Marketing: Creating Customer Value and Engagement

Vocabulary flashcards for key marketing terms and concepts.

Marketing

The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.

Needs

States of felt deprivation, including basic physical needs and social and individual needs.

Wants

The form human needs take as they are shaped by culture and individual personality.

Demands

Human wants that are backed by buying power.

Market Offering

A combination of products, services, and experiences offered to a market to satisfy a need or want.

Marketing Myopia

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.

Customer Value

The customer's assessment of the benefits received from a product or service compared to what was sacrificed to obtain it.

Customer Satisfaction

The extent to which a product's perceived performance matches a buyer's expectations.

Exchange

The act of obtaining a desired object from someone by offering something in return.

Market

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

Target Market

Customer groups to whom a company directs its marketing efforts.

Value Proposition

The set of benefits or values a company promises to deliver to consumers to satisfy their needs.

Production Concept

The idea that consumers will favor products that are available and highly affordable.

Product Concept

The idea that consumers will favor products that offer the most quality, performance, and features.

Selling Concept

The idea that consumers will not buy enough of a company's products unless the company undertakes a large-scale selling and promotion effort.

Marketing Concept

The idea that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

Societal Marketing Concept

The idea that a company should make marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Marketing Mix (4 P's)

The set of tactical marketing tools – product, price, place, and promotion – that the firm blends to produce the response it wants in the target market.

Customer Relationship Management (CRM)

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

Customer Lifetime Value (CLV)

The value of the entire stream of purchases a customer would make over a lifetime of patronage.

Share of Customer

The portion of the customer's purchasing that a company gets in its product categories.

Customer Equity

The total combined customer lifetime values of all of the company's customers.

Digital and Social Media Marketing

Using digital marketing tools such as websites, social media, mobile ads and apps, online video, email, blogs, and other digital platforms to engage consumers anywhere, anytime.