Marketing Concepts and Value

Everything a customer receives in exchange for what they give up (price and effort).

Working with suppliers and buyers to develop valuable products and services.

Product, Promotion, Place, and Price; fundamental marketing elements.

Companies focusing on reducing production costs to compete.

Companies relying heavily on aggressive sales techniques in a market low on demand.

A framework analyzing competitive forces within an industry: direct competitors, substitute products, potential entrants, supplier bargaining power, and buyer bargaining power.

A framework assessing a company's internal strengths and weaknesses, and external opportunities and threats.

Specific, measurable, achievable, realistic, and timely goals that a company aims to achieve.

Actions a company takes to reach its objectives, encompassing tactics like advertising.

Strategy focusing on increasing sales of existing products to current customers.

Strategy creating new products aimed at existing customer base.

Strategy entering new markets with existing products.

Strategy entering new markets with new products.

A long-term, difficult-to-copy advantage that distinguishes a company from its competitors.

Achieving SCA through strategically located stores or outlets, often with high density.

Achieving SCA through optimizing processes and operations, including supply chain management.

Achieving SCA through offering products with perceived high value and uniqueness.

Achieving SCA through building customer loyalty and providing outstanding service.

A period between 1950 and 1990 where companies focused on creating products that customers wanted.

A modern marketing approach emphasizing providing customers with the best value for their money.

A contemporary approach where companies build strong relationships with individual customers.

Needs are basic requirements for survival (food, water, shelter), while wants are specific products or services desired to fulfill those needs.

An interaction between two or more parties where something of value is traded.

The combination of strategies used to market a product or service, often referred to as the 4Ps.

Businesses offering similar products to the same target market.

Businesses offering different products that fulfill the same need for a customer.

A tool used to analyze a business's external environment: Political, Economic, Socio-cultural, Technological, and Competitive factors.

The argument that marketing creates unnecessary wants and encourages consumerism.

Marketing strategies focused on environmental conservation and responsible resource usage.

The importance of businesses acting ethically and considering their social impact.

The idea that value is created through the interaction between companies and consumers.

A process of allocating resources to capitalize on opportunities by analyzing the situation and setting clear goals.

A thorough examination of a business's internal (company resources, capabilities, partners) and external (PESTC) environments.

The feeling of regret or dissatisfaction after buying a product or service, especially if it doesn't meet expectations.

A production system focused on minimizing waste and pollution by reusing and recycling materials throughout the process.

Purchases with little perceived risk, often made quickly without extensive research, such as buying groceries.

Unplanned purchases made on the spot without prior consideration, often influenced by emotions or immediate need.

Purchases with high perceived risk, requiring careful consideration and research, such as buying a car.

Thorough information gathering and comparison of different product options before making a purchase, common for high-involvement decisions.

Involves some research and comparison but not as extensive as extended problem solving, sitting between low and high involvement.

Automatic purchasing decisions made without going through all the stages of the consumer decision-making process (often for low-involvement goods),

The physical environment of a retail store, including elements like layout, music, lighting, and smells, that can influence consumer behavior.

Societal expectations about what is considered appropriate behavior or actions in various situations.

Statistical characteristics of a population, such as age, gender, income, and education, used to understand consumer behavior.

The psychological profile of consumers based on their attitudes, values, interests, and lifestyles, aiding in understanding their purchasing preferences.

An inner drive that encourages individuals to take action to satisfy needs and achieve goals.

A theory that outlines five levels of human needs, arranged in a pyramid, with lower-level needs requiring fulfillment before higher-level needs become motivating.

The process of interpreting and understanding the world based on sensory information.

Factors that impact consumer decisions, such as family, friends, and media.

Children often have significant sway over purchases of certain household products.

A systematic process used by companies to gather and analyze information about consumers and competitors.

To help make better business decisions by understanding consumer needs and market conditions.

Information collected directly by a company (e.g., surveys, focus groups).

Exploring consumer attitudes and behaviors through in-depth interviews, focus groups, and observation.

Gathering data that can be measured and counted, often through surveys.

Information already collected by someone else (e.g., government reports, industry data).

Demand for business products that springs from the demand for consumer products.

Small changes in consumer demand can have a large impact on business product demand.

Goods and services sold to other businesses (e.g., machinery, components, supplies).

A promotional strategy that involves direct interaction between a salesperson and a potential customer.

Categories of businesses that purchase products, including producers, resellers, governments, and institutions.

The first step in the B2B buying process, where a need for a product or service is identified.

A formal document sent to vendors asking for a bid to supply a good or service.

Materials purchased by firms from other firms to produce a product or service.

Products and services used to keep a company functioning (e.g., cleaning supplies, repairs).

Products and services supporting a company's operations but not part of the final product.

Activities designed to create a brand and position it in the minds of consumers.

The symbol associated with a brand (e.g., Nike Swoosh).

Using an existing brand name or mark for a new product category.

When a firm's new offering reduces sales of its older offerings.

Holds a single retail unit of a product (e.g., a bag of M&Ms).

Holds a single wholesale unit of a product (e.g., carton of paper).

Designed for shipping and handling large quantities.

Expanding offerings beyond the current product range.

Adding products to an existing line to fill gaps caused by competition.

Customers good at generating new product ideas or applications.

Designing an offering to deliver customer-desired benefits.

Testing an offering ensures it works in different environments.

A purchasing situation where a company buys the same product in the same quantity from the same vendor, without any changes.

A purchasing situation where a company buys a product for the first time, often involving extensive research and evaluation.

A purchasing situation where a company buys a similar product with small changes, such as different quantity, features, or packaging.

A buying center where multiple individuals participate, but only one person ultimately makes the decision.

A buying center where one person makes the decision, but consults with others before making it.

A buying center where all participants have equal say in the decision, and a majority vote determines the outcome.

A belief that a relationship with a business partner is valuable and requires maximum effort to maintain.

Confidence in a business partner's reliability and integrity, ensuring they will act ethically and honor commitments.

A marketing strategy that tailors offerings, promotions, and pricing to specific customer groups with distinct needs and preferences.

A marketing strategy that uses the same marketing mix for all customers, regardless of their individual needs.

A marketing strategy that involves building close, personal relationships with individual customers, catering to their unique needs.

Categorizing customers based on their usage rate, frequency of purchase, and interaction with products.

Categorizing customers based on personal characteristics like age, income, ethnicity, and nationality.

Categorizing customers based on their location, using proximity marketing to target buyers within a specific radius.

Categorizing customers based on their lifestyle, interests, values, opinions, and personality traits.

The point where total costs equal total revenue, indicating neither profit nor loss.

The difference between the selling price of a product and its variable costs.

Setting a low initial price to attract a large number of customers and gain market share.

Setting a high initial price to quickly recoup development and marketing costs.

Adding a predetermined markup to the cost of goods to determine the selling price.

Setting prices a few cents or dollars below the next whole number to create a perception of value.

Setting a high price to create an image of exclusivity and high quality.

Offering multiple versions of a product at different price points to cater to different budgets.

Setting a price based on what consumers are willing to pay for a specific time-limited offering.

Selling a product at a loss to attract customers to a store and potentially purchase other items.

Selling multiple products or services together at a discounted price.

Charging a premium price for a product required alongside a previously purchased product.

Charging customers two separate fees, one for access and the other for usage.

Automatically adjusting prices based on factors like demand, competition, and consumer behavior.

Offering price reductions for larger purchases.

A service must be produced and consumed simultaneously. You cannot create a service and then deliver it later.

The quality of a service can vary depending on the individual provider's skills and the customer's experience.

Services cannot be stored, saved, or resold. If a service slot goes unused, it's lost.

Products and services range from purely tangible goods to purely intangible services, with most offerings falling somewhere in between.

Products and services are evaluated based on different qualities: Search (before purchase), Experience (after purchase), and Credence (difficult to evaluate even after purchase).

A mismatch between customer expectations and management's perception of those expectations.

A difference between management's intended service delivery standards and the actual standards employees follow.

A discrepancy between the service standard and the actual service delivered to the customer.

A difference between what the company promises and the actual service delivered.

A gap between what the customer expects from the service and their perception of the service after experiencing it.

Demand for a specific product category, like all pizza.

Demand for a specific brand within a category, like Domino's pizza.

A marketing strategy that aims to get consumers' Attention, Interest, Desire, and Action.

A marketing approach that focuses on logic and reason, using facts and figures.

A marketing approach that uses humor to grab attention and create positive emotions.

A marketing message that allows consumers to draw their own conclusions.

A marketing message that explicitly draws a conclusion, emphasizing positive aspects.

A budgeting method that allocates a fixed percentage of past or projected sales to marketing spending.

A budgeting method that matches marketing spending to competitors' levels.

A budgeting method that sets specific marketing objectives and calculates the cost of achieving them.

The network of organizations involved in getting a product from its raw materials to the final consumer. It includes everything from the farmer who grows the ingredients to the retailer who sells the finished product.

The process of monitoring and improving the efficiency of a supply chain to ensure products are delivered efficiently and effectively.

A channel where the producer directly sells to the consumer without any intermediaries.

A channel involving one or more intermediaries, such as wholesalers or retailers, between the producer and the consumer.

The process of eliminating intermediaries in a marketing channel, allowing producers to sell directly to consumers often through online platforms.

A partnership where two or more companies collaborate to create a more effective marketing channel, often offering cross-promotions and benefits to customers.

A partnership where two companies join forces to expand into a new market, sharing profits and losses.

A business arrangement where a company grants an independent operator the right to use its business model, name, techniques, and trademarks.

A marketing strategy where the producer focuses on promoting its product to channel partners to encourage them to push it to consumers.

A marketing strategy where the producer focuses on creating demand for its product among consumers, so that businesses are motivated to sell it.

Delivering personalized promotional materials to individuals through various channels like mail, catalogs, telephone, TV, or computers.

Placing advertisements on other company's websites or social media platforms.

A presentation of all the goods available for purchase in a shop.

Commercial messages encouraging immediate action through a toll-free number.

Full-page ad units appearing between screens during mobile app navigation.

Ads appearing on search engines like Google, Firefox, or Safari when users search for keywords related to a company's product or service.

Promoting products or services through advertising on social media platforms.

Companies creating and using their own social media accounts to showcase their brand and products.

A salesperson who focuses on influencing decisions about products but doesn't directly sell them, primarily in B2B contexts.

A salesperson who visits retailers to help them display, advertise, and sell products to consumers.

A disagreement between different members of a distribution channel (e.g., manufacturer, wholesaler, retailer) about how to serve customers.

Competition between companies at the same level of the distribution channel (e.g., two retailers selling the same brand).

Selling a large quantity of goods in another country at a significantly lower price than in the home market, often to drive competitors out.

An agreement between a producer and a retailer that sets a minimum price the retailer can charge customers.

A distribution channel where members (e.g., manufacturer, wholesaler, retailer) formally cooperate to achieve common goals, but are not affiliated with each other.

One company takes over functions of another member in the distribution channel.

A company moves downstream in the supply chain towards the customer.

A company moves upstream in the supply chain towards the beginning.

Consistent messaging across all communication channels to build customer relationships, manage brand equity, and promote social responsibility.

The tools used to inform, remind, and motivate customers about a product or service, including advertising, sales promotions, public relations, and more.

Paying to communicate a brand message to a wide audience through various channels (print, social media, TV, etc.).

Short-term incentives (coupons, rebates, contests) to encourage immediate purchase.

Communication intended to improve a company's image or product.

Sending personalized promotional materials directly to individuals (mail, flyers, catalogs).

An interactive communication between a salesperson and a potential customer.

A selling relationship where the buyer needs significant expertise from the seller and trust is crucial.

A collaboration between a buyer and seller, where both invest time and money to expand their markets.

Using a memorized sales pitch, often in transactional relationships where speed and efficiency are key.

Asking questions to understand the buyer's problems and needs, tailoring the selling approach accordingly.

Using specialized expertise to create customized solutions for complex problems, building long-term relationships.

A visual tool tracking the progression of potential customers through different stages, from lead to sale.

Assessing a prospect's potential based on Budget, Authority, Need, and Time.

Measuring how effectively salespeople move customers through the sales funnel to the next stage.

A post-sale review of the salesperson's performance, analyzing successful and unsuccessful sales opportunities.

A system tracking leads from initial contact to closure, evaluating marketing effectiveness and optimizing sales efforts.