Study Guide for Chapter 11
Introduction to Business * Marketing- an organizational function and a set of processes for creating, communicating, and delivering value for customers and for managing customer relationships in ways that benefit the organization and its stakeholders. * Utility- the ability of goods and services to satisfy consumer “wants.” * Marketing Concept- a business philosophy that makes customer satisfaction now and in the future the central focus of the entire organization. * Customer Relationship Management (CRM) - the ongoing process of acquiring, maintaining, and growing profitable customer relationships by delivering unmatched value. * Value- a customer perception that a product has a better relationship than its competitors between the cost and the benefits. * Customer Satisfaction- when customers perceive that a good or service delivers value above and beyond their expectations. * Customer Loyalty- when customers buy a product from the same supplier again and again sometimes paying even more of it than they would for a competitive product. * Marketing Plan- a formal document that defines marketing objectives and the specific strategies for achieving those objectives. * Market Segmentation- dividing potential customers into groups of similar people, or segments. * Target Market- the group of people who are most likely to buy a particular product. * Consumer Marketers or Marketing- marketers who direct their efforts toward people who are buying products for personal consumption. * Business Marketers or Marketing- marketers who direct their efforts toward people who are buying products to use either directly or indirectly to produce other products. * Demographic Segmentation- dividing the market into smaller groups based on measurable characteristics about people, such as age, income,