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168 Cards in this Set

  • Front
  • Back
should be coordinated with the resources and activities of other departments,
including production, finance, purchasing, and so on
Action programs
An international marketing strategy for adjusting the marketing strategy and mix elements to each
international target market, bearing more costs but hoping for a larger market share and return.
Adapted global marketing
A vertical marketing system that coordinates successive stages of production and distribution, not
through common ownership or contractual ties, but through the size and power of one of the parties.
Administered VMS
The mental process through which an individual passes from first hearing about an innovation to final
adoption.
Adoption process
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified
sponsor.
Advertising
A marketing services firm that assists companies in planning, preparing, implementing, and evaluating
all or portions of their advertising programs.
Advertising agency
The dollars and other resources allocated to a product or company advertising program
Advertising budget
The vehicles through which advertising messages are delivered to their intended audiences
Advertising media
A specific communication task to be accomplished with a specific target audience during a specific
period of time.
Advertising objective
The strategy by which the company accomplishes its advertising objectives. It consists of two major
elements: creating advertising messages and selecting advertising media.
Advertising strategy
Setting the promotion budget at the level management thinks the company can afford.
Affordable method
Dividing a market into different age and life-cycle groups.
Age and life-cycle segmentation
A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few
functions, and does not take title to goods.
Agent
Dividing a market into different age and life-cycle groups.
Age and life-cycle segmentation
A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few
functions, and does not take title to goods.
Agent
Promotional money paid by manufacturers to retailers in return for an agreement to feature the
manufacturer’s products in some way.
Allowance
The stage of the buyer decision process in which the consumer uses information to evaluate alternative
brands in the choice set.
Alternative evaluation
The step in the selling process in which the salesperson meets the customer for the first time.
Approach
A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object
or idea.
Attitude
The 78 million people born during the baby boom following World War II and lasting until 1964.
Baby boomers
A geographical pricing strategy in which the seller designates some city as a basing point and charges
all customers the freight cost from that city to the customer.
Basing-point pricing
Dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product.
Behavioral segmentation
A descriptive thought that a person holds about something.
Belief
The process of comparing the company’s products and processes to those of competitors or leading
firms in other industries to identify “best practices” and find ways to improve quality and performance.
Benchmarking
Dividing the market into groups according to the different benefits that consumers seek from the
product.
Benefit segmentation
A name, term, sign, symbol, design, or a combination of these that identifies the products or services of
one seller or group of sellers and differentiates them from those of competitors.
Brand
The differential effect that knowing the brand name has on customer response to the product or its
marketing.
Brand equity
Extending an existing brand name to new product categories.
Brand extension
The specific mix of human traits that may be attributed to a particular brand.
Brand personality
Analysis to determine the unit volume and dollar sales needed to be profitable given a particular price
and cost structure.
Break-even analysis
The price at which total revenue equals total cost and profit is zero.
Break-even price
Setting price to break even on the costs of making and marketing a product, or setting price to make a
target profit.
Break-even pricing (target profit pricing)
A wholesaler who does not take title to goods and whose function is to bring buyers and sellers
together and assist in negotiation.
Broker
Managers use budgets to project profitability and plan for each marketing program’s expenditures,
scheduling, and operations.
Budgets
A review of the sales, costs, and profit projections for a new product to find out whether these factors
satisfy the company’s objectives.
Business analysis
The buying behavior of the organizations that buy goods and services for use in the production of other
products and services or to resell or rent them to others at a profit.
Business buyer behavior
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.
Business buying process
The collection of businesses and products that make up the company.
Business portfolio
Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and
motivate salespeople.
Business promotions
Businesses using B2B Web sites, e-mail, online catalogs, online trading networks, and other online
resources to reach new business customers, serve current customers more effectively, and obtain
buying efficiencies and better prices.
Business-to-business (B2B) online marketing
Businesses selling goods and services online to final consumers.
Business-to-consumer (B2C) online marketing
The stages consumers normally pass through on their way to purchase, including awareness,
knowledge, liking, preference, conviction, and purchase.
Buyer-readiness stages
The people in the organization’s buying center who make an actual purchase.
Buyers
All the individuals and units that play a role in the purchase decision-making process.
Buying center
Cultivating opinion leaders and getting them to spread information about a product or service to others
in their communities.
Buzz marketing
Setting a price for by-products in order to make the main product’s price more competitive. G1
By-product pricing
The situation in which one product sold by a company takes a portion of its sales from other company
products.
Cannibalization
Setting a price for products that must be used along with a main product, such as blades for a razor and
film for a camera.
Captive-product pricing
Direct marketing through print, video, or digital catalogs that are mailed to a select customers, made
available in stores, or presented online.
Catalog marketing
Giant specialty store that carries a very deep assortment of a particular line and is staffed by
knowledgeable employees.
Category killer
Marketing research to test hypotheses about cause-and-effect relationships.
Causal research
Estimating market demand by multiplying a base number by a chain of adjusting percentages.
Chain ratio method
Two or more outlets that are commonly owned and controlled.
Chain stores
Disagreement among marketing channel members on goals and roles—who should do what and for
what rewards.
Channel conflict
A layer of intermediaries that performs some work in bringing the product and its ownership closer to
the final buyer.
Channel level
In this section, marketers list the most important channels, provide an overview of each channel
arrangement, and identify developing issues in channels and logistics.
Channels and logistics review
Traditional brick-and-mortar companies that have added online marketing to their operations.
Click-and-mortar companies
The so-called dotcoms, which operate only online without any brick-and-mortar market presence.
Click-only companies
The step in the selling process in which the salesperson asks the customer for an order.
Closing
The practice of using the established brand names of two different companies on the same product.
Co-branding
Buyer discomfort caused by postpurchase conflict.
Cognitive dissonance
Computerized collections of information available from online commercial sources or via the Internet.
Commercial online databases
Introducing a new product into the market.
Commercialization
A global communication strategy of fully adapting advertising messages to local markets.
Communication adaptation
An advantage over competitors gained by offering greater customer value, either through lower prices
or by providing more benefits that justify higher prices.
Competitive advantage
An advantage over competitors gained by offering greater customer value, either through lower prices
or by providing more benefits that justify higher prices.
Competitive advantage
Strategies that strongly position the company against competitors and that give the company the
strongest possible strategic advantage.
Competitive marketing strategies
The purpose of a competitive review is to identify key competitors, describe their market positions, and
briefly discuss their strategies.
Competitive Review
Setting the promotion budget to match competitors’ outlays.
Competitive-parity method
The process of identifying key competitors; assessing their objectives, strategies, strengths and
weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.
Competitor analysis
A company whose moves are mainly based on competitors’ actions and reactions.
Competitor-centered company
Consumer buying behavior in situations characterized by high consumer involvement in a purchase and
significant perceived differences among brands.
Complex buying behavior
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
Concentrated (niche) marketing
Testing new-product concepts with a group of target consumers to find out if the concepts have strong
consumer appeal.
Concept testing
The buying behavior of final consumers—individuals and households that buy goods and services for
personal consumption.
Consumer buyer behavior
All the individuals and households who buy or acquire goods and services for personal consumption.
Consumer market
A product bought by final consumer for personal consumption.
Consumer product
Sales promotion tools used to boost short-term customer buying and involvement or to enhance
long-term customer relationships.
Consumer promotions
Marketing messages, ads, and other brand exchanges created by consumers themselves—both invited
and uninvited.
Consumer-generated marketing
The philosophy of sustainable marketing that holds that the company should view and organize its
marketing activities from the consumer’s point of view.
Consumer-oriented marketing
Online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases,
sometimes even driving transaction terms.
Consumer-to-business (C2B) online marketing
Online exchanges of goods and information between final consumers.
Consumer-to-consumer (C2C) online marketing
An organized movement of citizens and government agencies to improve the rights and power of
buyers in relation to sellers.
Consumerism
A joint venture in which a company contracts with manufacturers in a foreign market to produce the
product or provide its service.
Contract manufacturing
A vertical marketing system in which independent firms at different levels of production and
distribution join together through contracts to obtain more economies or sales impact than they could
achieve alone.
Contractual VMS
The unit contribution divided by the selling price.
Contribution margin
Controls help management assess results after the plan is implemented, identify any problems or
performance variations, and initiate corrective action.
Controls
A consumer product that customers usually buy frequently, immediately, and with a minimum of
comparison and buying effort.
Convenience product
A small store, located near a residential area, that is open long hours seven days a week and carries a
limited line of high-turnover convenience goods.
Convenience store
A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate
business seeking to maximize its own profits even at the expense of profits for the system as a whole.
Conventional distribution channel
A vertical marketing system that combines successive stages of production and distribution under
single ownership—channel leadership is established through common ownership.
Corporate VMS
A Web site designed to build customer goodwill, collect customer feedback, and supplement other
sales channels, rather than to sell the company’s products directly.
Corporate (or brand) Web site.
Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of
return for effort and risk.
Cost-based pricing
Cost-based pricing
Cost-plus pricing
International trade involving the direct or indirect exchange of goods for other goods instead of cash.
Countertrade
The compelling “big idea” that will bring the advertising message strategy to life in a distinctive and
memorable way.
Creative concept
Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors.
Cultural environment
The set of basic values, perceptions, wants, and behaviors learned by a member of society from family
and other important institutions.
Culture
In this section, marketing managers discuss the overall market, identify the market segments that they
will target, and provide information about the company’s current situation.
Current marketing situation
An organized collection of comprehensive data about individual customers or prospects, including
geographic, demographic, psychographic, and behavioral data.
Customer database
The total combined customer lifetime values of all of the company’s customers.
Customer equity
Fresh understandings of customers and the marketplace derived from marketing information that
become the basis for creating customer value and relationships.
Customer insights
The value of the entire stream of purchases that the customer would make over a lifetime of patronage.
Customer lifetime value
Managing detailed information about individual customers and carefully managing customer “touch
points” in order to maximize customer loyalty.
Customer relationship management (CRM)
A sales force organization under which salespeople specialize in selling only to certain customers or
industries.
Customer sales force structure
The extent to which a product’s perceived performance matches a buyer’s expectations.
Customer satisfaction
Analysis conducted to determine what benefits target customers value and how they rate the relative
value of various competitors’ offers.
Customer value analysis
A company that focuses on customer developments in designing its marketing strategies and on
delivering superior value to its target customers.
Customer-centered company
New-product development that focuses on finding new ways to solve customer problems and create
more customer-satisfying experiences.
Customer-centered new-product development
The customer’s evaluation of the difference between all the benefits and all the costs of a marketing
offer relative to those of competing offers.
Customer-perceived value
A principle of sustainable marketing that holds that a company should put most of its resources into
customer value-building marketing investments.
Customer-value marketing
People in the organization’s buying center who have formal or informal power to select or approve the
final suppliers.
Deciders
The product life-cycle stage in which a product’s sales decline.
Decline stage
Products that have neither immediate appeal nor long-run benefits.
Deficient products
A curve that shows the number of units the market will buy in a given time period, at different prices
that might be charged.
Demand curve
Human wants that are backed by buying power.
Demands
Dividing the market into groups based on variables such as age, gender, family size, family life cycle,
income, occupation, education, religion, race, generation, and nationality.
Demographic segmentation
The study of human populations in terms of size, density, location, age, gender, race, occupation, and
other statistics.
Demography
A retail organization that carries a wide variety of product lines—each line is operated as a separate
department managed by specialist buyers or merchandisers.
Department store
Business demand that ultimately comes from (derives from) the demand for consumer goods.
Derived demand
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.
Descriptive research
Products that give both high immediate satisfaction and high long-run benefits.
Desirable products
A market-coverage strategy in which a firm decides to target several market segments and designs
separate offers for each.
Differentiated (segmented) marketing
Actually differentiating the market offering to create superior customer value.
Differentiation
Entering a foreign market by developing foreign-based assembly or manufacturing facilities.
Direct investment
Direct connections with carefully targeted individual consumers to both obtain an immediate response
and cultivate lasting customer relationships—the use of direct mail, the telephone, direct-response
television, e-mail, the Internet, and other tools to communicate directly with specific consumers.
Direct marketing
A marketing channel that has no intermediary levels.
Direct marketing channel
Direct marketing by sending an offer, announcement, reminder, or other item to a person at a particular
physical or virtual address.
Direct-mail marketing
Direct marketing via television, including direct-response television advertising (or infomercials) and
home shopping channels.
Direct marketing via television, including direct-response television advertising (or infomercials) and
home shopping channels.
A straight reduction in price on purchases during a stated period of time.
Discount
A retail operation that sells standard merchandise at lower prices by accepting lower margins and
selling at higher volume.
Discount store
The cutting out of marketing channel intermediaries by product or service producers, or the
displacement of traditional resellers by radical new types of intermediaries.
Disintermediation
Consumer buying behavior in situations characterized by high involvement but few perceived
differences among brands.
Dissonance-reducing buying behavior
A large, highly automated warehouse designed to receive goods from various plants and suppliers, take
orders, fill them efficiently, and deliver goods to customers as quickly as possible.
Distribution center
A strategy for company growth through starting up or acquiring businesses outside the company’s
current products and markets.
Diversification
Reducing the business portfolio by eliminating products of business units that are not profitable or that
no longer fit the company’s overall strategy.
Downsizing
Adjusting prices continually to meet the characteristics and needs of individual customers and
situations.
Dynamic pricing
Purchasing through electronic connections between buyers and sellers—usually online.
E-procurement
A group of nations organized to work toward common goals in the regulation of international trade.
Economic community
Factors that affect consumer buying power and spending patterns.
Economic environment
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.
Engel’s laws
A management approach that involves developing strategies that both sustain the environment and
produce profits for the company.
Environmental sustainability
An organized movement of concerned citizens and government agencies to protect and improve
people’s current and future living environment.
Environmentalism
A form of observational research that involves sending trained observers to watch and interact with
consumers in their “natural habitat.
Ethnographic research
Creating a brand-marketing event or serving as a sole or participating sponsor of events created by
others.
Event marketing
The act of obtaining a desired object from someone by offering something in return.
Exchange
Giving a limited number of dealers the exclusive right to distribute the company’s products in their
territories.
Exclusive distribution
The approach, style, tone, words, and format used for executing an advertising message.
Execution style
This section summarizes the main goals, recommendations, and points as an overview for senior
managers who will read and approve the marketing plan. A table of contents usually follows this
section, for management convenience.
Executive summary
The drop in the average per-unit production cost that comes with accumulated production experience.
Experience curve (learning curve)
Gathering primary data by selecting matched groups of subjects, giving them different treatments,
controlling related factors, and checking for differences in group responses.
Experimental research
Marketing research to gather preliminary information that will help define problems and suggest
hypotheses.
Exploratory research
Entering a foreign market by selling goods produced in the company’s home country, often with little
modification.
Exporting
An off-price retailing operation that is owned and operated by a manufacturer and that normally carries
the manufacturer’s surplus, discontinued, or irregular goods.
Factory outlet
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or
brand popularity.
Fad
A currently accepted or popular style in a given field.
Fashion
Costs that do not vary with production or sales level.
Fixed costs
A geographical pricing strategy in which goods are placed free on board a carrier; the customer pays
the freight from the factory to the destination.
FOB-origin pricing
Personal interviewing that involves inviting six to ten 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.
Focus group interviewing
The last step in the selling process in which the salesperson follows up after the sale to ensure customer
satisfaction and repeat business.
Follow-up
A contractual vertical marketing system in which a channel member, called a franchiser, links several
stages in the production-distribution process.
Franchise organization
A geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to
get the desired business.
Freight-absorption pricing
People in the organization’s buying center who control the flow of information to others.
Gatekeepers
Dividing a market into different groups based on gender.
Gender segmentation
The stage in the business buying process in which the company describes the general characteristics
and quantity of a needed item.
General need description
The 45 million people born between 1965 and 1976 in the “birth dearth” following the baby boom.
Generation X
Dividing a market into different geographical units such as nations, states, regions, counties, cities, or
neighborhoods.
Geographic segmentation
Setting prices for customers located in different parts of the country or world.
Geographical pricing