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155 Cards in this Set

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Marketing

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.

Customers

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

Target Market

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

Marketing mix

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

Product

A good, a service, or an idea

Value

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

Exchange

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

Stakeholders

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

Marketing Environment

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

Marketing Concept

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.

Market Orientation

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

Customer Relationship Management (CRM)

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

Relationship Marketing

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

Green Marketing

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

Strategic Marketing Management

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

Strategic Planning

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

Mission Statement

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

Corporate Strategy

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

Stategic Business Unit (SBU)

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

Market

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.

Market Share

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

Market Growth/Market Share Matrix

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.

Core Competencies

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

Market Opportunity

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

Strategic Windows

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

Competitive Advantage

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

SWOT Analysis

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

First-mover Advantage

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

Late-mover Advantage

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.

Marketing Objective

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

Marketing strategy

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

Sustainable Competitive Advantage

An advantage that the competition cannot copy.

Marketing Implementation

The process of putting marketing strategies into action.

Centralized Organization

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

Decentralized Organization

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

Strategic Performance Evaluation

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

Performance Standard

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

Sales Analysis

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

Marketing Cost Analysis

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

Marketing Plan

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

Environmental Scanning

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

Environmental Analysis

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

Competition

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

Brand Competition

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

Product Competitors

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

Generic Competition

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

Total Budget Competitors

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

Monopoly

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

Oligopoly

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

Monopolistic Competition

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

Pure Competition

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

Business Cycle

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

Prosperity

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

Recession

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

Depression

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.

Recovery

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

Buying Power

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

Income

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

Disposable Income

After-tax income

Discretionary Income

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

Wealth

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

Willingness to Spend

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

Federal Trade Commission (FTC)

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

Better Business Bureau (BBB)

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

National Advertising Review Board (NARB)

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

Technology

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

Sociocultural Forces

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

Consumerism

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

Social Responsibility

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

Marketing citizenship

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

Marketing Ethics

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

Cause-Related Marketing

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

Strategic Philanthropy

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

Sustainability

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.

Ethical Issue

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

Organizational (corporate) Culture

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

Codes of Conduct

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

Buying Behavior

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

Consumer Buying Behavior

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

Consumer Buying Decision Process

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

Internal Search

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

External Search

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

Consideration set

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

Evaluative Criteria

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

Cognitive Dissonance

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

Level of Involvement

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

Routinized Response Behavior

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

Limited Decision Making

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

Extended Decision Making

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

Impulse Buying

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

Situational Influences

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

Perception

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

Information Inputs

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

Selective Exposure

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

Selective Distortion

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

Motive

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

Maslow's Hierarchy of Needs

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

Patronage Motives

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

Learning

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

Attitude

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

Attitude Scale

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

Personality

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

Self-concept

A perception or view of oneself

Lifestyle

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

Social Influences

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

Roles

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

Consumer Socialization

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

Reference Group

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

Opinion Leader

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

Social Class

An open group of individuals with similar social rank.

Culture

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.

Subculture

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.

Consumer Misbehavior

Behavior that violates generally accepted norms of a particular society.

Producer Markets

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

Reseller Markets

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

Government Markets

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

Institutional Markets

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

Reciprocity

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

New-task Purchase

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

Straight Rebuy Purchase

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

Derived Demand

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

Inelastic Demand

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

Joint Demand

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

Business (Organizational) Buying Behavior

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

Buying Center

The people within an organization who make business purchase decisions.

Value Analysis

An evaluation of each component of a potential purchase.

Vendor Analysis

A formal, systematic evaluation of current and potential vendors.

Multiple Sourcing

An organization's decision to use several suppliers.

Sole Sourcing

An organization's decision to use only one supplier.

North American Industry Classification System (NAICS)

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

International Marketing

Developing and performing marketing activities across national boundaries.

Gross Domestic Product (GDP)

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

Import Tariff

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

Quota

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

Embargo

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

Exchange Controls

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

Balance of Trade

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

Cultural Relativism

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.

North American Free Trade Agreement (NAFTA)

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

European Union (EU)

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

World Trade Organization (WTO)

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.

General Agreement on Tariffs and Trade (GATT)

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

Dumping

Selling products at unfairly low prices.

Importing

The purchase of products from a foreign source.

Exporting

The sale of products to foreign markets.

Trading Company

A company that links buyers and sellers in different countries.

Licensing

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

Contract Manufacturing

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.

Outsourcing

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

Offshoring

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.

Joint Venture

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

Strategic Alliance

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

Direct Ownership

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

Multinational Enterprise

A firm that has operations or subsidiaries in many countries.

Globalization

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