47 terms

Essentials of Marketing Test Chapter 1-7

3 basic parts of marketing concept
customer satisfaction; total company effort; profit - not just sales - as an objective
4 elements of marketing mix
product; place; promotion; price
universal functions of marketing
buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information
customer satisfaction
customers' evaluation of a good or service in terms of whether it has met their needs, desires and expectations
3 utilities that marketing provides
Micro Marketing
Targets local groups or individuals with individual needs and preferences
macro marketing
A social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society.
planned economic system
An economic system where the questions of what to produce, how to produce and for whom to produce are answered by means of a central plan rather than by markets. In the former Soviet Union, a State Planning Committee (Gosplan) oversaw planning for the production and distribution of most goods and services.
5 different eras in the evolution of business in the US
simple trade; production; sales; marketing dept; marketing company
breakthrough opportunities
opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time
attractive opportunities
for a particular firm are those that the firm has some chance of doing something about-given its resources and objectives
swot analysis
A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.
how swot analysis used
the world of commercial activity where goods and services are bought and sold
commodities offered for sale
generic market
market with broadly similar needs and sellers offering various, often diverse, ways of satisfying those needs
market segmentation
The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
influences on consumer behavior
economic needs; psychological variables; social needs; purchase situation
factors used to segment consumer behavior
factors outside the control of the firm that affect sales
GE's strategic planning grid, how it's used and the factors considered
BCG market share/market growth matrix
a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products
Strategic Business Units
strategic business unit
a division of the organization that has a unique business mission, product line, competitors, and markets relative to other sbus in the same corporation
gross national product
The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.
disposable income
money to spend after necessary expenses are paid
discretionary income
disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
hierarchy of needs model
theory of motivation describing five levels of human needs and arguing that basic needs must be fulfilled before people work to satisfy higher-level needs
how hierarchy of needs model applies to marketing
effects of baby boomers on our economy
recording industry sales exploded, colleges added facilities and faculty to handle the surge; new growth opportunities in tourism, health-care and financial services
the ratio of live births in an area to the population of that area
selective processes
social class
a group of people with similar backgrounds, incomes, and ways of living
adoption process in purchase decision area
categories of business and organizational customers
purchasing process
recognition of needs, evaluation of options, Purchase Decision, Implementation and evaluation
purchasing managers
are the people responsible for purchasing in manufacturing and service businesses
buying center
all those people in an organization who become involved in the purchase decision
North American Industry Classification System, provides common industry definitions for Canada, Mexico, & the US, which makes the measurment of economic activity, in the 3 member countries of NAFTA, easier. Replaces SIC system. Each given a "zipcode"
marketing strategy matrix
things that you would like to have but are not necessary for survival
motivations that are inborn not learned, such as hunger, thirst, fear, and need for sleep. Also known as instincts.
Signals as to what behaviors will be reinforced or punished
economies of scale
factors that cause a producer's average cost per unit to fall as output rises
mission statement
a short, specific written statement of the reason a business exists and what it wants to achieve
different types of competitive situations