125 terms

Marketing

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utility
Want-satisfying power of a good or service
marketing
organizational function and a 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.
exchange process
activity in which two or more parties give something of value to each other to satisfy perceived needs.
consumer orientation
business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them.
marketing concept
company-wide consumer orientation with the objective of achieving long-run success.
relationship marketing
development and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefits.
marketing myopia
management's failure to recognize the scope of its business.
person marketing
marketing efforts designed to cultivate the attention, interest, and preferences of a target market toward a person (perhaps a political candidate or celebrity).
place marketing
marketing efforts to attract people and organizations to a particular geographic area
cause marketing
identification and marketing of a social issue, cause, or idea to selected target markets
event marketing
marketing of sporting, cultural, and charitable activities to selected target markets
organization marketing
marketing by mutual-benefit organizations, service organizations, and government organizations intended to persuade others to accept their goals, receive their services, or contribute to them in some way
strategic alliance
partnerships in which two or more companies combine resources and capital to create competitive advantages in a new market
ethics
moral standards of behavior expected by a society
facilitating functions
help the marketer to perform the exchange and physical distribution functions
final four marketing functions
standardizing and grading, financing, risk taking, and securing marketing information
exchange functions
buying and selling
physical distribution functions
transporting and storing
buzz marketing
repeat customers that create spread the word (create a buzz) around a product
mobile marketing
marketing messages transmitted via wireless technology
interactive marketing
buyer-seller communcations which the customer controls the amount and type of information received from a marketer
lifetime value of a customer
the revenues and intangible benefits that a customer brings to an organization over an average lifetime, minus the investment the firm has made to attract and keep the customer
transaction-based marketing
traditional view of marketing, as a simple exchange process
bottom line
business jargon that refers to the overall profitability of an organization
buyer's market
one in which there were more goods and services than people willing to buy them
seller's market
one in which there were more buyers for fewer goods and services
sales orientation
assume that customers will resist purchasing essential goods and services and that the task of personal selling and advertising is to persist them to buy
production orientation
prevailing attitude of this era held that a high-quality product will sell itself
strategic business unit (SBU)
key business units within diversified firms
portfolio analysis
evaluation of a company's products and divisions to determine the strongest and the weakest
rule of three
the three strongest, most efficient companies dominate between 70 and 90 percent of the market
pricing strategy
the methods of setting profitable and justifiable prices
integrated marketing communications (IMC)
consumers receive newsletters, e-mail updates, discount coupons, catalogs, invitations to company-sponsored events, and any number of other types of marketing communications about a product
distribution strategies
coordinating transportation and storage to ensure consumers find their products in the proper quantities at the right times and places
product strategy
decisions about customer service, package design, brand names, trademarks, patents, warranties, the life-cycle of the product, positioning the product in the marketplace, and new-product development
marketing mix
blending of the four elements- products, distribution, promotion, and pricing- to fit the needs and preferences of a specific target market
target market
the group of people toward whom the firm aims its marketing efforts and ultimately its merchandise
strategic window
limited periods when key requirements of a market and a firm's particular competencies best fit together
SWOT analysis
review that helps planners compare internal organizational strengths and weaknesses with external opportunites
core competencies
capabilities that customers value and competitors find difficult to duplicate
second mover strategy
theory that advocates observing closely the inonvations of first movers and then improving on them to gain advantage in the marketplace
first mover strategy
theory advocating that the company first to offer a product in a marketplace will be the long-term market winner
sustainable competitive advantage
other companies cannot provide the same value to their customers that the firm does
porter's five forces
model developed by strategy expert by Michael Porter that identifies five competitive forces that influence planning strategies: the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products, and rivalry among competitors
objectives
sound conceived goals that state specific intentions
marketing strategy
an overall, company-wide program for selecting a particular target market and then satisfying consumers in that market through a careful blending of the elements of the marketing mix
mission
essential purpose that differentiates one company from others
tactical planning
planning that guides the implementations of activities specified in the strategic plan
strategic planning
process of determining an organization's primary objectives and adopting courses of action that will achieve these objectives
marketing planning
implementing planning activities devoted to achieving marketing objectives
planning
process anticipating future events and conditions and of determining the best way to achieve organizational objectives
social responsibility
marketing philosophies, policies, procedures, and actions that have the enhancement of society's welfare as a primary objective
green marketing
production, promotion, and reclamation of environmentally sensitive products
reference groups
people or institutions whose opinions are valued and to whom a person looks for guidance in his or her own behavior, values, and conduct, such as spouse, family, friends, or celebrities.
culture
values, beliefs, preferences, and tastes handed down from one generation to the next.
consumer behavior
process through which buyers make purchase decisions.
acculturation
the degree to which newcomers have adapted to U.S. culture.
opinion leaders
trendsetters who purchase new products before others in a group and then influence others in their purchases.
need
imbalance between a consumer's actual and desired states
motive
inner state that directs a person toward the goal of satisfying a need.
perception
meaning that a person attributes to an incoming stimuli gathered through the five senses.
attitudes
person's enduring favorable or unfavorable evaluations, emotions, or action tendencies toward some object or idea.
learning
knowledge or skill acquired as a result of experience, which changes consumer behavior.
self-concept
person's multifaceted picture of himself or herself.
evoked set
number of alternatives a consumer actually considers in making a purchase decision.
evaluation criteria
features a consumer considers in choosing among alternatives.
cognitive dissonance
imbalance among knowledge, beliefs, and attitudes that occurs after an action or decision, such as a purchase.
shaping
the process of applying a series of such as repeat purchase behavior gradually over time.
reinforcement
the reduction in drive that results from a proper response
response
an individual's reaction to a set of cues and drives.
trade industry
retailers or wholesalers that purchase products for resale to others
reseller
Marketing intermediaries that operates in the trade sector.
commercial market
individuals and firms that acquire products to support, directly or indirectly, production of other goods and services
consumer-based segmentation
dividing a business-to-business market into homogeneous groups based on buyers' product specifications.
North American Industry Classification System (NAICS)
Classification used by NAFTA countries to categorize the business marketplace into detailed market segments.
end-use application segmentation
Segmenting a business-to-business market based on how industrial purchasers will use the product.
global sourcing
purchasing goods and services from suppliers worldwide.
offshoring
movement of high-wage jobs from one country to lower-cost overseas locations
outsourcing
using outside vendors to provide goods and services formerly produced in-house.
multiple sourcing
purchasing from several vendors
buying center
participants in an organizational buying action
vendor-managed inventory (VMI)
inventory management system in which the seller- based on an existing agreement with a buyer- determines how much of a product is needed
electronic data interchange (EDI)
computer-to-computer exchanges of invoices, orders, other business documents
partnership
affiliation of two or more companies that help each other achieve common goals
customer relationship management (CRM)
combination of strategies and tools that drives relationship programs, reorienting the entire organization to a concentration focus on satisfying customers
positioning
placing a product at a certain point or location within a market in the minds of prospective buyers
micromarketing
targeting potential customers at very narrow, basic levels such as by zip code, specific occupation, or lifestyle possibly even individuals themselves
concentrated marketing
focusing marketing efforts on satisfying a single market segment; also called a niche
differentiated marketing
strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments
undifferentiated marketing
strategy that focuses on producing a single product and marketing it to all customers; also called mass marketing
product-related segmentation
division of a population into homogeneous groups based on their relationships to a product
psychographic segmentation
division of a population into groups having similar attitudes, values, and lifestyles
cohort effect
the tendency of members of a generation to be influenced and bound together by significant events occurring during their key formative years, roughly, 17 to 22
demographic segmentation
division of an overall market into homogeneous groups based on variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family life cycle; also called socioeconomic segmentation.
market segmentation
division of the total market into smaller, relatively homogeneous groups
geographic segmentation
division of an overall market into homogeneous groups based on their locations
business products
goods and services purchased for use either directly or indirectly in the production of other goods and services
consumer products
products bought by ultimate consumers for personal use
sales forecast
estimate of a firm's revenue for a specified future period
marketing decision support system (MDSS)
marketing information system component that links a decision maker with relevant databases and analysis tools
data mining
the process of searching through computerized data files to detect patterns
focus group
simultaneous personal interview of a small group of individuals that relies on group discussion about a certain topic
interpretive research
observational research method developed by social anthropologists in which customers are observed in their natural setting and their behavior is interpreted based on an understanding of social and cultural characteristics; also known as ethnography, or "going native".
nonprobability sample
sample that involves personal judgement somewhere in the selection process
probability sample
sample that gives every member of the population a chance of being selected
sampling
process of selecting survey respondents or research participants
primary data
information collected for a specific investigation
secondary data
previously published information
hypothesis
a tentative explanation for some specific event
exploratory research
process of discussing a marketing problem with informed sources both within and outside the firm and examining information from secondary sources
countertrade
form of exporting whereby goods and services are bartered rather than sold for cash
franchise
contractual arrangement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer or other franchiser
foreign licensing
agreement that grants foreign marketers the right to distribute a firm's merchandise or to use its trademark, patent, or process in a specified geographic area
European Union (EU)
customs union that is moving in the direction of an economic union by adopting a common currency, removing trade restrictions, and permitting free flow of goods and workers throughout the member nations
North American Free Trade Agreement (NAFTA)
accord removing trade barriers between Canada, Mexico, and the United States
World Trade Organization (WTO)
organization that replaces GATT, overseeing GATT agreements, making binding decisions in mediating disputes, and reducing trade barriers
General Agreement on Tariffs and Trade (GATT)
international trade accord that has helped reduce world tariffs
tariff
tax levied against imported goods
import quotas
trade restrictions limiting the number of units of certain goods that can enter a country for resell
exchange rate
price of one nation's currency in terms of another country's currency
infrastructure
the underlying foundation for modern life and efficient marketing that includes transportation, communications, banking, utilities, and public services
remanufacturing
efforts to restore worn-out products to like-new conditions
gatekeepers
control the information that all buying center members will review
reciprocity
a practice of buying from suppliers who are also customers
nearshoring
moving jobs to vendors in countries close to the business's home country