MARKET  Individuals and organizations who are interested and willing to buy a particular product to obtain benefits that will satisfy a specific need or want, and who have the resources (time, money) to engage in such a transaction. (Mullins et.al.)  The set of all actual and potential buyers (and users-JK) of a particular product or service. (Kotler & Armstrong)

MARKETING  An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders. (AMA’s 2004 definition)

MARKETING (AMA’s definitions) 1935: The performance of business activities that direct the flow of goods and services from producers to consumers. 1960: No change on the 1935 definition. 1985:The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

CUSTOMER VALUE  The customer’s perception of what the product or service is really worth. (Mullins et.al.)  A ratio between what the customer gets and what they gives. (Kotler)

 CUSTOMER RELATIONSHIP MANAGEMENT (CRM) is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.  EXCHANGE is the act of obtaining a desired object from someone by offering something in return.

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 Needs  Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am hungry.  Wants  Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a hamburger, French fries, and a soft drink.  Demands  Demands - human wants backed by buying power. i.e. I have money to buy this meal.

CUSTOMER SATISFACTION  A person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations (Kotler & Keller, p.136)  Measuring Satisfaction: (-----, p.138) › Periodic survey › Customer lost rate › Mystery shoppers

CUSTOMER VALUE MIGRATION  The process of customers shifting their purchases away from products generated by outmoded business designs to new ones that offer superior value. (Cravens & Piercy)  The driving forces: › Technological changes › Economical changes › Cultural changes

 PRODUCTION CONCEPT. The idea that consumers will favor products that are available and highly affordable.  PRODUCT CONCEPT. The idea that consumers will favor products that offer the most in quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.  SELLING CONCEPT. The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.

 MARKETING CONCEPT. The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.  SOCIETAL MARKETING CONCEPT. A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long- run interests, and society’s long-run interests.

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