Marketing Strategy, Chapter 2

Needs

States of felt deprivation (e.g., physical hunger, thirst, or safety).

Wants

The form human needs take as shaped by culture and individual personality (e.g., needing food but wanting a burger).

Demands

Human wants that are backed by buying power (e.g., wanting a luxury car and having the funds).

Market Offering

Some combination of goods, services, information, or experiences offered to a market to satisfy a need or a want.

Exchange

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

Transaction

A trade between two parties involving at least two things of value, agreed-upon conditions, and a time and place.

Marketing Management

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

Value Proposition

The set of benefits or values a marketing organisation promises to deliver to satisfy consumer needs.

Production Concept

Holds that consumers will favour products that are available and affordable; management focuses on production/distribution efficiency.

Product Concept

Holds that consumers will favour products offering the most quality, performance, and features; management focuses on continuous improvements.

Selling Concept

Holds that consumers will not buy enough products unless the firm undertakes large-scale selling and promotion.

Marketing Concept

Holds that achieving organisational goals depends on determining target market needs and delivering satisfaction more effectively than competitors.

Societal Marketing Concept

Questions whether the pure marketing concept overlooks possible conflicts between short-run wants and long-run welfare.

Marketing Mix

The set of tactical marketing tools—product, price, place, and promotion—that the firm blends to produce desired responses.

Customer-Perceived Value

The customer's evaluation of the difference between all benefits and costs of an offering relative to competing offers.

Customer Satisfaction

The extent to which a product's perceived performance matches or exceeds a buyer's expectations.

Customer Lifetime Value (CLV)

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

Customer Relationship Management (CRM)

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

Customer-Engagement Marketing

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

Partner Relationship Management

Working closely with partners inside and outside the company to jointly bring greater value to customers.

Strangers

Customers who show low potential profitability and little projected loyalty.

Butterflies

Customers who are potentially profitable but not loyal.

True Friends

Customers who are both profitable and loyal.

Barnacles

Customers who are highly loyal but not very profitable.

Not-For-Profit Marketing

Practised by organisations whose aim is to make surpluses to continue operations rather than profits for shareholders.

Sustainable Marketing

Socially and environmentally responsible marketing that meets present needs while preserving future generations' abilities.