Marketing Ch. 1-4, 7-9

Front 1

Marketing

Back 1

The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

Front 2

Customers

Back 2

The purchasers of organizations' products; the focal point of all marketing activities

Front 3

Target Market

Back 3

A specific group of customers on whom an organization focuses its marketing efforts.

Front 4

Marketing mix

Back 4

Four marketing activities--product, pricing, distribution, and promotion--that a firm can control to meet the needs of customers within its target market

Front 5

Product

Back 5

A good, a service, or an idea

Front 6

Value

Back 6

A customer's subjective assessment of benefits relative to costs in determining the worth of a product.

Front 7

Exchange

Back 7

The provision or transfer of goods, services, or ideas in return for something of value.

Front 8

Stakeholders

Back 8

Constituents who have a "stake" or claim, in some aspect of a company's products, operations, markets, industry, and outcomes.

Front 9

Marketing Environment

Back 9

The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix.

Front 10

Marketing Concept

Back 10

A managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals.

Front 11

Market Orientation

Back 11

An organization wide commitment to researching and responding to customer needs.

Front 12

Customer Relationship Management (CRM)

Back 12

Using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

Front 13

Relationship Marketing

Back 13

Establishing long-term, mutually satisfying buyer-seller relationships.

Front 14

Green Marketing

Back 14

A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment.

Front 15

Strategic Marketing Management

Back 15

The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently.

Front 16

Strategic Planning

Back 16

The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy.

Front 17

Mission Statement

Back 17

A long-term view, or vision, of what the organization wants to become.

Front 18

Corporate Strategy

Back 18

A strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals.

Front 19

Stategic Business Unit (SBU)

Back 19

A division, product line, or other profit center within the parent company.

Front 20

Market

Back 20

A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products.

Front 21

Market Share

Back 21

The percentage of a market that actually buys a specific product from a particular company.

Front 22

Market Growth/Market Share Matrix

Back 22

A helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy.

Front 23

Core Competencies

Back 23

Things a company does extremely well, which sometimes give it an advantage over its competition.

Front 24

Market Opportunity

Back 24

A combination of circumstances and timing that permits an organization to take action to reach a particular target market.

Front 25

Strategic Windows

Back 25

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market.

Front 26

Competitive Advantage

Back 26

The result of a company matching a core competency to opportunities it has discovered in the marketplace.

Front 27

SWOT Analysis

Back 27

Assessment of an organization's strengths, weaknesses, opportunities, and threats.

Front 28

First-mover Advantage

Back 28

The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace.

Front 29

Late-mover Advantage

Back 29

The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace.

Front 30

Marketing Objective

Back 30

A statement of what is to be accomplished through marketing activities.

Front 31

Marketing strategy

Back 31

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market.

Front 32

Sustainable Competitive Advantage

Back 32

An advantage that the competition cannot copy.

Front 33

Marketing Implementation

Back 33

The process of putting marketing strategies into action.

Front 34

Centralized Organization

Back 34

A structure in which top-level managers delegate little authority to lower levels.

Front 35

Decentralized Organization

Back 35

A structure in which decision-making authority is delegated as far down the chain of command as possible.

Front 36

Strategic Performance Evaluation

Back 36

Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed.

Front 37

Performance Standard

Back 37

AN expected level of performance against which actual performance can be compared.

Front 38

Sales Analysis

Back 38

Analysis of sales figures to evaluate a firm's performance.

Front 39

Marketing Cost Analysis

Back 39

Analysis of costs to determine which are associated with specific marketing efforts.

Front 40

Marketing Plan

Back 40

A written document that specifies the activities to be performed to implement and control the organization's marketing strategies.

Front 41

Environmental Scanning

Back 41

The process of collecting information about forces in the marketing environment.

Front 42

Environmental Analysis

Back 42

The process of assessing and interpreting the information gathered through environmental scanning.

Front 43

Competition

Back 43

Other organizations that market products that are similar to or can be substituted for a marketer's products in the same geographic area.

Front 44

Brand Competition

Back 44

Firms that market products with similar features and benefits to the same customers at similar prices.

Front 45

Product Competitors

Back 45

Firms that compete in the same product class but market products with different features, benefits, and prices.

Front 46

Generic Competition

Back 46

Firms that provide very different products that solve the same problem or satisfy the same basic customer need.

Front 47

Total Budget Competitors

Back 47

Firms that compete for the limited financial resources of the same customers.

Front 48

Monopoly

Back 48

A competitive structure in which an organization offers a product that has no close substitutions, making that organization the sole source of supply.

Front 49

Oligopoly

Back 49

A competitive structure in which a few sellers control the supply of a large proportion of a product.

Front 50

Monopolistic Competition

Back 50

A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product.

Front 51

Pure Competition

Back 51

A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply.

Front 52

Business Cycle

Back 52

A pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery.

Front 53

Prosperity

Back 53

A stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power.

Front 54

Recession

Back 54

A stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending.

Front 55

Depression

Back 55

A stage of the business cycle when unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy.

Front 56

Recovery

Back 56

A stage of the business cycle in which the economy moves from recession or depression toward prosperity.

Front 57

Buying Power

Back 57

Resources, such as money, goods, and services, that can be traded in an exchange.

Front 58

Income

Back 58

For an individual, the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period.

Front 59

Disposable Income

Back 59

After-tax income

Front 60

Discretionary Income

Back 60

Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter.

Front 61

Wealth

Back 61

the accumulation of past income, natural resources, and financial resources.

Front 62

Willingness to Spend

Back 62

An inclination to buy because of expected satisfaction from a product influenced by the ability to buy and numerous psychological and social forces.

Front 63

Federal Trade Commission (FTC)

Back 63

An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling.

Front 64

Better Business Bureau (BBB)

Back 64

A system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms.

Front 65

National Advertising Review Board (NARB)

Back 65

A self-regulatory unit that considers challenges to issues raised by the National Advertising Division about an advertisement.

Front 66

Technology

Back 66

The application of knowledge and tools to solve problems and perform tasks more efficiently.

Front 67

Sociocultural Forces

Back 67

The influences in a society and its culture(s) that change people's attitudes, beliefs, norms, customs, and lifestyles.

Front 68

Consumerism

Back 68

Organized efforts by individuals, groups, and organizations to protect consumers' rights.

Front 69

Social Responsibility

Back 69

An organization's obligation to maximize its positive impact and minimize its negative impact on society.

Front 70

Marketing citizenship

Back 70

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders.

Front 71

Marketing Ethics

Back 71

Principles and standards that define acceptable marketing conduct as determined by various stakeholders.

Front 72

Cause-Related Marketing

Back 72

The practice of linking products to a particular social cause on an ongoing or short-term basis.

Front 73

Strategic Philanthropy

Back 73

The synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits.

Front 74

Sustainability

Back 74

The potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies.

Front 75

Ethical Issue

Back 75

An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical.

Front 76

Organizational (corporate) Culture

Back 76

A set of values, beliefs, goals, norms, and rituals that members of an organization share.

Front 77

Codes of Conduct

Back 77

Formalized rules and standards that describe what the company expects of its employees.

Front 78

Buying Behavior

Back 78

The decision processes and actions of people involved in buying and using products

Front 79

Consumer Buying Behavior

Back 79

The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes.

Front 80

Consumer Buying Decision Process

Back 80

A five-stage purchase decision process that includes problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.

Front 81

Internal Search

Back 81

An information search in which buyers search their memories for information about products that might solve their problems.

Front 82

External Search

Back 82

An information search in which buyers seek information from sources other than their memories.

Front 83

Consideration set

Back 83

A group of brands within a product category that a buyer views as alternatives for possible purchase.

Front 84

Evaluative Criteria

Back 84

Objective and subjective product characteristics that are important to a buyer.

Front 85

Cognitive Dissonance

Back 85

A buyer's doubts shortly after a purchase about whether the decision was the right one.

Front 86

Level of Involvement

Back 86

An individual's degree of interest in a product and the importance of the product for that person.

Front 87

Routinized Response Behavior

Back 87

A consumer decision-making process used when buying frequently purchased, low-cost items that require very little search-and decision effort.

Front 88

Limited Decision Making

Back 88

A consumer decision-making process used when purchasing products occasionally or needing information about unfamiliar brand in a familiar product category.

Front 89

Extended Decision Making

Back 89

A consumer decision-making process employed when purchasing unfamiliar, expensive, or infrequently bought products.

Front 90

Impulse Buying

Back 90

An unplanned buying behavior resulting from a powerful urge to buy something immediately.

Front 91

Situational Influences

Back 91

Influences that result from circumstances, time, and location that affect the consumer buying decision process.

Front 92

Perception

Back 92

The process of selecting,organizing, and interpreting information inputs to produce meaning.

Front 93

Information Inputs

Back 93

Sensations received through sight, taste, hearing, smell, and touch.

Front 94

Selective Exposure

Back 94

The process by which some inputs are selected to reach awareness and others are not.

Front 95

Selective Distortion

Back 95

An individual's changing or twisting of information that is inconsistent with personal feelings and beliefs and forgetting inputs that do not.

Front 96

Motive

Back 96

An internal energizing force that directs a person's behavior toward satisfying needs or achieving goals.

Front 97

Maslow's Hierarchy of Needs

Back 97

The five levels of needs that humans seek to satisfy, from most to least important. Physiological needs, Safety needs, Social needs, Esteem needs, Self-actualization needs

Front 98

Patronage Motives

Back 98

Motives that influence where a person purchases products on a regular basis.

Front 99

Learning

Back 99

Changes in an individual's thought processes and behavior caused by information and experience.

Front 100

Attitude

Back 100

An individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea.

Front 101

Attitude Scale

Back 101

A means of measuring consumer attitudes by gauging the intensity of individuals' reactions to adjectives, phrases, or sentences about an object.

Front 102

Personality

Back 102

A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations.

Front 103

Self-concept

Back 103

A perception or view of oneself

Front 104

Lifestyle

Back 104

An individual's pattern of living express through activities, interests, and opinions.

Front 105

Social Influences

Back 105

The forces other people exert on one's buying behavior.

Front 106

Roles

Back 106

Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons.

Front 107

Consumer Socialization

Back 107

The process through which a person acquires the knowledge and skills to function as a consumer.

Front 108

Reference Group

Back 108

A group that a person identifies with so strongly that he or she adopts the values, attitudes, and behavior of group members.

Front 109

Opinion Leader

Back 109

A member of an informal group who provides information about a specific topic to other group members.

Front 110

Social Class

Back 110

An open group of individuals with similar social rank.

Front 111

Culture

Back 111

The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generations.

Front 112

Subculture

Back 112

A group of individuals whose characteristics, values, and behavioral patterns are similar within the group and different from those of people in the surrounding culture.

Front 113

Consumer Misbehavior

Back 113

Behavior that violates generally accepted norms of a particular society.

Front 114

Producer Markets

Back 114

Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations.

Front 115

Reseller Markets

Back 115

Intermediaries that buy finished goods and resell them for a profit.

Front 116

Government Markets

Back 116

Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies.

Front 117

Institutional Markets

Back 117

Organizations with charitable, educational, community, or other nonbusiness goals.

Front 118

Reciprocity

Back 118

An arrangement unique to business marketing in which two organizations agree to buy from each other.

Front 119

New-task Purchase

Back 119

An organization's initial purchase of an item to be used to perform a new job or solve a new problem.

Front 120

Straight Rebuy Purchase

Back 120

A routine purchase of the same products under approximately the same terms of sale by a business buyer.

Front 121

Derived Demand

Back 121

Demand for business products that stems from demand for consumer products.

Front 122

Inelastic Demand

Back 122

Demand that is not significantly altered by a price increase or decrease.

Front 123

Joint Demand

Back 123

Demand involving the use of two or more items in combination to produce a product.

Front 124

Business (Organizational) Buying Behavior

Back 124

The purchase behavior of producers, government units, institutions, and resellers.

Front 125

Buying Center

Back 125

The people within an organization who make business purchase decisions.

Front 126

Value Analysis

Back 126

An evaluation of each component of a potential purchase.

Front 127

Vendor Analysis

Back 127

A formal, systematic evaluation of current and potential vendors.

Front 128

Multiple Sourcing

Back 128

An organization's decision to use several suppliers.

Front 129

Sole Sourcing

Back 129

An organization's decision to use only one supplier.

Front 130

North American Industry Classification System (NAICS)

Back 130

An industry classification system that generates comparable statistics among the United States, Canada, and Mexico.

Front 131

International Marketing

Back 131

Developing and performing marketing activities across national boundaries.

Front 132

Gross Domestic Product (GDP)

Back 132

The market value of a nation's total output of goods and services for a given period: an overall measure of economic standing.

Front 133

Import Tariff

Back 133

A duty levied by a nation on goods bought outside its borders and brought into the country.

Front 134

Quota

Back 134

A limit on the amount of goods an importing country will accept for certain product categories in a specific period of time.

Front 135

Embargo

Back 135

A government's suspension of trade in a particular product or with a given country.

Front 136

Exchange Controls

Back 136

Government restrictions on the amount of a particular currency that can be bought or sold.

Front 137

Balance of Trade

Back 137

The difference in value between a nation's exports and its imports.

Front 138

Cultural Relativism

Back 138

The concept that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.

Front 139

North American Free Trade Agreement (NAFTA)

Back 139

An alliance that merges Canada, Mexico, and the United States into a single market.

Front 140

European Union (EU)

Back 140

An alliance that promotes trade among its member countries in Europe.

Front 141

World Trade Organization (WTO)

Back 141

An entity that promotes free trade among member nations by eliminating trade barriers and educating individuals, companies, and governments about trade rules around the world.

Front 142

General Agreement on Tariffs and Trade (GATT)

Back 142

An agreement among nations to reduce worldwide tariffs and increase international trade.

Front 143

Dumping

Back 143

Selling products at unfairly low prices.

Front 144

Importing

Back 144

The purchase of products from a foreign source.

Front 145

Exporting

Back 145

The sale of products to foreign markets.

Front 146

Trading Company

Back 146

A company that links buyers and sellers in different countries.

Front 147

Licensing

Back 147

An alternative to direct investment that requires a licensee to pay commissions or royalties on sales or supplies used in manufacturing.

Front 148

Contract Manufacturing

Back 148

The practice of hiring a foreign firm to produce a designated volume of the domestic firm's product or a component of it to specification; the final product carries the domestic firm's name.

Front 149

Outsourcing

Back 149

The practice of contracting noncore operations with an organization that specializes in that operation.

Front 150

Offshoring

Back 150

The practice of moving a business process that was done domestically at the local factory to a foreign country, regardless of whether the production accomplished in the foreign country is performed by the local company or a third party.

Front 151

Joint Venture

Back 151

A partnership between a domestic firm and a foreign firm or government.

Front 152

Strategic Alliance

Back 152

A partnership that is formed to create a competitive advantage on a worldwide basis.

Front 153

Direct Ownership

Back 153

A situation in which a company owns subsidiaries or other facilities overseas.

Front 154

Multinational Enterprise

Back 154

A firm that has operations or subsidiaries in many countries.

Front 155

Globalization

Back 155

The development of marketing strategies that treat the entire world as a single entity.