Glossary
Chapter 12
affinity program	marketing effort sponsored by an organization that solicits involvement by individuals who share common interests and activities.
business-to-business (B2B) e-business	electronic business transactions between organizations using the Internet.
cause marketing	marketing that promotes a cause or social issue, such as preventing child abuse, antilittering efforts, and antismoking campaigns.
cobranding	cooperative arrangement in which two or more businesses team up to closely link their names on a single product.
comarketing	cooperative arrangement in which two businesses jointly market each other’s products.
consumer (B2C) product	good or service that is purchased by end users.
consumer behavior	actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions.
customer satisfaction	ability of a good or service to meet or exceed a buyer’s needs and expectations.
data mining	computer searches of customer data to detect patterns and relationships.
data warehouse	customer database that allows managers to combine data from several different organizational functions.
demographic segmentation	dividing markets on the basis of various demographic or socioeconomic characteristics such as gender, age, income, occupation, household size, stage in family life cycle, education, or ethnic group.
end-use segmentation	marketing strategy that focuses on the precise way a B2B purchaser will use a product.
event marketing	marketing or sponsoring short-term events such as athletic competitions and cultural and charitable performances.
exchange process	activity in which two or more parties give something of value to each other to satisfy perceived needs.
frequency marketing	marketing initiative that rewards frequent purchases with cash, rebates, merchandise, or other premiums.
geographical segmentation	dividing an overall market into homogeneous groups on the basis of their locations.
lifetime value of a customer	revenues and intangible benefits (referrals and customer feedback) from a customer over the life of the relationship, minus the amount the company must spend to acquire and serve that customer.
market segmentation	process of dividing a total market into several relatively homogeneous groups.
marketing	organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
marketing concept	company-wide consumer orientation to ­promote long-run ­uccess.
marketing mix	blending the four elements of marketing strategy—product, distribution, promotion, and pricing—to satisfy chosen customer segments.
marketing research	collecting and evaluating information to support marketing decision ­making.
organization marketing	marketing strategy that influences consumers to accept the goals of, receive the services of, or contribute in some way to an organization.
ownership utility	orderly transfer of goods and services from the seller to the buyer; also called possession utility.
person marketing	use of efforts designed to attract the attention, interest, and preference of a target market toward a person.
place marketing	attempt to attract people to a particular area, such as a city, state, or nation.
place utility	availability of a product in a location convenient for customers.
product-related segmentation	dividing consumer markets into groups based on benefits sought by buyers and usage rates.
psychographic segmentation	dividing consumer markets into groups with similar attitudes, values, and lifestyles.
relationship marketing	developing and maintaining long-term, cost-effective exchange relationships with partners.
target market	group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and ­preferences.
time utility	availability of a good or service when customers want to purchase it.
utility	want-satisfying power of a good or service.
value-added	describes a good or service that exceeds value expectation because the company has added features, lowered its price, enhanced customer service, or made other improvements that increase customer satisfaction.