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Bronis Verhage
ISBN: 9789001818661
http://www.marketingfundamentals.noordhoff.nl
© 2017 Noordhoff Uitgevers bv
GLOSSARY
Chapter 1 What is marketing?
Marketing Developing, pricing, promoting and distributing products, services
or ideas that are tailored to the market; this process includes all activities that
create value and systematically lead to increased sales or another desired
response, establish a good reputation and ongoing relationships with
customers, so that all stakeholders achieve their objectives.
Marketing mix Combination of four controllable marketing variables – product,
promotion, price and place (or distribution) – developed to appeal to a particular
target market.
Target market The selected market segments on which a company focuses its
marketing efforts.
Exchange transaction A transfer of something of value between a buyer and a seller –
underlying all marketing activities – so that both parties’ needs are met.
Exchange objects Products, money or intangible items of worth (such as services,
information or status) that are exchanged in a marketing transaction.
Bartering A direct exchange between parties of products or services, without any
money changing hands.
Macromarketing Role of the marketing system in distributing goods and services to
society to ensure that its scarce resources will satisfy people’s needs as effectively as
possible.
Supply chain The series of persons and organizations – from the manufacturer to the
consumer – involved in the production, distribution and consumption of products and
services.
Sector Horizontal section or link in the supply chain, made up of companies that
perform the same function in the production or trade of a certain product (for
example, the detergent industry).
Branch of industry A group of organizations within a sector with similar production
techniques and products (for example, the book industry within the graphic sector)
Ma rk eti n g Fu n da m e n tal s, An I n t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Mesomarketing All activities developed by collaborating organizations within a supply
chain or sector to match supply and demand, meet a certain need and realize their
shared marketing objectives.
Micromarketing The marketing activities of an individual organization.
Marketing management The analysis, planning, implementation and constant
evaluation of all activities to ensure that a company’s products and services are
tailored to the needs and wants of potential customers.
Production concept Business philosophy that emphasizes an efficient production
process designed to maximise product output and reduce cost, often at the expense of
meeting marketplace needs.
Product concept Management orientation that focuses on improving product quality,
while regarding marketing as unnecessary and assuming that ‘a good product will sell
itself’.
Sellers’ market Market in which demand exceeds supply, giving sellers an advantage
over customers.
Buyers’ market Market in which supply exceeds demand so that buyers are in a
stronger position than suppliers, and resulting in aggressive selling efforts to win over
prospects.
Selling concept Market approach in which a company’s emphasis is on the selling
function (‘selling what we make’) instead of other marketing activities.
Buying power The financial ability of a consumer to purchase products and services.
Market orientation Business philosophy in which companies consider not only
customers, but also intermediaries and competitors in making decisions at all levels of
the organization.
Societal marketing concept Extension of the marketing concept in which
management considers the broader societal consequences of its production and
marketing activities and tries to balance the long-term interests of the consumer, the
company and society as a whole.
Ma rk eti n g Fu n da m e n tal s, An I n t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Relationship marketing Strategy that focuses on developing long-term relationships
with customers – to earn and retain their business – as well as with distributors,
suppliers and society at large.
Marketing concept A market-driven management mindset and business practice of
‘making what customers want’, based on the company’s fundamental goal of satisfying
customer needs while meeting its objectives.
Internal marketing Marketing activities directed at individuals or departments within
the organisation to encourage cooperation and ensure that all co-workers are well
trained and motivated to satisfy customers.
Marketing myopia A shortsighted management’s tendency to narrowly define its
business in terms of its products instead of broader benefits that customers seek, often
resulting in missed marketing opportunities.
Mission A company’s overall purpose, basic values and distinctive competencies to
guide its decision-making in serving customers and answering the fundamental
question: ‘What business are we in?’
Competitor A rival firm with products that are considered as alternatives by buyers
with similar needs.
Competitive advantage A company’s unique strengths or capabilities (such as
superior customer service) that cannot be easily duplicated by rivals, and account for
its performance or market position.
Brand equity The financial and marketing value of a company or brand name, based
on its strengths, the customers’ attitudes toward the brand and benefits of using the
product.
Demarketing Strategy to – temporarily or permanently – reduce total consumer
demand (‘general demarketing’) or the demand of a specific group of buyers (‘selective
demarketing’) for products that are in short supply or may be harmful to society.
Need A deficiency that a consumer experiences when his physical or emotional
balance is disturbed, prompting him to fill this void.
Demand
The quantity of products or services that buyers are willing to purchase at various
prices at a given time, based on certain wants or needs.
Ma rk eti n g Fu n da m e n tal s, An I n t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Marketing manager Executive responsible for analysing, planning, implementing and
controlling the company’s marketing activities (such as customer service and social
media use) and for coordinating these with other departments’ marketing-related
activities (such as product repair, shipping and warehousing).
Relationship Ongoing interaction with a customer, resulting in long-term satisfaction
and loyalty.
Exchange The transfer of products, services, money or other items of value between
buyer and seller.
Lifetime value Present value of the profit a company anticipates making from an
individual customer who buys the company’s products over an average lifetime.
Customer loyalty The extent to which a customer makes repeat purchases from a
particular supplier or continues to buy the same brand.
Fast moving consumer goods Products that consumers buy frequently and, like other
convenience products, have a relatively low profit margin (FMCG).
Consumer marketing An organisation’s marketing activities directed at the end users
of a product.
Business-to-business marketing Marketing to companies to support the resale, use in
daily operations or manufacture of other products (B2B; business. industrial or
organizational marketing).
Trade marketing Marketing strategy aimed at intermediaries such as retailers that
carry the products or consider including them in their product range.
Retail marketing Marketing strategy of a retail company, including the analysis of
customers and competitors as well as the use of a store format and retailing mix to
create loyal customers.
Non-profit marketing Strategy of organizations with charitable or other public service
goals that, without seeking profits, strive to satisfy customers’ needs and maintain
market share (not-for-profit marketing).
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