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117 Cards in this Set

  • Front
  • Back
a customer's subjective assessment of benefits relative to costs in determining the worth of a product
Relationship Marketing
establishing long-term, mutually satisfying buyer-seller relationships
Marketing Concept
a philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve it's goals.
Customer Relationship Marketing
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
Marketing Strategy
a strategy for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
Marketing Plan
a written document that specifies the activities to be performed to implement and control an organization's marketing activities
Sustainable Competitive Advantage
an advantage that the competition cannot copy
Market Opportunity
A combination of circumstances and timing that permits an organization to take action to reach a target market
Mission Statement
a long-term view of what the organization wants to become
Marketing Environment
the competitive, economical, political, legal and regulatory, technological, and sociological cultural forces that surround the customer and affect the marketing mix
Passive/reactive and Proactive
Passive/Reactive Approach
an approach that views environmental forces as uncontrollable
Proactive Approach
an approach that believes that environmental forces can be shaped
Classes of Competitors
Desire, Generic, Product, and Brand
Federal Trade Commission (FTC)
The adoption of a strategic focus for fulfilling the economic , legal, ethical, and philantrhopic social responsibilities expected by stakeholders
Organized efforts by individuals, groups, and organizations to protect consumers' rights
Marketing Ethics
principles and standards that define acceptable marketing conduct as determined by various stakeholders
Social Responsibility
An organization's obligation to maximize its positive impact and minimize negative impact on society
Cause-related marketing
practive of linking products to a particular social cause on an ongoing, short-term basis
Organizational Culture
set of values, beliefs, goals, norms, and rituals that members of an organization share
Environmental difference in global marketing
differences in environment are based on the impact of culture, economics, ethics, technology, politics, and competitors and their forces in foreign environments
Levels of Commitment
Exporting, Licensing and Franchising, Contract Manufacturing, Joint Ventures, and Direct Ownership
Development of marketing strategies that treat the entire world (or it's major regions) as a single entity
Marketing Research
systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
Marketing Information System
framework for the management and structuring of information gathered regularly from sources inside and outside an organization
Steps of Marketing Research Process
Locate and define problems or issues, design research project, collect data, interpret findings, and report research findings
Types of Research Design
Exploratory, Descriptive and Causal
Exploratory Research Design
use when making tentative hypothesis more specific
Descriptive Research Design
understand characteristics of certain phenomena
Causal Research Design
Variable X causes Variable Y
condition existing when a research technique produces almost an identical result in repeated trials
condition existing when a research method measures what it is designed to measure
Probability Sampling
Sampling technique in which every element in the population being studied has a known chance of being selected for study
Target Market
group of buyers that a firm has targeted
Segmentation Variables
Demographic, geographic, psychographic, behavioristic
variables based on age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, social class
variables based on region, urban/suburban/rural, city size, county size, state size, market density, climate, terrain
variables based on personality attributes, motives, lifestyles
variables based on volume usage, end use, benefit expectations, brand loyalty, and price sensitivity
an approach to market segmentation in which organizations focus on precise marketing efforts on very small geographic markets
division of a market according to benefits that customers want the product
Executive Judgement
intuition of one or more executives
Types of surveys
customer forecasting, sales force forecasting, expert forecasting, and delphi technique
Customer forecasting
survey of customers regarding the types and quantities of products they inted to buy at a specific period
Sales force forecasting
survey of firm's sales force regarding anticipated sales in their territories
Expert forecasting
sales forecasting prepared by experts such as economists, management consultants, advertising executives, college professors, or other persons outside the firm
Delphi technique
a procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts
Time-series analysis
uses historical sales data to discover patterns in sales
Regression analysis
finds relationship between past sales and one or more variables
Market Tests
making a product avaliable in one or more test area and measuring pruchases and consumer responses to distribution, population, promotion, and price
Level of Involvement
an individual's intensity of interest in a product and the importance of the product for that person
Problem Solving Processes
Routinized response behavior, limited problem solving, extended problem solving, and impulse buying
Routinized response behavior
consumer buys frequently purchased, low-cost items needing little search and decision effort
Limited Problem Solving
buy occasionally, or need information about unfamiliar product in a familiar category
Extended Product Solving
purchase unfamiliar, expensive, or infrequently bought products
Impulse buying
no conscious planning, but has a powerful urge to buy
Consumer Buying Decision Process
Problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation
Cognitive Dissonance
doubts about whether your decision to purchase a product was the right one
Influences on the Consumer Buying Decision
situational, psychological, and social
Situation influences
results from circumstances, time, and location that affect the consumer buying decision process (i.e. physical surroundings, social surroundings, time perspective, reason for purchase, and buyer's mood and condition
Psychological influences
partly determine people's general behavior and thus influence their behavior as consumers (i.e. perception, motives, personality, learning, lifestyles, self-concept, and attitudes
Social influences
Forces that other people exert on buying behavior (i.e. roles, family, reference groups, and opinion leaders, social classes, culture, and subculture)
Business Markets
Individuals or gropus that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
Derived Demand
demand for industrial products that stems from demand for consumer products
Categories of Influence on Business Buying Decisions
Environmental, organizational, interpersonal, and individual
Stages of Business Buying Decision Process
problem recognition, develop product specifications, search and evaluate potential products and suppliers, select product and supplier and order product, and evaluate product and supplier performance
Types of Business Purchases
straight re-buy, modified re-buy, and new-task purchase
Straight Re-buy
routine purchase of the same products by a business buyer
Modified Re-buy
new task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified
New-Task Purchase
an initial purchase by an organization of an item to be used to perform a new job or solve a new problem
Types of Consumer Products
convenience, shopping, specialty, and unsought products
Convenience products
relatively inexpensive, frequently purchased, with little purchasing effort
Shopping products
items that consumers are willing to spend considerable effort in planning and making purchase (i.e. comparing stores/prices for items such as appliances, bicycles, furniture, etc.)
Specialty products
possess one or more unique characteristics, and generally buyers are willing to spend considerable time and effort to obtain them (i.e. one-of-akind baseball memorabilia
Unsought products
products that are purchased due to a sudden problem, or a product the customer does not usually think of purchasing (i.e. automobile repairs)
Stages of Product Life Cycle
introduction, growth, maturity, and decline
Introduction Stage of PLC
sales at zero, profits negative
Growth Stage of PLC
sales rise rapidly, profits reach peak
Maturity Stage of PLC
sales peak, profits continue to fall, 3 stages attempted to achieved here - generate cash flow, maintain market share, increase share of customer)
Decline Stage of PLC
sales fall rapidly, profits continue to fall
Profits peak at which stage?
Sales peak at which stage?
Product Adaptation Process
Awareness, interest, evaluation, trial, adoption
Adopter Categories
innovators(2.5%) early adopters(13.5%) early majority(34%) late majority(34%) laggards (16%)
Brand Loyalty
customers favorable attitude towards a specific brand
Brand Recognition
customer aware that the brand exists and views it as an alternative purchase if preferred brand is not available or if other unpreferrable brands are not available)
Brand Preference
customer definitely prefers one brand over competitor's and will purchase the brand if available rather than looking for preferred brand)
Brand Insistence
customer strongly prefers a brand, accepts no subtitutes, and is willing to spend a great deal of time and effort to acquire that brand
Types of Brands
manufacturer, distributor, and generic
Manufacturer Brands
initiated by products that ensure that producers are identified with their products at the point of purchase (i.e. Green Giant, Compaq, Levi's)
Distributor Brands
initiated and owned by resellers. Major characteristic is that manufacturer is not identified on the product (i.e. Sears Kenmore, JC Penny's Arizona Clothing)
Generic Brands
indicate only product category and do not include company name or other identifying terms (i.e. Ibuprofen)
Criteria for Brand Naming
easy to say, spell, and recall; name should indicate product's benefits; should be distinctive
Packaging considerations
meet FDA requirements, protects product, promotional role, meets need of reseller (easy to transport, store and handle), and environmentally sound
Steps in Development of a New Product
idea generation, screen and evaluating, concept testing, business analysis, product development, test marketing, and commercialism
Line Extension
development of a product that is closely related to existing products in the line but meets different customer needs
Product Differentiation
process of differentiating your product from your competitor's
overall characteristics that allow a product to perform as expected in satisfying customer needs
styling and features; how a product is conceived, planned, and produced
Support Services
any human or mechanical efforts to provide value to product, such as a warranty on an automobile
Product Positioning
creating and maintaining a certain concept of a product in customer's minds
Characteristics of Services
intangibility, inseperability, heterogeneity, perishability, client based relationships, and customer contact
not physical and cannot be touched
production of service and consumption of service happen simultaniously
maintaining consistent quality
unused services cannot be saved for a later time period
Client Based Relationships
repeated interaction with customers that results in satisfied customers who use a service
Customer Contact
level of interaction between service provider and customer
Service Quality
customer's perception of how well a service meets or exceed their expectations
Non-Profit Marketing
marketing conducted to achieve some goal other than ordinary business goals or profit, market share, or return on investment
Steps to improve service quality
analyze customer needs, service quality specifics, employee performance, and manage service expectations
Opportunity cost
the value of the benefit given up by choosing one alternative over another
Marketing channel
a group of individuals and organizations directing products from producers to customers
Marketing intermediary
a middleman linking procedures to other middlemen or the ultimate customer through contracts or purchase and resell or products
Supply-Chain Management
long term partnerships among marketing channel members that reduce inefficiencies, costs, and redundancies and develop innovative approaches to satisfy customers
Vertical Marketing System
marketing channel managed by a single channel member
Intensity of Market Coverage
Intensive (use all available outlets for promoting a product)
selective (use only some available outlets in area to promote a product)
exclusive (use only one outlet in a fairly large geographical area to distribute product)