Key Terms
Marketing Concept (Marketing Orientation)
Start with customer needs, work backward. Collect information about consumers and competitors; share it across departmen
Product Concept (Product Orientation)
Focus on technology and innovation. Assume a technically superior or cheaper product will sell itself.
Sales Concept (Sales Orientation)
Emphasize the sales process. Assume a good salesperson with the right tools can sell almost anything.
Production Concept (Production Orientation)
Prioritize low-cost production, efficient processes, and mass distribution. Assume customers care most about low prices
Competitor
Same type of offering from a different company. Different features, price, and location; creates different perceptions o
Substitute
A different type of offering that serves the same purpose. Not a perfect replication; provides different value.
Differentiation
Identifying and optimizing elements of an offering that provide unique value versus alternatives.
Competitive Advantage
A total offering that is more attractive to customers than competitors; built on something others cannot easily copy.
Definition
The predicted profit associated with a customer over the entire course of their relationship with a company.
Goal of CRM
Move customers through relationship stages to maximize lifetime value.
Situational Factors
Consumer's involvement level; available market offerings.
Personal Factors
Individual characteristics - age, life stage, economic situation, personality.
Psychological Factors
Motivation, learning, socialization, attitudes, beliefs.
Social Factors
Culture, social class, family, reference groups.
Simple Decision Making
Routine purchases; buyer relies on habit or past experience; bypasses stages 2 and 3. Re-enters full process only if som