Marketing Vocab

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

Wants

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, solutions, and experiences offered to a market to satisfy a need or a 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.

Exchange

the act of obtaining a desired object from a person or an organization by offering something in return.

Market

the set of actual and potential buyers of a product or service.

Target marketing

selecting which segments it will go after

production concept

holds that consumers will favor products that are available and highly affordable

Product concept

holds that consumers will favor products that offer the most in quality, performance, and innovative features.

selling concept

holds that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.

marketing concept

holds 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

questions whether the pure marketing concept overlooks possible conflicts between consumer shortrun wants and consumer long-run welfare.

customer relationship management

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

customer-perceived value

the customer’s evaluation of the difference between the benefits delivered by and the costs of obtaining and using a market offering, relative to those of competing offerings

Customer satisfaction

The sense of pleasure a buyer feels when a product’s perceived performance matches or exceeds their expectations.

customer-engagement marketing

fostering direct and continuous customer involvement in shaping brand conversations, brand experiences, and brand community.

customer-generated marketing

by which customers themselves help shape their own brand experiences and those of others.

partner relationship management

working with others inside and outside the company to jointly engage and bring more value to their customers.

Customer lifetime value

The value of the entire stream of purchases a customer makes over a lifetime of patronage

share of customer

the share they get of the customer’s purchasing in their 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 apps and ads, online video, email, and blogs to engage consumers anywhere, at any time, via their digital devices.

real-time marketing

which marketers can engage consumers in the moment by linking brands to important trending topics, real-world events, causes, personal occasions, or other happenings in consumers’ lives.

Consumer markets

Individuals purchasing for personal use.

Business markets

Organizations buying for operational use or resale.

Government markets

Public institutions purchasing goods and services for governmental functions.

International markets

Buyers from different countries with unique cultural and regional demands.

Collateral

a printed or digital material salespeople use to support their message.

Marketing strategy

involves selecting target markets and building profitable relationships by delivering superior customer value.

Market Segmentation

Divide the market into distinct segments based on varying needs.

Market Targeting

Assess the attractiveness of each segment.

Differentiation

Tailor offerings to create superior value.

Positioning

Position the offering distinctly in customers' minds.

Apple

With a brand value exceeding $350 billion, this company’s strong consumer loyalty, premium pricing, and market leadership contribute to its top-tier brand value.

Google

This company’s dominance in search engines and digital advertising creates immense value through its brand, largely due to consumer trust and daily usage.

Amazon

Known for customer service, fast delivery, and a vast selection, This company's brand value has been built on consumer trust and satisfaction, resulting in high customer retention.

Coca-Cola

This company’s brand value remains high due to its global recognition, long-standing emotional connection with consumers, and iconic status.

Nike

This company’s ability to associate its brand with performance and excellence, especially through celebrity endorsements, allows it to maintain premium pricing and a large market share, significantly contributing to its brand value.

Cost-based pricing

sets a floor for pricing, ensuring that the company covers costs while earning a fair return. This approach is beneficial when production costs are easily quantifiable, but it doesn’t account for external market factors such as competitor prices and customer perceptions.

Cost-plus pricing

This method adds a markup to the product cost and is widely used in retail. For example, a product costing $50 to make with a 20% markup would sell for $60​.

Break-Even Pricing

This is useful for companies launching new products and services, determining at what sales level they begin to generate profit.

Advertising

Paid, nonpersonal communication (e.g., Super Bowl ads).

Sales Promotion

Short-term incentives like coupons and discounts.

Personal Selling

Direct, relationship-focused interactions.

Public Relations

Activities to foster goodwill, like sponsorships and media coverage.

Direct Marketing

Personalized engagement through email, SMS, or apps​

Digital products

How do you digitally provide products that meet your customers’ needs and wants?

Digital promotion

How do you digitally communicate a message that promotes your products to the market?

Digital placement

How do you digitally place these products so that they are delivered to your customer?

Digital price

How do you capture a portion of the value created online through the price paid by the customer?

passive loyalists

easily persuaded customers to shift brands given the right reasons