Marketing 1 | Quizlet

Value Logic

The cycle of creating value for customers → building relationships → capturing value (profits and loyalty) from customers.

Marketing

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

Peter Drucker on Marketing

Marketing is the whole business seen from the customer's point of view; its aim is to make selling unnecessary by understanding customers so well the product sells itself.

Production Concept

Focus on high production efficiency and wide distribution; assumes consumers favor affordable products.

Product Concept

Focus on continuous product improvement and quality; risk of marketing myopia (ignoring customer needs).

Selling Concept

Inside-out approach focusing on aggressive selling and promotion to achieve sales volume; profits through sales, not customer satisfaction.

Marketing Concept

Outside-in approach focusing on identifying and satisfying customer needs through integrated marketing; profits through customer satisfaction.

Societal Marketing Concept

Considers consumer needs, company interests, and long-run societal welfare; balances profit, customer satisfaction, and sustainability.

Needs

States of felt deprivation (basic human requirements such as food, belonging, safety).

Wants

Needs shaped by culture, society, and personality.

Demands

Wants backed by buying power and willingness to purchase.

Market Offerings

The combination of products, services, and experiences offered to satisfy customer needs and wants.

Marketing Myopia

Management's failure to define the business in terms of customer needs rather than products.

Customer Value

The difference between total perceived benefits and total perceived costs to the customer.

Customer Satisfaction

The degree to which a product's performance matches or exceeds customer expectations.

Exchange

Obtaining a desired object from someone by offering something in return.

Relationships

Long-term interactions between customers and companies built on trust, value, and satisfaction.

Market

The set of actual and potential buyers who share a need or want and can be engaged through exchange relationships.

Customer-Perceived Value (CPV)

The customer's evaluation of the difference between total benefits and total costs of a marketing offer relative to competitors.

Customer Lifetime Value (CLV)

The total value of all purchases a customer makes over a lifetime of patronage.

Customer Equity

The total combined lifetime values of all customers; a measure of a company's long-term value.

Share of Customer

The share of a customer's total spending that a company captures in its product categories (e.g., "share of stomach," "share of travel").

Customer Relationship Management (CRM)

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

Butterflies

Profitable but short-term.

True Friends

Profitable and loyal.

Strangers

Low potential and loyalty.

Barnacles

Loyal but unprofitable.

Consumer-Engagement Marketing

Actively involving customers with the brand through personalized interaction, community building, and participation to build loyalty and advocacy.

Consumer-Generated Marketing

Brand-related content, feedback, and promotion created voluntarily by consumers, enhancing credibility and trust.

Strategic Planning

The process of developing and maintaining a strategic fit between a company's goals, capabilities, and changing marketing opportunities.

Mission Statement

The organization's purpose — what it seeks to accomplish in the larger environment; should be market-oriented, motivating, and realistic.

Business Portfolio

The collection of businesses and products that make up a company.

BCG Growth-Share Matrix

Portfolio tool categorizing SBUs as Stars, Cash Cows, Question Marks, or Dogs based on market growth and market share.

SWOT Analysis

Strategic planning framework identifying internal Strengths and Weaknesses, and external Opportunities and Threats.

Market Penetration

Existing products, existing markets.

Market Development

Existing products, new markets.

Product Development

New products, existing markets.

Diversification

New products, new markets.

Marketing Strategy

The company's logic for creating customer value and achieving profitable relationships; includes segmentation, targeting, and positioning (STP).

Market Segmentation

Dividing a market into distinct buyer groups with different needs or behaviors.

Market Targeting

Evaluating segments and selecting which to serve.

Market Positioning

Designing an offering to occupy a distinctive place in the minds of target customers.

Value Proposition

The set of benefits or values a brand promises to deliver to satisfy customer needs.

Product

What is offered.

Price

What customers give up.

Place

How it's distributed.

Promotion

How value is communicated.

Integrated Marketing Program

A comprehensive plan that coordinates the 4Ps to deliver consistent, clear, and compelling value to customers.

Microenvironment

The actors close to the company affecting service to customers — suppliers, intermediaries, competitors, publics.

Macroenvironment

Larger forces that shape opportunities and pose threats — demographic, economic, natural, technological, political, and cultural.

Porter's Five Forces

Framework analyzing industry competitiveness: threat of entrants, supplier power, buyer power, substitutes, and rivalry.

ROMI / MROI (Return on Marketing Investment)

Net return from marketing investment divided by marketing costs; measures profitability of marketing activities.

Marketing process (5 steps)

Understand marketplace → Design customer-driven strategy → Construct integrated program (4Ps) → Build relationships → Capture value (profits/loyalty).

Value delivery network

Company + suppliers + distributors + partners working together to deliver value.

Customer journey & touchpoints

Awareness → Consideration → Purchase → Usage → Loyalty/Advocacy; manage touchpoints for consistent value.

5Cs analysis

Company, Customers, Competitors, Collaborators, Context (macro).

Customer insights

turning data into understanding for value creation.

Marketing Information System

A system for gathering, analyzing, and distributing marketing information from internal and external sources to support decision-making.

Internal Databases

Company's internal records—sales, customer service, operations—used for marketing insight.

Marketing Intelligence

Systematic collection and analysis of publicly available information about consumers, competitors, and marketplace developments.

Marketing Research

Design, collection, analysis, and reporting of data relevant to a specific marketing situation.

Exploratory Research

Research used to gather preliminary information and define problems or hypotheses.

Descriptive Research

Research used to describe market potential, demographics, or attitudes of customers.

Causal Research

Research used to test cause-and-effect relationships between variables.

Primary Data

Information collected first-hand for the specific research purpose.

Secondary Data

Information that already exists, collected for another purpose.

Research Plan

Written proposal describing problem definition, objectives, data sources, research approaches, sampling plan, and instruments.

Sampling Plan

Decisions on who is to be studied, how many people, and how respondents are chosen.

Probability Sample

Every population member has a known chance of selection (simple random, stratified, cluster).

Non-probability Sample

No equal selection chance (convenience, judgment, quota).

Observational Research

Gathering primary data by watching people's actions and situations.

Ethnographic Research

Observing consumers in their natural environment to uncover deep insights.

Survey Research

Asking people questions about knowledge, attitudes, preferences, and buying behavior.

Experimental Research

Selecting matched groups and controlling variables to test cause-and-effect relationships.

Focus Group Research

Guided discussion among small groups to explore perceptions and ideas about products or marketing.

Behavioral Targeting

Using online consumer tracking data to target ads and offers more precisely.

Big Data

Massive, complex data sets from multiple digital sources analyzed with advanced tools to reveal patterns.

Marketing Analytics

Techniques that measure, manage, and analyze marketing performance for greater ROI.

Searchlight Effect

Tendency for managers to focus only on easily measurable marketing activities, ignoring harder-to-measure ones.

Customer Insight

Deep understanding of customer behavior and motivations that can drive value creation.

Research Ethics & Privacy

Ensuring participants' rights, consent, confidentiality, and honest data interpretation.

CRM (Customer Relationship Management)

Managing detailed customer data to build and maintain profitable relationships.

Marketing Decision Support System (MDSS)

Computerized tools that help managers analyze information and test marketing scenarios.

Brand Health Metrics

Indicators like awareness, consideration, NPS, loyalty, and equity tracking.

Market Attractiveness Metrics

Measures such as market size, growth rate, profitability, entry barriers.

Customer Value Metrics

KPIs like CLV, share of wallet, and retention rate assessing customer contribution.

Stimulus-Organism-Response (S-O-R) Model

Marketing stimuli enter the buyer's "black box" (organism) and produce responses (purchase decisions).

Buyer's Black Box

The unseen internal decision-making process composed of buyer characteristics and decision processes.

Cultural Factors

Culture, subculture, and social class shaping wants and behavior.

Social Factors

Reference groups, opinion leaders, family, and social networks influencing decisions.

Opinion Leader

Person whose views strongly influence others' purchasing behavior.

Reference Group

Group that serves as a point of comparison or source of information for an individual's attitudes or behavior.

Family Life-Cycle

The stages families pass through over time influencing consumption patterns.

Personal Factors

Age, occupation, economic circumstances, lifestyle, and personality.

Psychological Factors

Motivation, perception, learning, beliefs, and attitudes affecting choices.

Motivation (Maslow)

Human needs organized from physiological to safety, social, esteem, and self-actualization.

Perception

Process by which people select, organize, and interpret information to form meaning.

Selective Attention

Consumers screen out most information to focus on what's relevant.

Selective Distortion

Tendency to interpret information in ways that support pre-existing beliefs.

Selective Retention

Remembering only information supporting one's attitudes.