Ninth Edition. Ninth Edition

Chapter 12

The Ar and Science of Marketing

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12.1 Define _marketing and explain its role in society.

12.2 Identify five trends that help define contemporary marketing.

12.3 Differentiate between consumer buying behavio and organizational buying behavior.

12.4 Describe _strategic marketing planning. and identify the four basic options for pursuing new marketing opportunities.

12.5 Identify the four steps in crafting a marketing strategy.

12.6 Describe the four main components of the marketing mix.

12.7 Define _marketing analytics. and characterize its use in contemporary marketing.

• Marketing
  • The process of creating value for customer and building relationships with those customers in order to capture value back from them

• Needs

  • Differences between a person’s actual stat and his or her ideal state; they provide the basic motivation to make a purchase

• Wants

  • Specific goods. services. experiences. or other entities that are desirable in light of a person’s experiences. culture and personality

• Exchange process

  • The act of obtaining a desired object or service from another party by offering something of value in return

• Transaction

  • An exchange of value between parties

• Utility

  • The power of a good or service to satisfy a human need
  • Form. time. place. possession

• Marketing concept

  • An approach to business management that stresses customer need and wants. seeks long.term profitability and integrates marketing with other functional units within the organization

• Relationship marketing

  • A focus on developin and maintaining long.term relationships with customers. suppliers and distribution partners for mutual benefit

• Customer loyalty

  • The degree to which customers continue to buy from a particular retailer or buy the products of a particular manufacturer or service provider

Involving the customer in the marketing process

Making data.driven decisions

Conducting marketing activities with greater concern for _ethics and etiquette

• Customer Relationship Management .C R M.
  • A type of information system that captures. organizes and capitalizes on all the interactions that a company has with its customers
• Social commerce
  • The creatio and sharing of product.related information among customer and potential customers
• Voice of the Customer V o C
  • Everything that curren and potential customers are sayin and writing about a compan and its products; also refers to efforts to capture all this feedback

• Attribution
  • The contribution a given marketing activity makes to sale and other marketing goals
• Marketing research
  • The collectio and analysis of information for making marketing decisions
  • Observation. surveys. interviews. focus groups

• Permission.based marketing
  • A marketing approach in which firms first ask permission to deliver messages to an audienc and then promise to restrict their communication efforts to those subject areas in which audience members have expressed interest

• Consumer market
  • Individuals or households that buy good and services for personal use
• Organizational market
  • Companies. government agencies and other organizations that buy good and services either to resell or to use in the creation of their own good and services

• Cognitive dissonance
  • Tension that exists when a person’s beliefs don’t match his or her behaviors
  • Common example is buyer ’ s remorse . when someone regrets a purchase immediately after making it

Culture

Socioeconomic level

Reference groups

Situational factors

Self.image

An emphasis on _economic payback and other rational factors

A formal buying process

Greater complexity in product usage

The participatio and influence of multiple people

Close relationships between buyer and sellers

• Strategic marketing planning
  • The process of examining an organization’s current marketing situation. assessing opportunitie and setting objectives and then developing a marketing strategy to reach those objectives

• Market penetration

  • Selling more of a firm’s existing products in the markets it already serves

• Product development

  • Creating new products for a firm’s current markets

• Market development

  • Selling existing products to new markets

• Diversification

  • Creating new products for new markets

• Market share

  • A firm’s portion of the total sales in a market

• Marketing Strategy

  • An overall plan for marketing a product; includes the identification of target market segments. a positioning strategy and a marketing mix

• Market

  • A group of customers who need or want a particular produc and have the money to buy it

• Market segmentation

  • The division of a diverse market into smaller. relatively homogeneous groups with similar needs. wants and purchase behaviors

• Demographics

  • The study of statistical characteristics of a population

• Psychographics

  • Classification of customers on the basis of their psychological makeup. interests and lifestyles

• Geographic segmentation

  • Categorization of customers according to their geographical location

• Behavioral segmentation

  • Categorization of customers according to their relationship with products or response to product characteristics

• Target markets
  • Specific customer groups or segments to whom a company wants to sell a particular product
  • Undifferentiated. differentiated. concentrated and individualized

• Positioning
  • Managing a business in a way designed to occupy a particular place in the minds of target customers

• Marketing mix
  • The four key elements of marketing strategy: product. price. distribution and customer communication

• Product

  • A bundle of value that satisfies a customer need or want

• Price

  • The amount of money charged for a product or service

• Distribution channels

  • Systems for moving good and services from producers to customers
  • Also known as marketing channels

• Promotion

  • A wide variety of persuasive techniques used by companies to communicate with their target market and the general public

• Marketing analytics
  • A range of analytical tool and techniques that help marketers pla and evaluate marketing activities

Define _marketing and explain its role in society.

Identify three trends that help define contemporary marketing.

Differentiate between consumer buying behavio and organizational buying behavior.

Define _strategic marketing planning and identify the four basic options for pursuing new marketing opportunities.

Identify the four steps in crafting a marketing strategy.

Describe the four main components of the marketing mix.

Define marketing analytic and characterize its use in contemporary marketing.