MKT 300 Susan Fant Chapter 1 Marketing Marketing Test Review Chapters 1 5 Marketing the process by which companies create value for customers and build strong customer relationships 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 offering 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 Market segmentation refers to dividing the markets into segments of customers Target marketing a set of buyers sharing common needs ort characteristics that the company decides to serve Value proposition the set of benefits or values it promises to deliver to customers to satisfy their needs 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 MKT 300 Susan Fant Product concept the idea that consumers will favor products that offer the most quality performance and features therefore the organization should devote its energy to making continuous product improvements the focus is on continuous product improvements 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 consumer wants the company s requirements consumers long run interests and society s long run interests Production concept Product concept Selling concept Marketing concept Societal Marketing concept Marketing mix the set of tools four Ps the firm uses to implement its marketing strategy product price promotion and place Integrated marketing program a comprehensive plan that communicates and delivers the intended value to chosen customers Customer relationship management the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction 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 perceived value Customer satisfaction The difference between total customer perceived benefits and customer cost The extent to which perceived performance matches a buyer s expectations Customer engagement marketing making the brand a meaningful part of consumer s conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations experiences and community Customer 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 MKT 300 Susan Fant 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 the company s customers Digital and social media marketing using digital marketing tools such as Web sites social media mobile apps and ads online video email and blogs that engage consumers anywhere at any time via their digital devices Chapter 2 Company and Marketing Strategy Strategic planning the process of developing and maintaining a strategic fit between the organization s goals and capabilities and its changing marketing opportunities MKT 300 Susan Fant 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 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 the network made up of the company its suppliers its distributors and ultimately its customers who partner with each other to improve the performance of the entire system MKT 300 Susan Fant Marketing strategy the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships Market segment dividing a market into distinct groups of buyers who have different needs characteristics or behaviors and who might require separate products or marketing programs Market targeting the process of evaluating each market segment s attractiveness and