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196 Cards in this Set
- Front
- Back
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actually making goods or performing services
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production
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the extent to which a firm fulfills a consumer's needs, desires, and expectations
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customer satisfaction
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the development and spread of new ideas, goods, and services
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innovation
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the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client
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marketing
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each family unit produces everything it consumes
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pure subsistence economy
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a social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society
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macro-marketing
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As a company produces larger numbers of a particular product, the cost of each unit of the product goes down
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economies of scale
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buying, selling, transporting, storing, standardizing and grading, financing, risk taking, and market information
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universal functions of marketing
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looking for and evaluating goods and services
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buying function
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promoting the product
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selling function
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the marketing function of moving goods
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transporting
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the marketing function of holding goods
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storing
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sorting products according to size and quality
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standardization and grading
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provides the necessary cash and credit to produce, transport, store, promote, sell, and buy products
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financing
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bearing the uncertainties that are part of the marketing process
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risk-taking
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the collection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities
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market information function
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someone who specializes in trade rather than production
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intermediary
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firms that provide one or more of the marketing functions other than buying or selling
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collaborators
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exchanges between individuals or organizations - and activities that facilitate those exchanges - based on applications of information technology
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e-commerce
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the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in the society
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economic system
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government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why
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command economy
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the individual decisions of the many producers and consumers make the macro-level decisions for the whole economy
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market-directed economy
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a time when families traded or sold their surplus output to local distributors
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simple trade era
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a time when a company focuses on production of a few specific products - perhaps because few of these products are available in the market
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production era
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a time when a company emphasizes selling because of increased competition
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sales era
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a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's activities
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marketing department era
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a time when, in addition to short-run marketing planning, marketing people develop long-range plans - sometimes five or more years ahead - and the whole company effort is guided by the marketing concept
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marketing company era
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the idea that an organization should aim all its efforts at satisfying its customers - at a profit
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marketing concept
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making whatever products are easy to produce and then trying to sell them
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production orientation
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trying to carry out the marketing concept
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marketing orientation
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the difference between the benefits a customer sees from a marketing offering and the costs of obtaining those benefits
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customer value
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what is good for some producers and consumers may not be good for society as a whole
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micro-macro dilemma
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a firm's obligation to improve its positive effects on society and reduce its negative effects
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social responsibility
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the moral standards that guide marketing decisions and actions
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marketing ethics
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What does marketing involve?
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an exchange
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8 Universal Functions of Marketing?
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1. Buying
2. Selling 3. Transporting 4. Storing 5. Standardizing and Grading 6. Financing 7. Risk Taking 8. Market Information |
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T/F?
The Marketing Concept includes non-profits. |
True
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Producers prefer to produce and sell in large quantities. Consumers prefer to buy and consume in small quantities.
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Discrepancies of Quantity
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Producers specialize in producing a narrow assortment of goods and services. Consumers need a broad assortment.
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Discrepancies of Assortment
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Producers tend to locate where it is economical to produce, while consumers are located in many scattered places.
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Spatial Separation
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Consumers may not want to consume goods and services at the time producers would prefer to produce them, and time may be required to transport goods from producer to consumer.
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Separation in Time
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Producers do not know who needs what, where, when, and at what price. Consumers do not know what is available from whom, where, when, and at what price.
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Separation of Information
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Producers value goods and services in terms of costs and competitive prices. Consumers value them in terms of satisfying needs and their ability to pay.
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Separation in Values
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Producers hold title to goods and services that they themselves do not want to consume. Consumers want goods and services that they do not own.
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Separation of Ownership
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What does marketing involve?
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an exchange
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8 Universal Functions of Marketing?
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1. Buying
2. Selling 3. Transporting 4. Storing 5. Standardizing and Grading 6. Financing 7. Risk Taking 8. Market Information |
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T/F?
The Marketing Concept includes non-profits. |
True
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Producers prefer to produce and sell in large quantities. Consumers prefer to buy and consume in small quantities.
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Discrepancies of Quantity
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Producers specialize in producing a narrow assortment of goods and services. Consumers need a broad assortment.
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Discrepancies of Assortment
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Producers tend to locate where it is economical to produce, while consumers are located in many scattered places.
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Spatial Separation
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Consumers may not want to consume goods and services at the time producers would prefer to produce them, and time may be required to transport goods from producer to consumer.
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Separation in Time
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Producers do not know who needs what, where, when, and at what price. Consumers do not know what is available from whom, where, when, and at what price.
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Separation of Information
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Producers value goods and services in terms of costs and competitive prices. Consumers value them in terms of satisfying needs and their ability to pay.
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Separation in Values
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Producers hold title to goods and services that they themselves do not want to consume. Consumers want goods and services that they do not own.
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Separation of Ownership
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1. Offer superior customer value
2. Attract customers 3. Satisfy customers 4. Retain customers 5. Increase sales to customers 6. Build profitable relationships with customers 7. Total company effort to satisfy customers |
Customer Value Concept
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The process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans
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marketing management process
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The managerial process of developing and maintaining a match between an organization's resources and its market opportunities
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strategic (management) planning
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Specifies a target market and a related marketing mix
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marketing strategy
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A fairly homogenous (similar) group of customers to whom a company wishes to appeal
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target market
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The controllable variables that the company puts together to satisfy a target group
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marketing mix
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A marketing mix is tailored to fit some specific target customers
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target marketing
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The typical production-oriented approach that vaguely aims at everyone with the same marketing mix
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mass marketing
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Any series of firms or individuals who participate in the flow of products from producer to final user or consumer
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channel of distribution
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Direct spoken communication between sellers and potential customers, usually in person but sometimes over the telephone or even via a video conference over the Internet
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personal selling
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A personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase - is often the key to building repeat business
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customer service
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Communicating with large numbers of potential customers at the same time
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mass selling
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Any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor
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advertising
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Any unpaid form of nonpersonal presentation of ideas, goods, or services
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publicity
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Those promotion activities - other than advertising, publicity, and personal selling - that stimulate interest, trial, or purchase by final customers or others in the channel
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sales promotion
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A written statement of a marketing strategy and the time-related details for carrying out the strategy
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marketing plan
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Putting marketing plans into operation
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implementation
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Short-run decisions to help implement strategies
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operational decisions
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Blends all of the firm's marketing plans into one big plan
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marketing program
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The expected earnings stream (profitability) of a firm's current and prospective customers over some period of time
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customer equity
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Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time
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breakthrough opportunities
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A firm has a marketing mix that the target market see as better than a competitor's mix
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competitive advantage
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The marketing mix is distinct from and better than what's available from a competitor
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differentiation
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Identifies and lists the firm's strengths and weaknesses and its opportunities and threats
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S.W.O.T. analysis
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Trying to increase sales of a firm's present products in its present markets - probably through a more aggressive marketing mix
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market penetration
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Trying to increase sales by selling present products in new markets
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market development
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Offering new or improved products for present markets
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product development
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Moving into totally different lines of business - perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system
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diversification
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What are the 4 P's of Marketing?
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Product, Place, Promotion, and Price
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Sets out the organization's basic purpose for being
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mission statement
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The number and types of competitors the marketing manager must face, and how they may behave
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competitive environment
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An organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies
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competitor analysis
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A firm's closest competitors
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competitive rivals
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The conditions that may make it difficult, or even impossible, for a firm to compete in a market
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competitive barriers
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Affects the way firms, and the whole economy, use resources
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economic and technological environment
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The application of science to convert an economy's resources to output
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technology
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A system for linking computers around the world
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internet
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An emphasis on a country's interests before everything else
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nationalism
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Lays out a plan to reshape the rules of trade among the United States, Canada, and Mexico
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North American Free Trade Agreement (NAFTA)
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Affects how and why people live and behave as they do
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cultural and social environment
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The idea that it's important to meet present needs without compromising the ability of future generations to meet their own needs
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sustainability
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An organizational unit (within a larger company) that focuses its efforts on some product-markets and is treated as a separate profit center
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strategic business unit (SBU)
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Treats alternative products, divisions, or strategic business units (SBUs) as though they are stock investments to be bought and sold using financial criteria
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portfolio management
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2 Components of Screening Criteria?
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1. Qualitative
2. Quantitative |
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Monopoly or conspiracy in restraint of trade
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Sherman Act
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Substantially lessens competition
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Clayton Act
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Unfair methods of competition
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Federal Trade Commission Act
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Tends to injure competition
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Robinson-Patman Act
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Unfair or deceptive practices
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Wheeler-Lea Amendment
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Lessens competition
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Antimerger Act
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Unreasonable practices
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Magnuson-Moss Act
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Compares business strengths with industry attractiveness
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planning grid
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A group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services - that is, ways of satisfying those needs
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market
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A market with broadly similar needs - and sellers offering various and often diverse ways of satisfying those needs
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generic market
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A market with very similar needs - and sellers offering various close substitute ways of satisfying those needs
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product market
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A two-step process of (1) naming broad product-markets and (2) segmenting these broad product markets in order to select target markets and develop suitable marketing mixes
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market segmentation
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An aggregating process that clusters people with similar needs into a market segment
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segmenting
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A relatively homogenous group of customers who will respond to a marketing mix in a similar way
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market segment
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Segmenting the market and picking one of the homogenous segments as the firm's target market
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single target market approach
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Segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix
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multiple target market approach
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Firms that try to increase the size of their target markets by combining two or more segments
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combiners
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Aim at one or more homogenous segments and try to develop a different marketing mix for each segment
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segmenters
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The dimensions that are relevant to including a customer type in a product market
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qualifying dimensions
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The dimensions that actually effect the customer's purchase of a specific product or brand in a product market
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determining dimensions
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Approaches used to try to find similar patterns within sets of data
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clustering techniques
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An approach where the seller fine-tunes the marketing effort with information from a detailed customer database
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customer relationship management (CRM)
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An approach that refers to how customers think about proposed or present brands in a market
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positioning
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Combining two or more submarkets into one larger target market as a basis for one strategy
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combined target market approach
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All customer needs
Some generic market One broad product market Homogenous (narrow) product markets |
narrowing down process
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4 Criteria for Segmenting:
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1. Homogenous within
2. Heterogenous between 3. Substantial 4. Operational |
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the customer in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions
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homogenous within
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the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions
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heterogenous between
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the segment should be big enough to be profitable
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substantial
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the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables
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operational
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4 Broad Bases for Segmenting:
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1. Behavioral
2. Psychographic 3. Geographic 4. Demographic |
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7 Steps for Segmenting Product Markets:
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1. Select the broad product market
2. Identify potential customers' needs 3. Form initial homogenous submarkets 4. Identify determining dimensions 5. Name the possible product markets 6. Evaluate product market segment behaviors 7. Estimate the size of each product market segment |
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where your brand sits in the mind of the consumer
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positioning
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The total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country
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gross domestic product (GDP)
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the number of babies per 1,000 people
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birthrate
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An integrated economic and social unit with a large population nucleus
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Metropolitan Statistical Area (MSA)
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Income that is adjusted to take out the effects of inflation on purchasing power
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real income
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income that is left after taxes
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disposable income
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what is left of disposable income after paying for necessities
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discretionary income
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people who children are grown and who are now able to spend their money in other ways
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empty nesters
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people over 65
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senior citizens
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does not include income earned by foreigners who own resources in that nation
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GNI
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Trend of U.S. population by location?
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Greatest growth in the Sun Belt states
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Trend of U.S. birth rate?
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American couples are having fewer children
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Trend of U.S. population rate?
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Slowed to less than 1 percent per year
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Trend of U.S. population by median age?
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Median age is increasing
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Trend of U.S. household composition?
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Americans are marrying later, delaying child bearing, and having fewer children
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Trend of U.S. non-family households?
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Single-adult households are on the rise
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Trend of U.S. population in regards to urban and suburban areas?
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Continuous flight to the suburbs by middle-income consumers
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MSAs with a population of more than a million
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Consolidated Metropolitan Statistical Areas (CMSA)
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Importance of ethnic groups to marketers?
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Number of ethnic consumers is growing at a much faster rate than the overall society
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Traditional family life cycle?
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1. Young single
2. Young married without children 3. Young married with children 4. Middle-aged married with children 5. Middle-aged married without dependent children 6. Older married 7. Older unmarried |
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People who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money
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economic buyers
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Needs concerned with making the best use of a consumer's time and money - as the consumer judges it
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economic needs
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the basic forces that motivate a person to do something
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needs
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needs that are learned during a person's life
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wants
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a strong stimulus that encourages action to reduce a need
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drive
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biological needs such as the need for food, drink, rest, and sex
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physiological needs
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needs concerned with protection and physical well-being
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safety needs
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needs concerned with love, friendship, status, and esteem - things that involve a person's interaction with others
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social needs
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an individual's need for personal satisfaction unrelated to what others think or do
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personal needs
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how we gather and interpret information from the world around us
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perception
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our eyes and minds seek out and notice only information that interests us
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selective exposure
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people screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs
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selective perception
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people remember only what they want to remember
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selective retention
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a change in a person's thought processes caused by prior experience
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learning
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products, signs, ads, and other stimuli in the environment
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cues
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an effort to satisfy a drive
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response
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occurs in the learning process when the consumer's response is followed by satisfaction - that is, reduction in the drive
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reinforcement
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a person's point of view toward something
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attitude
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a person's opinion about something
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belief
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an outcome or event that a person anticipates or looks forward to
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expectation
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the analysis of a person's day-to-day pattern of living as expressed in that person's Activities, Interests, and Opinions - sometimes referred to as AIO's
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psychographics
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the analysis of a person's day-to-day pattern of living as expressed in that person's Activities, Interests, and Opinions - sometimes referred to as AIO's
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lifestyle analysis
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a group of people who have approximately equal social position as viewed by others in the society
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social class
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the people to whom an individual looks when forming attitudes about a particular topic
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reference group
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a person who influences others
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opinion leader
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the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogenous set of people
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culture
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the type of problem solving consumers use for a completely new or important need - when they put much effort into deciding how to satisfy it
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extensive problem solving
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when a consumer is willing to put some effort into deciding the best way to satisfy a need
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limited problem solving
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when consumers regularly select a particular way of satisfying a need when it occurs
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routinized response behavior
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purchases that have little importance or relevance for the customer
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low-involvement purchases
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tension caused by uncertainty about the rightness of a decision
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dissonance
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the steps individuals go through on the way to accepting or rejecting a new idea
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adoption process
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PSSP model?
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Personal Needs
Social Needs Safety Needs Physiological Needs |
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Importance of perception?
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determines what consumers see and feel
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4 Steps of Consumer Decision Process?
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1. Need awareness
2. Problem solving 3. Purchase decision 4. Experience after the purchase |
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a powerful mechanism that provides the means of knowledge, and goes well beyond simple imitation of others
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cognitive learning
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specifies some particular group of customers
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target marketing
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Ex: develops products and sets inventory levels with customer requirements and costs in mind
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marketing orientation
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specifies a target market and a related marketing mix
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marketing strategy
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The fact that producers usually prefer to produce products in large quantities, while most consumers prefer to buy in small quantities, results in:
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discrepancies of quantity
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Marketing encourages research and __________, the development and spread of new ideas, goods, and services.
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innovation
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A firm's decisions regarding channel type and kinds of intermediaries would fall under the marketing mix variable of?
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place
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The "universal functions of marketing" do NOT include:
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producing
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Coupons, samples, and point-of-purchase materials are examples of:
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sales promotion
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producers generally have little choice about what goods and services to produce
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command economy
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In nonprofit organizations, the marketing concept?
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has different measures of success
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