Chapter 1

target market

A specific group of customers on whom an organization focuses its marketing efforts.

marketing mix

Four marketing activities-product, distribution, promotion, and pricing- that a firm can control to meet the needs of customers within its target markets.

marketing environment

The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix.

Marketing

The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.

customer relationship management (CRM)

Using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

1. two or more individuals, groups, or organizations must participate, and each must possess something of value that the other party desires. 2. the exchange should provide a benefit or satisfaction to both parties in the transaction. 3. each party must have confidence in the promise of the "something of value" 4. the parties to the exchange must meet expectations.

What are the 4 conditions of an exchange?

customer satisfaction

What is a major concept of marketing concept?

1. production orientation: industrial revolution --> products poured into the marketplace 2. sales orientation: most important marketing activities were personal selling, advertising, and distribution. 3. Marking orientation: must first determine what customers want and then produce these products rather than making products first and then trying to persuade them

What is evolution of the marketing concept?

is to develop satisfying exchange relationships from which both customers and marketers benefit.

What is the essence of marketing?

1. they influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. 2. marketing environment forces help determine whether and how a marketing manager can perform certain marketing activities. 3. environmental forces may affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix.

What marketing environment forces affect a marketer's ability to facilitate exchanges?

Value

a customer's subjective assessment of benefits relative to costs in determining the worth of a product.

product variable

deals with researching customers' needs and wants and designing a product that satisfies them.

relationship marketing

establishing long-term, mutually satisfying buyer-seller relationships.

proper implementation

hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the unit.

promotion variable

relates to activities used to inform individuals or groups about the organization and its products.

price variable

relates to decisions and actions associated with establishing pricing objectives and policies and determining product prices.

collect information about customers needs

Before marketers can develop a marketing mix, what must they do?

product

A good, a service, or an idea.

marketing concept

A philosophy that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals.

Customers

The purchasers of organizations' products; the focal point of all marketing activities.

marketing orientation

an organization-wide commitment to researching and responding to customer needs.

stakeholders

constituents who have a "stake" or claim in some aspect of a company's products, operations, markets, industry, and outcomes.

planning

is a systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control.

organizing

marketing activities involves developing the internal structure of the marketing unit.

marketing management

the process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently.

exchange

the provision or transfer of goods, services, or ideas in return for something of value.

distribution variable

to satisfy customers, products must be available at the right time and in convenient locations.