Chapter 4 - The Marketing Concept

breakeven point

minimum attendance and sales required to cover all of the expenses of organizing promoting, and running the event

product usage

reflects what products you use and how often

patronage purchase

based on loyalty to a particular brand or product

physiological needs

basic needs of food, water, sleep, and shelter; first level of hierarchy

comparative advantage

the capability to produce products or services more efficiently and economically than the competition

social needs

the desire for friends, family, and love; third level of hierarchy

customer service gap

the difference between customer expectations and the service that is actually received

marketing concept

the idea that a business should keep the focus of satisfying customer needs

market share

the percentage of total sales of a product or service that a company expects to capture in relation to its competitors

productivity

the rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized

self actualization

the realization of one's full potential and self-fulfillment; fifth level of hierarchy

opportunity cost

the value of the next best alternative that you forgo when making a choice

benefits derived

the value people believe they receive from a product or service

emotional purchases

when consumers spend with little thought during emotional highs or lows

rational purchases

when individuals recognize needs and wants, assess their priorities and budget, conduct research, compare alternatives, and purchase using thought and reasoning

target market

a specific group of consumers you want to reach

market segment

a group of consumers within a larger market who share one or more characteristics

values-based culture

business culture rooted in high performance and excellent customer service

geographic segmentation

divides markets into physical locations, such as Eastern, Northern, Southern, and Western regions of the US or the urban and rural areas of a state

behavioral-based segmentation

focuses on a customer's attitude toward products and services

psychographics segmentation

focuses on characteristics that cannot be physically measured, such as values, interests, and lifestyle choices

demographic segmentation

focuses on info that can be measured such as age income, profession, gender, education, marital status, and size of household

self esteem

gain recognition and respect from others and feelings of adequacy and competence in themselves; fourth level of hierarchy

hierarchy of needs

identifies five human areas of needs

economic market

includes all of the consumers who will purchase a product or service

security

individuals want both physical safety and economic safety; second level of hierarchy