Chapter 1: Scope of Marketing for New Realities

Vocabulary flashcards covering core concepts, marketing realities, environment analyses, and modern marketing management frameworks from Chapter 1.

Marketing (AMA Definition)

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.

Marketer

A person who seeks a response, attention, purchase, or a vote from another party, called the prospect.

Touchpoints

Any instance when a customer interacts with the company directly or indirectly.

Needs

Basic human requirements that pre-exist marketers and are not created by them.

Stated Need

A need explicitly expressed by the customer, such as wanting an inexpensive car.

Real Need

The customer's actual underlying need, such as wanting a car whose operating cost, rather than initial purchase price, is low.

Unstated Need

An expectation not explicitly mentioned by the customer, such as expecting good service from the dealer.

Delight Need

An unexpected bonus feature that pleases the customer, such as the dealer including an onboard GPS system.

Secret Need

A secondary, unexpressed desire, such as wanting friends to see the customer as a savvy consumer.

Wants

Needs directed to specific objects that might satisfy the underlying need.

Demands

Wants for a specific product backed by the ability to pay.

Segmentation

The identification of distinct groups of buyers by demographics and other characteristics.

Targeting

Selecting the specific market segments that present the greatest opportunities for the firm.

Positioning

The act of designing a firm's market offering so that it occupies a distinctive place in target buyers' minds by delivering key benefits.

Offerings

A combination of physical products, services, information, and experiences presented to the market.

Brands

An offering from a known source.

Value Proposition

The set of benefits companies address to satisfy customer needs, encompassing the benefit, the target audience, and the unique differentiator.

Communication Channels

Channels that deliver and receive messages from target buyers, including newspapers, magazines, radio, TV, mail, telephone, smartphone, billboards, posters, and the Internet.

Distribution Channels

Channels used to display, sell, or deliver the physical product or service(s) to the buyer or user.

Service Channels

Channels used to carry out transactions with potential buyers, including warehouses, transportation companies, banks, and insurance companies.

Paid Media

Media channels where marketers pay fees to display messages, such as television, magazines, display ads, and sponsorships.

Owned Media

Communication channels that marketers own directly, such as company websites, Facebook pages, and TikTok accounts.

Earned Media

Unpaid channels through which consumers communicate about the brand, including word of mouth, user-generated content (UGC), and online customer reviews.

Customer Value Triad (QSP)

The combination of Quality, Service, and Price; customer value perceptions increase with higher quality and service but decrease with higher price.

Satisfaction

A person's judgment of a product's perceived performance in relationship to their expectations.

Competition

All the actual and potential rival offerings and substitutes a buyer might consider.

Task Environment

The actors directly engaged in producing, distributing, and promoting the marketing offering.

Broad Environment

The macro-environment consisting of six components: demographic, economic, social-cultural, natural, technological, and political-legal environments.

Disintermediation

Changing the traditional way things are done by bypassing intermediaries in the supply or sales process.

Reintermediation

The process of copying or adapting to a disintermediation strategy by adding new forms of intermediaries.

Production Concept

The management orientation holding that consumers prefer products that are widely available and inexpensive, prompting an emphasis on high production efficiency, low costs, and mass distribution.

Selling Concept

The management orientation holding that consumers and businesses, if left alone, will not purchase enough of the organization's products without aggressive selling and promotion efforts.

Marketing Concept

The philosophy that the key to achieving organizational goals is finding the right products for customers by being more effective than competitors at creating, delivering, and communicating customer value.

Relationship Marketing

A holistic marketing dimension aimed at building mutually satisfying, long-term relationships with key constituents to earn and retain their business.

Integrated Marketing

A holistic marketing dimension ensuring that multiple marketing activities create, communicate, and deliver value, and that each activity is designed with all other activities in mind.

Internal Marketing

The task of hiring, training, and motivating able employees who want to serve customers well.

Performance Marketing

A holistic marketing dimension that requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs.

Triple Bottom Line

An evaluation framework in performance marketing assessing outcomes across People (social impact), Planet (environmental impact), and Profit (financial accountability).

Modern Marketing Management Four Ps

An updated framework replacing the traditional Four Ps (Product, Price, Promotion, Place) with People (customers), Processes (operations and strategy), Programs (consumer-directed activities), and Performance (financial and nonfinancial outcomes).