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Ch1-7
| Term | Definition |
|---|---|
| Marketing | The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return. |
| Needs | States of felt deprivation. |
| Wants | The form human needs take as they are shaped by culture and individual personality. |
| Demands | Human wants that are backed by buying power. |
| Market offerings | Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. |
| Marketing myopia | The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. |
| Exchange | The act of obtaining a desired object from someone by offering something in return. |
| Market | The set of all actual and potential buyers of a product or service. |
| Marketing management | The art and science of choosing target markets and building profitable relationships with them. |
| Production concept | The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. |
| Product concept | A detailed version of the new product idea stated in meaningful consumer terms. |
| Selling concept | The idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort. |
| Marketing concept | A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. |
| Societal marketing concept | The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests. |
| Customer relationship management | Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty. |
| Customer-perceived value | The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. |
| Customer satisfaction | The extent to which a product’s perceived performance matches a buyer’s expectations. |
| Customer-engagement marketing | Making the brand a meaningful part of consumers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community. |
| Consumer-generated marketing | Brand exchanges created by consumers themselves—both invited and uninvited—by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers. |
| Partner relationship management | Working closely with partners in other company departments and outside the company to jointly bring greater value to customers. |
| Customer lifetime value | The value of the entire stream of purchases a customer makes over a lifetime of patronage. |
| Share of customer | The portion of the customer’s purchasing that a company gets in its product categories. |
| Customer equity | The total combined customer lifetime values of all of the company’s customers. |
| Digital and social media marketing | Using digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs to engage consumers anywhere, at any time, via their digital devices. |
| Marketing environment | The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. |
| Microenvironment | The actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. |
| Macroenvironment | The larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces. |
| Marketing intermediaries | Firms that help the company to promote, sell, and distribute its goods to final buyers. |
| Public | Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. |
| Demography | The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. |
| Baby boomers | The 74 million people born during the years following World War II and lasting until 1964. |
| Generation X | The 55 million people born between 1965 and 1980 in the “birth dearth” following the baby boom. |
| Millennials (Generation Y) | The 75 million children of the baby boomers born between 1981 and 1997. |
| Generation Z | People born between 1997 and 2016 who make up the kids, tweens, and teens markets. |
| Economic environment | Economic factors that affect consumer purchasing power and spending patterns. |
| Natural environment | The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities. |
| Environmental sustainability | "A management approach that involves developing strategies that both sustain the environment and produce profits for the company. Developing strategies and practices that create a world economy that the planet can support indefinitely." |
| Technological environment | Forces that create new technologies, creating new product and market opportunities. |
| Political environment | Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society. |
| Cultural environment | Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors. |
| Strategic planning | The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. |
| Mission statement | A statement of the organization’s purpose—what it wants to accomplish in the larger environment. |
| Business portfolio | The collection of businesses and products that make up the company. |
| Portfolio analysis | The process by which management evaluates the products and businesses that make up the company. |
| Growth-share matrix | A portfolio-planning method that evaluates a company’s SBUs in terms of market growth rate and relative market share. |
| Product/market expansion grid | A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification. |
| Market penetration | Company growth by increasing sales of current products to current market segments without changing the product. |
| Market development | Company growth by identifying and developing new market segments for current company products. |
| Product development | "Company growth by offering modified or new products to current market segments. Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering." |
| Diversification | Company growth through starting up or acquiring businesses outside the company’s current products and markets. |
| Value chain | The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products. |
| Value delivery network | A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value. |
| Marketing strategy | The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. |
| Market segmentation | Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes. |
| Market segment | A group of consumers who respond in a similar way to a given set of marketing efforts. |
| Market targeting | Evaluating each market segment’s attractiveness and selecting one or more segments to serve. |
| Positioning | Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. |
| cultural environment | Actually differentiating the market offering to create superior customer value. |
| 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. |
| SWOT analysis | An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T). |
| Marketing implementation | Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives. |
| Marketing control | Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved. |
| Marketing return on investment (marketing ROI) | The net return from a marketing investment divided by the costs of the marketing investment. |
| Profit Margin | Profit Margin=profit/net sales |
| Net Marketing Contribution (NMC) | Net Marketing Contribution (NMC) = net sales - cost of goods sold - marketing expenses |
| Gross Profit | Gross Profit = net sales - cost of goods sold |
| Marketing return on sales (ROS) | net marketing contribution / net sales |
| Big data | The huge and complex data sets generated by today’s sophisticated information generation, collection, storage, and analysis technologies. |
| Customer insights | Fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships. |
| Marketing information system | People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights. |
| Internal databases | Collections of consumer and market information obtained from data sources within the company network. |
| Competitive marketing intelligence | The systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. |
| Marketing research | The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. |
| Exploratory research | Marketing research to gather preliminary information that will help define problems and suggest hypotheses. |
| Descriptive research | Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers. |
| Causal research | Marketing research to test hypotheses about cause-and-effect relationships. |
| Secondary data | Information that already exists somewhere, having been collected for another purpose. |
| Primary data | Information collected for the specific purpose at hand. |
| Observational research | Gathering primary data by observing relevant people, actions, and situations. |
| Ethnographic research | A form of observational research that involves sending trained observers to watch and interact with consumers in their “natural environments.” |
| Survey research | Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior. |
| Experimental research | Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. |
| Focus group interviewing | Personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer “focuses” the group discussion on important issues. |
| Online marketing research | Collecting primary data through internet and mobile surveys, online focus groups, consumer tracking, experiments, and online panels and brand communities. |
| Online focus groups | Gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior. |
| Behavioral targeting | Using online consumer tracking data and analytics to target advertisements and marketing offers to specific consumers. |
| Sample | A segment of the population selected for marketing research to represent the population as a whole. |
| Customer relationship management (CRM) | Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty. |
| Marketing analytics | The analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance. |
| Artificial intelligence | Technology by which machines think and learn in a way that looks and feels human but with a lot more analytical capacity. |
| Consumer buyer behavior | The buying behavior of final consumers—individuals and households that buy goods and services for personal consumption. |
| Consumer market | All the individuals and households that buy or acquire goods and services for personal consumption. |
| Culture | The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. |
| Subculture | A group of people with shared value systems based on common life experiences and situations. |
| Total market strategy | Integrating ethnic themes and cross-cultural perspectives within a brand’s mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences. |
| Social class | Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors. |
| Reference group | A group that serves as direct or indirect point of comparison or reference in forming a person’s attitudes or behavior. |
| Opinion leader | A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others. |
| Word-of-mouth influence | The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior. |
| Influencer marketing | Enlisting established influencers or creating new influencers to spread the word about a company’s brands. |
| Online social networks | Online social communities—blogs, online social media, brand communities, and other online forums—where people socialize or exchange information and opinions. |
| Lifestyle | A person’s pattern of living as expressed in his or her activities, interests, and opinions. |
| Personality | The unique psychological characteristics that distinguish a person or group. |
| Motive (drive) | A need that is sufficiently pressing to direct the person to seek satisfaction of the need. |
| Perception | The process by which people select, organize, and interpret information to form a meaningful picture of the world. |
| Learning | Changes in an individual’s behavior arising from experience. |
| Belief | A descriptive thought that a person holds about something. |
| Attitude | A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea. |
| Cognitive dissonance | Buyer discomfort caused by postpurchase conflict. |
| New product | A good, service, or idea that is perceived by some potential customers as new. |
| Adoption process | The mental process through which an individual passes from first hearing about an innovation to final adoption. |
| Business buyer behavior | The buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. |
| Business buying process | The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands. |
| Derived demand | Business demand that ultimately comes from (derives from) the demand for consumer goods. |
| Supplier development | Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others. |
| Straight rebuy | A business buying situation in which the buyer routinely reorders something without modifications. |
| Modified rebuy | A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers. |
| New task | A business buying situation in which the buyer purchases a product or service for the first time. |
| Systems selling (solutions selling) | Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation. |
| Buying center | All the individuals and units that play a role in the purchase decision-making process. |
| E-procurement | Purchasing through electronic connections between buyers and sellers—usually online. |
| Market segmentation | Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes. |
| Market targeting | Evaluating each market segment’s attractiveness and selecting one or more segments to serve. |
| Differentiation | Actually differentiating the market offering to create superior customer value. |
| Positioning | Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. |
| Geographic segmentation | Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods. |
| Demographic segmentation | Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. |
| Age and life-cycle segmentation | Dividing a market into different age and life-cycle groups. |
| Gender segmentation | Dividing a market into different segments based on gender. |
| Income segmentation | Dividing a market into different income segments. |
| Psychographic segmentation | Dividing a market into different segments based on lifestyle or personality characteristics. |
| Behavioral segmentation | Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product. |
| Occasion segmentation | Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. |
| Benefit segmentation | Dividing the market into segments according to the different benefits that consumers seek from the product. |
| Intermarket (cross-market) segmentation | Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries. |
| Target market | A set of buyers who share common needs or characteristics that a company decides to serve. |
| Undifferentiated (mass) marketing | A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. |
| Differentiated (segmented) marketing | A market-coverage strategy in which a firm targets several market segments and designs separate offers for each. |
| Concentrated (niche) marketing | A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. |
| Micromarketing | Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing. |
| Local marketing | Tailoring brands and marketing to the needs and wants of local customer segments—cities, neighborhoods, and even specific stores. |
| Individual marketing | Tailoring products and marketing programs to the needs and preferences of individual customers. |
| Product position | The way a product is defined by consumers on important attributes—the place it occupies in consumers’ minds relative to competing products. |
| Competitive advantage | An advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices. |
| Value proposition | The full positioning of a brand—the full mix of benefits on which it is positioned. |
| Positioning statement | A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference). |
| Product | Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. |
| Service | An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. |
| Consumer product | A product bought by final consumers for personal consumption. |
| Convenience product | A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort. |
| Shopping product | A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style. |
| Specialty product | A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. |
| Unsought product | A consumer product that the consumer either does not know about or knows about but does not normally consider buying. |
| Industrial product | A product bought by individuals and organizations for further processing or for use in conducting a business. |
| Social marketing | The use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being. |
| Product quality | The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. |
| Brand | A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors. |
| Packaging | The activities of designing and producing the container or wrapper for a product. |
| Product line | A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. |
| Product mix (or product portfolio) | The set of all product lines and items that a particular seller offers for sale. |
| Service intangibility | Services cannot be seen, tasted, felt, heard, or smelled before they are bought. |
| Service inseparability | Services are produced and consumed at the same time and cannot be separated from their providers. |
| Service variability | The quality of services may vary greatly depending on who provides them and when, where, and how they are provided. |
| Service perishability | Services cannot be stored for later sale or use. |
| Service profit chain | The chain that links service firm profits with employee and customer satisfaction. |
| Internal marketing | Orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction. |
| Interactive marketing | Training service employees in the fine art of interacting with customers to satisfy their needs. |
| Brand equity | The differential effect that knowing the brand name has on customer response to the product or its marketing. |
| Brand value | The total financial value of a brand. |
| Store brand (or private brand) | A brand created and owned by a reseller of a product or service. |
| Co-branding | The practice of using the established brand names of two different companies on the same product. |
| Line extension | Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category. |
| Brand extension | Extending an existing brand name to new product categories. |
Created by:
Joanna Liu
Popular Marketing sets