Principles of Marketing 2320 Ch. 1

Needs

State of felt deprivation

Wants

The form human needs take as they are shaped by cultural and individual personality.

Demands

People demand products and services with benefits that deliver the most value and satisfaction

Market offers

Some combination of products, services, solutions, and experiences offered to a market to satisfy a need or want

Market Myopia

Focusing only on existing wants and lose sight of underlying customer needs.

Exchange

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

Markets

the set of actual and potential buyers

Marketing Managment

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

Market Segmentation

refers to dividing the markets into segemts of customers

Target Marketing

Refers to which segments to go after.

Demarketing

Marketing to reduce demand temporarily or permanently; the aim is not to destroy demand, but to reduce or shift it.

Value Proposition

The set of benefits or values a company promises to deliver to customers to satisfy their needs.

Production concept

The idea that consumers will favor products that are available or highly affordable

Product Concept

The idea that consumers will favor products that offer the most quality, performance, and features organization should therefore devote its energy to making continuous product improvements

Selling Concep

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

Marketing Concept

The idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfaction better than the competitors do.

Social Marketing Concept

The idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests.

The Marketing Mix

The best set of tools the firm uses to implement its marketing strategy. It includes product, price (most important), promotion, and place.

Integrated Marketing Program

A comprehensive plan that communicates and delivers the intended value to chosen customers.

Customer Relationship Management (CRM)

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

Partner Relationship Management

Involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

Supply Chain

A chain that stretches from raw materials to components to final products to final buyers.

Customer Lifetime Value

The value of the entire stream of purchases that the customer would make over a lifetime of patronage.

Customer Equality

The total combined customer lifetime value of all of the company’s customers.