Principles of Marketing: Chapters 1 to 5

Comprehensive vocabulary flashcards covering fundamental marketing concepts across Chapters 1 through 5, including value creation, marketing strategy, environmental analysis, marketing research, and consumer buying behavior.

Marketing

A social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.

Wants

Human needs as shaped by individual personality and culture.

Demands

Human wants that are backed by buying power.

Value Proposition

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

Marketing Myopia

A condition in which sellers are preoccupied with their own products and lose sight of underlying consumer needs.

Demarketing

Marketing applied to temporarily or permanently reduce or shift customer demand in cases of excess demand.

Marketing Management

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

Production Concept

The marketing management orientation holding that consumers favor products that are available and affordable, requiring management to focus on production and distribution efficiency.

Product Concept

The marketing philosophy holding that consumers favor products that offer the most in quality, performance, and innovative features, requiring continuous product improvements.

Selling Concept

The marketing philosophy holding that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort, taking an inside-out approach.

Marketing Concept

The philosophy holding that achieving organizational goals depends on knowing the needs and wants of target markets and delivering desired satisfactions better than competitors do, taking an outside-in approach.

Societal Marketing Concept

The philosophy holding that a company should make marketing decisions by balancing consumer short-run wants, company profits, and long-run consumer and societal well-being.

Customer-Perceived Value

The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Selective Relationship Management

The practice of using customer profitability analysis to weed out unprofitable customers and target winning ones for pampering.

Customer Lifetime Value (CLV)

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

Share of Customer

The portion of the customer's purchasing that a company gets in its product categories.

Customer Equity

The total combined customer lifetime values of all a company's current and potential customers.

Strategic Planning

The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

Strategic Business Unit (SBU)

A key business unit—such as a division, a product line within a division, or a single product or brand—that has a separate mission and objectives and can be planned independently from other company businesses.

Market Penetration

A growth strategy focused on increasing sales to current customers without changing a firm's products.

Market Development

A growth strategy that involves identifying and developing new markets for existing company products.

Product Development

A growth strategy of offering modified or new products to current markets.

Diversification

A growth strategy of starting up or acquiring businesses outside the company's current products and markets.

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.

Market Targeting

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

SWOT Analysis

An overall evaluation of a company's internal strengths, internal weaknesses, external opportunities, and external threats.

Marketing Control

The process of evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained.

Marketing Microenvironment

The actors close to a company that affect its ability to serve its customers, including suppliers, marketing intermediaries, customer markets, competitors, publics, and the company itself.

Marketing Macroenvironment

The larger societal forces that affect the microenvironment: demographic, economic, natural, technological, political, and cultural forces.

Marketing Intermediaries

Distribution channel firms that help a company find customers, sell to them, promote products, or move goods, including resellers, physical distribution firms, marketing services agencies, and financial intermediaries.

Demography

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

Marketing Information System (MIS)

People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers analyze and use the information to generate customer insights.

Competitive Marketing Intelligence

The systematic collection, monitoring, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.

Marketing Research

The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Exploratory Research

Marketing research conducted to gather preliminary information that will help define problems and suggest hypotheses.

Descriptive Research

Marketing research used to describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.

Causal Research

Marketing research used to test hypotheses about cause-and-effect relationships.

Ethnographic Research

A form of observational research that involves sending trained observers to watch and interact with consumers in their natural environments where they live and work.

Netnography

A category of ethnographic research used to observe consumers in a natural context in virtual and mobile spaces.

Behavioral Targeting

The practice of tracking consumers' online movements and activities and using that data to target advertisements and offers specifically to them.

Subculture

A group of people with shared value systems based on common life experiences and situations, such as nationalities, religions, racial groups, and geographic regions.

Opinion Leaders

People within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.

Brand Personality

The specific mix of human traits that may be attributed to a particular brand.

Selective Attention

The tendency of people to screen out most of the information and stimuli to which they are exposed daily.

Selective Distortion

The tendency of people to interpret new information in a way that will support what they already believe.

Selective Retention

The tendency of consumers to remember positive points made about a brand they favor and forget positive points made about competing brands.

Cognitive Dissonance

Buyer discomfort caused by postpurchase conflict, arising when a customer feels uneasy about losing out on benefits of an unchosen brand.

Complex Buying Behavior

Consumer buying behavior in situations characterized by high consumer involvement in an expensive or risky purchase and significant perceived differences among brands.

Dissonance-Reducing Buying Behavior

Consumer buying behavior in situations characterized by high consumer involvement but little perceived difference among brands.

Habitual Buying Behavior

Consumer buying behavior in situations characterized by low consumer involvement and little significant brand difference.

Variety-Seeking Buying Behavior

Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences, leading to frequent brand switching.

Adoption Process

The mental process through which an individual passes from first learning about an innovation to final adoption: awareness, interest, evaluation, trial, and adoption.