Cheat Sheet Module 1
Essential Concepts
This chapter introduces the basic concepts of marketing, including adding value to a company’s
business. Marketing begins with strategy and relies on creating and delivering value to
customers. It is crucial for marketers to understand exactly what customers value and
determine how to deliver the value while also meeting company goals.
There are many activities involved in the marketing process, including creating products and
services, advertising, selling, distributing, communicating, and building relationships. Marketers
must also acknowledge the importance of employees, suppliers, and other partners involved in
analyzing market opportunities. The most important aspect of creating value is understanding
both the customer and the marketplace.
There are many tools marketers can rely upon as they develop strategies. The marketing
mix—product, price, place, and promotion—has traditionally comprised the marketer’s tool belt.
Understanding the marketing environment, or forces outside and within the control of
marketers, forms the context of all marketing efforts. Consumers ultimately expect companies
to be ethical, honest, and trustworthy. Marketers know success is contingent upon abiding by
ethical, societal, and corporate governance standards.
Sustainable marketing is an effort by companies to run their business to serve the customers of
today while preserving the world for the customers of tomorrow. Companies are increasingly
following an ESG, or environmental, social, governance, structure to bring transparency to their
sustainability efforts. Sustainable marketing uses the main drivers of traditional marketing such
as customer satisfaction, but it considers a broader set of impacted groups. There are myriad
benefits to sustainable marketing as it relates to brand equity, financial measures, and
government compliance. Purpose-driven brands stand for something more than what they sell,
and they build their organization around that stated purpose.
Glossary
5Ms of marketing
internal elements of a marketing plan that need to be resolved if the plan is successful
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buyer
a person or institution that purchases goods or services
consumer
the user of the product or service
consumer-oriented marketing
marketing strategies focused on customer needs and solving their problems
corporate social responsibility (CSR)
sustainable business strategy where companies use their platform to do good, improve the
world, and be socially accountable to their customers and other interested parties
customer
the individual or business that purchases the product or service
customer equity
total combined customer lifetime values of all the company’s customers
customer loyalty
an ongoing positive relationship between a customer and a business
customer relationship management (CRM)
how companies track, manage, and analyze customer interactions
customer retention
a company’s ability to transform new customers into returning customers
customer value
the ratio of the perceived benefits relative to the costs incurred by the customer in acquiring
the product or service
customer-driven marketing strategy
a marketing strategy that shifts the focus from the product or service to its users, aiming to
satisfy their needs or wants
customer-value marketing
marketing strategies in which a company works to provide the customer with maximum value
compared to competitors
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delight needs
an added value that a customer might receive from a seller without prior expectation or request
for the same
desired object
a physical good, service, or experience that consumers expect will satisfy their wants and/or
needs
a set of tools for delivering promotional messages to people worldwide, using the internet as a
global marketing platform; also known as internet advertising or online advertising
economic pillar (governance pillar)
the sustainability pillar that concerns profitability and business ethics
environmental pillar
the sustainability pillar that focuses on reducing a company’s impact on the environment
environmental, social, and governance strategy
a strategy that holds companies accountable for a sustainability strategy
ESG pillars
the three pillars of environmental, social, and governance that guide corporate sustainability
work
ethical marketing
process that emphasizes trustworthy, transparent, social, and culturally sensitive marketing
policies
exchange process
the process of satisfying a need or want by giving something of value in exchange
external interested parties
a person or organization that does not have a direct relationship with a company but is affected
by the operations of the business
form utility
the value given to a product by virtue of the fact that the materials and components that
comprise it have been combined to make the finished product
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functional value
what the product “does” for the customer in terms of solving a particular want or need
innovative marketing
marketing strategies that use media as the method for capturing prospects’ attention and
converting them into customers
interested parties
a group that has an interest in a company or organization and can either affect or be affected
by it; often referred to as “stakeholders”
internal interested parties
those persons whose interest in a company comes through a direct relationship such as
employment, ownership, or investment
internal marketing
the promotion of a company’s objectives, products, and services to internal parties, such as
employees, owners, managers, and shareholders
macroenvironment
the set of external factors and forces, not controlled by the company, that influence its
operations
marketing
the process of identifying, understanding, and meeting the needs of customers through the
creation, promotion, and distribution of products
marketing concept
the assumption that an organization will achieve its goals when it satisfies the needs and wants
of the consumer
marketing environment
all of the internal and external factors that drive and influence an organization’s marketing
activities
marketing mix
the set of actions or tactics that a company uses to promote its brand or product in the market
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marketing process
the series of steps that assist businesses in planning, analyzing, implementing, and adjusting
their marketing strategy
marketing strategy
a plan of action designed to promote or sell a product or service
microenvironment
those factors or elements in a firm’s immediate environment that affect its performance and
decision-making
mission-driven marketing
marketing strategies that align purpose and brand by using the corporate core mission and
purpose as their focus
monetary value
what the product actually costs relative to its perceived worth
organizational culture
the shared values, attitudes, expectations, norms, and practices that guide the actions of all
within the company
PESTLE analysis
a strategic framework used to assess the political, economic, social, technological, legal, and
environmental factors affecting an organization
place
where the product is purchased
place utility
making goods and/or services physically available or accessible to potential customers
possession utility
the amount of usefulness or perceived value from owning a product
price
what the consumer pays in exchange for the product
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product
the good or service that the company provides
product concept
the orientation that consumers will favor those products that offer the most quality,
performance, or innovative features
production concept
the orientation that consumers are mostly interested in product availability and price, not
necessarily product features
psychological value
how much that product allows the customer to “feel better”
promotion
any type of marketing communication efforts the company utilizes to attract the customer
purpose-driven strategy
strategy in which companies work to make a difference in their communities through their
decisions and support of environmental programs
real needs
the value the customer is going to derive from the stated good or service
retailers
companies that purchase large quantities of goods from producers and then sell smaller
quantities to end customers for personal use or consumption
sales concept
the assumption that consumers need to be convinced to buy what businesses are offering
secret needs
the needs that the consumer feels reluctant to admit
seller
the individual or organization that supplies the need-satisfying product, service, or experience
social pillar
the sustainability pillar that focuses on creating an inclusive environment for the community
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social value
how much owning the product allows the customer to connect with others
societal marketing concept
philosophy that a company should balance customer wants and needs, the company’s
capabilities, and society’s long-term interests
stated needs
those product or service needs that are clearly specified by the customer
suppliers
sometimes also called vendors, these are partners from whom we receive the parts and
products necessary for our business
sustainable marketing
a marketing strategy that infuses purpose into socially conscious products and services
time utility
adding value to the consumer by having the product or service available when the consumer
needs it
unstated needs
those needs that are not obvious but are expected by the customer
utility
how a product can be useful to customers in a way that convinces them to make a purchase
value
the difference between a customer’s evaluation of the benefits and costs of one product when
compared with others
value proposition
a promise of value to be delivered, communicated, and acknowledged by the company’s
product or service
wholesalers
companies that purchase large quantities of products from producers and then sell to smaller
businesses, such as retail stores
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