Exam 1

Marketing

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

Needs

states of felt deprivation

Wants

the form human needs take as they are shaped by culture and individual personality

Demands

human wants that are backed by buying power

Market Offerings

the combination of products, services, solutions, and experiences offered to a market to satisfy a need or want

Market Myopia

the mistake of paying more attention to the specific products a company offers than to the customer benefits and experiences delivered by these products

Exchange

the act of obtaining a desired object from a person or an organization by offering something in return

Market

the set of all actual and potential buyers of a product or service

Production Concept

the idea that consumers will favor available and highly affordable products; the organization should focus on improving production and distribution efficiency

Product Concept

the idea that consumers will favor products that offer the most quality, performance, and features; therefore the organization should devote its energy to making continuous product improvements

Selling Concept

the idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort

Marketing Concept

achieving organizational goals depends on knowing the needs and wants of target markets, delivering the desired offerings, and creating more customer satisfaction than competitors

Societal Marketing Concept

the idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests

Customer Relationship Management

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

Customer-Perceived Value

the customer’s evaluation of the difference between the benefits delivered by and the costs of obtaining and using a market offering (relative to competing offerings)

Customer Satisfaction

the sense of pleasure a buyer feels when a product’s perceived performance matches or exceeds their expectations

Customer-Engagement Marketing

making the brand a meaningful part of customers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community

Customer Brand Advocacy

actions by which customers initiate favorable interactions about a brand with others

Customer-Generated Marketing

brand exchanges created by customers themselves (both invited and uninvited) by which customers play a role in shaping their own brand experiences and those of other customers

Partner Relationship Management (PRM)

working closely with partners in other company departments and outside the company to jointly bring greater value to customers

Customer Lifetime Value

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

Share of Customer

the share a company gets of the customer’s purchasing (in their product categories)

Customer Equity

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

Online, Mobile, and Social Media Marketing

using digital tools such as websites, social media, mobile apps/ads, online video, email, and blogs to engage customers anywhere, at any time, via their digital devices

Artificial Intelligence (AI)

technology that mimics the way humans think and learn to perform tasks that typically require human intelligence but much faster and with greater analytical capacity

Marketing Environment

the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful and profitable relationships with target customers

Mircroenvironment

the actors close to the company that affect its ability to engage and serve its customers—different parts of the company itself, suppliers, marketing intermediaries, competitors, publics, and customers

Marketing Channel Firms

suppliers, marketing intermediaries, physical distribution firms, marketing services agencies, and financial intermediaries that cooperate to create customer value

Macroenvironment

the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces

Marketing Intermediaries

help the company promote, sell, and distribute its products to final buyers. They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries

Publics

any external group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. These publics include financial publics, media publics, government publics, and citizen-action publics such as consumer groups, advocacy groups, and environmental groups

Demography

the study of human populations in terms of size, density, location, age, gender, race, occupation, and other characteristics

Today’s Demographic Environment

changing age structure, shifting family profiles, geographic population shifts, a better-educated and more white-collar population, and increasing diversity

Baby Boomers

people born during the post–World War II baby boom from 1946 to 1964

Generation X

people born between 1965 and 1980 in the “birth dearth” following the baby boom

Millenials

(AKA Generation Y) born between 1981 and 1996, these children of the baby boomers number 73 million or more, far outnumbering the Gen Xers and now even the baby boomers

Generation Z

people born between 1997 and 2012 (this relatively young group is now the largest generation alive in the United States—80 million strong and 26 percent of the population)

Generation Alpha

those born after 2012 (children of millenials)

Economic Environment

economic factors that affect consumer purchasing power and spending patterns

Natural Environment

the physical environment—including the natural resources—that affects or is affected by marketing activities

Environmental Sustainability

meeting present needs without compromising the ability of future generations to meet their needs

Tecnological Environment

forces that create new technologies, leading to new product and market opportunities/threats

Political Environment

laws, government agencies, and pressure groups that influence or limit organizations and individuals in a society

Public Policy

sets of laws and regulations that influence and limit business for the good of society

Social Responsibility

looking beyond what the regulatory system allows and simply “doing the right thing” (seeking ways to protect the long-run interests of their consumers and society)

Cultural Environment

institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors

Scenario Analysis

the art and science of preparing for multiple imagined futures (managers work in teams to predict multiple futures—or scenarios—that may happen and then develop contingency plans for each potential scenario)

Proactive Stance

preparing to address environmental changes in advance and even working to shape the environment rather than simply reacting to change after it occurs