Chapter 1
Marketing: an organizational function and a set of processes for creating, capturing,
communication, and delivering value to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders
Marketing plan: a written document comprised of an analysis of the current marketing situation,
opportunities, and threats for the firm, marketing objectives and strategy specified in terms of the
four P’s, action programs, and projected or pro forma income (and other financial) statements
Exchange: the trade of things between the buyer and the seller so that each is better off as a result
Marketing mix (Four P’s): product, price, place, and promotion – the controllable set of activities
that a firm uses to respond to the wants of its target markets
Goods: items that can be physically touched
Services: any intangible offering that involves a deed, performance, or effort that cannot be
physically possessed, intangible customer benefits that are produced by people or machines and
cannot be separated from the producer
Ideas: intellectual concepts – thoughts, opinions, philosophies
Business-to-consumer marketing (B2C): the process in which businesses sell to customers
Business-to-business marketing (B2B): the process of buying and selling goods or services to be
used in consumption by the buying organization, or for resale by wholesalers and retailers
Consumer-to-consumer marketing (C2C): the process by which consumers sell to other
consumers
Value: reflects the relationship of benefits to costs, or what the consumer gets for what he or she
gives
Value cocreation: customers act as collaborators with a manufacturer or retailer to create the
product or service
Relational orientation: a method of building a relationship with customers based on the
philosophy that buyers and sellers should develop a long-term relationship
Customer relationship management (CRM): a business philosophy and set of strategies,
programs, and systems that focus on identifying and building loyalty among the firm’s most
valued customers
Chapter 2
,Marketing strategy: a firm’s target market, marketing mix, and method of obtaining a sustainable
competitive advantage
Sustainable competitive advantage: something the firm can persistently do better than its
competitors
Customer excellence: involves a focus on retaining loyal customers and excellent customer
service
Operational excellence: involves a firm’s focus on efficient operations and excellent supply chain
management
Product excellence: involves a focus on achieving high-quality products; effective branding and
positioning is key
Locational excellence: a method of achieving excellence by having a strong physical location
and/or internet presence
Planning phase: the part of the strategic marketing planning process when marketing executives,
in conjunction with other top managers 1) define the mission or vision of the business 2) evaluate
the situation by assessing how various players, both in and outside the organization, affect the
firm’s potential for success
Implementation phase: the part of the strategic marketing planning process when the marketing
managers 1) identify and evaluate different opportunities by engaging in segmentation, targeting,
and position and 2) implement the marketing mix using the four P’s
Control phase: the part of the strategic marketing planning process when managers evaluate the
performance of the marketing strategy and take any necessary corrective actions
Mission statement: a broad description of a firm’s objectives and the scope of activities it plans
to undertake; attempts to answer to main questions: what type of business is it? What does it
need to do to accomplish its goals and objectives?
Situation analysis: second step in marketing plan, uses a SWOT analysis
SWOT analysis: a method of conducting a situation analysis within a marketing plan in which
both the internal environment with regard to its Strengths and Weaknesses and the external
environment in terms of its Opportunities and Threats
Segmentation, targeting, and positioning (STP): firms use these processes to identify and
evaluate opportunities for increasing sales and profits
Market segment: a group of consumers who respond similarly to a firm’s marketing efforts
, Market segmentation: the process of dividing the market into groups of customers with different
needs, wants, or characteristics – who therefore might appreciate products or services geared
especially for them
Target marketing or targeting: the process of the attractiveness of various segments and then
deciding which to pursue a market
Marketing positioning: involves the process of defining the marketing mix variables so that
target customers have a clear, distinctive, desirable understanding of what the product does or
represents in comparison with competing products
Integrated marketing communications (IMC): represents the promotion dimension of the four
P’s; encompasses a variety of communication disciplines – general advertising, personal selling,
sales promotion, public relations, direct marketing, and electronic media – in combination to
provide clarity, consistency, and maximum communicative impact
Metric: a measuring system that quantifies a trend, dynamic, or characteristic
Strategic business unit (SBU): a division of the firm itself can be managed and operated
somewhat independently from other divisions and may have a different mission or objectives
Product lines: groups of associated items, such as those that consumers use together or think of
as part of a group of similar products
Market share: percentage of market accounted for by a specific entity
Relative market share: a measure of the product’s strength in a particular market, defined as the
sales of the focal product divided by the sales achieved by the largest firm in the industry
Market growth rate: the annual rate of growth of the specific market in which the product
competes
Market penetration strategy: a growth strategy that employs the existing the existing marketing
mix and focuses the firm’s efforts on existing customers
Market development strategy: a growth strategy that employs the existing marketing offering to
reach new market segments, whether domestic or international
Product development strategy: a growth strategy that offers a new product or service to a firm’s
current target market
Diversification strategy: a growth strategy whereby a firm introduces a new product or service to
a market segment that it does not currently serve
Related diversification: a growth strategy whereby the current target market and/or marketing
mix shares something in common with the new opportunity
Marketing: an organizational function and a set of processes for creating, capturing,
communication, and delivering value to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders
Marketing plan: a written document comprised of an analysis of the current marketing situation,
opportunities, and threats for the firm, marketing objectives and strategy specified in terms of the
four P’s, action programs, and projected or pro forma income (and other financial) statements
Exchange: the trade of things between the buyer and the seller so that each is better off as a result
Marketing mix (Four P’s): product, price, place, and promotion – the controllable set of activities
that a firm uses to respond to the wants of its target markets
Goods: items that can be physically touched
Services: any intangible offering that involves a deed, performance, or effort that cannot be
physically possessed, intangible customer benefits that are produced by people or machines and
cannot be separated from the producer
Ideas: intellectual concepts – thoughts, opinions, philosophies
Business-to-consumer marketing (B2C): the process in which businesses sell to customers
Business-to-business marketing (B2B): the process of buying and selling goods or services to be
used in consumption by the buying organization, or for resale by wholesalers and retailers
Consumer-to-consumer marketing (C2C): the process by which consumers sell to other
consumers
Value: reflects the relationship of benefits to costs, or what the consumer gets for what he or she
gives
Value cocreation: customers act as collaborators with a manufacturer or retailer to create the
product or service
Relational orientation: a method of building a relationship with customers based on the
philosophy that buyers and sellers should develop a long-term relationship
Customer relationship management (CRM): a business philosophy and set of strategies,
programs, and systems that focus on identifying and building loyalty among the firm’s most
valued customers
Chapter 2
,Marketing strategy: a firm’s target market, marketing mix, and method of obtaining a sustainable
competitive advantage
Sustainable competitive advantage: something the firm can persistently do better than its
competitors
Customer excellence: involves a focus on retaining loyal customers and excellent customer
service
Operational excellence: involves a firm’s focus on efficient operations and excellent supply chain
management
Product excellence: involves a focus on achieving high-quality products; effective branding and
positioning is key
Locational excellence: a method of achieving excellence by having a strong physical location
and/or internet presence
Planning phase: the part of the strategic marketing planning process when marketing executives,
in conjunction with other top managers 1) define the mission or vision of the business 2) evaluate
the situation by assessing how various players, both in and outside the organization, affect the
firm’s potential for success
Implementation phase: the part of the strategic marketing planning process when the marketing
managers 1) identify and evaluate different opportunities by engaging in segmentation, targeting,
and position and 2) implement the marketing mix using the four P’s
Control phase: the part of the strategic marketing planning process when managers evaluate the
performance of the marketing strategy and take any necessary corrective actions
Mission statement: a broad description of a firm’s objectives and the scope of activities it plans
to undertake; attempts to answer to main questions: what type of business is it? What does it
need to do to accomplish its goals and objectives?
Situation analysis: second step in marketing plan, uses a SWOT analysis
SWOT analysis: a method of conducting a situation analysis within a marketing plan in which
both the internal environment with regard to its Strengths and Weaknesses and the external
environment in terms of its Opportunities and Threats
Segmentation, targeting, and positioning (STP): firms use these processes to identify and
evaluate opportunities for increasing sales and profits
Market segment: a group of consumers who respond similarly to a firm’s marketing efforts
, Market segmentation: the process of dividing the market into groups of customers with different
needs, wants, or characteristics – who therefore might appreciate products or services geared
especially for them
Target marketing or targeting: the process of the attractiveness of various segments and then
deciding which to pursue a market
Marketing positioning: involves the process of defining the marketing mix variables so that
target customers have a clear, distinctive, desirable understanding of what the product does or
represents in comparison with competing products
Integrated marketing communications (IMC): represents the promotion dimension of the four
P’s; encompasses a variety of communication disciplines – general advertising, personal selling,
sales promotion, public relations, direct marketing, and electronic media – in combination to
provide clarity, consistency, and maximum communicative impact
Metric: a measuring system that quantifies a trend, dynamic, or characteristic
Strategic business unit (SBU): a division of the firm itself can be managed and operated
somewhat independently from other divisions and may have a different mission or objectives
Product lines: groups of associated items, such as those that consumers use together or think of
as part of a group of similar products
Market share: percentage of market accounted for by a specific entity
Relative market share: a measure of the product’s strength in a particular market, defined as the
sales of the focal product divided by the sales achieved by the largest firm in the industry
Market growth rate: the annual rate of growth of the specific market in which the product
competes
Market penetration strategy: a growth strategy that employs the existing the existing marketing
mix and focuses the firm’s efforts on existing customers
Market development strategy: a growth strategy that employs the existing marketing offering to
reach new market segments, whether domestic or international
Product development strategy: a growth strategy that offers a new product or service to a firm’s
current target market
Diversification strategy: a growth strategy whereby a firm introduces a new product or service to
a market segment that it does not currently serve
Related diversification: a growth strategy whereby the current target market and/or marketing
mix shares something in common with the new opportunity
