Chapter 1

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Real People, Real Choices
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1

benefits a customer receives from buying a good or service

value

2

an organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

marketing

3

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

stakeholders

4

marketing is only about satisfying the customer, T or F

F, it's about satisfying everyone involved

5

ultimate user of a good or service

consumer

6

management orientation that focuses on identifying and satisfying consumer needs to ensure the organization's long-term profitability

marketing concept

7

recognition of any difference between a consumer's actual state and some ideal or desired state

need

8

when the difference between a consumer's actual state and some ideal or desired state is big enough, the consumer is motivated to take action to satisfy what?

need

9

Needs relate to what two functions?

physical and psychological

10

the specific way a person satisfies a need depends on his or her unique what 3 things?

history, learning experiences, and cultural environment

11

the desire to satisfy needs in specific ways that are culturally and socially influenced

want

12

the outcome sought by a customer that motivates buying behavior-that satisfies a need or want

benefit

13

customers' desires for products coupled with the resources needed to obtain them

demand

14

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

market

15

all the consumers who share a common need that can be satisfied by a specific product and who have the resources, willingness, and authority to make the purchase

market

16

any location or medium used to conduct an exchange

market place

17

digital products consumers buy for use in online contexts

virtual goods

18

sum of benefits we receive when we use a good or service

utility

19

what are the four utilities marketing processes create to provide value to consumers? FPTP

form utility, place utility, time utility, possession utility

20

benefit marketing provides by transforming raw materials into finished products, as when a dress manufacturer combines silk, thread, and zippers to create a bridesmaid's gown (utility)

form utility

21

benefit marketing provides by making products available where customers want them. the most sophisticated evening gown sewn in New York's garment district is of little use to a bridesmaid in KC if it isn't shipped to her in time (utility)

place utility

22

benefit marketing provides by storing products until they are needed. Some women rent their wedding gowns instead of buying them and wearing them only once (utility)

time utility

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benefit marketing provides by allowing the consumer to own, use and enjoy the product. the bridal store provides access to a range of styles an coors that would not be available to a woman outfitting a bridal party on her own (utility)

possession utility

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process by which some transfer of value occurs between a buyer and a seller, occurs when a person gives something and gets something else in return

exchange

25

good, service, an idea, a place, a person-whatever is offered for sale in exchange

product

26

management philosophy that emphasizes the most efficient ways to produce and distribute products, works best in a seller's market when demand is greater than supply because it focuses on the most efficient ways to produce and distribute products-essentially consumers have to whatever is available

ex) Ford's model T

production orientation

27

What is one problem with production orientation?

View can be too narrow-firms that focus on a production orientation tend to view the market as a homogenous group that will be satisfied with the basic function of a product.

28

managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory/don't pile up

selling orientation

29

Where will you still see the "hard sell"/selling orientation today?

usually one-time sales, or unsought goods that people don't buy without prodding (cemetery plot)

30

business approach that prioritizes the satisfaction of customers' needs and wants

consumer orientation

31

a management philosophy that focuses on satisfying customers through empowering all employees to be an active part of continuous quality improvement

total quality management (TQM)

32

a businessperson who only produces a product when it is ordered

instapreneur

33

a business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices to build long-term bonds with customers rather than merely selling them stuff

triple bottom line orientation

34

what are the three bottom lines of triple bottom line orientation?

financial bottom line, social bottom line, environmental bottom line

35

a systematic tracking of consumer's preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs. It allows firms to talk to individual customers and to adjust elements of their marketing programs in light of how each customer reacts

customer relationship management, CRM

36

what does CRM stand for?

customer relationship mangement

37

how does the internet apply to CRM/make it easier?

provides the ultimate opportunity for implementation of the marketing concept because it allows a firm to personalize its messages and products to better meet needs of each individual consumer

38

some marketing analysts suggest that the internet create a paradigm shift for business, what does this mean?

companies must adhere to a new model to profit in a wired world

39

a company's success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs rather just dollars

attention economy

40

what's an example of an attention economy?

Google-seels advertising to many other companies, so the more consumers it can persuade to "google" rather than "bing, the more it can charge to place ads on search pages

41

what does an attention economy mean for companies?

they must find new and innovative ways to stand out from the crowd and become an integral apart of consumers' lives rather than just being a dry company that makes and sells products

42

a management philosophy that marketers must satisfy customers' needs in ways that also benefit society and also deliver profit to the firm

social marketing concept

43

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, "cradle to cradle"

sustainability

44

a marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers

green marketing

45

measuring just how much value marketing activities create, triple bottom line puts a bigger focus on this. it means that marketers at these organizations ask hard questions about the true value of their efforts and their impact on the bottom line

accountability

46

direct financial impact of a firm's expenditure of a resource such as time or money

return on investment, ROI

47

questions about the true value of marketers' efforts and their impact on the bottom line all boil down to the simple acronym?

ROI, return on investment

48

music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market

popular culture

49

goods and services that are popular at any time often mirror changes in the larger society. example?

cosmetics made of natural materials showed consumer concern for pollution and animal rights

condoms marketed in pastel carrying cases intended for female buyers signaled changing attitudes toward sexual responsibility

increase in waterbottles shows concern for environment and water issues

50

marketing messages often communicate stories containing symbolic elements that express the shared emotions and ideals of a culture, what are these stories called?

myths

51

goods individual consumers purchase for personal or family use

consumer goods

52

intangible products that are exchanged directly between the producer and the customer

services

53

the marketing of goods and services from one organization to another, businesses and other organizations buy a lot more goods than consumers do

business-to-business marketing

54

goods individuals or organizations buy for further processing or for their own use when they do business, ex-ford buys steel from another business

industrial goods

55

the buying or selling of goods and services electronically, usually over the internet

e-commerce

56

losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise

shrinkage

57

the deliberate defacement of products

anticonsumption

58

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

not-for-profit organizations

59

marketing principles also encourage people to endorse ideas, places, and people or to change behaviors in positive ways. examples?

ideas-click it or ticket, safe sex, etc

places-zoos, states, countries

people-lady gaga, yourself on LinkedIn

60

a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased-the way marketers communicate benefits to the cusomter

value proposition

61

what's a big challenge of the value proposition?

create an attractive one that also looks superior to other options

62

what three parties' perspectives are involved in deciding value in an exchange?

customers, sellers, society

63

value from the customer's perspective?

consider price and benefits, might be making a statement about the type of person you are or wish you were

64

value from the seller's perspective?

determine whether the exchange is profitable to them, value to the seller can take many forms: prestige among rivals, pride in doing what they do well, whether the relationship they have with a customer possesses enough value for them to continue it

not-for-profits might be more concerned with their ability to motivate, educate, or delight the public

65

becoming more and more popular for companies to host events that thank customers for their loyalty, what are these events called?

brandfests

66

it's more expensive to attract new customers than it is to retain current ones, T or F

T, but it doesn't always hold true. It can cost a lot of money to keep customers loyal

thinking this in the context of which friends are "worth-keeping?" -you might have two good friends, when only one of them is consistently there for you and the other is no where to be found-you might decide to only keep/work on the relationship with the friend that's been there for you

67

the potential profit a single customer's purchase of a firm's products generates over the customer's lifetime

lifetime value of a customer

68

superior capability of a firm in comparison to its direct competitors

ex-Coke's success in global markets

distinctive competency

ex-Coke's distinctive competencies in distribution and marketing communicaitons

69

properties of products that set them apart from competitors' products by providing unique customer benefits, value that competitors don't offer

differential benefit

70

what do differential benefits provide reasons for?

customers paying a premium for a firm's products and exhibit a strong brand preference

71

differential benefits don't necessarily mean simply offering something different

effective product benefits must be both DIFFERENT from the competition and things CUSTOMERS WANT

72

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 costumer eventually buys

value chain

73

what are the main activities of value-chain members? 5

inbound logistics, operations, outbound logistics, marketing, service

74

feedback vehicles that report (often in quantified terms) how the company or brand is actually doing in achieving various goals

marketing scorecards

75

What do marketing scorecards tend to look like?

short and to the point, charts and graphs to summarize info, easy-to-read format

76

measurements or "scorecards" marketers use to identify the effectiveness of different strategies or tactics

metrics

77

consumers who contribute ideas to online forums for the fun and challenge rather than to receive a paycheck, so their motivation is to gain psychic income rather than financial income

amafessionals

78

everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers

consumer-generated content

79

online platforms that allow a user to represent him or herself via a profile on a web site and provide and receive links to other members of the network to share input about common interests

social networking

80

the new generation of the world wide web that incorporates social networking and user interactivity

web 2.0

81

key difference between web 1.0 and 2.0?

interactivity we see among producers and users

82

characteristics of web 2.0?

improves as the number of users increases, its currency is eyeballs (google charges advertisers by how many people see their ad after typing in a search term), it's version-free and in always a work in progress, it categorizes entries according to folksonomy rather than taxonomy

83

new apps that enable user-generated clouds of content to form around products; barcode cans allow the user to upload content or see what others have already uploaded

physical URLs

84

a classification system that relies on users rather than preestablished systems to sort contents

folksonomy

85

under the right circumstances, groups are smarter than the smartest people in them, meaning that large numbers of consumers can predict successful products

wisdom of crowds

86

a practice used in the software industry in which companies share their software codes with one another to assist in the development of a better product

open source model

87

dark side of marketing?

terrorism, addictive consumption, exploited people, illegal activities

88

a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy

marketing plan

89

all possible customers in a market, regardless of the differences in their specific needs and wants

mass market

90

what's the risk of offering goods and services to a mass market?

firm risks losing potential customers to competitors whose marketing plans instead try to meet the needs of specific groups within the market

91

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

market segment

92

the market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts

target market

93

the way in which the target market perceives the product in comparison to competitors' brands

market position

94

a combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers

marketing mix, "marketer's strategic toolbox"

95

think of the marketing mix as the four Ps, what are they?

product, price, promotion, and place

96

the assignment of value, or the amount the consumer must exchange to receive the offering

price

97

the coordination of a marketer's communication efforts to influence attitudes or behavior

ex) personal selling, television advertising, store coupons, billboards, magazine ads, and publicity relases

promotion

98

the availability of the product to the consumer at the desired time and location

place