Chapter One: Overview of Marketing
September 5, 2012
B2B (Business-to-Business): The process of selling merchandise or services from
one business to another.
B2C (Business-to-Consumer): The process in which businesses sell to consumers.
C2C (Consumer-to-Consumer): The process in which consumers sell to other
Customer Relationship Management: A business philosophy and set of strategies,
programs, and systems that focus on identifying and building loyalty among the
firm’s most-valued customers.
Exchange: The trade of things of value between the buyer and the seller so that
each is better off as a result.
Goods: Items that can be physically touched.
Ideas: Include thoughts, opinions, philosophies, and intellectual concepts.
Market: Refers to the groups of people who need or want a company’s products or
services and have the ability to buy them.
Marketing: A set of business practices designed to plan for and present an
organization’s products or services in ways that build effective customer
Marketing Mix: Product, Price, Place, and Promotion – the controllable set of
activities that a firm uses to respond to the wants of its target markets.
Marketing Plan: A written document composed of an analysis of the current
marketing situation, opportunities and threats for the firm, marketing objectives
and strategy specified in terms of the 4 Ps, action programs, and projected or pro
forma income (and other financial) statements.
Need: A person’s feeling physiologically deprived of basic necessities, such as food,
clothing, shelter, and safety.
Price: The overall sacrifice a consumer is willing to make – money, time, energy – to
acquire a specific 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.
Services: Intangible customer benefits that are produced by people or machines
and cannot be separated from the producer.
Social Media: The use of internet tools to easily and quickly create and share
content to foster dialogue, social relationships, and personal identities.
Supply Chain: The group of firms and set of techniques and approaches firms use to
make and deliver a given set of goods and services.
Target Market: The customer segment or group to whom the firm is interested in
selling its products and services.
Transactional Orientation: Regards the buyer-seller relationship as a series of
individual transactions, so anything that happened before or after the transaction is
of little importance.
Value: Reflects the relationship of benefits to costs, or what the consumer gets for
what they give.
Value-Based Marketing: Focuses on providing customers with benefits that far
exceed the cost (money, time, effort) of acquiring and using a product or service
while providing a reasonable return to the firm.
Want: The particular way in which a person chooses to satisfy a need, which is
shaped by a person’s knowledge, culture, and personality.
What is Marketing? Marketing Is About Satisfying Customer Needs and Wants
To understand customer needs and wants, the company must first identify
the customers or market for its product or service.
It is not practical to market products or services to everyone thus, marketers
divide the market into subgroups (e.g. makers of Crest make specialized
toothpastes; kids, sensitive teeth, etc.
Marketing Entails Value Exchange
The trade of things of value between buyer and seller so each is better off as
Sellers provide goods/services, then co