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Marketing

the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large

exchange

the trade of things of value between buyer and seller so that each is better off after the trade

objectives of marketing

to discover the needs and wants of prospective customers and to satisfy them

market

people with both the desire and the ability to buy a specific offering

target market

one or more specific groups of potential customers toward which an organization directs its marketing program

marketing mix

the marketing manager's controllable factors (product, price, promotion, place) that can be used to solve a marketing problem

environmental forces

social, economic, technological, competitive and regulatory forces, uncontrollable, beyond control of marketers

customer value

the unique combination of benefits received by targeted buyers that includes quality, convenience, on time delivery, and service

relationship marketing

linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits

marketing program

a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers

marketing concept

the idea than an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals

market orientation

focuses efforts on continuously collecting information about customers' needs, sharing the information across departments, and using it to create customer value

CRM

the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings

customer experience

internal response that customers have to all aspects of an organization and its offerings

societal marketing concept

the view that organizations should satisfy the needs of consumers in a way that provides for society's well being

ultimate consumers

the people who actually use the goods purchased for a household

organizational buyers

manufacturers, wholesalers, retailers, and governmental agencies that buy goods for their own use or for resale

utility

the benefits or customer value received by users of the product: form, place, time, possession

profit

the money left after a business fin's total expenses are subtracted from its total revenues

strategy

an organization's long term course of action designed to deliver a unique customer experience while achieving its goals

corproate level

where top management directs overall strategy for the entire corporation

strategic business unit

a unit of an organization that markets a set of related offerings to a clearly defined group of customers

functional level

where groups of specialists create value for the organization

cross functional teams

a small number of people from different departments who are mutually accountable to accomplish a desk or common performance goal

core values

the fundamental, passionate, and enduring principles that guide its conduct over time

mission

a statement of the organization's function in society, often identifying its customers, markets, products, and technologies

organizational culture

the set of values, ideas, attitudes, and norms of beaver that is learned and shared among the members of an organization

marketing dashboard

the visual computer display of the essential information related to achieving a marketing objective

marketing metric

a measure of the quantitative value or trend of a marketing activity or result

marketing plan

a road map for the marketing activities of an organization for a specified future time period

competitive advantage

a unique strength relative to competitors that provides superior returns

business portfolio analysis

used to quantify performance measures and growth targets to analyze strategic business units

stars

high growth rate, high market share

cash cow

low growth rate, high market share

question marks

high growth rate, low market share

dogs

low growth rate, low market share

diversification analysis

a tool that helps a firm search for growth opportunities from current and new markets

strategic marketing process

where an organization allocates its marketing mix resources to reach its target markets

value consciousness

the concern for obtaining the best quality, features, and performance of a product or service for a given price

gross income

the total amount of money made by a person, household, or family unit

discretionary income

the money left after paying for taxes and necessities

disposable income

the money a consumer has left after paying taxes to use for necessities

environmental forces

social, economic, technological, competitive, regulatory

consumerism

a grassroots movement started in the 1960's to increase the influence, power, and rights of consumers

caveat emptor

a legal concept that means buyer beware

economic espionage

the clandestine collection of trade secrets or proprietary information about a company's competitors

code of ethics

a formal statement of ethical principles and rules of conduct

whistle blowers

employees who report unethical or illegal actions of their employers

moral idealism

a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

green marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products

triple-bottom line

recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously

cause marketing

when the charitable contributions of a film are tied directly to the customer revenues produced

social audit

a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility

sustainable development

conducting business in a way that protects the natural environment while making economic progress

consumer behavior

the actions a person takes in purchasing and using products and services, including the mental and social process that comes before and after theses actions

purchase decision process

the stages a buyer passes through in making choices about which products and services to buy

stages of the purchase process

1. problem recognition 2. information search 3. alternative evaluation 4. purchase decision 5. post purchase behavior

evaluative criteria

objective and subjective attributes of a brand used to compare different products and brands

consideration set

the group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware in the product class

cognitive dissonance

post purchase psychological tension or anxiety

involvement

the personal, social, and economic significance of the purchase

situation purchase influences

purchase task, social surroundings, physical surroundings, temporal effects, antecedent states

opinion leaders

individuals who exert direct or indirect social influence over others

reference groups

people whom an individual looks as a basis for self appraisal or as a source of personal standards

consumer socialization

the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers

family life cycle

the distinct phases that a family progresses through from formation to retirement, each phase bringing identifiable purchasing behavior

subcultures

subgroups within the larger, or national culture with unique values, ideas and attitudes

exploratory research

trying to find the frequency something occurs or the extent of a relationship between 2 factors

casual research

tries to determine the extent to which the change in one factor changes another one

measure of success

criteria or standards used in evaluating proposed solutions to the problem

data mining

the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patters and marketing actions

usage rate

the quantity consumed or patronage (store visits) during a specific period

segmentation bases

geographic, behavioral, demographic, psychographic

80/20 rule

80 percent of sales are obtained from 20 percent of a firm's customers

segmentation criteria

simplicity/cost effectiveness,
potential for increased profit,
similarity of needs of buyers within segment, difference among segments,
potential of marketing to reach segments

market product grid

a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization

criteria in selecting segments

market size, expected growth, competitive position, cost of reaching the segment, compatibility with organization's objectives

head to head positioning

competing directly with competitors on similar product attributes in the same target market

differentiation positioning

seeking a less competitive, smaller market niche in which to locate a brand

perceptual map

a means of displaying or graphing in two dimensions the location of products or bands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands

convenience products

items the consumer purchases frequently, conveniently, and with minimum shopping effort

specialty products

items that the consumer makes a special effort to search out and buy

shopping products

items for which the consumer compares several alternatives on criteria such as price, quality, or style

unsought products

items that a customer does not know about or know about but does not initially want

reasons for new product failures

insignificant point of difference,
incomplete market and product protocol,
not satisfying customer needs,
bad timing,
too little market attractiveness,
poor quality,
poor execution of the marketing mix,
no economical access to buyers

market testing

the stage of the new product process that involves exposing actual products to prospective customers under realistic purchase conditions to see if they will buy

commercialization

the stage of the new product process that positions and launches a new product in full scale production and sales

product modification

involves altering a product's characteristic, such as its quality, performance, or appearance to increase value to customers and increase sales

product class

the entire product category or industry

product form

variations within the product class

brand equity

the added value a brand name gives to a product beyond the functional benefits provided

mixed branding

where a firm markets products under its own name and that of a reseller because the segment attracted to the reseller is different from its own market

warranty

a statement indicating the liability of the manufacturers for product deficiencies

skimming pricing

setting the highest initial price that customers really desiring the product are willing to pay

penetration pricing

setting a low initial price on a new product to appeal immediately to the mass market

price lining

like Kindle pricing- pricing a line of products at specific price points

target pricing

working backwards through markups from the estimated price the final consumer is willing to pay

cost-plus pricing

summing total unit cost of providing a product or device and adding a specific amount to the cost to arrive at a price

yield management pricing

charging different prices to maximize revenue for a set amount of capacity

experience curve pricing

based on the idea that unit cost declines the more you produce

customary pricing

for products where tradition, distribution, or competition dictate price

5 kinds of deceptive pricing

1. bait and switch,
2. bargains conditional on other purchases,
3. comparable value comparisons
4. comparisons with suggested retail price
5. former price comparison

total revenue

unit price * quantity sold

average revenue/ unit price

(total revenue)/(quantity sold)

marginal revenue

(change in total revenue)/(1 unit increase in quantity)

total cost

fixed cost + variable costs

fixed cost

costs incurred even when nothing is sold

variable cost

cost dependent upon production

unit variable cost

variable cost to make each product

profit

total revenue-total cost

loss leader

a product that is not profitable, but attracts customers which eventually leads to more total sales

break even analysis

determines how many units must be sold to cover fixed costs and variable costs and therefore break-even

break-even quantity

(fixed cost)/(unit price-unit variable cost)

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