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113 terms

MARK 201 Midterm

STUDY
PLAY
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)