Marketing Terms Ch. 1

Front 1

Marketing

Back 1

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals

Front 2

Production Philosophy

Back 2

A business philosophy that emphasizes the production function. An organization following such a philosophy values activities related to improving production efficiency or producing sophisticated products and services. The guiding belief is "the best-produced products can be easily marketed."

Front 3

Selling Philosophy

Back 3

A business philosophy that emphasizes the selling function. Organizations following such a philosophy focus on the selling process to address changes in market conditions. The guiding belief is "any product can be sold, if enough selling effort is given to it."

Front 4

Marketing Philosophy

Back 4

A business philosophy that emphasizes satisfying the needs of the customer. Organizations following such a philosophy have organizational wide commitment to satisfying the needs of the customer. The guiding belief is "long term success depends on satisfying the needs of the customer."

Front 5

Marketing Concept

Back 5

A framework for the marketing philosophy that consists of three interrelated elements: an organization's basic purpose is to satisfy customer needs; satisfying customer needs requires integrated and coordinated efforts throughout the organization; and organizations should focus on long-term success

Front 6

Customer Loyalty Concept

Back 6

Consists of three basic relationships: earning high levels of customer loyalty leads to increased sales growth and higher profitability; completely satisfying and delighting customers is the best route for earning customer loyalty; and providing exceptional value is needed to delight and completely satisfy customers.

Front 7

Lifetime Value of a Loyal Customer

Back 7

Some companies calculate this to be the revenue stream from repeat purchases and referrals

Front 8

Customer Value

Back 8

Defined as what a customer gets (benefits from product use, related services) for what a customer gives (price paid, costs to acquire, and use the product).

Front 9

Marketing as a Societal Process

Back 9

A process that facilitates the flow of goods and services from producers to consumers in a society

Front 10

Exchange

Back 10

The transfer of something tangible or intangible, actual or symbolic, between two or more social actors

Front 11

Marketing Strategies

Back 11

Strategies, including identification of target markets and marketing mixes that satisfy those markets, designed to successfully compete in the marketplace.

Front 12

Target Market

Back 12

A defined group of consumers or organizations with whom a firm wants to create marketing exchanges.

Front 13

Marketing Mix

Back 13

The overall marketing offer to appeal to the target market. It consists of decisions in four basic areas: product, pricing, communications, and distribution.