CHAPTER 1:
Marketing
Creating and
Capturing
Customer
Value
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
Wants
Demands
Market offerings: 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
Market
Modern Marketing System
Marketing management: The art and
science of choosing target markets and
building profitable relationships with
them.
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.
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.
Selling concept: The idea that
consumers will not buy enough of
the firm’s products unless the
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
consumers’ wants, the company’s requirements,
consumers’ long-run interests, and society’s
long-run interests.
Customer
relationship
management
Customer-managed
relationships
Consumer-generated
marketing
Customer
satisfaction
Customer
lifetime
value
Share of
customer
Customer equity
Partner
relationship
management
Internet
CHAPTER 2:
Company and
Marketing
Strategy
Partnering to
Build Customer
Relationships
Strategic Planning: The
process of developing and
maintaining a strategic fit
between the organization’s
goals and capabilities and its
changing marketing
opportunities.
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
SWOT analysis: An overall
evaluation of the company’s
strengths (S), weaknesses (W),
opportunities (O), and threats
(T).
Marketing implementation: Turning
marketing strategies and plans into
marketing actions to accomplish
strategic marketing objectives
Marketing control
Return on marketing
investment (or
marketing ROI)
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.
Marketing
strategy
Market
Segmentation
Market Segment
Market target
Positioning
Differentiation
Marketing Mix: The set of
tactical marketing tools—
product, price, place, and
promotion— that the firm
blends to produce the
response it wants in the
target market.
CHAPTER 3:
Analyzing the
Marketing
Environment
Marketing environment: The actors and
forces outside marketing that affect
marketing management’s ability to build
and maintain successful relationships
with target customers.
Microenvironment
Macroenvironment
Marketing intermediaries: Firms that
help the company to promote, sell, and
distribute its goods to final buyers.
Public
Demography: The study
of human populations
in terms of size,
density, location, age,
gender, race,
occupation, and other
statistics.
Millenials (or Generation Y): The 83
million children of the baby
boomers born between 1977 and
2000
Generation X: The 49 million
people born between 1965 and
1976 in the “birth dearth”
following the baby boom.
Baby Boomers: The 78 million
people born during the years
following World War II and lasting
until 1964.
Environments
Environmental sustainability:
Developing strategies and practices
that create a world economy that the
planet can support indefinitely.
Technological environment: Forces
that create new technologies,
creating new product and market
opportunities.
Political environment: Laws, government
agencies, and pressure groups that
influence and limit various organizations
and individuals in a given society.
Cultural environment: Institutions and
other forces that affect society’s basic
values, perceptions, preferences, and
behaviors.
CHAPTER 4:
Managing
Marketing
Information to
Gain Customer
Insights
Customer insights: Fresh
understandings of customers
and the marketplace derived
from marketing information
that become the basis for
creating customer value and
relationships.
Focus group interviewing:
Personal interviewing that
involves inviting 6 to 10 people to
gather for a few hours with a
trained interviewer to talk about a
product, service, or organization.
The interviewer “focuses” the
group discussion on important
issues.
Sample: A segment
of the population
selected for
marketing research
to represent the
population as a
whole.
Customer relationship
management (CRM):
Managing detailed
information about
individual customers and
carefully managing
customer touch points to
maximize customer
loyalty
Marketing information system (MIS):
People and procedures dedicated to
assessing information needs,
developing the needed information,
and helping decision makers to use the
information to generate and validate
actionable customer and market
insights.
Internal databases: Electronic
collections of consumer and market
information obtained from data
sources within the company network
Competitive marketing intelligence:
The systematic collection and analysis
of publicly available information
about consumers, competitors, and
developments in the marketing
environment.
Marketing research: The
systematic design, collection,
analysis, and reporting of data
relevant to a specific marketing
situation facing an organization.
Exploratory research:
Marketing research to
gather preliminary
information that will
help define problems
and suggest
hypotheses.
Descriptive research: Marketing
research to better describe marketing
problems, situations, or markets,
such as the market potential for a
product or the demographics and
attitudes of consumers.
Causal
research:
Marketing
research to
test
hypotheses
Secondary data
Primary data
Online marketing research:
Collecting primary data online
through Internet surveys, online
focus groups, consumers’ online
behavior
Online focus groups: Gathering a
small group of people online
with a trained moderator to chat
about a product, service, or
organization and gain
qualitative insights about
consumer attitudes and
behavior
Observational research: Gathering
primary data by observing relevant
people, actions, and situations.
Ethnographic research: A form of
observational research that involves
sending trained observers to watch and
interact with consumers in their “natural
environments.”
Survey research: Gathering primary data
by asking people questions about their
knowledge, attitudes, preferences, and
buying behavior.