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199 Cards in this Set

  • Front
  • Back
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
Marketing Environment
The actors close to the company that affect its ability to serve its customers-the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
· Microenvironment
The larger societal forces that affect the microenvironment-demographic, economic, natural, technological, political, and cultural forces.
Firms that help the company to promote, sell, and distribute its goods to final buyers; they include resellers, physical distribution firms, marketing service agencies, and financial intermediaries.
marketing intermediaries
Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.
The study of human populations in terms of size, density, location, age, gender, race,
· occupation, and other statistics.
The 78 million people born during the baby boom, following World War II and lasting until the early 1960s.
baby boomers
The 45 million people born between 1965 and 1976 in the “birth dearth” following the baby boom.
Generation X
The 72 million children of the baby boomers, born between 1977 and 1994.
Generation Y
Factors that affect consumer buying power and spending patterns.
Economic environment
Differences noted over a century ago by Ernst Engel in how people shift their spending across food, housing, transportation, health care, and other goods and services categories as family income rises.
Engel's Laws
Natural resources that are needed as inputs by marketers or that are affected by marketing activities.
Natural environment
Forces that create new technologies, creating new product and market opportunities.
Technological advances
Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.
political environment
Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors.
cultural environment
A management perspective in which the firm takes aggressive actions to affect the publics and forces in its marketing environment rather than simply watching and reacting to them.
Environmental management perspective
People, equipment, and procedures to gather, sort, analyze, evaluate, and distribute, needed, timely, and accurate information to marketing decision makers.
Management information system (MIS)
Electronic collections of information obtained from data sources within the company.
Internal databases
The systematic collection and analysis of publicly available information about competitors and developments in the marketing environment.
Marketing intelligence
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Marketing research
Marketing research to gather preliminary information that will help define problems and suggest hypotheses.
Exploratory research
Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.
Descriptive research
Marketing research to test hypotheses about cause-and-effect relationships.
Causal research
Information that already exists somewhere, having been collected for another purpose.
Secondary data
Information collected for the specific purpose at hand.
Primary data
Computerized collections of information available from online commercial sources or via the Internet.
Online databases
The gathering of primary data by observing relevant people, actions, and situations.
Observational research
The gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.
Survey research
Electronic monitoring systems that link consumers’ exposure to television advertising and promotion (measured using television meters) with what they buy in stores (measured using store checkout scanners).
Single-source data systems
The gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
Experimental research
Personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer “focuses” the group discussion on important issues.
Focus group interviewing
Collecting primary data through Internet surveys and online focus groups.
Online (internet) marketing research
A segment of the population selected for marketing research to represent the population as a whole.
Managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty.
Customer Relationship Management (CRM)
The buying behavior of final consumers-individuals and households who buy goods and services for personal consumption.
Consumer buying behavior
All the individuals and households who buy or acquire goods and services for personal consumption.
Consumer market
The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.
A group of people with shared value systems based on common life experiences and situations.
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.
social classes
Two or more people who interact to accomplish individual or mutual goals.
Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others.
Opinion leader
A person’s pattern of living as expressed in his or her activities, interests, and opinions.
A person’s distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her own environment.
The specific mix of human traits that may be attributed to a particular brand.
brand personality
A need that is sufficiently pressing to direct the person to seek satisfaction of the need.
Motive (drive)
The process by which people select, organize, and interpret information to form a meaningful picture of the world.
Changes in an individual’s behavior arising from experience.
A descriptive thought that a person holds about something.
A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.
Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands.
complex buying behavior
Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands.
Dissonance-reducing buying behavior
Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences.
habitual buying behavior
Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences.
variety-seeking buying behavior
The first stage of the buyer decision process, in which the consumer recognizes a problem or need.
need recognition
The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search.
information search
The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set.
alternative evaluation
The buyer’s decision about which brand to purchase.
purchase decision
The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction.
postpurchase behavior
Buyer discomfort caused by postpurchase conflict.
cognitive dissonance
A good, service, or idea that is perceived by some potential customers as new.
new product
The mental process through which an individual passes from first hearing about an innovation to final adoption.
adoption process
The buying behavior of the organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting to others at a profit.
business buyer behavior
The decision process by which business buyers determine which products and services their organizations need to purchase, and then find, evaluate, and choose among alternative suppliers and brands.
business buying process
Business demand that ultimately comes from the demand for consumer goods.
derived demand
A business buying situation in which the buyer routinely reorders something without any modifications.
straight rebuy
A business buying situation in which the buyer routinely reorders something without any modification.
modified rebuy
A business buying situation in which the buyer purchases a product or service for the first time.
new task
Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
systems selling
All the individuals and units that participate in the business buying-decision process.
buying center
Members of the buying organization who will actually use the purchased product or service.
People in an organization’s buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.
The people who make an actual purchase.
People in the organization’s buying center who have formal or informal power to select or approve the final suppliers.
People in the organization’s buying center who control the flow of information to others.
The first stage of the business buying process, in which the company recognizes a problem or need that can be met by acquiring a good or a service.
problem recognition
The stage in the business buying process in which the company describes the general characteristics and quantity of a needed item.
general need description
The stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item.
product specification
An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production.
value analysis
The stage of the business buying process in which the buyer tries to find the best vendors.
supplier search
The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals.
proposal solicitation
The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers.
supplier selection
The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties.
order-routine specification
The stage of the business buying process in which the buyer rates its satisfaction with suppliers, deciding whether to continue, modify, or drop them.
Performance review
Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care.
Institutional market
Governmental units-federal, state, and local-that purchase or rent goods and services for carrying out the main functions of government.
Government market
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.
Market segmentation
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
target marketing
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
market positioning
Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods.
geographic segmentation
Dividing the market into groups based on demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
demographic segmentation
Dividing a market into different age and life-cycle groups.
Age and life-cycle segmentation
Dividing a market into different groups based on gender.
gender segmentation
Dividing a market into different income groups.
income segmentation
Dividing a market into different groups based on social class, lifestyle, or personality characteristics.
psychographic segmentation
Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product.
Behavioral segmentation
Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.
Occasion segmentation
Dividing the market into groups according to the different benefits that consumers seek from the product.
Benefit segmentation
Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.
Intermarket segmentation
A set of buyers sharing common needs or characteristics that the company decides to serve.
Target market
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
Undifferentiated (mass) marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
Differentiated (segmented) marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
Concentrated (niche) marketing
The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups-includes local marketing and individual marketing.
Tailoring brands and promotions to the needs and wants of local customer groups-cities, neighborhoods, and even specific stores.
Local marketing
Tailoring products and marketing programs to the needs and preferences of individual customers-also labeled “markets-of-one marketing,” “customized marketing,” and “one-to-one marketing.”
Individual marketing
The way the product is defined by consumers on important attributes-the place the product occupies in consumers’ minds relative to competing products.
product position
An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.
competitive advantage
The full positioning of a brand-the full mix of benefits upon which it is positioned.
value proposition
A statement that summarizes company or brand positioning-it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-difference).
positioning statement
A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others
A state of felt deprivation
The form taken by a human need as shaped by culture and individual personality
Human wants that are backed by buying power
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want
marketing offer
The act of obtaining a desired object from someone by offering somethign in return
A trade of values between 2 parties
The set of all actual and potential buyers of a product or service
The art and science of choosing target markets and building profitable relationships with them
marketing management
Marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but only to reduce or shift it
The idea that consumers will favor products that are available and highly affordable
Production concept
The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements
Product concept
The idea that consumers will not buy enough of the organization's products unless the organization undertakes a large-scale selling and promotion effort
selling concept
The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do
marketing concept
The idea that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than do competitors in a way that maintains or improves the consumer's and society's well-being
societal marketing concept
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Customer relationship management
The value of the entire stream of purchases that the customer would make over a lifetime of patronage
customer lifetime value
The difference between total customer value and total customer cost
customer perceived value
The extent to which a product's perceived performance matches a buyer's expectations
customer satisfaction
The total combined customer lifetime values of all of the company's customers
customer equity
The vast and burgeoning global web of computer networks with no central management or ownership
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Partner relationship management
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies
Strategic planning
A statement of the organization's purpose-what it wants to accomplish in the larger environment
mission statement
The collection of businesses and products that make up the company
Business portfolio
A tool by which management identifies and evaluates the various businesses making up the company
portfolio analysis
A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.
Strategic business unit (SBU)
A portfolio-planning method that evaluates a company's strategic business units in terms of their market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs
Growth-share matrix
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
Product/market expansion grid
A strategy for company growth by increasing sales of current products to current market segments without changing the product
market penetration
A strategy for company growth by identifying and developing new market segments for current company products
market development
A strategy for company growth by offering modified or new products to current market segments
Product development
A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets
Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers
partner relationship management
The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products
Value chain
The network made up of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system
value-delivery network
The process of (1) analying marketing opportunities (2)Selecting target markets (3) Developing the marketing mix, and (4) managing the marketing effort
Marketing process
Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes
market segmentation
A group of consumers who respond in a similar way to a given set of marketing efforts
Market segment
The process of evaluating each market segment's attractiveness and selecting 1 or more segments to enter
Target marketing
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
market positioning
The set of controllable tactical marketing tools-product, price, place, and promotion-that the firm blends to produce the response it wants in the target market
Marketing mix
The marketing logic by which the business unit hopes to achieve its marketing objectives
Marketing strategy
The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives
marketing implementation
The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved
marketing control
A comprehensive, systematic, independent, and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company's marketing performance
Marketing audit
What is marketing?
Managing profitable customer relationships.
-Attracting new customers
-Retaining and growing current customers
"marketing" is not synonymous with "sales" or "advertising"
Who developed the social definition of marketing?
Give examples of things that can be marketed
What are the management orientations?
Production Concept
Product Concept
Selling concept
Marketing concept
Societal marketing concept
What are the marketing core concepts?
-Needs, wants, and demands
-Value and satisfaction
-Marketing offers: including products, services and experiences
-Exchange, transactions and relationships
How many times more does it cost to attract a new customer than it does to keep a current customer satisfied?
Marketers must be concerned with _____________________________
the lifetime value of the customer
What does customer equity measure?
A firm's performance, but in a mannner that looks to the future
What are the marketing challenges
Technological advances, rapid globalization, and continuing social and economic shifts are causing marketplace changes
Major marketing developments can be grouped under the theme of _______
How do we get customer value/satisfaction?
Perceptions are key
Meeting/exceeding expectations creates satisfaction
Loyalty increases as ___________________ and delighting customers _______________________
satisfaction levels increase; should be the goal
What types of relationships do target markets typically dictate?
Basic relationships
Full relationships
What are some things that marketers do to keep customer loyalty?
They have retention programs such as adding financial benefits, adding social benefits, and adding structural ties
How do we connect?
Via technology
With customers
With marketing partners
With the world
What do databases do?
They allow for the customization of products, messages and analysis of needs
What are some benefits of the Internet?
It facilitates anytime, anywhere connections, facilitates CRM, and creates marketspaces
Partner relationship management involves:
Connecting inside the company
Connecting with outside partners through supply chain management and strategic alliances
What are some benefits of globalization?
Competition and new opportunities
Connecting with the world causes us to have?
-Greater concern for environmental and social responsibility
-Increased marketing by nonprofit and public-sector entities such as social marketing campaigns
What are some things to consider when connecting with customers?
-Selecting relationship management is key. Customer profitability analysis separates winners from losers
-Growing "share of customer" (cross-selling and upselling are helpful)
-Direct sales to buyers are growing
Where do strategic planning activities occur?
Business unit
Market levels
What is the strategic planning process?
Defining the purpose and mission
Setting objectives and goals
Desigining the business portfolio
Developing detailed marketing and departmental plans
Mission statements should....
Serve as a guide for what the organizations wants to accomplish

Be market-oriented rather than product-oriented

Be neither too narrow, nor too broad

Fit with the market environment

Be motivating
What do mission statements do?
Guide the development of objectives and goals
-Objectives are developed at each level in the organization hierarchy
-Strategies are developed to accomplish these objectives
What are the 2 types of the portfolio design?
1. Analyze the current business portfolio
2. Shape the future business portfolio
Describe the first step in the portfolio design
Identify SBUs
Assess each SBU
The BCG growth-share matrix classifies SBUs into 1 of 4 categories using the:
Market growth rate
SBU's relative market share within the market
Describe step 2 in the portfolio design process
Determine the future role of each SBU and choose the appropriate resource allocation strategy:
What are some approaches that matrix approaches to formal planning have?
-Difficult, time-consuming, and costly to implement
-Focus only on current businesses
-Too strongly emphasize market share growth or growth via diversification
Designing the business portfolio also involves:
Developing strategies for growth by identifying, evaluating, and selecting promising new marketing opportunities

Developing strategies for downsizing the business portfolio
What are the key elements to the marketing process?
analyzing marketing opportunities
selecting target markets
developing the marketing mix
managing the marketing effort
What is the purpose of the marketing process?
To help the firm plan how to capitalize on opportunities
What are the 4 c's?
Customer solution
What guides competitive marketing strategy development?
competitor analysis
What are the steps to managing the marketing effort?
Marketing analysis (provides information helpful in planning, implementation, and control)

Marketing planning (strategies and tactics)

Marketing implementation (turns plans into action)

Marketing control (operating control and strategic control)
What are the 3 steps of target marketing?
Market segmentation
target marketing
Market positioning
What are the 3 steps of target marketing?
Market segmentation
target marketing
Market positioning
What are the different types of segmentation?
What is the most popular segmentation?
What is psychographic segmentation?
Lifestyle, social class, and personality-based segmentation
What type of segmentation is typically done first?
Behavioral segmentaiton
What are some things marketers should take under consideration when evaluating market segments
segment size and growth
segment structural attractiveness
Company objectives and resources