Marketing Study Guide

Marketing

→ The process by which companies create value for customers and build strong customer relationships.

Needs

States of felt deprivation, including physical, social, and individual

Wants

Human needs shaped by culture and personality

Demands

Wants backed by buying power.

 Market Offerings

Products, services, information, or experiences offered to satisfy a need or want.

Market

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

 Value Proposition

The benefits a company promises to deliver to consumers.

 Marketing Myopia

The mistake of focusing on products rather than consumer needs

Marketing Management

The art and science of choosing target markets and building profitable relationships.

 Production Concept

The idea that consumers favor affordable and widely available products.

 Product Concept

The idea that consumers favor high-quality, high-performance, innovative

Selling Concept

The idea that consumers will not buy enough without large-scale selling/promotion.

Marketing Concept

A philosophy in which achieving goals depends on knowing customer needs and delivering satisfaction better than competitors.

 Societal Marketing Concept

The idea that marketing should consider consumers’ and society’s long-term interests.

Customer-Perceived Value

The customer’s evaluation of the difference between benefits and costs.

Customer Satisfaction

The extent to which a product’s performance matches expectations.

 Customer Relationship Management

Process of building and maintaining profitable customer relationships.

Customer Lifetime Value

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

Share of Customer

The share a company gets of a customer’s purchasing in its product categories.

Customer Equity

The total combined lifetime values of all customers.

Strategic Planning

The process of developing and maintaining a fit between goals, capabilities, and market opportunities.

Mission Statement

A statement of an organization’s purpose

 Business Portfolio

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

Portfolio Analysis

The evaluation of the products and businesses that make up a company.

 SBU (Strategic Business Unit)

A unit of the company that has a separate mission and objectives.

Growth-Share Matrix

A portfolio-planning method evaluating SBUs as Stars, Cash Cows, Question Marks, or Dogs.

Market Penetration

Growth strategy increasing sales to current customers without changing products.

 Market Development

Growth strategy identifying new markets for current products.

Product Development

Growth strategy offering modified/new products to current markets.

 Diversification

Growth strategy starting or acquiring businesses outside current markets/products.

 Value Chain

The internal activities creating customer value.

Value Delivery Network

The company, suppliers, distributors, and customers who partner to improve performance.

Segmentation

Dividing markets into distinct groups of buyers.

Targeting

Evaluating and selecting market segments to enter.

Differentiation

Distinguishing an offering to provide superior customer value.

Positioning

Arranging a market offering to occupy a clear, distinctive place versus competitors.

 Marketing Mix

The set of marketing tools (product, price, place, promotion).

Marketing Implementation

Turning plans into actions.

Marketing Control

Measuring performance and taking corrective action.

Customer Insights

Fresh understandings of customers and the marketplace for creating value.

 Marketing Information System (MIS)

People/procedures for assessing information needs and generating insights.

 Internal Databases

Electronic collections of consumer and market information

 Competitive Marketing Intelligence

Systematic monitoring of competitor activity.

 Exploratory Research

Research to gather preliminary information.

 Descriptive Research

Research to describe market problems or characteristics

 Causal Research

Research testing cause-and-effect relationships.

 Observational Research

Gathering primary data by observing people.

 Focus Group

Small discussion led by a moderator.

Online Marketing Research

Internet-based data collection.

 Probability Sample

Sample where each population member has a known chance of selection.

 Nonprobability Sample

Sample where the probability of selection is unknown.

 Mechanical Instruments

Technologies recording consumer behavior (e.g., scanners, eye-tracking).

Big Data

Large, complex data sets generated by digital sources.

 Marketing Analytics

Tools and processes analyzing data for insights.

 CRM (Customer Relationship Management)

Managing detailed customer information to maximize loyalty.

Data Warehouse

Central repository for storing integrated data.

 Data Mining

Extracting actionable patterns from data.

Consumer Buyer Behavior

Buying behavior of final consumers.

Model of Buyer Behavior

Stimulus–response model showing how marketing stimuli affect buyer responses.

Opinion Leader

A person exerting social influence on others.

 Word-of-Mouth Influence

Personal recommendations from trusted individuals.

 Buyer Decision Process

Need Recognition, 
Information Search, 
Evaluation of Alternatives, 

Purchase Decision, 

Postpurchase Behavior

 Cognitive Dissonance

Discomfort caused by postpurchase conflict.

Diffusion of Innovation

Process by which new ideas spread in a population.

 Derived Demand

Demand for business products resulting from demand for consumer products.

Inelastic Demand

Business demand not significantly affected by price change.

Joint Demand

Demand for multiple items used together.

Supplier Development

Systematic development of networks to ensure dependable supplier resources.

Buying Center

All individuals involved in the purchase decision.

Straight Rebuy

Routine reorders.

Modified Rebuy

Buyer modifies product terms.

New Task

First-time purchase.

Systems Selling (Solutions Selling)

Buying packaged solutions from a single seller.

.
E-Procurement

Purchasing through online systems.

Market Segmentation

Dividing markets into groups of buyers.

Geographic Segmentation

Dividing markets by location.

 Demographic Segmentation

Dividing markets by age, gender, income, etc.

 Psychographic Segmentation

Dividing markets by lifestyle and personality.

 Behavioral Segmentation

Dividing buyers by behavior, benefits sought, usage rates.

 Occasion Segmentation

Dividing markets by purchase timing.

 Benefit Segmentation

Dividing markets by benefits consumers seek.

 Segment Structural Attractiveness

Evaluating competitor, substitute, and power dynamics.

 Target Market

A set of buyers sharing needs/wants the company chooses to serve.

 Undifferentiated Marketing

Offering the same product to the entire market.

 Differentiated Marketing

Targeting several segments with separate offers.

Concentrated Marketing

Targeting a large share of one or a few segments.

Micromarketing

Tailoring offerings to individuals/local segments.

Local Marketing

Targeting specific stores or neighborhoods.

 Individual Marketing

Customization for individuals.

Positioning

Positioning products in consumers’ minds.

 Value Proposition

The full mix of benefits on which a brand is positioned.

Differentiation

Designing meaningful differences versus competitors.

 Positioning Map

Perceptual graph showing consumer perceptions.

 Convenience Product

Low-price, frequently purchased item.

Consumer Product

Product bought for personal consumption.

Shopping

Compared on attributes like quality, style.

 Specialty Product

Items with unique characteristics and brand preference.

 Unsought Product

Product unknown or not normally considered for purchase.

Industrial Product

Product for further processing or business use.

 Organization Marketing

Activities to create/maintain attitudes toward organizations.