Chapter 1: Welcome To World Of Marketing

Chapter 1: Welcome To World Of Marketing Welcome To The World Of Marketing
  
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Value
 
benefits a customer receives from buying a good or service
Marketing
 
the activity, set of institutions, and processes for creating, communication, delivering, and exchanging offerings that have value for customers, clients, partners, society
Stakeholders
 
buyers, sellers, investors in a company, community residents, citizens
Consumer
 
ultimate user of a good or service
Marketing Concept
 
identify consumer needs and provide products that satisfy those needs to ensure long term profitability
Need
 
difference between customer’s actual state and some desired state
Want
 
desire for particular product we use to satisfy a need in specific ways that are culturally and socially influenced
Benefit
 
outcome sought by a customer that motivates buying behavior
Demand
 
customers’ desires for products coupled with resources needed to obtain them
Market
 
all the consumers who share a common need that can be satisfied y a specific product and who have the resources, willingness, authority to make the purchase
Marketplace
 
location or medium to conduct an exchange
Utility
 
the usefulness or benefit consumers receive from a product à creates value
Exchange
 
a person gives something up and gets something else in return
Production orientation
 
- emphasizes the most efficient ways to produce and distribute products (Henry Ford’s Model T)
Selling orientation
 
marketing is a sales function or way to move products out of warehouses to reduce inventory (product availability exceeds demand)
Consumer orientation
 
focuses to ways to satisfy customer’s needs and wants
Total quality management
 
involves all employees in continuous product quality improvement
Intrapreneur
 
- person who produces a product when it is ordered
Triple Bottom Line orientation
 
building long term bonds with customers
Customer Relationship Management
 
tracking consumers preferences & behaviors over time to tailor value proposition to each individual’s unique wants and needs
Social Marketing Concept
 
marketers must satisfy needs in ways that benefit society and deliver profit to the firm
Sustainability
 
product design to create products that meet consumer needs without compromising the ability of future generations to meet their needs
ROI
 
direct financial impact of a firm's expenditure of a resource such as time or money
Popular Culture
 
music, movies, sports, books, celebrities, entertainment the mass market consumes à g/s popular at any point in time mirror changes in the larger society
Myths
 
stories containing symbolic elements that express shared emotions and ideals of a culture
Product
 
any good, service, idea that satisfies consumer needs
Consumer good
 
tangible products that individual consumers purchase for personal use
Services
 
intangible products we pay for and use but never own (60+% to GNP)
B2B Marketing
 
marketing of g/s from one organization to another
Industrial goods
 
goods individuals or organizations buy for further processing or for their own use when they do business
E-commerce
 
buying or selling of g/s electronically (internet)
Not for Profit Organizations
 
organizations with charitable, educational, community, public service goals that buy g/s to support their functions and to attract and serve their members
Target Market
 
- market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts
Value proposition
 
a marketplace offering that fairly and accurately sums up the value that the customer will realize if he purchases the product
Lifetime value of a Customer
 
how much profit companies expect to make from a particular customer, including each and every purchase he will make from now and in the future
Distinctive competency
 
firm’s capability that is superior to that of its competition
Differential benefit
 
properties of products that set them apart from competitor's products by providing unique customer benefits
Vale chain
 
- a series of activities involved in designing, producing, marketing, delivering, and supporting any product; each link in the chain has potential to add or remove value from the product the customer eventually buys
Consumer generated value
 
everyday consumers are turning into advertising directors, retailers, and new product development consultants
Web 2.0
 
- new generation of WWW that incorporates social networking + user interactivity
Wisdom of Crowds
 
under the right circumstances, groups are smarter than the smartest people in them meaning that large numbers of consumers can predict successful products
Open Source Model
 
companies share their software codes with anyone to assist in the development of a better product (software industry)
Consumer Addiction
 
physiological or psychological dependency on g/s
Marketing Plan
 
describes the marketing environment, outlines the marketing obj and strategy, identifies who will be responsible for carrying out each part of the strategy
Mass Market
 
all possible customers in a market regardless of dif in needs and wants
Market Segment
 
distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market
Market Position
 
how target market perceives the product compared to competitor’s brands
Marketing Mix
 
combination of the product, the price of the product, the place where it is made available, and the activities that introduce it to consumers to create a desired response
Four Ps
 
product, price, promotion, place
Price
 
- assignment of value or the amt the consumer must exchange to receive the offering
Promotion
 
includes all the activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products
Place
 
availability of the product to the customer at the desired time and location

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