1.6 Key Terms

4 Ps of Marketing: A traditional view of marketing that a marketing plan is a mix of four components: product, promotion, place, and price. 1.1

Advertising: Is defined as promoting a product or service through the use of paid announcements.^[1]. 1.3

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. 1.1

Creating: The process of collaborating with suppliers and customers to create offerings that have value. 1.1

Delivering: Providing offerings to the consumer in a way that optimizes value. 1.1

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. 1.3

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. 1.3

Ethics and Social Responsibility: The idea that companies should manage their businesses not just to earn profits but to advance the well-being of society. 1.4

Event Marketing: Some marketing personnel plan special events, orchestrating face-to-face conversations with potential and current customers in a special setting. 1.3

Exchange/ Exchanging: Trading value for offerings, which can include cash for products and services; however, other exchanges can include trading information. 1.1

Global Environment: Every business is influenced by global issues. 1.4

Hassle: Is the time and effort the consumer puts into the shopping process. 1.1

Logistics: The processes and networks used to move and store materials within supply chains and move products to their final destination. 1.1

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. 1.1

Marketing Concept: A philosophy underlying all that marketers do, requires that marketers seek to satisfy customer wants and needs. 1.1

Marketing Era: When the concept of marketing was developed during 1950 to 1990. 1.1

Marketing Mix: A marketing plan is a mix of product, promotion, place, and price. 1.1

Marketing Plan: The strategy for implementing the components of marketing: creating, communicating, delivering, and exchanging value. 1.3

Market-Oriented: Firms operating with the marketing concept. 1.1

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. 1.3

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. 1.3

Metrics: Data for evaluating a firm’s performance. 1.4

Nonprofit Marketing: When an organization that is not pursing a profit motive engages in marketing activities. 1.3

Offering: When you compare one car to another, for example, you can evaluate each of these dimensions—the tangible, the intangible, and the price—separately. 1.1

One-to-One Era: Competition based on building relationships with customers one at a time and looking to serve each customer’s needs individually. 1.1

Personal Value Equation: IValue = benefits received – [price + hassle]. 1.1

Place: Getting the product to a point at which the customer can purchase it (delivering). 1.1

Product: Goods and services (creating offerings). 1.1

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. 1.3

Production Orientated: Companies believed that a way to compete was to create products different from the competition, so many focused on product innovation. This focus on product innovation is called product orientation. 1.1

Production Orientation: Companies who focus on product innovation. 1.1

Production Era: Lasted until the 1920s, when production-capacity growth began to outpace demand growth and new strategies were called for. 1.1

Promotion: An attempt by marketers to inform, persuade, or remind consumers to influence their opinion or elicit a response. 1.1

Price: The monetary amount charged for the product (exchanging). 1.1

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. 1.3

Selling Orientation/Orientated: Companies who believe it is necessary to push products by heavily emphasizing advertising and selling. 1.1

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. 1.1

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. 1.1

Social Marketing: Marketing that is conducted in an effort to achieve certain social objectives. 1.2

Supply Chain: A number of organizations and functions that mine, make, assemble, or deliver materials and products from a manufacturer to consumers. 1.1

Sustainability: An example of social responsibility that involves engaging in practices that do not diminish the earth’s resources. 1.4

Value: The benefits buyers receive that meet their needs- what the customer gets by purchasing and consuming a company’s offering. 1.1

Value Era: A time when companies emphasize creating value for customers. 1.1