Contemporary Marketing Chapter 1

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1.

Utility: The want satisfying power of a good or service

18.

2.

Four Types of Utility: 1. Form

2. Time
3. Place
4. Ownership (Possession)

Sales Orientation: Belief that consumers will resist purchasing

nonessential goods & services, with the attitude toward
marketing that only creative advertising & personal selling can
overcome consumers resistance & persuade them to buy

19.

3.

Form Utility: Conversion of raw materials & components into

finished goods & services

Seller's Market: A market in which there are more buyers for

fewer goods & services

20.

4.

Time Utility: Availability of goods & services when consumers

want them

Buyer's Market: A market in which there are more goods &

services than people willing to buy them

21.

Consumer Orientation: Business philosophy incorporating the

marketing concept that emphasizes first determining unmet
consumer needs & then designing a system for satisfying them

5.

Place Utility: Availability of goods & services at convenient

locations

6.

Ownership (Possession) Utility: Ability to transfer title to goods

or services from marketer to buyer

22.

Marketing Concept: Companywide consumer orientation with the

objective of achieving long-run success

7.

Six Activities Necessary to Create the Customers the

Organization Wants: 1. Identify customer needs
2. Design products that meet those needs
3. Communicating information about those goods & services to
prospective buyers
4. Making the items available at times & places that meet
customer needs
5. Pricing merchandise and & services to reflect costs,
competition, & customers ability to buy
6. Providing the necessary service & follow-up to ensure
customer satisfaction after the purchase

23.

Relationship Marketing: Development & maintenance of longterm, cost effective relationships with individual customers,
suppliers, employees, & other partners for mutual benefit

24.

Marketing Myopia: Management's failure to recognize the scope

of its business

25.

Bottom Line: Reference to overall company profitability

26.

Five Categories of Nontraditional Marketing: 1. Person

2. Place
3. Cause
4. Event
5. Organization

27.

Person Marketing: Marketing efforts designed to cultivate the

attention, interest, & preference of a target market toward a
person (perhaps a political candidate or a celebrity)

28.

Place Marketing: Marketing efforts designed to attract visitors

to a particular area; improve consumer images of a city, stater,
or nation; and/or attract new business

29.

Cause Marketing: Identification & marketing of a social issue,

cause, or idea to selected target markets

30.

Event Marketing: Marketing of sporting, cultural, & charitable

activities to selected target markets

31.

Organization Marketing: Marketing by mutual-benefit

organizations, service organizations, & government
organizations intended to persuade others to accept their goals,
receive their services, or contribute to them in some way

8.

Marketing: An organizational function & set of processes for

creating, communicating, & delivering value to customers & for
managing customer relationships in ways that benefit the
organization & its stakeholders

9.

Three Factors That Have Forced Marketers to Extend Their

Economic Views Into the Global Marketplace: 1. International
agreements
2. The growth of electronic business & related computer
technologies
3. Interdependence of the worlds economies is a reality
because no nation produces all of the raw materials & finished
goods its citizens need or consumes all of its output without
exporting some to other countries

10.

Exchange Process: In which two or more parties give something

of value to each other to satisfy perceived needs

11.

Five Eras in the History of Marketing: 1. Production

2. Sales
3. Marketing
4. Relationship
5. Social

32.

Transaction-Based Marketing: Buyer & seller exchanges

characterized by limited communications & little or no ongoing
relationships between the parties

33.

Mobile Marketing: Marketing messages transmitted via wireless

technology

12.

Production Era: "A good product will sell itself"

34.

13.

Sales Era: "Creative advertising & selling will overcome

consumers resistance & persuade them to buy"

14.

Marketing Era: "The consumer rules! Find a need & fill it"

Interactive Marketing: Buyer-seller communications in which

the customer controls the amount & type of information received
from a marketer through such channels as the internet & vital
reality kiosks

15.

Relationship Era: "Long-term relationships with customers &

other partners lead to success"

35.

Social Marketing: The use of online social media as a

communications channel for marketing messages

16.

Social Era: "Connecting to consumers via internet & social

media sites is an effective tool"

36.

17.

Production Orientation: Business philosophy stressing

efficiency in producing a quality product, with the attitude
toward marketing that "a good product will sell itself"

Strategic Alliances: Partnerships in which two or more

companies combine resources & capital to create competitive
advantages in a new market

37.

Wholesalers: Intermediaries that operate between producers &

resellers

38.

Exchange Functions: Buying & selling

39.

Eight Universal Marketing Functions: 1. Buying

2. Selling
3. Standardizing & Grading
4. Financing
5. Transporting
6. Storing
7. Risk Taking
8. Securing Marketing Information

40.

Buying: Ensuring that product offering are available in sufficient quantities to meet customer demands

41.

Selling: Using advertising, personal selling, & sales promotion to match products to customer needs

42.

Transporting: Moving products from their point of production to locations convenient for purchasers

43.

Storing: Warehousing products until needed for sale

44.

Standardizing & Grading: Ensuring that product offering meet quality & quantity controls of size, weight, & other variables

45.

Financing: Providing credit for channel members (wholesalers & retailers) & consumers

46.

Risk Taking: Dealing with uncertainty about future customer purchases

47.

Securing Marketing Information: Collecting information about consumers, competitors, & channel members for use in making marketing
decisions

48.

Ethics: Moral standards of behavior expected by a society

49.

Social Responsibility: Marketing philosophies, policies, procedures, & actions that have the enhancement of society's welfare as a
primary objective

50.

Sustainable Products: Products that can be produced, used, & disposed of with minimal impact on the environment