1.6 Chapter Summary

4 Ps of Marketing: A traditional view of marketing that a marketing plan is a mix of four components: product, promotion, place, and price.

Advertising: Is defined as promoting a product or service through the use of paid announcements (Dictionary.com, n.d.).

Behavioural Segmentation: What benefits do customers want, and how do they use the product?

Communicating: Means describing the offering and its value to your potential and current customers, as well as learning from customers what it is they want and like.

Creating: The process of collaborating with suppliers and customers to create offerings that have value.

Delivering: Providing offerings to the consumer in a way that optimizes value.

Demographic Segmentation: Segmenting buyers by personal characteristics such as age, income, ethnicity and nationality, education, occupation, religion, social class, and family size.

Digital Media: Combine advertising, direct marketing, and other areas of marketing to communicate directly with customers via social media, the web, and mobile media (including texts). They also work with statisticians in order to determine which consumers receive which message and with IT professionals to create the right look and feel of digital media.

Direct Channel: The shortest marketing channel consists of just two parties—a producer and a consumer.

Direct Marketing: Professionals in direct marketing communicate directly with customers about a company’s product offerings via channels such as e-mail, chat lines, telephone, or direct mail.

Disintermediation: You might be tempted to think middlemen or intermediaries are bad. If you can cut them out of the deal—a process marketing professionals call disintermediation—products can be sold more cheaply, can’t they? Large retailers, including Target and Walmart, sometimes bypass middlemen. Instead, they buy their products directly from manufacturers and then store and distribute them to their own retail outlets.

Event Marketing: Some marketing personnel plan special events, orchestrating face-to-face conversations with potential and current customers in a special setting.

Exchange/ Exchanging: Trading value for offerings, which can include cash for products and services; however, other exchanges can include trading information.

Geographic Segmentation: Divides the market into areas based on location and explains why the checkout clerks at stores sometimes ask for your zip code.

Hassle: Is the time and effort the consumer puts into the shopping process.

Indirect Channel: Channel that includes one or more intermediaries—say, a wholesaler, distributor, broker or agent.

Industrial Distributors: Firms that supply products that businesses or government departments and agencies use but don’t resell.

Logistics: The processes and networks used to move and store materials within supply chains and move products to their final destination.

Marketing: Is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing Concept: A philosophy underlying all that marketers do requires that marketers seek to satisfy customers’ wants and needs.

Marketing Mix: A marketing plan is a mix of product, promotion, place, and price.

Market-Oriented: Firms operating with the marketing concept.

Marketing Research: Personnel in marketing research are responsible for studying markets and customers in order to understand what strategies or tactics might work best for firms.

Merchandising: Merchandisers are responsible for developing strategies regarding what products wholesalers should carry to sell to retailers and how those products are displayed in stores.

Municipal facilities owned by the local municipal government, paid for by the taxpayers, are open to the public and are often the most cost-effective option to play the game.

Nonprofit Marketing: When an organization that is not pursuing a profit motive engages in marketing activities.

One-to-One Era: Competition is based on building relationships with customers one at a time and looking to serve each customer’s needs individually.

Personal Value Equation: IValue = benefits received − [price + hassle].

Place: Getting the product to a point at which the customer can purchase it (delivering).

Practice facilities offer an alternative to playing golf on a golf course, including driving ranges, short-game facilities, mini-golf, simulators, and gyms.

Private country club: is a membership organization for golf, recreation and social activities.

Product: Goods and services (creating offerings).

Product Development: People in product development are responsible for identifying and creating features that meet the needs of a firm’s customers. They often work with engineers or other technical personnel to ensure that value is created.

Production Orientated: Companies believed that a way to compete was to create products that were different from the competition, so many focused on product innovation. This focus on product innovation is called product orientation.

Promotion: An attempt by marketers to inform, persuade, or remind consumers to influence their opinion or elicit a response.

Price: The monetary amount charged for the product (exchanging).

Proximity Marketing: An interesting new technology firms are using to segment and target buyers geographically within a few hundred feet of their businesses using wireless technology

Psychographic Segmentation: What do customers think about and value? How do they live their lives?

Public golf courses: Courses open to the public and do not require a membership to book a tee time or use the facilities

Sales: Salespeople meet with customers, determine their needs, propose offerings, and make sure that the customer is satisfied. Sales departments can also include sales support teams who work on creating the offering.

Selling Orientation/Orientated: Companies who believe it is necessary to push products by heavily emphasizing advertising and selling.

Service-Dominant Logic: An approach to business that recognizes that consumers want value no matter how it is delivered, whether it’s via a product, a service, or a combination of the two.

Service-Dominant Logic Era: This is an approach to business that recognizes that consumers want value no matter how it is delivered, whether it’s via a product, a service, or a combination of the two.

Social Marketing: Marketing that is conducted in an effort to achieve certain social objectives.

Supply Chain: A number of organizations and functions that mine, make, assemble, or deliver materials and products from a manufacturer to consumers.

Target Market: The segment(s) or group(s) of people and organizations you decide to sell to.

Value: The benefits buyers receive that meet their needs- what the customer gets by purchasing and consuming a company’s offering.

Value Era: A time when companies emphasize creating value for customers.