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132 Cards in this Set
- Front
- Back
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Marketing
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the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
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Exchange
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people giving up something to receive something they would rather have
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Production Orientation
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a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
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Sales Orientation
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the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
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Marketing Concept
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the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives
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Market Orientation
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a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase product; it is synonymous with the marketing concept
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Societal Marketing Orientation
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the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests
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Customer Value
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the relationship between benefits and the sacrifice necessary to obtain those benefits
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Customer Satisfaction
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customers' evaluation of a good or service in terms of whether it has met their needs and expectations
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Relationship Marketing
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a strategy that focuses on keeping and improving relationships with current customers
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Empowerment
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delegation of authority to solve customers' problems quickly--usually by the first person that the customer notifies regarding a problem
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Teamwork
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collaborative efforts of people to accomplish common objectives
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Strategic Planning
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the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities
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Planning
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the process of anticipating future events and determining strategies to achieve organizational objectives in the future
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Marketing Planning
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designing activities relating to marketing objectives and the changing marketing environment
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Marketing Plan
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a written document that acts as a guidebook of marketing activities for the marketing manager
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Mission Statement
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a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
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Marketing Myopia
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defining a business in terms of goods and services rather than in terms of the benefits customers seek
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Strategic Business Unit (SBU)
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a subgroup of a single business or collection of related businesses within the larger organization
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SWOT analysis
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identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)
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Environmental Scanning
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collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
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Marketing Objective
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a statement of what is to be accomplished through marketing activities
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Competitive Advantage
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a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
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Cost Competitive Advantage
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being the low-cost competitor in an industry while maintaining satisfactory profit margins
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Experience Curves
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curves that show costs declining at a predictable rate as experience with a product increases
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Product/Service Differentiation Competitive Advantage
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the provision of something that is unique and valuable to buyers beyond simply offering a lower price that the competition's
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Niche Competitive Advantage
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the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
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Sustainable Competitive Advantage
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an advantage that cannot be copied by the competition
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Market Penetration
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a marketing strategy that tries to increase market share among existing customers
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Market Development
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a marketing strategy that entails attracting new customers to existing products
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Product Development
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a marketing strategy that entails the creation of new products for present markets
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Diversification
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a strategy of increasing sales by introducing new products into new markets
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Portfolio Matrix
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a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
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Star
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in the portfolio matrix, a business unit that is a fast-growing market leader
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Cash Cow
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in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share
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Problem Child/Question Mark
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in the portfolio matrix, a business unit that shows rapid growth but poor profit margins
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Dog
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in the portfolio matrix, a business unit that has low growth potential and a small market share
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Marketing Strategy
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the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target marketers
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Market Opportunity Analysis (MOA)
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the description and estimation of the size and sales potential of market segments that are of interests to the firm and the assessment of key competitors in these market segments
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Marketing Mix
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a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
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Four Ps
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product, place, promotion, and prices, which together make up the marketing mix
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Implementation
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the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives
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Evaluation
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gauging the extent to which the marketing objectives have been achieved during the specified time period
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Control
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provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines
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Marketing Audit
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a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
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Ethics
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The moral principles or values that generally govern the conduct of an individual or a group
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Morals
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The rules people develop as a result of cultural values and norms
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Code of Ethics
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A guideline to help marketing managers and other employees make better decisions
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Corporate social responsibility
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a business's concern for society's welfare
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sustainability
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the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time
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pyramid of corporate social responsibility
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a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure
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green marketing
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the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment
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Target marketing
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a defined group most likely to buy a firm's product
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Environmental Management
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when a company implements strategies that attempt to shape the external environment within which it operates
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What are the four basic American values?
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self-sufficiency, upward mobility, work ethic, conformity
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component lifestyles
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the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle
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demography
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the study of people's vital statistics such as their age, race, ethnicity, and location
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Generation Y
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people born between 1979 and 1994
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Generation X
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people born between 1965 and 1978
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baby boomers
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people born between 1946 and 1964
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multiculturalism
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when all major ethnic groups in an area such as a city, county or census tract are roughly equally represented
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purchasing power
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a comparison of income versus the relative cost of a set of standard of goods and services in different geographic areas
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inflation
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a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
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recession
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a period of economic activity characterized by negative growth, which reduces demand for goods and services
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basic research
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pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
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applied research
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an attempt to develop new or improved products
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Food and Drug Administration (FDA)
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a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products
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Consumer Product Safety Commission (CPSC)
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a federal agency established to protect the health and safety of consumers in and around their homes
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Federal Trade Commission (FTC)
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a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
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Global marketing
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marketing that targets markets throughout the world
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global vision
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recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
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job outsourcing
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sending US jobs abroad
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multinational corporation
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a company that is heavily engaged in international trade, beyond exporting and importing
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capital-intensive
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using more capital than labor in the production process
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global marketing standardization
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production of uniform products that can be sold the same way all over the world
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Mercosur
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the largest Latin American trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay
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Uruguay Round
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an agreement to dramatically lower trade barriers worldwide; created the World Trade Organization
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World Trade Organization
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trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)
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General Agreement on Tariffs and Trade (GATT)
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a trade agreement that contained loopholes that enables countries to avoid trade-barrier reduction agreements
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North American Free Trade Agreement (NAFTA)
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an agreement between Canada, the United States, and Mexico that created the world's largest free trade zone
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Central America Free Trade Agreement (CAFTA)
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a trade agreement, instituted in 2005, that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States
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European Union (EU)
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a free trade zone encompassing 27 European countries
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World Bank
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an international bank that offers low-interest loans, advice and information to developing nations
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International Monetary Fund (IMF)
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an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
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exporting
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selling domestically produced products to buyers in another country
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buyer for export
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an intermediary in the global market that assumes all ownership risks and sells globally for its own account
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export broker
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an intermediary that plays the traditional broker's role by bring buyer and seller together
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export agent
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an intermediary that acts like a manufacturer's agents for the exporter; the export agent lives in the foreign market
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licensing
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the legal process whereby a lincensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
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contract manufacturing
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private-label manufacturing by a foreign company
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joint venture
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when a domestic firm buys part of a foreign company or joints with a foreign company to create a new entity
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direct foreign investment
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active ownership of a foreign company or of overseas manufacturing or marketing facilities
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floating exchange rates
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prices of different currencies move up and down based on the demand for and the supply of each currency
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dumping
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the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter
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counter-trade
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a form of trade in which all or part of the payment for goods or services is in the form of other goods or services
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counter-trade
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a form of trade in which all or part of the payment for goods or services is in the form of other goods or services
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Marketing's Critical Role
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Attracting satisfy and retain customers
Profitability Creating, Communicating, Delivering, Exchanging Value for Customers |
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Marketing's Role within the firm
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creates value for the firm’s
chosen customers by meeting customer’s functional and emotional needs. |
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Customer acquisition
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acquire
customers profitably less upfront sales and marketing investment higher-value customers Eliminate unprofitable customer acquisition activities |
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Customer retention
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Increase “share of
customer” Generate add-on sales Partner with other firms |
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Margin
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Increase price
Shift mix of purchases toward higher margin products Change customer behaviors terminate, unprofitable customers |
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Sales per customer
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Eliminate the root causes
recover customers loyalty initiatives Acquire more customers that will be loyal |
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Marketing Creates Value
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Marketing creates value for the firm’s
chosen customers. If there is no value, customers leave. Without customers, companies fail. Value is created by meeting customer’s functional and emotional needs. |
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What are the four profitability drivers?
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customer acquisition, customer retention, margin, sales per customer
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The Fraud Triangle
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Opportunity, Rationalization, Pressure
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Ethical Leadership
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Honest Employees
Dishonest Employees Swing group- weak leadership-become dishonest strong leadership- become honest |
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social responsibility
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Organizations are a
part of a larger society and are accountable to that society for their actions. |
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Sustainability
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Organizations will focus on
the world’s social problems and view them as opportunities to build profits and help the world. |
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Green marketing
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The development and
marketing of products designed to minimize negative effects on the environment. |
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Marketing Across borders- product
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Standardized- production efficiency
customized- market suitability |
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Glocal
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Standard platform adapted to local requirements
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Marketing Across borders- price
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Transportation
Tariffs Importer margin |
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B2B
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• Individual buyers
> Purchasing agent • Group buyers > The buying center |
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5 things around the family buying center
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buyers, users, gatekeepers, kidfluencers, deciders
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Define consumer behavior
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The processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods/services.
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Model of Consumer behavior
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Stimuli/Environment
Organism/Buyer's Black Box Response/Buyer's Response |
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Consumer Behavior is a Process
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Problem recognition/Perceiving a need
Information Search/Seeking value Evaluation of Alternatives/Assessing value Purchase/Buying value Post-Purchase Evaluation/Consuming, experiencing, or using value |
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Three levels of problem solving
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• Extensive
• Limited • Routine |
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Marketing math
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Ao =Σ bi ei
n i=1 |
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Post-purchase evaluation
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• Delight: Perception > Expectation
• Satisfaction: P = E • Dissatisfaction: P < E |
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Factors influencing consumer behavior
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Social, Individual, Social, Psychological
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Culture
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Culture is the set of values, norms,
attitudes, and other meaningful symbols that shape human behavior. Cultural factors exert the broadest and deepest influence on consumer behavior. |
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Subculture
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a homogeneous group of people
who share elements of the overall culture as well as unique elements of their own. |
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Perception
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The process of selecting,
organizing, and interpreting information. |
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Criteria for Segmentation- Substantial
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Segment must be large enough to
warrant a special marketing mix. |
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Criteria for Segmentation- Identifiable and Measurable
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Segments must be identifiable and their size measurable.
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Criteria for Segmentation- Accessible
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Members of targeted segments must be reachable with marketing mix.
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Criteria for Segmentation- Responsive
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Unless segment responds to a marketing mix differently, no separate treatment is needed.
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Wind quote
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The most difficult aspect of any segmentation approach is the translation of the results into a strategy.
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Ways to Segment
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Geographic
• Region, city or metro size, density, climate Demographic • Age, gender, family size and life cycle, race, occupation, income Psychographic • Lifestyle, personality, attitudes, values Behavioral • Usage situations, benefits |
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USP sentence
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For [target market] the [name of product] is [single most important claim] among all [competitive frame] because [single most important support]
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Positioning
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The heart of the marketing strategy!
The act of designing the company’s offering so that it occupies a distinct and valued place in the target customers’ minds. |
