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97 Cards in this Set
- Front
- Back
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What is Marketing?
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The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchanges with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment
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Customers
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The purchasers of organizations’ products; the focal point of all marketing activities
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Price Variable
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Decisions and actions associated with establishing pricing objectives and policies and determining product prices
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Distribution Variable
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Make products available in quantities desired
Minimize costs: -Inventory -Transportation -Storage Select/Motivate intermediaries Establish/Maintain inventory control Develop/Manage transportation & storage systems |
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Promotion Variable
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Activities to inform individuals or groups about the organization and its products
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Exchange
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The provision or transfer of goods, services, or ideas in return for something of value
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Target Market
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A specific group of customers
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Marketing Mix
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Product, pricing, distribution, and promotion
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Product Variable
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A good, service, or an idea
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Stakeholders
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Constituents who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcomes.
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Marketing Environment
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The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
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THE MARKETING CONCEPT
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A managerial philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals.
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Marketing Orientation
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An organization-wide commitment to researching and responding to customer needs.
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Value
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A customer’s subjective assessment of benefits relative to costs in determining the worth of a product
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MARKETING MANAGEMENT
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The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently.
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IMPORTANCE OF MARKETING IN OUR GLOBAL ECONOMY
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Costs consume sizable portion of buyers’ dollars
Used in nonprofit organizations Important to business and economy Fuels the global economy Knowledge enhances consumer awareness Connects people through technology Promotes welfare of customers and society Offers many exciting career prospects |
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Relationship Marketing
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Establishing long-term, mutually satisfying buyer-seller relationships
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Customer Relationship Management (CRM)
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Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
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STRATEGIC PLANNING PROCESS
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The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan
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Marketing Strategy
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A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
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Effective Marketing Strategy
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Reflects overall direction of organization
Coordinated with firm’s functional areas Contributes to achievement of: -Marketing objectives -Organizational goals |
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Core Competencies
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Things a firm does extremely well, which sometimes give it an advantage over its competition
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Market Opportunity
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A combination of circumstances and timing that permits an organization to take action to reach a particular target market.
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Strategic Windows
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Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a firm competing in the market.
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Competitive Advantage
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The result of a company’s matching a core competency (superior skill or resources) to opportunities in the marketplace
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SWOT Analysis
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An assessment of the organization’s strengths, weaknesses, opportunities, and threats
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Mission Statement Answers:
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Who are our customers?
What is our core competency? |
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Corporate Identity
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Unique Symbols
Personalities Philosophies |
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Marketing Objective
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A statement of what is to be accomplished through marketing activities to match strengths to opportunities, or to provide for the conversion of weaknesses to strengths
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The marketing objective should be?
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Should be stated in clear, simple terms
Should be accurately measurable Should specify a time frame for accomplishment Should be consistent with business-unit and corporate strategy |
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Corporate Strategy
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A strategy that determines the means for utilizing resources in the various functional areas to reach the organization’s goals
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Strategic Business Unit (SBU)
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A division, product line, or other profit center within a parent company
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Market
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A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
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What are some components of the marketing strategy?
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Target Market Selection
Creating the Marketing Mix Sustainable Competitive Advantage |
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internal customers
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a company's employees
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external customers
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individuals who patronize a business
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intended strategy
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the strategy the company decides on during the planning phase
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realized strategy
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the strategy that actually takes place
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internal marketing
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coordinating internal exchanges between the firm and its employees to achieve successful external exchanges between the firm and its customers
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total quality management (TQM)
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a philosophy that uniform commitment to quality in all areas of the organization will promote a culture that meets customers perceptions of quality
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benchmarking
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comparing the quality of the firm's goods, services, or processes with that of the best-performing competitors
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empowerment
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giving customer-contact employees authority and responsibility to make marketing decisions on their own
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marketing control process
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establishing performance standards and trying to match actual performance to those standards
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Environmental Scanning
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The process of collecting information about
forces in the marketing environment |
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Environmental analysis
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the process of assessing and interpreting the information gathered through environmental scanning
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Types of competition
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Brand Competitors
Product Competitors Generic Competitors Total Budget Competitors |
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brand competitors
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firms that market products with similar features and benefits to the same customers at similar prices
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product competitors
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firms that compete in the same product class but market products with different features, benefits, and prices
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generic competitors
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firms that provide very different products that solve the same problem or satisfy the same basic customer need
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total budget competitors
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firms that compete for the limited financial resources of the same customers
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Buying Power
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Resources, such as money, goods, and services, that can be traded in an exchange
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willingness to spend
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an inclination to buy because of expected satisfaction form a product, influenced by the ability to buy and numerous psychological and social forces.
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Sociocultural Forces
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The influences in a society and its culture(s) that change people’s attitudes, beliefs, norms, customs, and lifestyles
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Social Responsibility
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An organization’s obligation to maximize its positive impact and minimize its negative impact on society
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Marketing citizenship
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the adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders.
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Marketing Ethics
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Principles and standards that define acceptable marketing conduct as determined by various stakeholders
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Ethical Issue
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An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
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Cause-Related Marketing
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The practice of linking products to a particular cause on an ongoing or short-term basis
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Strategic Philanthropy
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the synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits.
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Green Marketing
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The specific development, pricing, promotion, and distribution of products that do not harm
the natural environment |
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Consumerism
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The organized efforts of individuals, groups, and organizations to protect the rights of consumers
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Kennedy’s Consumer “Bill of Rights”
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Right to safety
Right to be informed Right to choose Right to be heard |
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Codes of Conduct
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Formalized rules and standards that describe what the company expects of its employees
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Electronic Commerce (E-Commerce)
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Sharing business information, maintaining business relationships, and conducting business transactions by means of telecommunications networks
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Electronic Marketing (E-Marketing)
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The strategic process of creating, distributing, promoting, and pricing products for targeted customers in the virtual environment of the Internet
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Benefits of E-Marketing
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Open and Instantaneous Flows of Information
Enhanced Customer Service Efficiencies Worldwide Scope |
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Addressability
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A marketer’s ability to identify customers before they make a purchase
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Interactivity
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Allowing customers to express their needs and wants directly to the firm in response to the firm’s marketing communications
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Community
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a sense of group membership or feeling of belonging
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Memory
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The ability to access databases or data warehouses containing individual customer profiles and past purchase histories and to use these data in real-time to customize a marketing offer.
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Control
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Customers’ ability to regulate the information they view and the rate and sequence of their exposure to that information.
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Accessibility
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The ability to obtain information available on the Internet.
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Digitalization
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The ability to represent a product, or at least some of its benefits, as digital bits of information.
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CUSTOMER RELATIONSHIP MANAGEMENT
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Focuses on using information about customers to create marketing strategies that develop and sustain desirable long-term relationships.
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The 80/20 rule:
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80 percent of business profits come from 20 percent of customers
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CRM is about
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relationships, not technology
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gross domestic product (GDP)
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the market value of a nation's total output of goods and services for a given period; an overall measure of economic standing
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balance of trade
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the difference in value between a nation's exports and its imports
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Cultural Relativism
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the concept that morality varies from one culture to another and that business practices are therefore deferentially defined as right or wrong by particular cultures
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NAFTA
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The North AmericanFree Trade Agreement (NAFTA)
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The European Union (EU)
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An alliance that promotes trade among its member countries in Europe
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The Common Market of the
Southern Cone (MERCOSUR) |
An alliance that promotes
the free circulation of goods, services, and production factors, and has a common external tariff and commercial policy among member nations in South America |
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Asia-Pacific Economic Cooperation (APEC)
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An alliance that promotes open trade and economic and technical cooperation among member nations throughout the world
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General Agreement on Tariffs and Trade
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An agreement among nations to reduce worldwide tariffs and increase international trade
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dumping
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selling products at unfairly low prices
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World Trade Organization
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An entity that promotes free trade among member nations
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What are the five types of international involvement?
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Importing and Exporting
Licensing and Franchising Contract manufacturing Joint Ventures Direct ownership |
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Customization
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Adjusting marketing mixes according to cultural, regional, and national differences
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Globalization
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The development of marketing strategies that treat the entire world (or its major regions) as a single entity
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What are the four variables of the marketing mix?
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Product, pricing, distribution, and promotion
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What are the two major parts of a marketing strategy?
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Identifying and analyzing a target market
and developing a marketing mix to meet the needs of that market |
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What is SWOT analysis?
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strengths weaknesses opportunities threats.
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What are the four types of competition and which one is the most important to marketers?
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Product, Brand, generic, total budget
Brand is the most important to marketers |
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Define income, disposable income, and discretionary income
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income - cash money made
disposable income - cash money after taxes discretionary income - cash money after buying necessary things |
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What are the four dimensions of social responsibility?
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Economic, legal, ethical, philanthropic
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What are some factors that marketers must consider when deciding to go international?
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Environmental, social, ethical, technological
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What are some political/regulatory forces affecting international marketing?
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Quota, embargo, exchange controls
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