Marketing Chapter 1

Front 1

What is the new definition of marketing?

Back 1

Marketing is an organizational function and process for creating, communicating, and elivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Front 2

What are stakeholders?

Back 2

Stakeholders are buyers, sellers, investors in a company, community residents, and even citizens of the nation where goods and services are sold.

Front 3

What is the old definition of marketing?

Back 3

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy consumer neds and organizational objectives.

Front 4

How is a marketing concept developed?

Back 4

Marketers first identify consumer needs and then provide products that satisfy those needs.

Front 5

What is a consumer?

Back 5

The ultimate user of a good or service.

Front 6

What is a need?

Back 6

A need is the difference between a consumer's actual state and some ideal or desired state.

Front 7

What is a want?

Back 7

A want is a need that is shaped by a person's knowledge, culture, and individual personality.

Front 8

What does a market consist of?

Back 8

A market consists of all the consumers who share a common need that can be satisfied by a specific product and who have the resources, willingness, and authoroity to make the purchase.

Front 9

What is utility?

Back 9

Creating value through Form, Time, Posession, Task and Place.

Front 10

What is the concept of exchange?

Back 10

The concept of exchange means that people give up something in order to receive something that they would rather have.

Front 11

What are the requirements for exchange to occur?

Back 11

1. Two or more parties with unsatisfied needs.
2. A desire and ability on their parts to satisfy their needs
3. Something to exchange
4. Each party must be free to accept or reject the other's terms for the exchange.
5. There must be a way for parties to communicate and deliver
6. Each party must believe that it is appropriate or desirable to deal with the other party.

Front 12

What can be marketed?

Back 12

1. Goods
2. Services
3. Events
4. Experiences
5. Persons
6. Places
7. Properties
8. Organizations
9. Information
10. Ideas

Front 13

What does value refer to?

Back 13

Value refers to the benefits a customer receives from buying a product or service.

Front 14

What are some values?

Back 14

Quality, price, convenience, on-time delivery, before and after-sale service

Front 15

What are three things that the seller must keep in mind?

Back 15

1. Calculating the value of a customer
2. Creating a competitive advantage
3. The value chain

Front 16

What should the successful marketing plan do?

Back 16

1. Describes the marketing environment
2. Outlines marketing objectives and strategy
3. Identifies parties responsible for implementation
4. Identifies our customer

Front 17

What is the value chain?

Back 17

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.

Front 18

What is competitive advantage?

Back 18

The ability of a firm to outperform the competition, thereby providing customers with a benefit the competition can't.

Front 19

What is a mass market?

Back 19

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

Front 20

What is a market segment?

Back 20

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.

Front 21

What is a target market?

Back 21

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

Front 22

What is market position?

Back 22

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

Front 23

What is the marketing mix?

Back 23

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.

Front 24

What are the four P's?

Back 24

Product, Place, Price, Promotion

Front 25

What is a product?

Back 25

A good, service, or idea to satisify the consumer's needs

Front 26

What is price?

Back 26

What is exchanged for the product. An assignment of value.

Front 27

What is promotion?

Back 27

A means of communication between seller and buyer.

Front 28

What is place?

Back 28

A means of getting the product into the consumer's hands, when they want it, where they want it.

Front 29

What was the emphasis in the production era?

Back 29

A management philosophy that emphasized the most efficient ways to produce and distribute products. This worked well during the 20's because demand was greater than supply and people bought the product because there were no other alternatives.

Front 30

What was the emphasis in the selling era?

Back 30

During the 1930's, firms shifted to an approach where management views marketing as a sales function, or a way to move products out of warehouses so that inventories don't pile up. This mindset prevailed well into the 1950s, but eventually the "hard sell" got a bad image.

Front 31

What was the emphasis during the consumer era?

Back 31

During the 1970's and 80's this became very popular. The focus during this period was meeting the needs of the people buying the product, and doing so better than the competition. An approach called Total Quality Managemnent became popular during this time period.

Front 32

What is the emphasis during the new era?

Back 32

Building long term bonds with customers rather than simply selling them stuff. This era focuses on Customer relationship management, providing social benefits to using products, and accountability for firms in regards to return on investment and the marketing process are concerned.

Front 33

What are e-marketers?

Back 33

Marketers who use e-commerce in their strategies

Front 34

What is a marketing concept?

Back 34

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

Front 35

What is a benefit?

Back 35

The outcome sought by a consumer that motivates buying behavior, by satisfying a need or a want

Front 36

What is demand?

Back 36

The customer's desire for products coupled with the resources to obtain them

Front 37

What is utility?

Back 37

The usefulness or benefit consumers receive from a product

Front 38

What is form utility?

Back 38

The benfit marketing provides by transofmrning raw materials into finished products, as when a dress manufacturer combines silk, thread, and zippers to create a gown

Front 39

What is place utility?

Back 39

The benefit marketing provides by making products avaialable where customers want them. For exmaple, some good gowns are sold in New York's Garment District.

Front 40

What is time utility?

Back 40

The benefit marketing provides by storing products until they are needed.

Front 41

What is posession utility?

Back 41

The benefit marketing provides by allowing the consumer to own, use, and enjoy the product.

Front 42

What is popular culture?

Back 42

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

Front 43

What are myths?

Back 43

Stories containing symbolic elements that express the emotions and ideals of culture

Front 44

What is a product?

Back 44

A tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses.

Front 45

What are consumer goods?

Back 45

The goods purchased by individual consumers for personal or family use.

Front 46

What are services?

Back 46

Intangible products that are exchanged directly from the producer to the customer.

Front 47

What is business to business marketing?

Back 47

Marketing of goods and services that business and organizational customers need to produce other goods and services

Front 48

What are industrial goods?

Back 48

Goods bought by individuals or organizations for further processing or for use in doing business

Front 49

What is e-commerce?

Back 49

Buying or selling goods and services electronically over the Internet

Front 50

What are not-for-profit organizations?

Back 50

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

Front 51

What is value?

Back 51

The benefits a customer receives from buying a product or service

Front 52

What is value proposition?

Back 52

A marketplace offering that fairly and accurately sums up the value that will be realized if the product or service is purchased

Front 53

What is the lifetime value of a customer?

Back 53

How much profit companies expect to make from a particular customer. To estimate this, companies calculate how much the person will spend and then subtract what they think it will cost the company to maintain the relationship.

Front 54

What is distinctive competency?

Back 54

A superior capability of a firm in comparison to its direct competitors

Front 55

What is differential benefit?

Back 55

Properties of products that set them apart from competitors's products by providing unique customer benefits

Front 56

What is the marketing plan?

Back 56

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.

Front 57

What is mass market?

Back 57

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

Front 58

What is a market segment?

Back 58

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?

Front 59

What is target market?

Back 59

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

Front 60

What is market position?

Back 60

The way in which the target market perceives the product in comparison to competitor's brands

Front 61

What is price?

Back 61

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

Front 62

What is promotion?

Back 62

The coordination of a marketer's marketing communications efforts to influence attitudes or behavior the coordination of efforts by a marketer to infrm or persuade consumers or organizations about goods, services, or ideas.

Front 63

What is place?

Back 63

The availability of the product at the desired time and location.

Front 64

What is production orientation?

Back 64

A management philosophy that emphasizes the most efficient ways to produce and distribute products.

Front 65

What is selling orientation?

Back 65

A managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory.

Front 66

What is consumer orientation?

Back 66

A management philosophy that focuses on ways to satisfy customers' wants and needs

Front 67

What is total quality management (TQM)?

Back 67

A management effort to involve all employeesfrom the assembly line onward in continuous product quality improvement

Front 68

What is New Era Orientation?

Back 68

A management philosophy in which marketing means a devotion to excellenece in designing and producing products that benefit the customer plus the firm's employees, shareholders, and communities

Front 69

What is customer relationship management (CRM)?

Back 69

A philosophy that sees marketing as a process of buildign long-term relationships with customers to keep them satisfied and to keep them coming back. A concept that involves systematically tracking consumers's preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's wants and needs

Front 70

What is return on investment?

Back 70

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