Business Terms and Explanations
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Value: the benefits a customer receives from buying a good or service
Marketing is a fundamental part of our lives both as consumers and as players in the business world
A marketer’s decisions affect—and are affected by—the firm’s other operations and departments
Marketing: an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders
Marketing is all about delivering value to everyone who is affected by a transaction
Stakeholders: buyers, sellers, or investors in a company, community residents, and even citizens of the nations where goods and services are make or sold—in other words, any person or organization that has a “stake” in the outcome
Consumer: the ultimate user of a good or service
Marketing concept: a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long term profitability
Need: the recognition of any difference between a consumer’s actual state and some ideal or desired state
Want: the desire to satisfy needs in specific ways that are culturally and socially influenced
Benefit: the outcome sought by a customer that motivates buying behavior—that satisfies a need or want
Market: all the customers and potential customers who share a common need that can be satisfied by a specific product, who are the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange
Marketplace: any location or medium used to conduct any exchange
Virtual goods: digital products consumers buy for use in online contexts
Utility: the usefulness or benefit consumers receive from a product; creates value
Form utility: the benefit marketing provides by transforming raw materials into finished products ex) when a dress manufacturer combines silk, thread, and zippers to create a bride’s gown
Place utility: the benefit marketing provides by making products available where customers want them
Time utility: the benefit marketing provides by storing products until they are needed
Possession utility: the benefit marketing provides by allowing the consumer to own, use, and enjoy the product
Exchange: the process by which some transfer of value occurs between a buyer and a seller
Product: a tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, function, benefits, and uses—whatever is offered for sale in the exchange
Production orientation: a management philosophy that emphasizes the most efficient ways to produce and distribute products
Firms that focus on production orientation tend to view the market as a homogeneous group that will be satisfied with the basic function of a product
Selling orientation: a managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory
Tend to me more successful at making one time sales rather than at building repeat business
Consumer orientation: a business approach that prioritizes the satisfaction of customers’ needs and wants
Total Quality Management(TQM): a management philosophy that focuses on satisfying customers through empowering employees to be active part of continuous quality improvement
Instapreneur: a businessperson who only produces a product when it is ordered
Just in time
On demand
Triple bottom line orientation: a business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices—building long term relationships with customers rather than just selling them stuff
the financial bottom line: financial profits to stakeholders
the social bottom line: contributing to the communities in which the company operates
the environmental bottom line: creating sustainable business practices that minimize damage to the environment or that even improve it
customer relationship management(CRM): a systematic tracking of consumer’s preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual’s unique wants and needs. CRM allows firms to talk to individual customers and to adjust elements of their marketing programs in light of how each customer reacts
attention ceremony: a company’s success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs rather than just dollars
social marketing concept: a management philosophy that marketers must satisfy customers’ needs in ways that also benefit society and also deliver profit to the firm
sustainability: a product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs
AKA cradle to cradle
Green marketing: a marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers
Internet is the most popular medium for green marketing
Return on investment(ROI): the direct financial impact of a firm’s expenditure of a resources such as time or money
Popular culture: the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market
Ex) tv dinner signaled change in family structures, condoms marketed in pastel colors intended for female buyers signaled changing attitudes toward sexual responsibility