chapter one vocab and concepts

five core customer and market place concepts

five core customer and market place concepts

1. needs, wants, and demands

2. marketing offerings (products, services, and experiences)

3. value and satisfaction

4. exchanged and relationships

5. markets

marketers must be careful when setting expectation levels because

low expectations may fail to attract buyers, high expectations may disappoint buyers

the four Ps of marketing

1. product

2. price

3. place

4. promotion

goals of marketing

attract new customers by promising superior value and keep and grow current customers by delivering satisfaction

marketing consists of

creating, maintaining, and growing desirable exchange relationships

marketing managers choose

what market to go into, and manipulate the four Ps to reach the target market

value proposition

the set of benefits or values a company promises to deliver to customers to satisfy their needs

Marketing

The process by which companies engage customers, build strong customer relationships, and create customer value 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

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

Marketing Myopia

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.

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.

Marketing Management

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

Production Concept

The idea that consumers will favor products that are available and highly affordable; therefore, 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

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

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 all the benefits and all the costs of a marketing offer relative to those of competing offers.

Customer Satisfaction

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

Customer-Engagement Marketing

Making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community.

Customer Brand Advocacy

Actions by which satisfied customers initiate favorable interactions with others about a brand.

Consumer-Generated Marketing

Brand exchanges created by consumers themselves -- both invited and uninvited -- by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers.

Partner Relationship Management

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 portion of the customer's purchasing that a company gets in its product categories.

Customer Equity

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

Internet of Things (IoT)

A global environment where everything and everyone is digitally connected to everything and everyone else.

Digital and Social Media Marketing

Using digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs to engage consumer anywhere, at any time, via their digital devices.

The Marketing Process

1. Understand the marketplace and customer needs and wants.
2. Design a customer-driven marketing strategy.
3. Construct an integrated marketing program that delivers superior value.
4. Engage customers, build profitable relationships, and create customer delight.
5. Capture value from customers to create profits and customer equity.