Business Management Concepts

Define Marketing

• Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

• Marketing is solely about advertising.
• Marketing is the process of manufacturing products.
• Marketing is only concerned with customer service.

Define Value

• Value is a type of currency.
• Value refers to a physical object.
• Value is a worker’s estimation of the worth of a product based on a comparison of its costs and benefits, including quality, relative to other products

• Value is a customer’s estimation of the worth of a product based on a comparison of its costs and benefits, including quality, relative to other products.

Define Relationship Marketing

• It is a method for managing employee relationships within a company.
• Relationship Marketing is about establishing long-term, mutually satisfying buyer–seller relationship.

• Relationship marketing focuses solely on increasing sales volume.
• Relationship marketing is about creating advertisements for new products.

Define Customer Relationship Management

• Using information about customers to create marketing strategies that develop and sustain desirable customer relationships

• A strategy for reducing customer complaints
• A software for managing inventory
• A method for tracking employee performance

Define Customer Lifetime Value

• Customer Lifetime Value is the profit made from a single transaction with a customer.
• Customer Lifetime Value refers to the total number of customers a business has.
• Customer Lifetime Value is a measure of a customer’s worth (sales minus costs) to a business over one’s lifetime.

• Customer Lifetime Value is the average cost incurred to acquire a customer.

Define Utility

• Utility is the ability of a good or service to satisfy a human need.

• Utility is the process of marketing a good or service.
• Utility is the total cost of producing a good or service.
• Utility refers to the physical quantity of a product.

Define Form Utility

• Form utility is the process of marketing a product to consumers.
• Form utility is utility created by converting production inputs into finished products.

• Form utility refers to the total cost of production.
• Form utility is the satisfaction derived from using a product.

Define Place Utility

• Place utility is the cost associated with transporting goods.
• Place utility is the time taken to produce a product.
• Place utility refers to the aesthetic appeal of a product.
• Place utility is utility created by making a product available at a location where customers wish to purchase it.

Define Time Utility

• Time utility is the cost associated with producing a product.
• Time utility is the process of marketing a product effectively.
• Time utility is utility created by making a product available when customers wish to purchase it.

• Time utility refers to the physical storage of products.

Define Possession Utility

• Possession utility refers to the cost of acquiring a product.
• Possession utility is the satisfaction from using a product temporarily.
• Possession utility is utility created by transferring title (or ownership) of a product to a buyer.

• Possession utility is the value derived from the resale of a product.