Marketing Chapter 1

What is Marketing?

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

What is a Product?

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers’ needs and is received in exchanged for money or something else of value

What are ultimate consumers?

The people who use the products and services purchased for a household

What are organizational buyers?

Any organization that buys products and services for their own use or for resale

What is utility

The benefits or value received by users of the product; including form, place, time, and possession utilities

what are environmental forces?

The uncontrollable forces that affect a marketing decision

What are the types of environmental forces?

Social, economic, technological, competitive, regulatory

What is a need?

A feeling deprived of a basic necessity such as food, clothing, or shelter

What is a want?

A need that is shaped by a persons’ knowledge, culture, and personality

What is a market?

People with both the desire and the ability to buy a specific product

What are market segments?

Relatively homogeneous groups of prospective buyers that have common needs and will respond similarly to a marketing action

A target market refers to

One or more specific groups of potential consumers toward which an organization directs its marketing program

What are the 4 P’s in the marketing mix?

Product, price, place, promotion

Price in a marketing mix is…

What is exchanged for the product; usually money

Place in a marketing mix is…

Distribution channel use to get the product to the customer

Promotion in a marketing mix is…

Communication between the seller and buyer; including advertising, public relations, sales promotions, and personal selling

What is customer value?

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price

Relationship marketing refers to

The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit

What is a marketing concept?

The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organizations goals

Cognitive dissonance refers to

The feeling of post-purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives

Organizations can be divided into three groups:

for-profit, nonprofit, and governmental

Strategy refers to

An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals

Competition refers to

Alternative firms that could provide a product or service to satisfy a specific market’s needs

____ is the form of competition where distribution is the only element of the marketing mix that exerts much of an impact on the firm

Pure competition

The acronym NAICS stands for

North American Industry Classification System

The three types of organization buy classes are

New buy, straight rebuy, and modified rebuy

A profit refers to the

Money left over a business firm’s total expenses are subtracted from its total revenues

What is brand loyalty?

A favorable attitude toward and consistent purchase of a single brand over time

Psychographics is…

The analysis of consumer lifestyles

Word of mouth is

The influencing of people during conversations

Social Class is

The relatively permanent, homogenous divisions in a society used to group people sharing similar values, interests, and behaviors

Tangible product

Physical products

Intangible products

Non-physical products