Chapter 1
marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
price
the assignment of value, or the amount the consumer must exchange to receive the offering
place
the availability of the product to the customer at the desired time and location
business-to-business marketing
the exchange of goods and services from one organization to another
channel of distribution
the series of firms or individuals that facilitates the movement of a product from the producer to the final customer
marketing mix
the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market
consumer goods
the tangible products that individual consumers purchase for personal or family use
customer orientation
A business approach that prioritizes the satisfaction of customers' needs and wants.
triple-bottom-line orientation
A business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices.
market segment
A 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.
metrics
A feedback vehicles that report (often in quantified terms) how the company or brand is actually doing in achieving various goals.
competitive advantage
A firm's edge over its competitors that allows it to have higher sales, higher profits, and more customers and enjoy greater success year after year.
marketing concept
A management orientation that focuses on identifying and satisfying consumer needs to ensure the organization's long-term profitability.
production orientation
A management philosophy that emphasizes the most efficient ways to produce and distribute products.
total quality management (TQM)
A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement.
societal marketing concept
A management philosophy that marketers must satisfy customers' needs in ways that also benefit society and deliver profit to the firm.
selling orientation
A managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory.
green marketing
A marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers.
value proposition
A marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased.
consumer
A person who purchases goods and services for personal use
accountability
A process of determining just how much value an organization's marketing activities create and their impact on the bottom line.
sustainability
A product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs.
value chain
A series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has the potential to either add or remove value from the product the customer eventually buys.
distinctive competency
A superior capability of a firm in comparison to its direct competitors.
mass market
All possible customers in a market, regardless of the differences in their specific needs and wants.
market
All the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange.
marketplace
Any location or medium used to conduct an exchange.
stakeholders
Buyers, sellers, or investors in a company; community residents; and even citizens of the nations where goods and services are made or sold—in other words, any person or organization that has a "stake" in the outcome.
demand
Customers' desires for products coupled with the resources needed to obtain them.
industrial goods
Goods that individuals or organizations buy for further processing or for their own use when they do business.
user-generated content, or consumer-generated content
Marketing content and activities created by consumers and users of a brand such as advertisements, online reviews, blogs, social media, input to new product development, or serving as wholesalers or retailers.
social networking platforms
Online platforms that allow a user to represent himself or herself via a profile on a website and provide and receive links to other members of the network to share input about common interests.
not-for-profit organizations, or nongovernmental organizations (NGOs)
Organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members.
Four P's
Product, Price, Place, Promotion
differential benefit
Properties of products that set them apart from competitors' products by providing unique customer benefits.
corporate citizenship, or corporate social responsibility
Refers to a firm's responsibility to the community in which they operate and to society in general.
e-commerce
The buying or selling of goods and services electronically, usually over the Internet.
want
The desire to satisfy needs in specific ways that are culturally and socially influenced.
return on investment (ROI)
The direct financial impact of a firm's expenditure of a resource, such as time or money.
benefit
The outcome sought by a customer that motivates buying behavior that satisfies a need or want.
need
The recognition of any difference between a consumer's actual state and some ideal or desired state.
utility
The usefulness or benefit that consumers receive from a product.
promotion
also referred to as marketing communication, includes many different activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products
product
a good, a service, an idea, a place, a person—whatever a person or organization offers for sale in the exchange
services
intangible products that we pay for and use but don't own
exchange
occurs when a person gives something and gets something else in return
