Marketing

Front 1

The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.

Back 1

Marketing Environment

Front 2

The actors close to the company that affect its ability to serve its customers-the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

Back 2

· Microenvironment

Front 3

The larger societal forces that affect the microenvironment-demographic, economic, natural, technological, political, and cultural forces.

Back 3

macroenvironment

Front 4

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.

Back 4

marketing intermediaries

Front 5

Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.

Back 5

public

Front 6

The study of human populations in terms of size, density, location, age, gender, race,
· occupation, and other statistics.

Back 6

demography

Front 7

The 78 million people born during the baby boom, following World War II and lasting until the early 1960s.

Back 7

baby boomers

Front 8

The 45 million people born between 1965 and 1976 in the “birth dearth” following the baby boom.

Back 8

Generation X

Front 9

The 72 million children of the baby boomers, born between 1977 and 1994.

Back 9

Generation Y

Front 10

Factors that affect consumer buying power and spending patterns.

Back 10

Economic environment

Front 11

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.

Back 11

Engel's Laws

Front 12

Natural resources that are needed as inputs by marketers or that are affected by marketing activities.

Back 12

Natural environment

Front 13

Forces that create new technologies, creating new product and market opportunities.

Back 13

Technological advances

Front 14

Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.

Back 14

political environment

Front 15

Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors.

Back 15

cultural environment

Front 16

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.

Back 16

Environmental management perspective

Front 17

People, equipment, and procedures to gather, sort, analyze, evaluate, and distribute, needed, timely, and accurate information to marketing decision makers.

Back 17

Management information system (MIS)

Front 18

Electronic collections of information obtained from data sources within the company.

Back 18

Internal databases

Front 19

The systematic collection and analysis of publicly available information about competitors and developments in the marketing environment.

Back 19

Marketing intelligence

Front 20

The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Back 20

Marketing research

Front 21

Marketing research to gather preliminary information that will help define problems and suggest hypotheses.

Back 21

Exploratory research

Front 22

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.

Back 22

Descriptive research

Front 23

Marketing research to test hypotheses about cause-and-effect relationships.

Back 23

Causal research

Front 24

Information that already exists somewhere, having been collected for another purpose.

Back 24

Secondary data

Front 25

Information collected for the specific purpose at hand.

Back 25

Primary data

Front 26

Computerized collections of information available from online commercial sources or via the Internet.

Back 26

Online databases

Front 27

The gathering of primary data by observing relevant people, actions, and situations.

Back 27

Observational research

Front 28

The gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.

Back 28

Survey research

Front 29

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).

Back 29

Single-source data systems

Front 30

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.

Back 30

Experimental research

Front 31

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.

Back 31

Focus group interviewing

Front 32

Collecting primary data through Internet surveys and online focus groups.

Back 32

Online (internet) marketing research

Front 33

A segment of the population selected for marketing research to represent the population as a whole.

Back 33

Sample

Front 34

Managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty.

Back 34

Customer Relationship Management (CRM)

Front 35

The buying behavior of final consumers-individuals and households who buy goods and services for personal consumption.

Back 35

Consumer buying behavior

Front 36

All the individuals and households who buy or acquire goods and services for personal consumption.

Back 36

Consumer market

Front 37

The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

Back 37

culture

Front 38

A group of people with shared value systems based on common life experiences and situations.

Back 38

subculture

Front 39

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.

Back 39

social classes

Front 40

Two or more people who interact to accomplish individual or mutual goals.

Back 40

group

Front 41

Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others.

Back 41

Opinion leader

Front 42

A person’s pattern of living as expressed in his or her activities, interests, and opinions.

Back 42

lifestyle

Front 43

A person’s distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her own environment.

Back 43

personality

Front 44

The specific mix of human traits that may be attributed to a particular brand.

Back 44

brand personality

Front 45

A need that is sufficiently pressing to direct the person to seek satisfaction of the need.

Back 45

Motive (drive)

Front 46

The process by which people select, organize, and interpret information to form a meaningful picture of the world.

Back 46

perception

Front 47

Changes in an individual’s behavior arising from experience.

Back 47

learning

Front 48

A descriptive thought that a person holds about something.

Back 48

belief

Front 49

A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.

Back 49

attitude

Front 50

Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands.

Back 50

complex buying behavior

Front 51

Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands.

Back 51

Dissonance-reducing buying behavior

Front 52

Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences.

Back 52

habitual buying behavior

Front 53

Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences.

Back 53

variety-seeking buying behavior

Front 54

The first stage of the buyer decision process, in which the consumer recognizes a problem or need.

Back 54

need recognition

Front 55

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.

Back 55

information search

Front 56

The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set.

Back 56

alternative evaluation

Front 57

The buyer’s decision about which brand to purchase.

Back 57

purchase decision

Front 58

The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction.

Back 58

postpurchase behavior

Front 59

Buyer discomfort caused by postpurchase conflict.

Back 59

cognitive dissonance

Front 60

A good, service, or idea that is perceived by some potential customers as new.

Back 60

new product

Front 61

The mental process through which an individual passes from first hearing about an innovation to final adoption.

Back 61

adoption process

Front 62

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.

Back 62

business buyer behavior

Front 63

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.

Back 63

business buying process

Front 64

Business demand that ultimately comes from the demand for consumer goods.

Back 64

derived demand

Front 65

A business buying situation in which the buyer routinely reorders something without any modifications.

Back 65

straight rebuy

Front 66

A business buying situation in which the buyer routinely reorders something without any modification.

Back 66

modified rebuy

Front 67

A business buying situation in which the buyer purchases a product or service for the first time.

Back 67

new task

Front 68

Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.

Back 68

systems selling

Front 69

All the individuals and units that participate in the business buying-decision process.

Back 69

buying center

Front 70

Members of the buying organization who will actually use the purchased product or service.

Back 70

users

Front 71

People in an organization’s buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.

Back 71

influencers

Front 72

The people who make an actual purchase.

Back 72

buyers

Front 73

People in the organization’s buying center who have formal or informal power to select or approve the final suppliers.

Back 73

deciders

Front 74

People in the organization’s buying center who control the flow of information to others.

Back 74

gatekeepers

Front 75

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.

Back 75

problem recognition

Front 76

The stage in the business buying process in which the company describes the general characteristics and quantity of a needed item.

Back 76

general need description

Front 77

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.

Back 77

product specification

Front 78

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.

Back 78

value analysis

Front 79

The stage of the business buying process in which the buyer tries to find the best vendors.

Back 79

supplier search

Front 80

The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals.

Back 80

proposal solicitation

Front 81

The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers.

Back 81

supplier selection

Front 82

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.

Back 82

order-routine specification

Front 83

The stage of the business buying process in which the buyer rates its satisfaction with suppliers, deciding whether to continue, modify, or drop them.

Back 83

Performance review

Front 84

Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care.

Back 84

Institutional market

Front 85

Governmental units-federal, state, and local-that purchase or rent goods and services for carrying out the main functions of government.

Back 85

Government market

Front 86

Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

Back 86

Market segmentation

Front 87

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Back 87

target marketing

Front 88

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Back 88

market positioning

Front 89

Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods.

Back 89

geographic segmentation

Front 90

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.

Back 90

demographic segmentation

Front 91

Dividing a market into different age and life-cycle groups.

Back 91

Age and life-cycle segmentation

Front 92

Dividing a market into different groups based on gender.

Back 92

gender segmentation

Front 93

Dividing a market into different income groups.

Back 93

income segmentation

Front 94

Dividing a market into different groups based on social class, lifestyle, or personality characteristics.

Back 94

psychographic segmentation

Front 95

Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product.

Back 95

Behavioral segmentation

Front 96

Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Back 96

Occasion segmentation

Front 97

Dividing the market into groups according to the different benefits that consumers seek from the product.

Back 97

Benefit segmentation

Front 98

Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.

Back 98

Intermarket segmentation

Front 99

A set of buyers sharing common needs or characteristics that the company decides to serve.

Back 99

Target market

Front 100

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Back 100

Undifferentiated (mass) marketing

Front 101

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Back 101

Differentiated (segmented) marketing

Front 102

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.

Back 102

Concentrated (niche) marketing

Front 103

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.

Back 103

micromarketing

Front 104

Tailoring brands and promotions to the needs and wants of local customer groups-cities, neighborhoods, and even specific stores.

Back 104

Local marketing

Front 105

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.”

Back 105

Individual marketing

Front 106

The way the product is defined by consumers on important attributes-the place the product occupies in consumers’ minds relative to competing products.

Back 106

product position

Front 107

An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

Back 107

competitive advantage

Front 108

The full positioning of a brand-the full mix of benefits upon which it is positioned.

Back 108

value proposition

Front 109

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).

Back 109

positioning statement

Front 110

A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others

Back 110

marketing

Front 111

A state of felt deprivation

Back 111

Needs

Front 112

The form taken by a human need as shaped by culture and individual personality

Back 112

Wants

Front 113

Human wants that are backed by buying power

Back 113

Demands

Front 114

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Back 114

marketing offer

Front 115

The act of obtaining a desired object from someone by offering somethign in return

Back 115

exchange

Front 116

A trade of values between 2 parties

Back 116

transaction

Front 117

The set of all actual and potential buyers of a product or service

Back 117

market

Front 118

The art and science of choosing target markets and building profitable relationships with them

Back 118

marketing management

Front 119

Marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but only to reduce or shift it

Back 119

demarketing

Front 120

The idea that consumers will favor products that are available and highly affordable

Back 120

Production concept

Front 121

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

Back 121

Product concept

Front 122

The idea that consumers will not buy enough of the organization's products unless the organization undertakes a large-scale selling and promotion effort

Back 122

selling concept

Front 123

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

Back 123

marketing concept

Front 124

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

Back 124

societal marketing concept

Front 125

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Back 125

Customer relationship management

Front 126

The value of the entire stream of purchases that the customer would make over a lifetime of patronage

Back 126

customer lifetime value

Front 127

The difference between total customer value and total customer cost

Back 127

customer perceived value

Front 128

The extent to which a product's perceived performance matches a buyer's expectations

Back 128

customer satisfaction

Front 129

The total combined customer lifetime values of all of the company's customers

Back 129

customer equity

Front 130

The vast and burgeoning global web of computer networks with no central management or ownership

Back 130

Internet

Front 131

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers

Back 131

Partner relationship management

Front 132

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

Back 132

Strategic planning

Front 133

A statement of the organization's purpose-what it wants to accomplish in the larger environment

Back 133

mission statement

Front 134

The collection of businesses and products that make up the company

Back 134

Business portfolio

Front 135

A tool by which management identifies and evaluates the various businesses making up the company

Back 135

portfolio analysis

Front 136

A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.

Back 136

Strategic business unit (SBU)

Front 137

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

Back 137

Growth-share matrix

Front 138

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

Back 138

Product/market expansion grid

Front 139

A strategy for company growth by increasing sales of current products to current market segments without changing the product

Back 139

market penetration

Front 140

A strategy for company growth by identifying and developing new market segments for current company products

Back 140

market development

Front 141

A strategy for company growth by offering modified or new products to current market segments

Back 141

Product development

Front 142

A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets

Back 142

diversification

Front 143

Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy

Back 143

downsizing

Front 144

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers

Back 144

partner relationship management

Front 145

The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products

Back 145

Value chain

Front 146

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

Back 146

value-delivery network

Front 147

The process of (1) analying marketing opportunities (2)Selecting target markets (3) Developing the marketing mix, and (4) managing the marketing effort

Back 147

Marketing process

Front 148

Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes

Back 148

market segmentation

Front 149

A group of consumers who respond in a similar way to a given set of marketing efforts

Back 149

Market segment

Front 150

The process of evaluating each market segment's attractiveness and selecting 1 or more segments to enter

Back 150

Target marketing

Front 151

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Back 151

market positioning

Front 152

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

Back 152

Marketing mix

Front 153

The marketing logic by which the business unit hopes to achieve its marketing objectives

Back 153

Marketing strategy

Front 154

The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives

Back 154

marketing implementation

Front 155

The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved

Back 155

marketing control

Front 156

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

Back 156

Marketing audit

Front 157

What is marketing?

Back 157

Managing profitable customer relationships.
-Attracting new customers
-Retaining and growing current customers
"marketing" is not synonymous with "sales" or "advertising"

Front 158

Who developed the social definition of marketing?

Back 158

Kotler

Front 159

Give examples of things that can be marketed

Back 159

Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas

Front 160

What are the management orientations?

Back 160

Production Concept
Product Concept
Selling concept
Marketing concept
Societal marketing concept

Front 161

What are the marketing core concepts?

Back 161

-Needs, wants, and demands
-Value and satisfaction
-Marketing offers: including products, services and experiences
-Exchange, transactions and relationships
-Markets

Front 162

How many times more does it cost to attract a new customer than it does to keep a current customer satisfied?

Back 162

5-10

Front 163

Marketers must be concerned with _____________________________

Back 163

the lifetime value of the customer

Front 164

What does customer equity measure?

Back 164

A firm's performance, but in a mannner that looks to the future

Front 165

What are the marketing challenges

Back 165

Technological advances, rapid globalization, and continuing social and economic shifts are causing marketplace changes

Front 166

Major marketing developments can be grouped under the theme of _______

Back 166

Connecting

Front 167

How do we get customer value/satisfaction?

Back 167

Perceptions are key
Meeting/exceeding expectations creates satisfaction

Front 168

Loyalty increases as ___________________ and delighting customers _______________________

Back 168

satisfaction levels increase; should be the goal

Front 169

What types of relationships do target markets typically dictate?

Back 169

Basic relationships
Full relationships

Front 170

What are some things that marketers do to keep customer loyalty?

Back 170

They have retention programs such as adding financial benefits, adding social benefits, and adding structural ties

Front 171

How do we connect?

Back 171

Via technology
With customers
With marketing partners
With the world

Front 172

What do databases do?

Back 172

They allow for the customization of products, messages and analysis of needs

Front 173

What are some benefits of the Internet?

Back 173

It facilitates anytime, anywhere connections, facilitates CRM, and creates marketspaces

Front 174

Partner relationship management involves:

Back 174

Connecting inside the company
Connecting with outside partners through supply chain management and strategic alliances

Front 175

What are some benefits of globalization?

Back 175

Competition and new opportunities

Front 176

Connecting with the world causes us to have?

Back 176

-Greater concern for environmental and social responsibility
-Increased marketing by nonprofit and public-sector entities such as social marketing campaigns

Front 177

What are some things to consider when connecting with customers?

Back 177

-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

Front 178

Where do strategic planning activities occur?

Back 178

Business unit
Product
Market levels

Front 179

What is the strategic planning process?

Back 179

Defining the purpose and mission
Setting objectives and goals
Desigining the business portfolio
Developing detailed marketing and departmental plans

Front 180

Mission statements should....

Back 180

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

Front 181

What do mission statements do?

Back 181

Guide the development of objectives and goals
-Objectives are developed at each level in the organization hierarchy
-Strategies are developed to accomplish these objectives

Front 182

What are the 2 types of the portfolio design?

Back 182

1. Analyze the current business portfolio
2. Shape the future business portfolio

Front 183

Describe the first step in the portfolio design

Back 183

Identify SBUs
Assess each SBU

Front 184

The BCG growth-share matrix classifies SBUs into 1 of 4 categories using the:

Back 184

Market growth rate
SBU's relative market share within the market

Front 185

Describe step 2 in the portfolio design process

Back 185

Determine the future role of each SBU and choose the appropriate resource allocation strategy:
Build
Hold
Harvest
Divest

Front 186

What are some approaches that matrix approaches to formal planning have?

Back 186

-Difficult, time-consuming, and costly to implement
-Focus only on current businesses
-Too strongly emphasize market share growth or growth via diversification

Front 187

Designing the business portfolio also involves:

Back 187

Developing strategies for growth by identifying, evaluating, and selecting promising new marketing opportunities

Developing strategies for downsizing the business portfolio

Front 188

What are the key elements to the marketing process?

Back 188

analyzing marketing opportunities
selecting target markets
developing the marketing mix
managing the marketing effort

Front 189

What is the purpose of the marketing process?

Back 189

To help the firm plan how to capitalize on opportunities

Front 190

What are the 4 c's?

Back 190

Customer solution
Cost
Convenience
Communication

Front 191

What guides competitive marketing strategy development?

Back 191

competitor analysis

Front 192

What are the steps to managing the marketing effort?

Back 192

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)

Front 193

What are the 3 steps of target marketing?

Back 193

Market segmentation
target marketing
Market positioning

Front 194

What are the 3 steps of target marketing?

Back 194

Market segmentation
target marketing
Market positioning

Front 195

What are the different types of segmentation?

Back 195

Geographical
Demographic
Psychographic
Behavioral

Front 196

What is the most popular segmentation?

Back 196

demographic

Front 197

What is psychographic segmentation?

Back 197

Lifestyle, social class, and personality-based segmentation

Front 198

What type of segmentation is typically done first?

Back 198

Behavioral segmentaiton

Front 199

What are some things marketers should take under consideration when evaluating market segments

Back 199

segment size and growth
segment structural attractiveness
Company objectives and resources