Chapter 1 Marketing Vocab Test

5Ms of Marketing

Internal elements of a marketing plan that must work together

Buyer

The person or organization that makes a purchase

Consumer

The person who uses the product or service

Customer

A buyer of a product or service

Customer Equity

The total lifetime value of all customers combined

Customer Loyalty

Repeat purchasing and positive relationship with a brand

Customer Relationship Management (CRM)

Strategies and tools used to manage customer relationships

Customer Retention

A company’s ability to keep customers returning

Customer Value

Benefits received compared to costs paid

Customer-Driven Marketing Strategy

A strategy focused on customer needs rather than products

Delight Needs

Unexpected extras that exceed customer expectations

Desired Object

A good, service, or experience expected to satisfy a need or want

Ethical Marketing

Marketing that is honest and socially responsible

Exchange Process

Trading something of value to satisfy a need

External Interested Parties

Groups affected by a company without a direct relationship

Form Utility

Value created by turning raw materials into finished products

Interested Parties (Stakeholders)

Anyone who can affect or is affected by a company

Internal Interested Parties

Stakeholders with a direct connection to the company

Internal Marketing

Promoting company goals to employees

Internet Advertising

Online promotion of products or services

Macroenvironment

Large external forces affecting a company

Marketing

Activities used to promote and sell products

Marketing Concept

Focus on satisfying customer needs better than competitors

Marketing Environment

All factors influencing marketing decisions

Marketing Mix

Product, Price, Place, Promotion

Marketing Process

Steps to plan and adjust marketing strategies

Marketing Strategy

A long-term plan to achieve marketing goals

Microenvironment

Immediate factors affecting a firm

Organizational Culture

Shared values and behaviors within a company

PESTLE Analysis

Political, Economic, Social, Technological, Legal, Environmental analysis

Place

How and where products are distributed

Place Utility

Making products accessible to customers

Possession Utility

Value gained from owning a product

Price

What customers pay

Product

Anything offered to satisfy a want or need

Product Concept

Belief that customers prefer high-quality products

Production Concept

Belief that customers prefer low-cost, available products

Promotion

Communication used to inform and persuade customers

Real Needs

Actual value a customer receives

Retailers

Businesses selling directly to consumers

Sales Concept

Focus on selling rather than customer needs

Secret Needs

Needs customers hesitate to admit

Seller

Provider of goods or services

Societal Marketing Concept

Balancing customer needs, profits, and society

Stated Needs

Needs customers clearly express

Suppliers

Businesses that provide production inputs

Time Utility

Value from having products available when needed

Unstated Needs

Expected needs customers don’t mention

Utility

A product’s usefulness

Value

Benefits minus costs compared to alternatives

Value Proposition

A promise of value offered to customers

Wholesalers

Businesses that sell in bulk to retailers