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129 Cards in this Set
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Marketing
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The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
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Needs
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States of felt deprivation.
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Wants
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The form human needs take as shaped by culture and individual personality.
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Demands
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Human wants that are backed by buying power.
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Marketing offer
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Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
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Marketing management
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The art and science of choosing target markets and building profitable relationships with them.
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Demarketing
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Marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but only to reduce or shift it.
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Production concept
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The idea that consumers will favor products that are available and highly affordable.
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Product concept
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The idea that consumers will favor products that offer the most in quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.
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Selling concept
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The idea that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.
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Marketing concept
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The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
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Societal marketing concept
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A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long run interests.
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1. Society (Human Welfare)
2. Company (Profits) 3. Consumers (Want Satisfaction) |
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Customer relationship management
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The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
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Customer perceived value
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The difference between total customer value and total customer cost.
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Customer satisfaction
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The extent to which a product's perceived performance matches a buyer's expectations.
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Partner relationship management
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Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
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Customer lifetime value
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The value of the entire stream of purchases that the customer would make over a lifetime of patronage.
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Share of customer
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The portion of the customer's purchasing that a company gets in its product categories.
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Customer equity
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The total combined customer lifetime values of all the company's customers
Increase CE by improving: 1. Customer service 2. Improving value or desirability of brand 3. Goodwill 4. Brand popularity such as advertisements |
The greater the customer equity (CE), the more future revenue in the lifetime of its clients
Three drivers to CE: 1. Value Equity 2. Brand Equity 3. Retention Equity (loyalty) |
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Mission statement
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A statement of the organization's purpose--what it wants to accomplish in the larger environment.
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Business portfolio
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The collection of businesses and products making up the company.
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Porfolio analyis
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The process by which management evaluates the products and businesses making up the company.
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BCG Growth-share matrix
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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.
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Cash cow SBU (Strategic Business Unit)
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Low-growth, high-share businesses or products. These established and successful SBUs produce a lot of cash that the company uses to pay its bills and to support other SBUs.
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Star SBU
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High-growth, high-share businesses or products. They often need heavy investment to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.
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Question mark SBU
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Low-share business units in high-growth markets. They require a lot of cash to hold their share let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.
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Dog SBU
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Low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.
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Product/market expansion grid
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A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
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Market penetration
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A strategy for company growth by increasiong sales of current products to cureent makret segments without changing the product.
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Market development
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A strategy for company growth by identifying and developing new market segments for current company products.
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Diversification
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A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets.
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Downsizing
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Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy.
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Value chain
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The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's product.
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Value-delivery network
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The network made up of the company, suppliers, distributers, and ultimately customers who "partner" with each other to improve the performance of the entire system.
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Marketing strategy
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The marketing logic by which the business unit hopes to achieve its marketing objectives.
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Marketing segmentation
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Dividing into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes.
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Marketing segment
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A group of consumers who respond in a similar way to a given set of marketing efforts.
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Target marketing
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The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
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Strategies for reaching target market:
-Mass Marketing -Differentiated Marketing (Many groups) -Concentrated Marketing (Very specific, small comp) -Direct Marketing |
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Market positioning
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Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
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Marketing mix
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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.
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The 4Cs
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Customer solution
Customer cost Convenience Communication |
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Four marketing management functions
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-Analysis
-Planning -Implementation -Control |
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Marketing implementation
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The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.
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Marketing control
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The process of measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that objectives are achieved.
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Marketing audit
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A comprehensive, systematic, independent, and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and to recommend a plan of action to improve the company's marketing performance.
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Return on marketing
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The net return from a marketing investment divided by the costs of the marketing investment.
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Marketing environment
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The actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.
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Microenvironment
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The actors close to the company that affect its ability to serve its customers--thecompany, suppliers, marketing intermediaries, customer markets, competitors, and publics.
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Macroenvironment
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The larger societal forces that affect the microenvironment--demographic, economic, natural, technological, political, and cultural forces.
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Marketing intermediaries
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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.
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Types of Intermediaries:
1. Agent: Commissioned to sell products. Not owned 2. Wholesale: Variety of owned merchandise 3. Distributors: Complimentary product lines 4. Retailers: purchase from other intermediaries |
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Public
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Any group that has an actual or potential interest or impact on an organization's ability to achieve its objectives.
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Demography
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The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
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Baby boomers
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The 78 million people born during the baby boom following WWII and lasting until the early 1960s.
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Generation X
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The 45 million people born between 1965 and 1976 in the "birth dearth" following the baby boom.
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Generation Y
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The 72 million children of baby boomers, born between 1977 and 1994.
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Economic environment
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Factors that affect consumer buying power and spending patterns.
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Engel's laws
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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.
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Natural environment
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Natural resources that are needed as inputs by marketers or that are affected by marketing activities.
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Technological environment
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Forces that create new technologies, creating new product and market opportunities.
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Political environment
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Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.
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cultural environment
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Institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors
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Marketing information system
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People, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers.
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Internal databases
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Electronic collections of information obtained from data sources within the company.
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Competitive Marketing intelligence
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The systematic collection and analysis of publicly available information about competitors and developments in the marketing environment.
understanding and learning what's happening in the world outside your business so you can be as competitive as possible. It means learning as much as possible—as soon as possible—about your industry in general, your competitors, or even your county's particular zoning rules. In short, it empowers you to anticipate and face challenges head on |
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Marketing research
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The systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization.
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Exploratory research
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Marketing research to gather preliminary information that wil hlep define problems and suggest hypotheses.
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Descriptive research
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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.
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Causal research
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Marketing research to test hypotheses about cause-and-effect relationships.
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Primary data vs. Secondary Data
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PRIMARY DATA:
Information collected for the specific purpose at hand Advantages: Specific Disadvantages: Expensive SECONDARY DATA: Information that has already been collected Advantages: Cheap Disadvantages: Not specific enough |
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Online databases
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Computerized collections of information available from online commercial sources or via the internet.
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Observational research
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The gathering of primary data by observing relevant people, actions and situations.
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Survey research
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The gathering of primary data by asking people questions about their knowledge, attitudes, preferences and buying behavior.
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Single-source data systems
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Electronic monitoring systems that link consumers' exposure to television advertising and promotion (measured using television meters) with what they buy in stores (measured using using store checkout scanners).
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Experimental research
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Teh gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses.
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Focus group interviewing
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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.
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Online marketing research
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Collecting primary data through internet surveys and online focus groups.
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Stratified random sample
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The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group.
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Cluster (area) sample
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The population is divided into mutually exclusive groups (such as blocks) and the researcher draws a samle of the groups to interview.
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Convenience sample
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Te researcher selects the easiest poopulation members from which to obtain information.
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Judgement sample
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The researcher uses his or her judgement to select population members who are good prospects for accurate information.
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Quota sample
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The researcher finds and interviews a prescribed number of people in each of several categories.
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Customer relationship management
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The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
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Consumer buying behavior
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The buying behavior of final consumers--individuals and households who buy goods and services for personal consumption.
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Consumer market
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All the individuals and households who buy or acquire goods and services for personal consumption.
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Opinion leader
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Person within a reference group who, because of special skills, knowledge, personality or other characteristics, exerts influence on others.
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Celebrities
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Personality
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The unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment.
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Motive (drive)
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A need that is sufficiently pressing to direct the person to seek satisfaction of the need.
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Perception
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The process by which people select, organize and interpret information to form a meaningful picture of the world.
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Complex buying behavior
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Consumer buing behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands.
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Dissonance-reducing buying behavior
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Consumer buying behavior in situations characterized by high involvement but few perceived differences between brands.
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Habitual buying behavior
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Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences.
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Variety-seeking buying behavior
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Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences.
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Need recognition
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the first stage of the buyer decision process, in which the consumer recognizes a problem or need.
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Information search
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The stage of the buyer decision process in which the consumer is aroused to search for for more information; the consumer may simply have heightened attention or may go into active information search.
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Alternative evaluation
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The stage of the buyer process in which the consumer uses information to evaluate alternative brands in the choice set.
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Purchase decision
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The buyer's decision about what brand to purchase.
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Postpurchase behavior
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The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction.
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Cognitive dissonance
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Buyer disconfort caused by postpurchase conflict.
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Adoption process
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The mental process through which an individual passes from first hearing about an innovation to final adoption.
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Business buyer behavior
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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 them to others at profit.
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Business buying process
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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.
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Derived demand
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Business demand that ultimately comes from the demand for consumer goods.
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Supplier development
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Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials that they will use in making their own products or resell to others.
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Straight rebuy
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A business buying situation in which the buyer routinely reorders something without any modifications.
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Modified rebuy
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A business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers.
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New task
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A business buying situation in which the buyer purchases a product or service for the first time.
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Systems selling
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Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
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Buying center
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All the individuals and units that participate in the buying-decision process.
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Influencers
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People in an orgainzation's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.
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Deciders
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People in the organization's buying center who have formal or informal power to select or approve the final suppliers.
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Gatekeepers
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People in the organization's buying center who control the flow in information to others.
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Problem recognition
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The first stage of the busienss buying process in which someone recognizes a problem or need that can be met by acquring a good or a service.
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General need description
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The stage in the business buying process in which the company describes the general characteristics and quantity of a needed item.
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Product specification
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The stage of the business buying process in which the buying organization decides on and specifies the best tehnical product characteristics for a needed item.
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Value analysis
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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.
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Supplier search
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The stage of the business buying process in which the buyer tries to find the best vendors.
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Proposal solicitation
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The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals.
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Supplier selection
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The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers.
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Order-routine specification
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The stage of the business buying process in which the buyer writes the final order with the chose supplier(s).
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Performance review
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The stage of the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify or drop the arrangement.
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Institutional market
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Schools, hospitals, nursing homes, prisnons and other institutions that provide goods and services to people in their care.
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Government market
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Governmental units--federal, state and local--that purchase or rent goods and services for carrying out the main functions of government.
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Unsought Products
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A consumer product that the consumer either does not know about or knows about but does not normally consider buying
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Convenience Products
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A product bought by final consumers for personal consumption
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Shopping Products
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A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style
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Penetration Pricing Strategy
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a pricing strategy where the price of a product is initially set at a price lower than the eventual market price, to attract new customers.
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Too much competition. Need to build customer base
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Influences on Consumer Buying Behavior
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Cultural: Culture, Subculture, Social Class
Social: Reference Groups, Family, Roles and Status Personal: Motivation, Perception, Learning, Beliefs and Attitudes |
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Elastic Demands
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demand that will rise or fall depending on the price of goods
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Candy bars will not be bought if it's raised from $1 to $4.
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Inelastic Demands
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Demand that people will pay for no matter what price it is. (Gas)
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