Marketing: definitions (chapter 1 – 17)
CHAPTER 1 Marketing principles and practices
Marketing A social and managerial process by which individuals &
groups obtain what they need through creating and
exchanging products and value to build and maintain
profitable customer relationships
Customer value = The value of a products based on how it meets the
perceived value customer’s needs & expectations
Exchange The act of obtaining a desired object from someone by
offering something in return to create value and give
people more consumption choices
Market orientation The organization-wide belief in delivering customer
value by understanding the consumer needs even
better than the consumers themselves do & in creating
products that meet existing and latent needs (now or
in the future)
Macromarketing The study of the effect that marketing processes,
activities and institutions have on the economy and
the society of a nation
Sales Turn viewership into profits by converting potential into
actual customers (small part of marketing)
Relationship Shift towards retaining customers on long-term by
marketing better management of customer relationships
(without transaction)
Customer Acquiring detailed information of individual customers
relationship to build and manage customer relationships by
marketing (CRM) delivering superior value
Customer lifetime Prediction of all the value a business will derive from
value their entire relationship with a customer
Service-dominant A marketing model that sees service as the
logic fundamental basis of exchange (competition on
service, not on price)
Co-creation The joint creation of value in which customers take
part in an active dialogue and co-construct
personalized experiences to differentiate on service
Market automation Automated transformation from possible customers
(MA) (leads) to actual customers
CHAPTER 2 The marketing environment
Marketing Actors and influences outside of marketing that
environment influence marketing’s abilities to build and maintain
successful relationships with selected clients
Environmental The process of gathering information about a
scanning company’s external events and relationships to help
top management in making decisions & developing a
, course of action (3 stages)
‘demographic’ The study of human population in terms of size,
(DESTEP) density, location, age, education, gender, race and
profession
‘economic’ The factors that affect consumer buying power and
(DESTEP) spending patterns
‘socio-cultural’ The institutions and other forces that affect society’s
(DESTEP) basic values, perceptions, preferences and behaviors
Culture The reflection of values and norms in a society
Global consumer People are united by their common devotion to brand-
culture named consumer goods, movie/rock stars and service
(eg. Disney)
‘technological’ The forces that create new technologies, new products
(DESTEP) and new market opportunities (everything
changes faster)
Disruptive An innovation that disrupts an existing market and
innovation value network by creating a new market and value
network
Crowdsourcing = Identifying a task or tasks conducted in-house & then
outsourcing release it to a “crowd” of outsiders who will perform
the task(s) on behalf of the company
‘ecological’ The natural resources needed as inputs or affected by
(DESTEP) marketing activities
‘political-legal’ The laws, government agencies and pressure groups
(DESTEP) that influence & limit organizations and individuals in a
society
Internal/micro- The resources, processes and policies with which an
environment organization manages to achieve its goals (eg.
R&D)
Strategic business Part of an organization with their own mission and
unit objectives, that operates independently from other
activities
Boston Box One of the most popular methods for assessing variety
in the products an organization has
Performance The organizations that (in)directly shape the way an
environment organization achieves their objectives
Stakeholders Everyone with effective or potential interest in / impact
on the organization
Industry A collection of all suppliers of a certain product
Marketing audit An audit that considers marketing health & brings
together views about the 3 levels of the marketing
environment
Marketing A quantifiable way to track performance to help brands
performance determine whether campaigns are successful & give
metrics insights to future campaigns
CHAPTER 3 Consumer buying behavior
Confirmation bias The tendency to recall & favor information that
supports previously held beliefs and values
CHAPTER 1 Marketing principles and practices
Marketing A social and managerial process by which individuals &
groups obtain what they need through creating and
exchanging products and value to build and maintain
profitable customer relationships
Customer value = The value of a products based on how it meets the
perceived value customer’s needs & expectations
Exchange The act of obtaining a desired object from someone by
offering something in return to create value and give
people more consumption choices
Market orientation The organization-wide belief in delivering customer
value by understanding the consumer needs even
better than the consumers themselves do & in creating
products that meet existing and latent needs (now or
in the future)
Macromarketing The study of the effect that marketing processes,
activities and institutions have on the economy and
the society of a nation
Sales Turn viewership into profits by converting potential into
actual customers (small part of marketing)
Relationship Shift towards retaining customers on long-term by
marketing better management of customer relationships
(without transaction)
Customer Acquiring detailed information of individual customers
relationship to build and manage customer relationships by
marketing (CRM) delivering superior value
Customer lifetime Prediction of all the value a business will derive from
value their entire relationship with a customer
Service-dominant A marketing model that sees service as the
logic fundamental basis of exchange (competition on
service, not on price)
Co-creation The joint creation of value in which customers take
part in an active dialogue and co-construct
personalized experiences to differentiate on service
Market automation Automated transformation from possible customers
(MA) (leads) to actual customers
CHAPTER 2 The marketing environment
Marketing Actors and influences outside of marketing that
environment influence marketing’s abilities to build and maintain
successful relationships with selected clients
Environmental The process of gathering information about a
scanning company’s external events and relationships to help
top management in making decisions & developing a
, course of action (3 stages)
‘demographic’ The study of human population in terms of size,
(DESTEP) density, location, age, education, gender, race and
profession
‘economic’ The factors that affect consumer buying power and
(DESTEP) spending patterns
‘socio-cultural’ The institutions and other forces that affect society’s
(DESTEP) basic values, perceptions, preferences and behaviors
Culture The reflection of values and norms in a society
Global consumer People are united by their common devotion to brand-
culture named consumer goods, movie/rock stars and service
(eg. Disney)
‘technological’ The forces that create new technologies, new products
(DESTEP) and new market opportunities (everything
changes faster)
Disruptive An innovation that disrupts an existing market and
innovation value network by creating a new market and value
network
Crowdsourcing = Identifying a task or tasks conducted in-house & then
outsourcing release it to a “crowd” of outsiders who will perform
the task(s) on behalf of the company
‘ecological’ The natural resources needed as inputs or affected by
(DESTEP) marketing activities
‘political-legal’ The laws, government agencies and pressure groups
(DESTEP) that influence & limit organizations and individuals in a
society
Internal/micro- The resources, processes and policies with which an
environment organization manages to achieve its goals (eg.
R&D)
Strategic business Part of an organization with their own mission and
unit objectives, that operates independently from other
activities
Boston Box One of the most popular methods for assessing variety
in the products an organization has
Performance The organizations that (in)directly shape the way an
environment organization achieves their objectives
Stakeholders Everyone with effective or potential interest in / impact
on the organization
Industry A collection of all suppliers of a certain product
Marketing audit An audit that considers marketing health & brings
together views about the 3 levels of the marketing
environment
Marketing A quantifiable way to track performance to help brands
performance determine whether campaigns are successful & give
metrics insights to future campaigns
CHAPTER 3 Consumer buying behavior
Confirmation bias The tendency to recall & favor information that
supports previously held beliefs and values
