Title: 1 Key Terms
Course: Principles of Marketing > Section: Chapter 1

Key Terms

5Ms of marketing

internal elements of a marketing plan that need to be resolved if the plan is successful

buyer

a person or institution that purchases goods or services

consumer

the final user of a purchased product or service

customer

a person who purchases a product or service

customer equity

total combined customer lifetime values of all the company’s customers

customer loyalty

an ongoing positive relationship between a customer and a business

customer relationship management (CRM)

all strategies, techniques, tools, and technologies used by companies to develop, acquire, and retain customers

customer retention

the ability of a company to turn customers into repeat buyers and prevent them from switching to a competitor

customer value

the ratio of the perceived benefits relative to the costs incurred by the customer in acquiring the product or service

customer-driven marketing strategy

a marketing strategy that shifts the focus from the product or service to its users

delight needs

an added value that a customer might receive from a seller without prior expectation or request for the same

desired object

a physical good, service, or experience that consumers expect will satisfy their wants and/or needs

ethical marketing

process that emphasizes trustworthy, transparent, social, and culturally sensitive marketing policies

exchange process

the process of satisfying a need or want by giving something of value in exchange

external interested parties

a person or organization that does not have a direct relationship with a company but is affected by the operations of the business

form utility

the value given to a product by virtue of the fact that the materials and components that comprise it have been combined to make the finished product

interested parties

a group that has an interest in a company or organization and can either affect or be affected by it; often referred to as “stakeholders”

internal interested parties

those persons whose interest in a company comes through a direct relationship such as employment, ownership, or investment

internal marketing

the promotion of a company’s objectives, products, and services to internal parties, such as employees, owners, managers, and shareholders

internet advertising

a set of tools for delivering promotional messages to people worldwide, using the internet as a global marketing platform

macroenvironment

the set of external factors and forces, not controlled by the company, that influence its operations

marketing

the activities a company undertakes to promote the buying or selling of a product or service

marketing concept

marketing philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs better than the competition

marketing environment

all of the internal and external factors that drive and influence an organization’s marketing activities

marketing mix

the set of actions or tactics that a company uses to promote its brand or product in the market

marketing process

the series of steps that assist businesses in planning, analyzing, implementing, and adjusting their marketing strategy

marketing strategy

a plan of action designed to promote or sell a product or service

microenvironment

those factors or elements in a firm’s immediate environment that affect its performance and decision-making

organizational culture

beliefs and behaviors that determine how a company’s employees and management interact and handle customer relationships

PESTLE analysis

a strategic framework used to assess the political, economic, social, technological, legal, and environmental factors affecting an organization

place

the geographical location in which the company sells its products and/or provides its services

place utility

making goods and/or services physically available or accessible to potential customers

possession utility

the amount of usefulness or perceived value from owning a product

price

the cost that consumers pay in order to acquire a product or service

product

anything that can be offered to a market that might satisfy a want or need

product concept

the orientation that consumers will favor those products that offer the most quality, performance, or innovative features

production concept

the orientation that consumers will always acquire products that are cheaper and more readily available

promotion

any type of marketing communication used to inform audiences of the relative merits or a product, service, or brand

real needs

the value the customer is going to derive from the stated good or service

retailers

companies that purchase large quantities of goods from producers and then sell smaller quantities to end customers for personal use or consumption

sales concept

orientation that analyzes buying and selling effects to place the focus primarily on generating sales transactions

secret needs

the needs that the consumer feels reluctant to admit

seller

the individual or organization that supplies the need-satisfying product, service, or experience

societal marketing concept

philosophy that a company should make marketing decisions by considering not only consumers’ wants and the company’s capabilities but also society’s long-term interests

stated needs

those product or service needs that are clearly specified by the customer

suppliers

sometimes also called vendors, these are partners from whom we receive the parts and products necessary for our business

time utility

adding value to the consumer by having the product or service available when the consumer needs it

unstated needs

those needs that are not obvious but are expected by the customer

utility

how a product can be useful to customers in a way that convinces them to make a purchase

value

the difference between a customer’s evaluation of the benefits and costs of one product when compared with others

value proposition

a promise of value to be delivered, communicated, and acknowledged

wholesalers

companies that purchase large quantities of products from producers and then sell to smaller businesses, such as retail stores