blends to produce the response it wants in the target market.

Product

A component of the Marketing Mix covering the physical goods, services, features, quality, branding, and packaging being sold.

Price

The amount of money charged for a product that reflects value, covers costs, and drives consumer perception.

Place

The activities that make the product available to target consumers, including channels, distribution, and logistics.

Promotion

The activities that communicate the merits of the product and persuade target customers to buy it, including advertising, social media, and PR.

Customer Relationship Management (CRM)

The process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Customer-Engagement Marketing

Fostering direct and continuous involvement in brand conversations and community to make the brand a meaningful part of consumers' lives.

Consumer-Generated Marketing

Brand exchanges created by consumers themselves, such as Heinz's 'draw ketchup' campaign, both invited and uninvited by the company.

Customer Lifetime Value (CLV)

The total value of all purchases a customer makes over a lifetime of patronage to a specific brand or company.