Marketing Vocab Terms Test 1

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Terms in this set (143)
Transporting functionThe movement of goods from one place to another.Storing functionHolding goods until customers need them.Standardization and gradingSorting products according to size and quality.FinancingProvides the necessary cash and credit to produce, transport, store, promote, sell, and buy products.Risk takingBearing the uncertainties that are part of the marketing process.Market information functionThe collection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities.IntermediarySomeone who specializes in trade rather than production.CollaboratorsFirms that provide one or more of the marketing functions other than buying.Economic systemThe way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in the society.Command economyGovernment officials decide what and how much is to be produced and distributed by whom, when, to whom, and why.Market-directed economyThe individual decisions of the many producers and consumers make the macro-level decisions for the whole economy.Simple trade eraA time when families traded or sold their surplus output to local distributors.Production eraA time when a company focuses on production of a few specific products—perhaps because few of these products are available in the market.Sales eraA time when a company emphasizes selling because of increased competition.Marketing department eraA time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's activities.Marketing company eraA time when, in addition to short-run marketing planning, marketing people develop long-range plans—sometimes five or more years ahead—and the whole-company effort is guided by the marketing concept.Marketing conceptThe idea that an organization should aim all of its efforts at satisfying its customers—at a profit.Production orientationMaking whatever products are easy to produce and then trying to sell them.Marketing orientationTrying to carry out the marketing concept.Marketing metricsNumeric data that allow marketing managers to evaluate performance, often against a set target or goal.Triple bottom lineA measure of long-term success that includes an organization's economic, social, and environmental outcomes.Customer valueThe difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits.Micro-macro dilemmaWhat is good for some producers and consumers may not be good for society as a whole.Social responsibilityA firm's obligation to improve its positive effects on society and reduce its negative effects.Marketing ethicsThe moral standards that guide marketing decisions and actions.Marketing management processThe process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling the plans.Strategic (management) planningThe managerial process of developing and maintaining a match between an organization's resources and its market opportunities.Marketing strategySpecifies a target market and a related marketing mix.Target marketA fairly homogeneous (similar) group of customers to whom a company wishes to appeal.Marketing mixThe controllable variables that the company puts together to satisfy a target group.Target marketingA marketing mix is tailored to fit some specific target customers.What are the five P's?Product Price Promotion Place PeopleChannel of distributionAny series of firms or individuals who participate in the flow of products from producer to final user or consumer.Personal sellingDirect spoken communication between sellers and potential customers, usually in person but sometimes over the telephone or even via an online conference.Customer serviceA personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase; often the key to building repeat business.Mass sellingCommunicating with large numbers of potential customers at the same time.AdvertisingAny paid form of non personal presentation of ideas, goods, or services by an identified sponsor.PublicityAny unpaid form of nonpersonal presentation of ideas, goods, or services.Sales promotionThose promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel.Marketing planA written statement of a marketing strategy and the time-related details for carrying out the strategy.ImplementationPutting marketing plans into operation.Operational decisionsShort-run decisions to help implement strategies.Marketing analyticsThe practice of measuring, managing, and analyzing marketing performance to maximize its efficiency and effectiveness.Marketing programBlends all of the firm's marketing plans into one big plan.Customer lifetime value (CLV)Total profits a single customer contributes to a firm over the length of the relationship.Retention rateThe percentage of customers retained as compared to the total number of customers.Acquisition costThe expense required to acquire a new customer.Customer equityThe expected earnings stream (profitability) of a firm's current and prospective customers over some period of time.Breakthrough opportunitiesOpportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time.Competitive advantageA firm has a marketing mix that the target market sees as better than a competitor's mix.S.W.O.T. analysisIdentifies and lists the firm's strengths and weaknesses and its opportunities and threats.DifferentiationThe marketing mix is distinct from and better than what's available from a competitor.Market penetrationTrying to increase sales of a firm's present products in its present markets—probably through a more aggressive marketing mix.Market developmentTrying to increase sales by selling present products in new markets.Product developmentOffering new or improved products for present markets.DiversificationMoving into totally different lines of business—perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.Mission statementA statement that sets out the organization's basic purpose for being.Competitive environmentThe number and types of competitors the marketing manager must face and how they may behave.Sustainable competitive advantageA marketing mix that customers see as better than a competitor's mix and cannot be quickly or easily copied.Competitor analysisAn organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies.Competitive rivalsA firm's closest competitors.Market shareThe portion of total sales in a product category accounted for by a particular brand.Economic environmentMacroeconomic factors, including national income, economic growth, and inflation, that affect patterns of consumer and business spending.TechnologyThe application of science to convert an economy's resources to output.Artificial intelligence (AI)Having machines operate like humans with respect to learning and decision making.Intelligent agentA device that observes an environment and acts to achieve a goal.NationalismAn emphasis on a country's interests before everything else.Free tradeRefers to agreements between countries to not restrict imports and exports.Cultural and social environmentAffects how and why people live and behave as they do.SustainabilityThe idea that it's important to meet present needs without compromising the ability of future generations to meet their own needs.Gross domestic product (GDP)The total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country.Gross national income (GNI)A measure that is similar to GDP, but GNI does not include income earned by foreigners who own resources in that nation.Senior citizensPeople older than 65.Baby BoomersPeople born between 1946 and 1964.Generation X (Gen X)People born between 1965 and 1977.Generation Y (Gen Y)People born between 1978 and 1994. Also called Millennials.Generation Z (Gen Z)People born since 1995.Market segmentationA two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.SegmentingAn aggregating process that clusters people with similar needs into a market segment.Market segmentA relatively homogeneous group of customers who will respond to a marketing mix in a similar way.Single target market approachSegmenting the market and picking one of the homogeneous segments as the firm's target market.Multiple target market approachSegmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix.Combined target market approachCombining two or more submarkets into one larger target market as a basis for one strategy.CombinersFirms that try to increase the size of their target markets by combining two or more segments.SegmentersAim at one or more homogeneous segments and try to develop a different marketing mix for each segment.Qualifying dimensionsThe dimensions that are relevant to including a customer type in a product-market.Determining dimensionsThe dimensions that actually affect the customer's purchase of a specific product or brand in a product-market.Clustering techniquesApproaches used to try to find similar patterns within sets of data.Customer relationship management (CRM)An approach where the seller fine-tunes the marketing effort with information from a detailed customer database.Dynamic behavioral segmentationThe use of real-time data to continuously update a customer's placement in a market segment.PositioningAn approach that refers to how customers think about proposed or present brands in a market.Positioning statementStatement that concisely identifies the firm's desired target market, product type, primary benefit or point of differentiation, and the main reasons a buyer should believe the firm's claims.Economic buyersPeople who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money.Economic needsNeeds concerned with making the best use of a consumer's time and money—as the consumer judges it.Discretionary incomeWhat is left of disposable income after paying for necessities.NeedsThe basic forces that motivate a person to do something.WantsNeeds that are learned during a person's life.DriveA strong stimulus that encourages action to reduce a need.Physiological needsBiological needs such as the need for food, drink, rest, and sex.Safety needsNeeds concerned with protection and physical well-being.Social needsNeeds concerned with love, friendship, status, and esteem—things that involve a person's interaction with others.Personal needsAn individual's need for personal satisfaction unrelated to what others think or do.PerceptionHow we gather and interpret information from the world around us.Selective exposureOur eyes and minds seek out and notice only information that interests us.Selective perceptionPeople screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.Selective retentionPeople remember only what they want to remember.LearningA change in a person's thought processes caused by prior experience.CuesProducts, signs, ads, and other stimuli in the environment.ResponseAn effort to satisfy a drive.ReinforcementOccurs in the learning process when the consumer's response is followed by satisfaction—that is, reduction in the drive.AttitudeA person's point of view toward something.BeliefA person's opinion about something.ExpectationAn outcome or event that a person anticipates or looks forward to.TrustThe confidence a person has in the promises or actions of another person, brand, or company.PsychographicsThe analysis of a person's day-to-day pattern of living as expressed in that person's Activities, Interests, and Opinions (AIOs). See also Lifestyle analysis.Lifestyle analysisThe analysis of a person's day-to-day pattern of living as expressed in that person's Activities, Interests, and Opinions (AIOs). See also Psychographics.Empty nestersPeople whose children are grown and who are now able to spend their money in other ways.Social classA group of people who have approximately equal social position as viewed by others in the society.Reference groupThe people to whom an individual looks when forming attitudes about a particular topic.Opinion leaderA person who influences others.CultureThe whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people.Purchase situationTakes into account the purpose, time available, and location where a purchase is made.Information searchDuring this step, customers seek information about a solution for their problem or about specific brands,Identify alternativesDuring this step, customers recognize available options for meeting a need.Set CriteriaDuring this step, customers identify criteria and the relative importance of each in preparation for the final step.Evaluation alternativeDuring this step, customer consider the costs and benefits of various alternatives.Extensive problem solvingWhen consumers put much effort into deciding how to satisfy a need.Limited problem solvingWhen a consumer is willing to put some effort into deciding the best way to satisfy a need.Routinized response behaviorWhen consumers regularly select a particular way of satisfying a need when it occurs.Low-involvement purchasesPurchases that have little importance or relevance for the customer.DissonanceTension caused by uncertainty about the rightness of a decision.Predictive analyticsA process used to analyze data to make predictions about unknown future events.Adoption processThe steps individuals go through on the way to accepting or rejecting a new idea.