Marketing: Creating Customer Value and Engagement

Vocabulary practice flashcards covering fundamental definitions and frameworks from Chapter 1: Marketing - Creating Customer Value and Engagement.

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.

The Marketing Process

A five-step framework where companies create value for customers and build relationships in the first four steps, and capture value from customers in return in the final step.

Needs

States of felt deprivation, including basic physical, social, and individual human 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 Offerings

Some combination of products, services, information, or 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 difference between what a customer gets from a product (perceived benefits) and what he or she has to give in order to get it (customer cost).

Exchange

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

Market

The set of actual and potential buyers of a product or service who share a particular need or want that can be satisfied through exchange relationships.

A Modern Marketing System

A system where suppliers, company, competitors, marketing intermediaries, and final consumers interact under major environmental forces, with each party adding value.

Market Segmentation

The process of dividing a market into distinct segments of customers with distinct needs, characteristics, or behaviors.

Target Market

The specific segment or segments of customers that a company decides to serve.

Value Proposition

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

Production Concept

The marketing management orientation holding that consumers will favor products that are available and highly affordable, focusing management on production and distribution efficiency.

Product Concept

The marketing management orientation holding that consumers favor products offering the most quality, performance, and innovative features, focusing management on continuous product improvements.

Selling Concept

The marketing management orientation holding that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort.

Marketing Concept

The marketing management orientation holding that achieving organizational goals depends on knowing the needs and wants of target markets and delivering desired satisfactions better than competitors.

Selling and Marketing Concepts Contrasted

A comparison showing that the selling concept takes an inside-out view starting from the factory to achieve profits through sales volume, whereas the marketing concept takes an outside-in view starting from the market to achieve profits through customer satisfaction.

Societal Marketing Concept

The marketing management orientation holding that marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Integrated Marketing Program

A comprehensive plan that transforms marketing strategy into action by blending the marketing mix tools to communicate and deliver intended value to chosen customers.

Marketing Mix

The set of tactical marketing tools—Product, Price, Place, and Promotion (the four Ps)—that the firm blends to implement its marketing strategy.

Customer Relationship Management (CRM)

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

Customer-Perceived Value

The difference between total customer-perceived benefits and customer cost.

Customer Satisfaction

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

Customer-Engagement Marketing

Marketing that fosters direct and continuous customer involvement by making the brand a meaningful part of consumers' conversations and lives using online, mobile, and social media.

Consumer-Generated Marketing

Brand exchanges created by consumers themselves—both invited and uninvited—by which consumers play an increasing role in shaping their own brand experiences and those of other consumers.

Customer Lifetime Value (CLV)

The value of the entire stream of purchases that 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 current and potential customers.