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134 Cards in this Set

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  • Back
environmental monitoring
getting infomation regarding a company's external environment analyzing it and forecasting the impact of trends the analysis suggests
affects all firms such as demographics, economic conditions culture and laws
affect a particular firm consists of suppliers, marketing intermediaries and customers, closely related to the company
macroenvironmental forces
demographics, economic conditions, competiton, social and cultural forces, political and legal forces, technology
characteristics of a population like size, distribution and growth
business cycle
goes through 4 stages, prosperity recession dperession and recovery
a rise in the prices of goods and services
interest rates
external economic factor that influences marketing programs
brand competition
comes from marketers of directly similar products
substitute products
they satisfy the same need
differential advantage
any feature of an organization or brand that is perceived to be desireable and sidderent fromt hose of the competition
social and cultural forces
emphasize the quality of life rather than the quantity of goods consumed
changing gender roles
premium on time(working longer)
political and legal forces
people or organizations with needs to satisfy, money to spend and the willingness to spend it
firms that provie the merchadise a wholesaler or retailer resells
marketing intermediaries
independant business organizations tha tdirectly aid in the flow of goods and sercices between a marketing organicxation an dits markets. 2 types of intermediaries: the firms(middlemen-wholesalers and retainers), various facilitating organizations that furnish services like transportation, warejoising and financing tha tare needed to complete ecxchanges between buyers and sellers
value chain
the company, its suppliers and its intermediaries
ultimate consumers
buy goods and services for their own personal or household use
Metropolitan statistical area
the basic urban unit an MSAhas an urban area with at least 50000 residents the boundaries are drawn along county lines and may cross state borders
micropolitan statistical area
muust have at least one urban cluster of at least 10000 residents but less than 50000
combined statistical area
consists of an adjacent metropolian and micropolitan statistical area
the vital statistics trhat describe a population including age, gender family life cycle, education income and ethniity
family life cycle
the various forms families acn take over time and are the major determinants of behavior there are 9 cycles
need recognition
the consumer is moved to action by a need or a desire
identification of alternativesa
the consumer identifdies alternative products and brands and collects information about them
evaluation of alternitives
the consumer weights the pros and cons of the alternatives identified
the consumer decides to buy or not to vuy and makes other decision related to the purchase
postpurchase behavior
the consumer seeks reassurance that the choice made was the correct one
when A CONSUMER BECAUSE OF PAST EXPERIENCE IS SUFFICIENTLY satisfied with a particular brand or retailer that he or she buys that brand when the need arises without considering the alternatives
impulse buying
purchasing with little or no advance plannng, low involvement decision making
patronage buying motives
the most common source is a retail store and the reasons a consumers chooses to shop at a particular store
postpurchase cognitive dissonance
a state of anxiety tbrought on by the difficulty of hoosing from among desirable alternatives
dissonance increases based on the greater imrtance of the pirchase descision and the greater the similarity between the item selected and items rejected
social information environment
comprised of familt riends and acquaintces who directly or indirectly provide information about products
a set of symbols and artifacts created by a society and handed down from generation to generation as determinants and regulators of human behavior
groups in a culture that ecxhibit characteristic behavior patterns sufficient to distinguish them from other groups within the same culture. such as race, nationality, religion, and urban rural identification
social class
a ranking with in a society deternmined by the members of the society
reference groups
groups of people that influence a person;s attitudes, values and behavior
a group of teo or more people related by blood, marriage or adoption living together in a household during their lives people belong to at least two familites the one into which they are vorn and the one they form at marriage
consists of a single person a family or any group of unrelated persons who occupy a housing unit
a need to sufficiently stimulate an individual to seek satisfaction for physiological and psychological needs
maslows need hierarchy
self actualixation-needs for self fulfillment
esteem-needs for sef respec, reputation, prestige and status
belonging and love-needs for affection belonging to a group and acceptancesafety-needs for security, protection and order
physiological-needs for food drink sex and shelter
the 15 mtices are
curiosiry rejection order citizenship family food sex independence pain avoidance social contact, honor physical exercise power prestige and venegence
the process of receiving, organizing and assinng meaning to information or stimuli detected by our ive stages
incolces chanfes in behavior resulting from observation and ecperience
stimulus response theory
learning occurs as a person responds to some stimulus by behaving in a particular way and is rewarded a correct responce or penalized for an incorrect one
is defined broadly as an individuals patern of traits that influences behavioral responses
psychianaltic theory
people have subconscious drives that cannot be satisfied in socially acceptable ways
is a learned perdispositiob to respond to an object or class of objects in a consistently favorable or unfavorable way
self concept
the way that people see themselves
situational influence
a temporanry force associated with the envorment around an immediate purchase that affects behavior:
-time of day
-terms of the purchase
-consumer moods and motives
business market
any good or service purchased for a reason other than personal or household consumption
business user
each buyer in the business marketr
business marketing
marketing the goods and services to a business user rather than the ultimate consumer
value added
at each step of production the value of the product increases it is the dollar value od a firms output minus the value od theinputs it purchase from other firms
farming, food processing, and other large scale farming related businesses
reseller market
resellers create time, place information and posession utilities rather than form utility
replacement of some traditional intermediaries in a process that is very commonplace
business service market
includes purchasers of marketing research and the services of ad agencies
non business market
consists of organizations that do not have profit making as a primary objective
derived demand
the demand for a business product generated from the demand for the consumer products in which that business product is uded
elasticity of deamand
how responsive demand is to a change in the price of a product
vertical business market
exists when a firms product is usable by virtually all the firms in only one or two industries
horizontal busines market
where the firms product is usable by many industries
new task buying
first time purcase of a major product
straight rebuy
routine low involeurchase with minimal inforamtion needsand little or no consideration of alternatives
modified rebuy
somewhat between the other two terms od time and people involved information needed and alternatives considered
buying center
all the individual or groups involved in the process of making a decision to purchase
operational crm
maje routine marketing operations such as sales calls, service programs and customer support activities more efficient
analytical CRM
to effectively analyze all tht available data about a cystimer
collaborative CRM
the objective is to provise mechanisms tor customers to interact with the firm rathen thean the traditional one way seller to buter communication of media advertising.

Ex. call cebters, chat rooms
direct purchase
consumers reately buy directly from the producer except in the acase of services
frequency of purchase
firms buy certain products very infrewuently
benefits of leasing for the lessor and the consumer
lessor: -total net income after charging off repairs and maintenance xpenses is often higher than if equip were sold
-the lessors market may be expanded to include users who couldnt afford to buy the product
-leasing ofers an efficient method of getting users to try a new product
-leasing allow users to retain their investent capital for other purposes
-firms can enter a new business wiht less capital outlay than would be necessary if they had to buy equipment
-leased products maintained and repaired by lessors
-leasing is goood for firms that need seasonal or sporatic goods
electronic commerce
involves interacions and transactions over the internet
market segmentation
dividuing the total markets for a goodor sevice into several smaller, internally homogeneous groups
benefits of market segmentation
it is customer oriented, the company can do a better job and be more efficient with its marketing resources, t can help firms grow more rapidly
market segmentation conditoins
-measurable and obtainable data
-large enough to be profitable
-segment is accesssible
treat each customer as a sepatarate segment
geographic segmentation
subdividing markets into segmetns based on location
demographic segmentation
are age ggender occupation income and education
psychographic segmentation
involves examining attributes related to how a person thinks feels and behaces
traits that influence behavior
a persons activities interests and opinions. how you spend your time, what your beliefs are on various social , economic and political issues
are a reflection of needs adjusted for the realitites of the world in which we live
behaviorial segmentation
segment their markets on the basis of the product related behavior
product differentiation
one of the firms distinguishes its product from competitice brands offered same aggregate market
single segment strategy
concentration strategy, incolces selecting one segment within the total market as the target market
niche marketers
a single segment strategy enables a seller to penetrate one market in depth and to acquire a reputation as a specialist or an ecpert in this limited market
multiple segment strategy
two or more different groups of potential customers are identified as target markets, a separate marketing mix is deceloped to rach each targeted segment
the way a firms product brand or organizario is viewed relative to the compeition by current and prospective custimers
when a firm tries to reestablish its attractiveness
demand forcasting
estimates sales of a product during some defined future period
-done to make various kinds of perceptions
market share
is the proportion of total sales of a product during a stated period in a pecific market that is captured by a single firm
market factor
is something that exists in a market is measurable and is related to the demand for a product in a known way
market potential
the total sales volume that all organizations selling a produc during a stated period of time in a specid market could expect to acheve under ideal conditions
sales potential
the portion od market potential that a specific company could expect to achieve under ideal conditions
market factor analysis
entails determining what the related fators are and then measing their relationgship to sales activityq
market factor analysis
entails determingig the related factors are and then measuring their relatioship to sales activity`
derivaton method
can tarnslate the market factor behavior into a demand forecast
correlation analysis
a measure of potential sales of the product and the market
multiple correlation
it is possible to incluse more thn one market factor in the calculation
correlation analysis can only be used if...
the sales history of the industry or firm consisting of 20 consecutive time periods is available and a corresponding history of the market factor being used to forecast demand
-correlation factor depends on the assumptions whcih can be unrelaistic
survey of buyer intention
involves asking a sample of current or potential customers how much of a particular product they would buy at a given price during a specified future period
test marketing
forecasts demand,firm markets a new product in a limited geographic area measures sales and projects sales over a larger area-shows whether or not there is a large enough demand for a product
trend analysis
examines past sales data to calculate the rate of change in sales volume and uses it to forecast future sales
past sales analysis
the demand dorecast is a flat percentage change apploed to te colume achieved last year or to the average volume of the past few years
sales force composite
collecting from all sales people to estimate sales for their territories during the furture period of interest
executive judgement
obtainining opinions from one or more ecevutives regarfing future sales
where each person makes a prediction without knowing how othersin the group have responded and then the estimates ae summarized and the group members decide on which decision to go with
consumer products
intended for personal consumption by household
business products
intended for resale and use inproducing other products
convenience good
consumer feels comfortable purchasing without aditional information, buys with minimum effort
shopping good
a tangivle roduct for which a consumer wants to companre quality price and perhaps style in several stores before making a purchase
specialty good
a tangible product for which a cconsumer had a strong brand preseence and is willing to expenf substantial time and effort lacating the desired brand
unsought good
a new prduct that consumer is not yet aware of or a product that the consumer is does not want
raw materials
business goods that become part of another tangible product prior to being processed in any way
fabricating materials
undergo further prcessing
fabricating parts
are assembled with no further change in form
manudactured products that are an organizationmajor ecpensice and ling lived equipment
accessory equipment
tangble products that have substantial value and are used in an organizations operations
operating supplies
business goods that are characterized by low dollar value per unit and a short llife and that contribute to an organixations operations without becoming part of the finished product
new products
products that are really innovative :truly unique"
relacements that are significantly different from existing products in terms of form function sna benefits provided
-imitative prosucts that are new to a partivulat copany but not new to the market
new product strategy
a statement ifentifying the role of a new prduct is ecpected to play in achieving corporate and marketing goals
new product development process
generating new product idea
screening ideas
business analysis-mgt identiites product features, estimates market demand and establishes a program to develop the product
where an innovation sreads throughout a social system over time
adoption process
the set of successice decisions an individual person or organixation makes before acceptiing an innovation
venturesome consumers who are te first to adopt an innovation
early adopters
purchase a new product after innovators but sooner than other consumers
early majority
deliberate consumers who accept an innovation just before the average adopter in society
late majority
the skeptical group of consimers who usually adopt an innnovation to save money or response to social pressure from thei peers
consumers who are bound by tradition and are the last to adopt an innovation
product planning committee
members include executives from major departments marketing production finance engineering and research
new product department
organization structure for products or planning these units are small consisting of five or fewer people the head of the group typical reports to the company president
brand manager
responsible for planning new products and managing established products
adoption rate...what factors does it depend on..
rate at which a new product is adopted

depends on the relative advantage of the product comapared to other products

-compatibility:agrees with the lifestyles of the consumers
-complexity: the degree of difficulty in understaninng it
-trialability: the degree to which an innovation may be sampled
observability-how it can be demonstrated to be affective