Marketing Chapter 1 Midterm

Marketing: The set of strategies and activities by which companies acquire and engage customers, build strong customer relationships, and create superior 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, solutions, and 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 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 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 the benefits delivered by and the costs of obtaining and using a market offering, relative to those of 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 satisfied customers initiate favorable interactions with others about a brand

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: 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 spending in its product categories that a company captures.

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 consumers anywhere, at any time, via their digital devices