Exam 2 Flash Cards Mkt 415

Front 1

account retention

Back 1

the percentage of accounts that continue doing business with the seller each year

Front 2

empathic dialogue

Back 2

active listening and identification with customer concerns, resulting in customer-centered communication and problem solving

Front 3

data warehousing

Back 3

uses centrally managed data from all functional areas of the organization (sales, purchasing, human resources, finance, accounts payable, etc.) - formatted to company standards - so that it may be accessed by authorized users through their personal computers for queries, custom reports, and analysis

Front 4

decile report

Back 4

orders the firm's customers from best to worst, on the basis of purchase volume for the period, summarized by tenths

Front 5

data mining

Back 5

describes the process of using numerous query tools and exploratory techniques to extract information from a database or data warehouse

Front 6

focus groups

Back 6

bring a small group of customers together to discuss a specific topic or issue

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sample survey

Back 7

a questionnaire administered to a representative group of a particular population

Front 8

sugging

Back 8

the unethical practice of using marketing research as a guise of selling

Front 9

CLV

Back 9

customer lifetime value. an estimate of the net present value of the stream of benefits from a customer, less the burdens of servicing the account or managing the relationship

Front 10

SIC

Back 10

standards industrial classification codes. developed by the U.S. government to collect and disseminate meaningful information on different sectors of the economy

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NAICS

Back 11

North American industrial classification system. establishes a common code between the United States, Canada, and Mexico. it is compatible with the united nation's two-digit system of industry classification, ISIC, and has been designed to include industries in services and emerging technology fields. SIC codes were replaced by this new system that groups the economy into 20 major sectors

Front 12

positioning

Back 12

a loosely used term that generally refers to marketing efforts to secure a valued categorization in the mind of a customer. serving customers in a segment that values economy, the product perceived to have reliability and low operating costs will have a winning position

Front 13

identifiable

Back 13

member of market segments can be enumerated and evaluated

Front 14

accessibility

Back 14

means that members of a market can be reached or impacted by some directed marketing activity

Front 15

substantial

Back 15

promising sufficient business to justify the efforts to serve it. customer lifetime value is a useful criterion in an assessment of a target market

Front 16

scenarios

Back 16

comprise a forecasting technique that requires managers to write explicit anticipated futures and articulate the chains of events that would need to occur to make the future happen

Front 17

buildup approach

Back 17

or factoring, market estimates by this approach come from building up the materials or parts units needed in a specific application or from specific accounts.

Front 18

statistical series

Back 18

an estimation technique that uses the correlation between demand and some other set of economic activities to yield a forecast

Front 19

market penetration

Back 19

endeavor to gain a large share of the market in which it currently competes with its existing products

Front 20

product development

Back 20

trying to serve customers in markets where it already has a presence with a new array of products

Front 21

market development

Back 21

current products are taken to new markets

Front 22

diversification

Back 22

an aim to serve new markets with new products

Front 23

synergy

Back 23

the whole is greater than the sum of its parts

Front 24

SWOT analysis

Back 24

self-assessment framework for examining the strengths and weaknesses, our opportunities and threats

Front 25

mission statement

Back 25

a formal expression of why the organization exists

Front 26

conceptual map

Back 26

a picture of abstract ideas, options, persons, or companies on two or three key variables

Front 27

five forces of competition

Back 27

1. rivalry among firms in the industry, 2. powerful customers, 3. powerful suppliers, 4. threat of substitutes, 5. threat of potential entrants

Front 28

barriers to entry

Back 28

the obstacles a potential entrant must overcome in order to compete in a market. essentially, they are like the prerequisites you need to satisfy before you can take a particular course; they are the capabilities or resources necessary to succeed in a market

Front 29

prospector

Back 29

likes being first mover, detects early signals of opportunity and moves on them, competes in new markets or with new marketing methods, operates in a broad domain of products and markets

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defender

Back 30

aims to find and secure stable product market positions, offers limited range of products, is not at the forefront of technology, ignores dynamic events on the outside of its core area of operation, defends market position with low price plus quality and service

Front 31

analyzer

Back 31

a combination prospector-defender-less aggressive with innovation and change than prospector, but not so attached to stability and efficiency as defender, very selective in developing products and pursuing opportunities, seldom a first mover, but often a strong second or third, offering high quality and service

Front 32

reactor

Back 32

lacks a well-defined strategy, product mix is inconsistent, not a risk taker, not aggressive, takes action generally under environmental pressures

Front 33

market orientation

Back 33

(1) the systematic gathering of information on customers and competitors, both present and potential, (2) the systematic analysis of the information for the purpose of developing market knowledge, and (3) the systematic use of such knowledge to guide strategy recognition, understanding, creation, selection, implementation and modification.

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learning

Back 34

occurs when we connect new information to what we already know

Front 35

learning organization

Back 35

one that consistently creates and refines its capabilities by connecting new information and skills to know and remember requisites for future success

Front 36

organizational culture

Back 36

the collectively held values, ideology, and social processes embedded in a firm

Front 37

market orientation

Back 37

a customer-centric form of learning organization because a market orientation is defined as superior skills of understanding and satisfying customers

Front 38

spanning processes

Back 38

processes that link internal processes with the customer. new product development is one such spanning process, as it links market requirements with internal processes such as manufacturing

Front 39

internal partnering

Back 39

creating partnering relationships with other functional areas (customers and suppliers within the firm), can also serve to carry market requirements to those managers in charge on internal processes

Front 40

supragoal

Back 40

a goal against which other goals are aligned

Front 41

make-to-stock

Back 41

marketing suppliers forecasts of demand and manufacturing makes enough to handle that demand. the company then draws on inventory to fill orders as they come in. there is no customization at all

Front 42

make to order

Back 42

means that manufacturing or production begins making the product after receiving an order

Front 43

engineer to order

Back 43

complete customization, with the product designed from scratch to meet the customer's needs

Front 44

functional structure

Back 44

organization by marketing function. ex. when markets are served, remaining in a functional structure can actually become dysfunctional. allocating appropriate resources to each functional group and to each market becomes too challenging, and a market structure is created. the primary difference is that each market gets its own marketing department, which may be further organized using a functional structure

Front 45

known requisites

Back 45

requirements for success that have been identified by the firm thus, the market-oriented firm is able to generate customer requirements that are then part of the learning process

Front 46

organizational learning

Back 46

the process of developing new knowledge that has the potential to influence behavior. learning facilitates behavior change that leads to better performance

Front 47

competency trap

Back 47

any skill or technology that a company sticks with due to comfort with the familiar, in spite of evidence that better alternatives may exist

Front 48

learning laboratories

Back 48

environments set aside for learning

Front 49

cognitive mapping

Back 49

a learning tool that is used to explore mental structures of beliefs and assumptions. in one respect, cognitive mapping is used to draw one's theories; the map is a diagram of cause-and-effect streams

Front 50

scenario

Back 50

a focused description of different futures presented in a coherent manner

Front 51

negotiation

Back 51

a method of decision making that is used to resolve, conflicts; it is important for the marketing manager to develop skills that enhance the use of this method