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649 Cards in this Set

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Marketing
an organizational function and a collection of processes designed to plan for, create, communicate, deliver value to customers and build effective customer relationships in ways that benefit the organization and its stakeholders
Value
The realization of benefits that exceed the cost of products, services, or other items
Utility
The satisfaction received from owning or consuming a product or service
Need
Necessity to meet an urgent requirement
Want
Desire for something that is not essential
Demand
Financial capacity to buy what one wants
Brand
Promise to deliver specific benefits associated with products or services to consumers
Marketing Concept
An organizational philosophy dedicated to understand and fulfilling consumer needs through the creation of value
Consumer Relationships
Created when businesses and consumers interact through a sales transaction of a product or services and continue based on ongoing interaction between the business and consumer
Consumer Relationship Management (CRM)
the activities that are used to establish, develop, and maintain customer relationships
Customer Lifetime Value (CLV)
the present value of all profits expected to be earned from a customer over the lifetime of his or her relationship with a company
Product Orientation
reflects a business focus on efficient production and distribution with little emphasis on any marketing strategy
Sales Orientation
Reflects a business focus on advertising and personal selling to create demand and move product inventory
Customer Orientation
Reflects a business focus on satisfying unmet consumer needs and wants
Relationship Orientation
Reflects a business focus on creating value-added relationships with suppliers and consumers
Marketing Functions
Activities performed within organizations that create value for specific products or services
Exchange Functions
activities that promote and enable transfer of ownership ex buying, selling, pricing, advertising
Physical Functions
Activities that enable the flow of goods from manufacturer to consumer
ex assembling, transporting, warehousing, processing, packaging.
Facilitating functions
activities that assist in the execution of exchange and physical functions
ex financing and risk-taking, marketing information and research
4 Ps
Product, price, place, promotion
Marketing Environment
Set of forces, some controllable and some uncontrollable, that influence the ability of a business to create value and attract and serve customers
Internal Environment
involves all of those activities that occur within the organizational functions in a business
Internal Marketing
The implementation of marketing practices within an organization to communicate organizational policies and practices to employees and internal stakeholders
External Environment
involves all activities, such as supplier and customer actions, that occur outside the organizational functions of a business
External Marketing
the implementation of marketing practices directed outside the business to create value and to form productive customer relationships
Microenvironment
Includes those forces close to a company, yet outside its internal environment, that influence the ability of a business to serve its customers
Porters 5 Forces
Threat of new entrants, bargaining power of suppliers, bargaining power of customers, threat of substitute products, competitive rivalry within an industry
Macroenvironment
Includes societal forces hat are essentially uncontrollable and influence the microenvironment of a business. Sub-environments: economic, social and cultural, competitive, legal, political, technological
Economic Environment
includes those factors that influence consumer purchase ability and buying behavior
Inflation
an increase in the price of a collection of goods that represents the overall economy
Income levels
average consumer earnings used to approximate national earnings
Unemployment Levels
number of unemployed persons divided by the aggregate labor force
Social and cultural environment
factors that relate marketing to the needs and wants of society and culture
Demographics
characteristics of human population that are used to identify markets
Competitive Environment
includes those factors that relate to the nature, quantity, and potential actions of competitors
Legal environment
includes factors that provide rules and penalties for violations, and is designed to protect society and consumers from unfair business practices snd protect businesses from unfair competitive practices
Political Environment
Includes factors that select national leadership, create laws, and provide a process for discourse on a wide range of issues
Technological environment
includes factors that influence marketing, based on scientific actions and innovation
Consumer Markets
are the end user of the product or service and include individuals and households that are potential or actual buyers of produces and services
Consumer products
products that directly fulfill the desires of consumers and are not intended to assist in the manufacture of other products
Consumer’s surplus
occurs when a consumer purchases a product or service at a price less than the utility of the product or service
Business markets
include individuals and organizations that are potential or actual buyers of goods and services that are used in, or in support of, the production of other products or services that are supplied to others
North American Industrial Classification System (NASICS)
classifies businesses operating in the US, Canada, and Mexico into groups based on their activities
Business to Business (b2b)
involves the sales of products and services from one business to another
Derived Demand
demand for a product or service that results from the demand for another product or service
Buyclasses
major classifications of business buying situations new tasks, modified rebuy, straight rebuy
Buying center
collection of individuals who perform specific roles in the procurement process
initiator, influencers, buyer, decider, users, gatekeeper
Planning Process
series of steps businesses take to determine how they will achieve their goals
Systems
a group of interacting related parts that perform a specific function
Business planning
a decision process for people and businesses to manage systems to achieve an objective
Business plan
written document that defines the operational and financial objectives of a business over a particular time
Elevator pitch
a brief description of a product or service designed to gain attention of desired parties and to generate interest in achieving a desired outcome
Strategic planning
determines the overall goals of the business and the steps it will take to achieve them
Tactical planning
the process of developing actions for various functions within a business to support implementing a business’s strategic plan establish the business mission, identify the business vision, define the business objectives, develop the business portfolio
Business mission
statement that identifies the purpose of a business and what makes that business different from others
Business vision
a statement in a strategic plan that identifies an idealized picture of a future state a business is aiming to achieve
Business objective
something that a business attempts to achieve in support of an overarching strategy
SMART
specific, measurable, achievable, relevant, time-bound
Portfolio analysis
the process a business uses to evaluate the different combinations of products and services that the business offers based on its objectives
BCG Growth
market matrix
Stars
represent products or services with high growth and high market share
Cash Cows
products or services with high market share and low growth opportunities
Question marks
products or services with low relative market share in a sector with high growth
Dogs
products or services with low relative market share in a low-growth sector
Balanced scorecard
a management system that relates a business’s vision and mission to individual business activities consumer perspective, internal business perspective, innovation and learning perspective, and financial perspective
Marketing planning
includes those activities devoted to accomplishing marketing objectives
Marketing objective
something that a marketing function is attempting to achieve in support of a strategic business plan
Marketing audit
comprehensive review and assessment of a business’s marketing environment
Marketing strategy
statement of how a business intends to achieve its marketing objectives
Target market
group of customers that a business determines is the most viable for its products or services
Marketing Mix
group of marketing variables that a business controls with the intent of implementing a marketing strategy directed at a specific target market
Product strategy
identifies the product and service portfolio, including packaging, branding, and warranty for its target market
Place strategy
identifies where, how, and when products and services are made available to target customers
Pricing strategy
identifies what a business will charge for its products or services
Promotion strategy
identifies how a business communicates product or service benefits and value to its target market
Marketing plan
a document that includes and assessment of the marketing situation, marketing objectives, marketing strategy, and marketing initiatives
SWOT analysis
a tool that helps identify business strengths, weaknesses, opportunities, and threats
Return on marketing investment (ROMI)
the impact on business performance resulting from executing specific marketing activities
Society
community, nation, or group that shares common traditions, institutions, activities, and interests
Gross Domestic Product
measures the total dollar value of goods and services a country produces within a given year
Nongovernmental organizations (NGOs)
groups of private individuals that monitor the behavior of markets or governments
Culture
the shared values, beliefs, and preferences of a particular society
Consumerism
the organized efforts on the part of consumer groups or governments to improve the rights and power of buyers in relation to sellers
Boycotts
when consumers refuse to do business with a company or nation in order to signal their disapproval of its actions and encourage change
Environmentalism
organized movement of citizens, businesses, and government agencies to protect and improve our living environment
Environmental sustainability
achieving financial objectives while promoting the long-term well-being of the earth
Green marketing
marketing efforts to produce more environmentally responsible products and services
Organic foods
grown naturally without the use of pesticides or synthetic fertilizers
Laws
rules of conduct or action prescribed by an authority, or the binding customs or practices of a community
Regulations
rules or orders issued by an official government agency that has proper authority and which carry the force of law
Puffery
claims of product superiority that cannot be proven as true or false
Exaggerated claims
extravagant statements made in advertising, either explicitly or implicitly, that have no substantiation or reasonable basis in truth
Social responsibility
concern for how a person’s or company’s actions might affect the interests of others
Corporate social responsibility (CSR)
philosophy that encourages decision makers to take into account the social consequences of their business actions
Sustainability
practices that combine economic growth with careful stewardship of our natural resources and the environment
Social marketing concept
marketing techniques may be employed for more than selling things and making a profit
Ethics
system of moral principles and values, as well as moral duties or obligations
Marketing ethics
rules for evaluating marketing decisions and actions based on marketers’ duties or obligations to society
Global marketing
all marketing activities conducted at an international level by individuals or businesses
Globalization
the outcome of cultures intermingling, sharing experiences, news, and commerce
Glocal
describes a company that acts either globally, locally, or both, as needed
Global Marketing environment
the environment in different sovereign countries, with characteristics distinct to the home environment of an organization, influencing decisions on marketing activities
International companies
companies that have no investment outside their home country other than the direct purchase of products or services that are, essentially, importers and exporters
Multinational companies
companies that maintain assets and operations in more than one country and concentrate on adapting products and services to the specific needs of each country
Global companies
companies that maintain assets and operations in more than one country and concentrate on penetrating multiple countries with a minimally customized marketing mix
Outsourcing
procuring certain services from third-party suppliers to decrease labor costs, access human capital not readily available within the business, or implement specific strategies
Offshoring
type of outsourcing in which business activities are completed in another country
Purchasing power parity (PPP)
model of exchange rate determination stating that the price of a good or service in one country should equal the price of the same good or service in another country, exchanged at the current rate
Economic communities
groups of countries that agree to take certain actions to manage resources of good and services by lowering tariff barriers and promoting trade among members
Trade agreements
treaties between countries to create a free trade area where business can be conducted without tariffs or other barriers
European Union (EU)
economic and political partnership among 27 European countries
North American Free Trade Agreement (NAFTA)
established in 1994 as a trading partnership among the US, Canada, and Mexico
Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR)
trading partnership among the US, DR, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua that represents the first free trade agreement between the US and a group of smaller developing economies
World Trade Organization (WTO)
est 1995 as the preeminent organization dealing with the rules of trade at a global or near-global level
Tariff
schedule of duties (or fees) applied to goods and services from foreign countries
Quotas
limits on the amount of product that can be imported into a country
Dumping
practice of selling a product in a foreign country for a price less than either the cost to make the product or the price in the home country
Non-tariff barriers (NTBs)
restrictions on imports that are not in the usual form of a tariff
Exchange controls
Types of controls that governments put in place to ban or restrict the amount of a specific currency that is permitted to be traded or purchased
Balance of Trade
difference between the monetary value of exports and imports of output in an economy over a specific period
Trade surplus
occur when the value of exports exceeds the value of imports
Trade deficit
occur when the value of imports exceeds the value of exports
Income distribution
way in which income and wealth are divided among the members of an economy
Subsistence economies
generally represented by agrarian societies where enough is grown, hunted, and crafted to provide the essential needs of the people and any surplus is bartered for basic goods and services
Raw materials exporting economies
countries that are plentiful in a particular raw material, yet deficient in other resources, and rely on the export of that raw material for the majority of revenue
Industrializing economies
countries where the manufacturing sector accounts for a small but growing share of the total economy and an increasing number of imported raw materials are required to support manufacturing
Industrial economics
consist of countries with robust manufacturing, service, and financial sectors that are actively engaged in international trade
Post-industrial economies
countries where the manufacturing sector diminishes while service and information sectors become the primary sources of economic growth
Risk
potential for loss of investment
Instability
the condition of being erratic or unpredictable
Privatization
the transfer of government functions to the private sector that creates new business opportunities
Nationalization
the transfer of control or ownership of private property to government
Democracy
form of government in which the supreme power is retained by the people, but which is usually exercised indirectly through a system of representation and delegated authority periodically renewed
Monarchy
form of government in which the supreme power is held by a monarch who reigns over a state or territory, usually for life and by hereditary right; the monarch may be either a sole absolute ruler or a sovereign - such as king, queen, or prince- with constitutionally limited authority
Parliamentary democracy
political system in which the legislature (parliament) selects the government - a prime minister - according to party strength as expressed in elections; by this system, the government acquires a dual responsibility: to the people as well as to the parliament
Totalitarianism
form of government that seeks to subordinate the individual to the state by controlling not only all political and economic matter, but also the attitudes, values, and beliefs of its population
Jurisdiction
power or right or a legal or political entity to exercise its authority over a specific geographic area
International law
body of rules and customs by which countries are guided in their relations with other countries and recognized international organizations
Extraterritoriality
holds certain individuals such as diplomats accountable to the laws of their home country while exempting them from the jurisdiction of a foreign country in which they may be operating
Bribery
practice of offering something of financial value to someone in a position of authority to alter behavior and gain an illicit advantage
Foreign Corrupt Practices Act
passed in 1977, makes it “unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.”
Counterfeiting
unauthorized copying of products, packaging, or other intellectual property of a registered brand
Countertrade
legal agreement where goods are paid for in a form other than cash
Cultural values

power distance, uncertainty avoidance, individualism vs collectivism, masculinity vs feminity, long-term vs short-term orientation

Zero-sum game
one or more parties benefit to the same degree as one of more other parties lose
Global marketing process
a series of strategic marketing decisions deciding to go global, determining which markets to enter, deciding how to enter the markets, and selecting the global marketing program
Market
place, either physical or virtual, where buyers and sellers come together to exchange good and services
Exporting
when a company produces in its home market and then transports its products to other nations for sale
Indirect
when a firm sells through intermediaries
Direct
when a firm establishes its own overseas sales branches
Joint venture
entry strategy in which a company teams with a host company in the particular market they are entering
Licensing
practice of a company receiving fees or royalties from partner firms for the right to use a brand, manufacturing process, or patent
Contract manufacturer
an entry strategy in which a company directly hires a company in the host nation to manufacture products on its behalf
Joint ownership
entry strategy in which a company joins with a foreign invertor to build its own local business
Direct investment
entry strategy in which a company establishes foreign-based manufacturing facilities
Franchising
entry strategy in which a local company purchases the right to use the process and brand of another company
Born global
business that, from its inception, intends to derive significant competitive advantage from the application of resources and commercial transactions in multiple countries
Customer Value
the difference between the benefits a customer expects to receive from a product and the total cost incurred from acquiring, using, and disposing of the product
Value Map
a graphical representation of the ration between customers’ perceived benefits and the perceived total cost of a product
Fair Value Zone
the area on a value map where the customers’ perceived benefits equal the customers’ perceived cost
Customer Satisfaction
the degree to which a product meets or exceeds customer expectations
Customer Loyalty
the degree to which a customer will select a particular brand when a purchase from that product category is being considered
Consumer Lifetime Value (CLV)
The present value of all profits expected to be earned from a customer over the lifetime of his or her relationship with a company
Relationship Marketing
the organizational commitment to developing and enhancing long-term, mutually beneficial relationships with profitable or potentially profitable customers
Consumer Relationship Management (CRM)

the activities that are used to establish, develop, and maintain customer sales.

Data mining
The statistical analysis of large databases seeking to discover hidden pieces of information. This technique can be used with both primary and secondary data
Consumer Behavior
The dynamic interaction of affect and cognition, behavior, and the environment in which human beings conduct the exchange of their lives
Psychology
the study of the mind
Social Psychology
the process to understand social phenomena and their influence on social behavior
Consumer decision-making process
the steps that consumers take to identify and evaluate choice options
Self-identity
an individual’s understanding that he or she is unique
Personality
a “sense of consistency, internal causality, and personal distinctiveness”
Lifestyle
a way of life that individuals express by choosing how to spend their time and personal resources
Cognitive age
also referred to as subjective age, is the age that a person feels
Life stage
similar life events experienced by groups of individuals of varying chronological and cognitive ages
Perception
cognitive impression of incoming stimuli that influences the individual’s actions and behavior
Subliminal perception
the processing of stimuli by a recipient who is not aware of the stimuli being received
Motivation
the set of conditions that creates a drive toward a particular action to fulfill a need or want
Attitude
a state of readiness, based on experience that influences a response to something
Belief
a sense of truth about something
Learning
knowledge that is acquired through experiences
Drive
internal stimulus that encourages action
Cue
an environmental stimulus that influences a particular action
Response
a consumer’s reaction to drive and cues
Reinforcement
a reduction in drive resulting from a positive-response experience
Culture
the shared values, beliefs, and preferences of a particular society
Subculture
groups of people within a broader society who share similar behaviors and values
Norms
standards of behaviors imparted to members of a particular group that define membership
Roles
specific actions expected from someone in a group as a member of from a particular position held
Status
the relative position of one individual relative to others
Reference group
people who directly or indirectly influence how an individual feels about a particular topic
Opinion leaders
individuals who have the greatest influence on the attitudes and behaviors of a particular group
Social classes
characteristics that distinguish certain members of society from others, based on a variety of factors, including wealth, vocation, education, power, place of residence, and ancestry
Consumer problem solving
how someone comes to a conclusion about a situation. This is determined by what kind of decision a consumer is facing
Limited problem solving
when a consumer is prepared to exert a certain amount of effort to make a purchase decision
Significant problem solving
when a consumer is prepared to commit considerable effort to make a purchase decision
Routine response problem solving
when a consumer has a well-developed process associated with fulfilling a need or want
Consumer insight
perceived meanings of data collected from a study of consumer behavior
Insight
the act or result of apprehending the inner nature of things, or seeing intuitively
Consumer market insight
an in-depth understanding of customer behavior that is more qualitative than quantitative
Research
the studious inquiry or examination; especially: investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical application of such new or revised theories or laws
Applied research
attempts to answer questions related to practical problems
Pure research
attempts to expand understanding of the unknown
Research question
the question the research is designed to answer
Primary data
information that is collected to address a current research question
Secondary data
information that has been previously collected for another purpose
Data mining
the statistical analysis of large databases seeking to discover hidden pieces of information. This technique can be used with both primary and secondary data
Syndicated research
information collected on a regular basis using standardized procedures and sold to multiple customers from a related industry
Research design
a framework or plan for a study that guides the collection and analysis of the data
Exploratory research
marketing research design used to generate ideas in a new area of inquiry
Descriptive research
a marketing research design that is used to describe marketing variables by answering who, what, when, where, and how questions
Explanatory research
a marketing research design used to understand the relationship between independent and dependent variables
Qualitative research
a collection of techniques designed to identify and interpret information obtained through the observation of people
Quantitative research
a process to collect a large number of responses using a standardized questionnaire where the results can be summarized into numbers for statistical analysis
Focus groups
collections of a small number of individuals recruited by specific criteria with the purpose to discuss predetermined topics with qualified moderators
Structured interviews
a series of discussions held between a trained interviewer and individuals, on a one-on-one basis
Ethnographic research
type of observational research where trained researchers immerse themselves in a specific consumer environment
Internet research panel
collection of individuals who agree, for some predetermined incentive, to participate in questionnaires on a variety of topics as determined by the owner and manager of the panel
Measurement
the process of quantifying how much of a variable’s set of features or characteristic are possessed in another variable
Nominal scale
measurement in which numbers are assigned to characteristics of objects or groups of objects solely for identifying the objects
Ordinal scale
measurement in which numbers are assigned to characteristics of objects or groups of objects to reflect the order of the objects
Interval scale
measurement in which the numbers assigned to the characteristics of the objects or groups of objects legitimately allow a comparison of the size of the differences among and between objects
Ratio scale
a measurement in which the numbers assigned to the characteristics of the objects have an identifiable absolute zero
Questionnaire
an organized set of questions that a researcher desires respondents to answer
Close-ended question
a question that has a specific survey answer choices available to respondents
Coding
the numbering of the answer choices for each survey question
Open-ended question
allows for unrestricted survey responses
Sample
specific part of the population that is selected to represent the population
Population
total group of individuals who meet the criteria being studied
Census
survey that collects responses for each member of the population
Sample plan
identifies who will be sampled, how many people will be sampled, and the procedure that will be used for sampling
Sample error
any differences between the sample results and the actual results that would emerge from a census of the population
Sampling procedure
selecting either a probability sample or a nonprobability sample as part of your sample plan
Probability sample
procedure where each member of a population has a known and nonzero chance of possibly being selected to a sample
Nonprobability sample
procedure where each member of a population does not have an equal chance, or, in some cases, any chance, of being selected to a sample
Nonsampling error
any bias that emerges in the study for any reason other than sampling error
Validity
the strength of a conclusion
Reliability
the level of consistency of the measurement
Marketing Information system (MIS)
a series of steps that include collection, analysis, and presentation of information for use in making marketing decisions
Marketing intelligence system
system that gathers, processes, assesses, and makes available marketing information in a format that allows the marketing activity to function more effectively
Competitive intelligence
systematic tracking of competitive actions and plans and is a significant activity within a business
Marketing decision support system (MDSS)
software and associated infrastructure that connect the marketing activity to company databases
Marketing research system
a collection of the results or marketing research studies conducted by a company
Cookies
small files containing certain personal information that are sent from Web servers to a customer’s computer to be accessed the next time a consumer visits a particular Web site
Brand
a promise to deliver specific benefits associated with products or services to consumers
Digital Brand strategy
set of marketing activities that uses digital mediums to connect consumers to brands
Brand equity
the power of a brand, through creation of a distinct image, to influence customer behavior
Brand knowledge
the set of associations that consumers hold in memory regarding the brand’s features, benefits, users, perceived quality, and overall attitude as a result of prior brand marketing activities
Price war
occurs when businesses cut prices to take sales from competitors
Channel switching
creating new product distribution or moving the distribution flow of products from one distribution channel to another
Channel
system with few or many steps in which products flow from businesses to consumers while payments flow from consumers to businesses
Brand stretching
extending a brand to new products, services, or markets
Outsourcing
procuring certain services from third-party suppliers to decrease labor costs, access human capital not readily available within the business, or implement specific strategies
Brand valuation
the process of quantifying the financial benefit that results from owning a brand
Brand loyalty
the extent to which a consumer repeatedly purchases a given brand
Consumer-based brand equity
the differential effect that brand knowledge has on the consumer response to marketing efforts
Strong brand
occupies a distinct position in consumers’ minds based on relevant benefits and creates an emotional connection between businesses and consumers
Brand positioning
the location that a brand occupies in the marketplace relative to competitors
Brand personality
consists of characteristics that make a brand unique, much like human personality
Brand architecture
the naming and organizing of brands within a broader portfolio
Manufacturer brand
a brand owned by a manufacturer
Private label brands
a brand owned by a reseller or retailer
Licensing
the practice of a company receiving fees or royalties from partner firms for the right to use a brand, manufacturing process, or patent
Co-branding
the collaboration of multiple brands in the marketing of one specific product
Brand alliance
a relationship, short of a merger, that is formed by two or more businesses to create market opportunities that would not have existed without the alliance
Brand strategy
the process where the offer is positioned in the consumer’s mind to produce a perception of advantage
Line extension
an addition to an existing product line that retains the currently utilized brand name
Bundling
refers to the practice of marketing two or more products and/or services in a single package
Brand extension
takes an existing brand into a new category
Cannibalization
the loss of sales of an existing product within a portfolio to a new product in the same portfolio
Flanker brand
created to expand an organization’s portfolio into a new segment of an existing market category while retaining relevance with current customers
Brand management
the overall coordination of a brand’s equities to create long-term brand growth through overseeing marketing mix strategies
Category management
involves the management of multiple brands in a product line
Category manager
the person responsible for managing a product lien that may contain one or more brands
Brad manager
the person responsible for managing the marketing activities associated with a brand
Brand protection
involves securing the brand’s inherent value, including its intellectual property
Intellectual property
a collection of non-physical assets owned by an individual or company that are the result of innovation and are legally protected from being copied or used by unauthorized parties
United States Patent and Trademark Office (USPTO)
federal agency responsible for assigning rights for limited times to individuals or companies to use innovations
Counterfeiting
unauthorized copying of products, packaging, or other intellectual property of a registered brand
Segmentation (market segmentation)
division of consumer markets into meaningful and distinct customer groups
Mass marketing
communicating a product or service message to as broad a group of people as possible with the purpose of positively influencing sales
Segmentation base
a group of characteristics that is used to assign segment members
Demographic segmentation
divides the market into groups, based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, ethnicity, generation, nationality, and sexual orientation
Psychographic segmentation
assigns buyers into different groups, based on lifestyle, class, or personality characteristics
Values segmentation
considers what customers prefer and what motivates customer response to marketing activities
Behavioral segmentation
allocates consumers into groups based on their uses or responses to a product or service
Needs segmentation
allocates consumers into groups, based on their product or service needs
Targeting (market targeting)
the process of evaluating and selecting the most viable market segment to enter
Behavioral targeting
optimizes the online advertising potential for brands
Undifferentiated marketing
when a company treats the market as a whole, focusing on what is common to the needs of customers rather than on what is different
Differentiated marketing
separates and targets several different market segments with a different product or service geared to each segment
Niche marketing
serving a small but well-defined consumer segment
Positioning
placement of a product or service offering in the minds of consumer targets
Unique selling proposition (USP)
An expression of the uniqueness of a brand
Functional positioning
based on the attributes of products or services and their corresponding benefits and is intended to communicate how customers can solve problems or fulfill needs
Symbolic positioning
based on characteristics of the brand that enhance the self-esteem of customers
Experiential positioning
based on characteristic of the brands that stimulate sensory or emotional connections with customers
Search engine optimization
the process of enhancing web site traffic through either organic of compensated means
Perceptual map
defines the market, based on consumer perceptions of attributes of competing products
Brand positioning statement
summary of what a brand offers to the market
Business plan
a written document that defines he operational and financial objectives of a business over a particular time, and how the business plans to accomplish those objectives
Marketing plan
a document that includes an assessment of the marketing situation, marketing objectives, marketing strategy, and marketing initatives
Products
items used or consumed for personal or business use
Services
activities that deliver benefits to consumers or businesses
Attributes
the unique characteristics of each product, including product features and options, product design, brand name, quality, logos, identifiers, packaging, and warranty
Benefits
realized through product attributes, define the utility (usefulness) of a product for the customer
Intangibility
recognizes that a service cannot be perceived by the five senses (sight, hearing, tough, smell, or taste) before it is produced and consumed
Inseparability
recognizes that a service cannot be separated from its means or manner of production
Variability
recognizes that service quality may vary from experience to experience
Perishability
recognizes that a service cannot be stored for later use and must be consumed upon delivery
Levels of a product
consists of three classifications: core benefits, actual product, and augmented product—and each additional level has the potential to add greater value for the consumer
Core benefits
fundamental product benefits the customer receives from a product
Actual product
the combination of tangible and intangible attributes that delivers the core benefits of the product
Augmented product
the additional services or benefits that enhance the ownership of the actual product
Consumer products
products that directly fulfill the desires of consumers and are not intended to assist in the manufacture of other products
Convenience products
products that are purchased frequently with little or no shopping effort, for example, grocery staples, paper products, and candy
Shipping products
products that are purchased with a moderate amount of shopping effort, for example, clothing, linens, housewares
Specialty products
products with unique characteristics that are purchased with a high degree of shopping effort, for example, luxury items, vacations, and homes
Unsought products
products that consumers do not usually search for without an immediate problem or prompting, for example, life insurance, funerals, or legal services
Industrial products
products sold to business customers for their direct use or as inputs to the manufacture of other products. Classifications of industrial products include equipment, MRO products, raw materials, processed materials and services, and components
Equipment
group of products used in the everyday operation of a business, for example, factories and copy machines
MRO products
products used in the maintenance, repair, and operation of a business, for example, nails, oil, or paint
Raw materials
unfinished products that are processed for use in the manufacture of a finished product, for example, wood, wheat, or iron ore
Processed materials and services
products or services used in the production of finished products or services, for example, lumber, steel, or market research
Components
finished products companies employ to manufacture in their own products, for example, microchips or engines
New product development
process of creating, planning, testing, and commercializing products
Idea generation
the process of formulating an idea for a new product or service
Idea screening
the process of reviewing a product idea to ensure that it meets customer wants and company goals
Concept development
the process of concretely defining the features and benefits of the new product
Marketing strategy
a statement of how a business intends to achieve its marketing objectives
Business analysis
the process of validating that the new product will meet all sales and profit objectives
Concept testing
the developing prototypes of the product for product testing
Commercialization
the process of launching a new product in the marketplace
Discontinuous innovations
new product ideas that change our everyday lives in dramatic ways
Cosmetic change
an evolutionary change to an existing product or service
Context change
when an existing product or service is taken into a new context or market
Concept change
an advanced, breakthrough innovation that changes everything
Product style
the visual and aesthetic appearance of a product
Product design
a product’s style, tactile appeal, and usability
Product portfolio
(also called a product mix) is the collection of all products and services offered by a company
Portfolio management
comprises all of the decisions a company makes regarding its portfolio of current and future products. It involves deciding which products to add, keep, and remove from the overall product portfolio
Product line
a group of closely related products
Full-line product strategy
offering a wide range of product lines within a product portfolio
Product mix width
number of product lines a company offers
Product mix length
the total number of products a company offers
Product mix depth
number of versions of products within a product line
Line extension
an addition to an existing product line that retains the currently utilized brand name
Line expansions
the addition of entirely new product lines to a product mix
Product life cycle (PLC)
the model that describes the evolution of a product’s sales and profits throughout its lifetime. The stages of the product life cycle are as follows: introduction, Growth, Maturity, and Decline
Introduction stage
the stage at which a new product is introduced to the marketplace. Sales begin to build, but profits remain low (or even negative)
Growth stage
the stage at which a product is rapidly adopted in the marketplace. Sales grow rapidly and profits peak
Maturity stage
stage at which the product has been purchased by most potential buyers and future sales are largely replacement purchases. Sales plateau and profits begin to fall
Decline stage
stage at which the demand for a product falls due to changes in customer preferences. Sales and profits eventually fall to zero
Penetration strategy
process of offering a product at a low price to maximize sales volume and market share
Skimming strategy
process of offering a product at a high price to maximize return
Divesting
process of discounting the production and sale of a product
Harvesting
process of continuing to sell a product in spire of declining sales
Diffusion of innovations
theory concerning how populations adopt innovations over time
Innovators
consumers who are the most willing to adopt innovations. They tend to be younger, better educated, and more financially secure
Early adopters
consumers who are more socially aware than innovators and consider the prestige or social implications of being seen using a new product
Early majority
middle-class consumers who do not want to be the first, or the last, to try a new product. They look to the early adopters for direction about product innovations
Late majority
older and conservative consumers who avoid products they consider to be too risky. They will purchase something only if they consider it to be a necessity or when they are under some form of social pressure
Laggards
consumers who are heavily bound by tradition and are the last to adopt an innovation
Price
exchange value of a product or service in the marketplace
Value

= benefits/price

Fair prices
those consumers perceive as offering good value and meeting personal and social norms
Price-quality ratio
ratio between the price of a product and its perceived quality
Market structure
the type of marketplace situation the company faces: monopoly, oligopoly, monopolistic competition, or pure competition
Monopoly
market composed of a single firm with pricing power sufficient to set the marketplace price for all products or services
Pricing power
ability of a firm to establish a higher price than its competitors without losing significant market share
Oligopoly
refers to a market composed of a small group of firms that share pricing power sufficient to set the marketplace price for their products or services
Monopolistic competition
refers to a market composed of firms with somewhat differentiated products and limited pricing power sufficient to influence the price of their own products to a degree
Pure competition
refers to a market composed of a large number of firms that together lack sufficient pricing power to influence the market price for their products
Fixed costs (overhead)
costs that are incurred regardless of any production or sales
Variable costs
costs directly attributable to the production of a product or the delivery of a service
Total cost
sum of fixed and variable costs
Profit margin
difference between the price of a product and its total cost per unit
Cost-based pricing
establishes a price based on the cost to manufacture a product or deliver a service
Cost-plus pricing
adds a fixed amount to the cost of each product or service sufficient to earn a desired profit
Markup
percentage or fixed amount added to the cost of a product or service
Break-even point
volume or price at which a company’s revenue for a product exactly equals its fixed cost
Contribution margin
difference between a product’s price and its variable cost
Demand curve (demand schedule)
charts the projected sales for a product or service for any price customers are willing to pay
Price elasticity
measure of a percentage change in quantity demanded for a product, relative to a percentage change in its price
Elastic
refers to the situation in which price elasticity is greater than one or when demand is highly responsive to a change in price
Inelastic
refers to the situation in which price elasticity is less than one or when demand is relatively nonresponsive to a change in price
Pricing practices
considerations (such as legal requirements or bidding practices) that must be taken into account when establishing a price for a product or service
Odd-even pricing
practice that sets prices at fractional numbers, instead of whole ones
Price bundling
occurs when two or more items are priced at a single, combined price instead of individually
Antitrust law
catchall phrase for federal legislation meant to prohibit anticompetitive actions on the part of manufacturers, wholesalers, or resellers
Price fixing
occurs when two or more companies discuss prices in an effort to raise the market price for their products
Price discrimination
occurs when a firm injures competition by charging different prices to different members of its distribution channel
Predatory pricing
occurs when a firm sells its products at a low price to drive competitors out of the market
Deceptive pricing
occurs when a price is meant to intentionally mislead or deceive customers
Bait-and-switch pricing
occurs when a firm advertises a low price on a desirable product but, in attempt to trade customers up to more expensive items, it does not make a good faith effort to carry sufficient quantities of that product
Loss-leader pricing
involves the sale of items below cost to drive floor traffic
Promotional pricing
strategy of using price as a promotional tool to drive customer awareness and sales
Sticker price (MSRP)
quoted or official price for a product
Request for quote (RFQ)
document a buyer sends to a potential supplier that outlines the criteria for the goods or services to be purchased
Quotation
a supplier’s response to an RFQ from a potential customer
Competitive bidding
involves suppliers in a bid process that receive identical RFQs and then return quotes in secret to the buyer
Negotiated price
the result of a back-and-forth discussion between a buyer and seller regarding the final price of a product or service
Quotas
limits on the amount of product that can be imported into a country
Tariff
a schedule of duties (or fees) applied to goods and services from foreign countries
Antidumping laws
laws designed to prevent predatory pricing
Currency exchange rates
variable rates that specify the price of one currency in terms of the price of another
Pricing strategy
identifies what a business will charge for its products or services
Pricing objectives
goals that keep marketing actions in alignment with overall business objectives
Skimming price
price that is set high in order to maximize revenue and profit
Penetration price
price that is set low to maximize volume and market share
Experience curve
economic model that presumes costs will decline as production volume increases
Storefront pricing (offline pricing)

prices established for products or services sold through traditional sales channels like grocery stores, mass merchandisers, or other “brick and mortar” businesses

Online pricing
process of setting prices for products or services sold over the Internet or through an electronic medium
Cost transparency
ability of consumers to understand a product’s actual cost
Price lining (tiered pricing, versioning)
a strategy used to create different prices for different, but related, products or services
Dynamic pricing (smart pricing)
practice of varying prices based on marketplace conditions
Auctions
markets in which buyers and sellers engage in a process of offer and counteroffer until a price acceptable to both parties is reached
Forward auction
market in which a buyer states what he or she is seeking to purchase and sellers respond in kind with bids (or prices)
Reverse auction
market in which a buyer states what he or she is seeking to purchase, as well as the price he or she is willing to pay
Incremental cost
additional cost to produce or sell one more product or service
Clickthrough fees
the amount of online entity charges another online entity for passing along a Web user who clicks an ad or link
Price ceiling
price all products in a product line must be priced below
Price floor
price above which all products in a product line must be priced
Cash discount
percentage or fixed amount off the quoted price of an item, and is given when a customer pays in cash
Quantity discount
a discount per item purchased that is given to customers buying a larger quantity of a product
Trade-in
cash value given to a customer when he or she offers his or her own product in trade toward a new purchase
Rebate
a cash payment made back to a customer who has purchased his or her products at full price
Price war
occurs when businesses cut prices to take sales from competitors
Marketing channel
the network of parties involved in moving products from the producer to consumers or business customers
Distribution
process of delivering products and services to customers
Exchange function

Negotiate price; make sales; place orders; develop communications

Physical function

transport and store products; break bulk; create assortments

Facilitating function

gather information; provide credit and other purchase options

Contact efficiency
efficiency gained in terms of a reduction in the number of contacts required through the use of channel intermediaries
Channel strategy
describes the levels, organization, and distribution intensity of a marketing channel
Direct marketing channel
a single channel member that produces and distributes a product or service
Indirect marketing channel
a channel involving one or more intermediaries between producer and customer
Distribution intensity
determines the number of outlets or locations where a product will be sold
Intensive distribution
refers to the distribution of products in a relatively large number of locations
Selective distribution
refers to the distribution of products in relatively few locations
Exclusive distribution
refers to the distribution of products in only a few locations
Vertical Marketing Systems (VMS)
a channel that is vertically integrated based on acquisition or formal agreement, or by a firm developing its own distribution capabilities
Horizontal

two or more channel members at the same level form an alliance.

Channel conflict
occurs when two or more channel members disagree
Vertical conflict
refers to conflict between channel members at different levels in a channel (e.g. a wholesaler and a retailer)
Horizontal conflict
occurs between channel members at the same level in a channel (e.g. two retailers)
Multichannel conflict
refers to conflict between different types of channels
Channel leader
a firm with sufficient power over other channel members to take a leadership role in the channel
Logistics
the coordination of all activities related to the transportation or delivery of products and services that occur within the boundaries of a single business or organization
Supply chain management
the management of all firms or organizations, both inside and outside a company, that impact the distribution process
Outbound logistics
controls the movement of products from points of production (factories or service delivery points) to consumers
Inbound logistics
controls the flow of products or services from suppliers to manufacturers or service providers
Reverse logistics
addresses the methods consumers use to send products backward through a channel for a return or repair
Logistics manager
a person responsible for coordinating the activities of all members of a company’s distribution channel
Third-party logistics company (3PL)
manages all or part of another company’s supply chain logistics
Just-in-time (JIT)
an inventory management technique in which goods are delivered within a predefined time “window” that corresponds to exactly when the goods are needed
Physical distribution
the process of moving finished goods to customers through various transportation modes
Inventory
a store of goods awaiting transport or shipping
Shipper
the owner of goods being distributed
Consignee
the receiver of goods being distributed
Carrier
the entity that physically transports goods from shipper to consignee
Pipeline
transportation mode used for liquids such as oil or natural gas
Intermodal distribution systems
distribution strategy that uses more than one kind of transportation mode
Transportation management systems (TMS)
software programs used to automate the shipping process
Warehouse
physical facility used primarily for the storage of goods held in anticipation of sale or transfer within the marketing channel
Breaking bulk
the process of reducing large product shipments into smaller ones that are more suitable for individual retailers or companies
Stock-keeping unit (SKU)
unique identification number used to track and organize products
Distribution center
a large warehouse used to store a company’s products
RFID (radio frequency identification)
electronic chip and an antenna that can identify the precise physical location of a product
Bar code
unique product identification codes used to monitor inventory
Universal Product Code (UPC)
standard format for retail bar codes
Cross-docking
warehousing technique that minimizes holding costs by unloading products at a warehouse or distribution center and then reloading them almost immediately for transport
Retailing
the activities involved in the sale of products to consumers for their personal, nonbusiness use
Retailers
businesses whose primary source of revenue is generated through retailing
Durable goods
products that are expected to last for three or more years
Specialty stores
concentrate on satisfying the specific needs of a select group of customers
Category killers
retailers that offer a wide selection of merchandise in a narrow product category
Department stores
carry a wide selection of products organized by departments, such as housewares, men’s and women’s apparel, appliances, and luggage
Discount stores
type of department store focused on turning over products more quickly than traditional department stores by offering lower prices
Off-price retailers
sell name-brand products at prices 20 to 50% less than specialty or department stores by acquiring closeout merchandise, production overruns, or factory seconds
Warehouse clubs
carry a limited selection of merchandise in large quantities that deliver higher value for customers and greater unit volume for manufactures
Grocery stores/supermarkets
self-service retailers that carry food and nonfood items
Superstores
the combination of a discount store and a grocery store
Convenience stores
small, self-service retailers that offer few product choices outside their primary offerings of beer, soft drinks, and snacks
Nonstore retailing
involves the sale of products through the use of vending machines, self-serve kiosks, the Internet, and smart phone applications
Vending machines
sell a wide range of products including soft drinks, snacks, hot and cold meals, gumballs, and toys
Internet retailers
offer a wide range of products that are sold online
M-commerce
a form of nonstore retailing conducted through the use of mobile devices such as smart phones
Retail strategies
decisions to be made regarding the establishment and ongoing operations of a retailer
Retail margin
the difference between a product’s retail selling price and its wholesale cost
Retail marketing mix
consists of the product, price, place, and promotion of merchandise by a retailer
Merchandise assortment
the breadth and depth of product lines a store carries, as well as the amount of each product the store stocks
Level of service
the service offered to customers on the continuum between full- and self-service
Private label products
store brand items that offer higher profit margins for retailers than name brand products
Full-service retailers
typically high-end specialty or department stores where sales personnel provide assistance to customers during and after their visit to the store
Self-service retailers
provide a minimal level of service and contact between customers and employees
Limited-service retailers
provide assistance to customers upon request
Atmospherics
the layout, furnishings, color scheme, and music that establish the image customers have of a retailer
Wholesaling
the sorting, storing, and reselling of products to retailers or businesses
Wholesalers
firms that purchase products from manufacturers and resell them to retailers and industry buyers
Merchant wholesalers
broad group of wholesalers that take title to the products that are purchased from manufacturers
Full-service wholesalers
typically assume supply chain responsibilities that would otherwise be performed by manufacturers
General merchandise wholesalers
carry a wide assortment of merchandise in a broad product category, such as pharmaceuticals or groceries
Specialty line wholesalers
focus on a single product line, such as health food, and may cover a wide geographic area
Limited service wholesalers
perform fewer services for manufacturers but may be the best or only way to reach the markets they serve
Cash-and-carry wholesalers
provide few services but offer low prices on the limited number of goods they carry
Mail order wholesalers
employ catalogs or the Internet as their sales force
Drop shippers
wholesalers who take title to products but never take possession of them
Jobbers
wholesalers that operate on a relatively small scale and sell and provide services primarily to retailers
Agents and brokers
independent businesses that may take possession of products but never take title
Manufacturers’ agents
independent agents used in place of a manufacturer’s sales team
Selling agents
independent agents who take responsibility for a wide range of marketing activities in addition to sales functions
Commission merchants
brokers who take physical possession of products but do not take title and subtract an agreed-upon commission from the buyer’s payment to the seller
Merchandise brokers
brokers that specialize in linking buyers and sellers together and are generally well known in their area of specialization
Manufacturer-owned intermediaries
wholesaling or similar entities owned by the manufacturer as a way of controlling the inventory and sale processes and increasing profit margins
Sales branches
maintain inventory for companies in different geographic areas
Sales offices
carry no inventory but provide selling services for specific geographic areas
Manufacturer’s showroom
a facility where a firm’s products are permanently on display for customers to view
Marketing communications
the messages sent from organizations to members of a target market in order to influence how they think, feel, and act toward a brand or market offering
Noise
anything that might distort, block, or otherwise prevent the message from being properly encoded, send, decoded, received, and/or comprehended
Word of mouth
communication between consumers about a brand, marketing offer, or marketing message
Viral marketing
activities that encourage consumers to share a company’s marketing message with friends
Advertising
the paid, nonpersonal communication of a marketing message by an identified sponsor through mass media
Informative advertising
provides consumers with information on the product or service
Persuasive advertising
entices consumers to increase brand preference by communicating unique product or service benefits
Reminder advertising
keeps a known product or service in the mind of consumers
Percentage of sales method
method of setting the advertising budget where the size of the budget is based on a percentage of sales
Competitive budget method
method of setting the advertising budget where the budget is set to match, dollar for dollar, that of an important competitor
Message execution
how the message is delivered
Advertising appeal
the reason to purchase a product or service
Reach
measure of the number of people who could potentially receive an ad through a particular media vehicle
Frequency
number of times an individual is exposed to an advertising message by a media vehicle
Sales promotion
marketer-controlled communication to stimulate immediate audience response by enhancing the value of an offering for a limited time
Consumer promotions
designed to motivate consumers to try a product or buy it again by offering an economic incentive such as coupons
Trade promotions
incentives offered to retailers and wholesalers that take the form of discounts or allowances
Public relations
two-way communication to improve mutual understanding and positively influence relationships between the marketer and its internal and external publics
Publics
target audiences of public relations; the people inside or outside the company who have a “stake” in what it does
Corporate public relations
how management evaluates and shapes or reshapes long-term public opinion of the company
Marketing public relations
how marketers seek to achieve specific marketing objectives by targeting consumers with product-focused messages
Product placement
arrangement in which the company has its brand or product appear in a movie or other entertainment vehicle
Publicity
generating unpaid, positive media coverage about a company or its products
Sponsorship
way of publicly-assorting a brand with an event or activity that the company supports financially
Brand activation
the process of bringing a brand to life by creating an experience that reflects the value of a brand
Personal selling
when a representative of a company interacts directly with a customer to inform and persuade him or her to make a purchase decision about a product or service
Turnover rate
percentage of the sales force that leaves a company per year
Personal selling process
set of activities that salespeople follow in acquiring new customers
Prospecting
the process of researching multiple sources to find potential customers or prospects
Sales presentation
formal meeting between a salesperson and a sales prospect
Consultative selling
when the salesperson is focused more on solving the problems of the prospect rather than trying to sell a product
Close the sale
the part of the selling process in which the salesperson asks for an order
Trial close

sales closing technique to gauge a prospect’s interest in buying

Alternative close
sales closing technique that seeks to have the prospect make a choice between product features or options
Assumptive close
sales closing technique that involves direct and specific questions
Sales management
process of planning, implementing, and controlling the personal selling function
Inside sales
members of the sales team who reside inside the office or company location and rarely, if ever, have face-to-face contact with customers or prospects
Outside sales
salespeople who meet face-to-face with customers and prospects
Sales management process
comprehensive approach used by sales managers to determine how the sales force is organized and managed and how they will hire, recruit, manage, motivate, and evaluate the performance of the individual salespeople
Pay-for-performance compensation strategy
compensation system in which salespeople are paid based on the amount of sales or profits they deliver to the company
Commission
part or all of a salesperson’s income that is based on the amount of sales or profit delivered in a given time frame
Direct marketing
any communication addressed to a consumer that is designed to generate a response
House file
proprietary database of customer information collected from transactions, inquiries, or surveys from the company
Outside lists
consists of consumer information compiled by an outside company and rented to a marketer
Mail order
describes the business of selling merchandise through the mail
Catalog
printed direct-mail piece that showcases an assortment of products or services offered by a company
Direct mail
printed advertisement in the form of a postcard, letter, brochure, or product samples that is sent to consumers who are on a targeted mailing list
Call to action
response that a marketer wants a consumer to take as a result of receiving a direct-mail communication
Telemarketing
phone call placed to a specific consumer to offer products or services for sale
Do not call registry
list of consumers who do not want to receive phone calls from telemarketers. Consumers can contact the Federal Trade Commission to be added to the Do Not Call Registry
DRTV (direct-response TV)
any kind of television commercial or home shopping television show that advertises a product or service and allows the viewer to purchase it directly
Infomercial
television show that is a combination of an information session and a commercial
Life cycle marketing
series of targeted messages to customers and prospects based on their experience during a sequence of events that takes place during a specific stage in life
Dynamic imaging
the process of systematically populating individual e-mails with products targeted specifically to each consumer, based on behavior patterns and inventory
Do Not Mail List
the list of consumers who do not want to receive direct mail. Consumers can contact the Direct Marketing Association to be added to the Do Not Mail List
Privacy policy
a company’s practice as it relates to renting customer information to other companies
CAN-SPAM Act of 2003
(Controlling the Assault of Non-Solicited Pornography and Marketing Act) is the law that requires e-mail marketers to abide by certain requirements when e-mailing customers
Integrated marketing communications
the coordination of advertising, sales promotion, public relations, and personal selling to ensure that all marketing communications are consistent and relevant to the target market
Communications mix
the various elements companies can use to communicate with the target market, including advertising, public relations, sales promotion, and personal selling
Pull strategy
promotes products directly to consumers, who then request the product from retailers. Retailers in turn request the product from the wholesaler, who orders it from the manufacturer
Push strategy
targets wholesalers and retailers and encourages them to order the product, thus pushing it through the channel to consumers
Media type (or media vehicle)
refers to a form of media used for marketing communications, including types such as broadcast, print, digital, branded entertainment, and social networks
Broadcast
media include network television, cable television, and radio
Print
media include newspapers, magazines, and direct mail
Out-of-home (OOH)
or display, advertising includes media types that are encouraged outside the home, such as billboards, signs, and posters
Digital media
includes electronic media such as email, web advertising, and web sites
Brand entertainment
the integration of brands or brand messages into entertainment media, for example, films, television, novels, and songs
Media efficiency
measures how inexpensively a media vehicle is able to communicate with a particular customer segment
Media impact
a qualitative assessment as to the value of a message exposed in a particular medium
Media engagement
evaluates how attentively audiences read, watch, or listen to a particular media vehicle
Network television
refers to the broadcast of programming and paid advertising through a nationwide series of affiliate TV stations
Cable television
television broadcasts using cables or satellite dishes
Reach
a measure of the number of people who could potentially receive an ad through a particular media vehicle
Impression
refers to the single delivery of an advertising message by a media vehicle
Ratings
the percentage of the total available audience watching a TV show or turned into a radio program
CPM (cost per thousand)
a metric that calculates the cost for any media vehicle to deliver one thousand impressions among a group of target customers
Time-shifting
the practice of recording a television program at one time to replay it at another
Circulation
the number of published and distributed copies of a magazine
Lead time
the amount of preparation time a media type requires before an advertisement can be run
Outdoor boards
large ad display panels, usually near highways or other heavily trafficked locations
Posters
smaller than outdoor boards and are frequently used at bus or train stops
Transit advertising
appears on and inside buses, in air terminals, in taxis, and wherever people are being transported from one place to another
Frequency
the number of times an individual is exposed to an advertising message by a media vehicle
Banner advertising
the placement of advertisements (called banners) onto various Web sites that link to the sponsor’s Web page
Classified advertising
the online version of traditional classified ads
Search marketing
the optimization of Web site keywords and marketing agreements with search engines to drive traffic to Web sites
Mobile advertising
advertisements delivered over portable communication devices
User-generated content
social networks, user blogs, and filesharing are sources of word-of-mouth communications and advertising
Social networks
such as Facebook and MySpace, connect people with common interests and those who are looking to make friends online
Media selection
the process of choosing which media types to use when, where, and for what duration in order to execute a media plan
Media budgets
specify the total amount a firm will spend on all types of advertising media
Media objectives
clear, unambiguous statements as to what media selection and implementation will achieve
Task-and-objective
an approach to media budgeting that allocates dollars sufficient to attain media objectives
Media planning
the creation of a media plan, which is a document that describes how an advertiser plans to spend its media budget to reach its objectives
Media plans
specify the types and amounts of media to be used, the timing of media, and the geographic concentration (national, regional, or local)
Media buying
the negotiation and purchase of media
Placement
the implementation of the media plan via the purchased media vehicles
Media planners
create media plans based on their extensive knowledge about media vehicles and expertise
Gross Rating Points (GRPs)
a way for planners to approximate the impact of media decisions and are the product of reach multiplied by frequency
Media flowcharts (media footprints)
visual representations of the media plan
Media buyers
negotiate and purchase media properties according to the media plan
Upfront markets
long-lead marketplaces where TV networks and advertisers negotiate media prices for the fourth quarter of the current year plus the first three quarters of the following year
Scatter buys
ads that are not purchased in advance via an upfront market, but are secured on a quarterly basis
Rate cards
officially published prices for different types of media
Ad trafficking
the procedure for delivering finished ads to the correct media firms for placement
Media optimization
the adjustment of media plans to maximize their performance
Media audits
measures how well each selected media vehicle performs in terms of its estimated audience delivery and cost
Make-good ads
given by media companies as replacements for any media that did not run as scheduled
Guarantees
promises made by media companies that estimated audience numbers will be achieved, or part of the cost of advertising will be returned to the advertiser
Modeling
a tool that many large advertisers use to guide their media planning and plan optimization
Spill-in
occurs when the ads from outside a test market “spill into” the test market area
Spill-out
happens whenever ads meant for a test market “spill out” and touch people in adjacent markets
Marketing mix
a group of marketing variables that a business controls with the intent of implementing a marketing strategy directed at a specific target market
4 Ps
the most common classification of a marketing mix and consist of product, price, place, and promotion
Marketing-mix strategy
the logic that guides the selection of a particular marketing mix to achieve marketing objectives
7 Ps
a classification of a marketing mix that includes product, price, place, promotion, people, physical evidence, and process
4 Cs
a classification of a marketing mix that includes customer value, cost, convenience, and communication
Marketing-mix models
evaluate the contribution that each component of a marketing program makes to changes in market performance
Marketing-mix optimization
involves assigning portions of the marketing budget to each marketing-mix element so as to maximize revenues or profits
Marketing accountability
the management of resources and processes to achieve measurable increases in both return on marketing investment and efficiency while increasing the value of the organization in compliance with all legal requirements
Sarbanes-Oxley Act
law passed in 2002 mandating organizational leaders from publicly traded companies take responsibility for their business practices
Data analytics