Marketing Essentials: Chapters 1, 2, 4, 6 & 9

A comprehensive set of vocabulary flashcards covering the core concepts of Marketing, Strategic Planning, Information Systems, Business Markets, and Product Development based on lecture chapters 1, 2, 4, 6, and 9.

Marketing

The process of creating value for customers, building strong customer relationships, and capturing value (profit) in return.

Marketing Process Steps

1. Understand market & customer needs; 2. Design customer-driven strategy; 3. Build marketing program (4Ps); 4. Build relationships; 5. Capture value (sales, profit, loyalty).

Needs

Basic human requirements such as food and safety.

Wants

Needs shaped by culture, such as a burger or an iPhone.

Demands

Human wants backed by buying power.

Market Offering

A combination of products, services, and experiences offered to a market to satisfy a need or want.

Exchange

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

Market

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

Production concept

The marketing management orientation that assumes consumers will favor products that are cheap and available.

Product concept

The orientation that focuses on making the best quality product.

Selling concept

The management orientation focused on aggressive selling and promotion efforts.

Marketing concept

An orientation where achieving organizational goals depends on knowing the needs and wants of target markets and delivering satisfaction.

Societal marketing

A strategy that considers consumer needs, the company's requirements, and the long-term interests of both consumers and society.

Marketing Mix (4Ps)

The set of tactical marketing tools—Product, Price, Place, and Promotion—that the firm blends to produce the response it wants in the target market.

CRM (Customer Relationship Management)

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

Customer lifetime value

The total future profit expected from a single customer.

Customer equity

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

Big Data

Huge and complex digital data sets collected from social media, websites, transactions, and devices.

AI (Artificial Intelligence)

The use of machine learning to assist in making marketing decisions.

Strategic Planning

The process of developing and maintaining a strategic fit between the organization’s goals, its resources, and its changing market opportunities.

Mission Statement

A statement of the organization's purpose. It can be product-oriented (focusing on sales) or market-oriented (focusing on customer needs).

Business Portfolio

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

SBU (Strategic Business Unit)

A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.

Stars (BCG Matrix)

High-growth, high-share businesses or products.

Cash Cows (BCG Matrix)

Low-growth, high-share businesses or products.

Question Marks (BCG Matrix)

High-growth, low-share business units.

Dogs (BCG Matrix)

Low-growth, low-share businesses and products.

Market penetration

A growth strategy increasing sales of existing products to existing market segments.

Market development

A growth strategy that identifies and develops new market segments for existing products.

Product development

A growth strategy offering modified or new products to existing market segments.

Diversification

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

STP Model

The three-step process of Segmentation (dividing the market), Targeting (choosing a group), and Positioning (creating a specific image in the customer's mind).

Value Chain

The series of internal departments—such as production, marketing, sales, and service—that carry out value-creating activities.

Value Delivery Network

The network made up of the company, its suppliers, its distributors, and its customers who partner with each other to improve the performance of the entire system.

SWOT Analysis

An overall evaluation of the company’s Strengths (internal positive), Weaknesses (internal negative), Opportunities (external positive), and Threats (external negative).

Marketing ROI (Return on Investment)

The net return from a marketing investment divided by the costs of the marketing investment: $\text{Profit} \div \text{Marketing cost}$.

Customer Insights

Fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value.

Marketing Information System (MIS)

A system that consists of people and procedures to assess information needs, develop the needed information, and help decision makers use the information.

Internal data

Electronic collections of consumer and market information obtained from data sources within the company network.

Marketing intelligence

The systematic collection 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 used to gather preliminary information that will help define problems and suggest hypotheses.

Descriptive research

Marketing research used to better describe marketing problems, situations, or markets.

Causal research

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

Primary data

Information collected for the specific purpose at hand.

Secondary data

Information that already exists somewhere, having been collected for another purpose.

Business Market

Occupied by organizations that buy goods and services for use in the production of other products or for resale to others.

Derived demand

Business demand that ultimately comes from (derives from) the demand for consumer goods.

Straight rebuy

A business buying situation in which the buyer routinely reorders something without any modifications.

Modified rebuy

A business buying situation in which the buyer wants to change product specifications, prices, terms, or suppliers.

New task

A business buying situation in which the buyer purchases a product or service for the first time.

Buying Center Roles

Includes Users (who use the product), Influencers (who provide info), Buyers (with purchase authority), Deciders (who make the final decision), and Gatekeepers (who control the flow of information).

E-Procurement

Purchasing through electronic connections between buyers and sellers, usually online.

Institutional Market

Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care, often characterized by low budgets and captive patrons.

Government Market

Governmental units that purchase goods and services, often using bidding processes and favoring the lowest-cost bidder.

New Product Development (NPD)

The development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts.

Acquisition

The buying of a whole company, a patent, or a license to produce someone else’s product.

NPD Process Steps

1. Idea generation; 2. Idea screening; 3. Concept development & testing; 4. Marketing strategy development; 5. Business analysis; 6. Product development; 7. Test marketing; 8. Commercialization.

Crowdsourcing

Inviting broad communities of people—customers, employees, independent scientists and researchers, and even the public at large—into the new product innovation process.

RWW Test

A screening framework that asks: Is it Real? Can we Win? Is it Worth doing?

Product Concept

A detailed version of the new product idea stated in meaningful consumer terms.

Product Image

The way consumers perceive an actual or potential product.

Product Life Cycle (PLC) Stages

The course of a product’s sales and profits over its lifetime: 1. Development; 2. Introduction; 3. Growth; 4. Maturity; 5. Decline.

Standardization

An international marketing strategy where the company uses the same product and marketing mix globally.

Customization

Adapting the product and marketing mix to local cultures and international markets.