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