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164 Cards in this Set

  • Front
  • Back
Marketing
"the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders and society at large"

"facilitates exchange to satisfy needs and wants"
Utility
the element of satisfaction garnered by meeting needs/wants
CRM
customer relationship management
the four P's of marketing
Product
Price
Promotion
Place of Distribution
To serve both buyers and sellers, marketing seeks... (2)
1) to discover the needs and wants of prospective customers
2) satisfy those needs and wants
Exchange
the trade of things of value between buyer and seller so that each is better off after the trade
The marketing department is responsible for facilitating relationships, partnerships and alliances with the organization's...(4)
1) customers
2) shareholders
3) suppliers
4) other organizations
What are the five realms of environmental forces that shape an organization's marketing activities?
1) social
2) economic
3) technological
4) competitive
5) regulatory
What is the first objective in marketing?
discovering the needs of prospective customers
Approximately what percent of the more than 33,000 new consumable products (food, beauty, etc.) introduced into the US annually don't succeed in the long run?
94%
Showstoppers
factors of a product that may doom it
Need
a need occurs when a person feels deprive of basic necessities such as food, clothing, and shelter (i.e. need for food vs. want for McDonald's)
Want
a want is a need that is chaped by a person's knowledge, culture and personality (i.e. want for McDonald's vs. need for food)
Market
people with both the desire and the ability to buy a specific offering (all markets ultimately are people)
What constitutes an ability to buy? (3)
1. authority
2. time
3. money
Target Market
one or more specific groups of potential consumers toward which an organization directs its marketing program
Product
a good, service, or idea to satisfy the consumer's needs
Price
what is exchanged for the product
Promotion
a means of communication between the seller and buyer
Place (of Distribution)
a means of getting the product to the consumer
How can the four P's be classified?
as controllable factors--they are under the control of the organization producing the product
Marketing Mix
the controllable factors (product, price, promotion, and place) that the marketing manager can use to solve a marketing problem
Environmental Forces
the uncontrollable social, economic, technological, competitive, and regulatory forces that affect the results of a marketing decision
"Customer Value"
the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price
Relationship Marketing
linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit
Marketing Program
a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
Four distinct stages of manufacturing firms
1. Production Era (early US years-1920)
2. Sales Era (1920s-1960s)
3. Marketing Concept Era
4. Consumer Relationship Era (today)
Production Era
Goods were scarce and buyers were willing to accept virtually any goods that were available and make do with them
(early US years - 1920)
Sales Era
manufacturers found they could produce more goods than buyers could consume. Competition grew, and firms hired more salespeople to find new buyers
Marketing Concept
the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals
Market Orientation
Focusing organizational efforts to collect and use information about customer's needs to create customer value

Focus efforts on:
1) continuously collecting information about customers' needs
2) sharing this information across departments
3) using the information to create customer value

*hearthstone of the Customer Relationship Era (today)
Marketing Concept Era
when companies used the marketing concept (satisfying consumer needs and organizational goals)

This era introduced marketing at the beginning rather than the end of the production cycle and integrated marketing into each phase of the business
CRM (Def)
customer relationship management:
the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace
Customer Experience
the internal response that customers have to all aspects of an organization and its offerings, including both the direct and indirect contacts of the customer with the company. (direct may include the customer's contacts with the seller through buying using and obtaining service. indirect most often involves unplanned "touches" with the company through word-of-mouth comments from other customers, reviewers, and news reports)
Societal Marketing Concept
the view that organizations should satisfy the needs of consumers in a way that also provides for society's well being
Ultimate consumers
the people who use the goods and services purchased for a household
Organizational buyers
those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale
Profit
the money left after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings
Business Firm
a privately owned organization such as Google that serves its customers to earn a profit so that it can survive
Organization
a legal entity that consists of people who share a common mission. This motivates them to develop offerings (products, services, or ideas) that create value for both the organization and its customers by satisfying their needs and wants
Nonprofits Organization
a nongovernmental organization that serves its customers but does not have profit as an organizational goal (focus instead on operational efficiency or client satisfaction for example)
Strategy
an organization's long term course of action that delivers a unique customer experience while achieving its goals
Corporate Level
where top management directs overall strategy for the entire organization. "Top management" usually means the board of directors and senior management officers with a variety of skills and experiences.
SBU
Strategic Business Unit:
a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers
Functional Level
groups of specialists create value for the organization
What are the three levels of today's organizations?
1. Corporate Level
2. Strategic Business Unit Level
3. Functional Level
Core Values
the fundamental, passionate and enduring principles that guide an organization's conduct over time
Mission
a statement of an organization's function in society that often identifies its customers, markets, products, and technologies (also "vision," "mission statement")
Organizational Culture
the set of values, ideas, attitudes, and behavioral norms that is learned and shared among the members of an organization
Business
the underlying industry or market sector of an organization's offerings
Business model
the strategies an organization develops to provide value to the customers it serves (often triggered by technological change)
Goals/Objectives
targets of performance to be achieved, often by a specific time
Market Share
the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
Marketing Dashboard
the visual computer display of essential marketing information
Marketing Metric
a measure of the value or trend of a marketing activity or resule
Marketing Plan
a raod map for the marketing activities of an organization for a specified future time period
Competencies
the special capabilities (skills, technologies, and resources) that distinguish a firm from other organizations and provide customer value
Competitive Advantage
a unique strength relative to a competitors that provides superiors returns, often based on quality, time, cost, or innovation
Business Portfolio Analysis
a technique that managers use to quantify performance measures and growth targets of their firms' strategic business units
Cash Cows
SBU's that generate large amount of cash, far more than they can invest profitably in themselves. They have dominant shares of slow-growth markets and provide cash to cover the organization's overhead and to invest in other SBU's

(Low Industry Growth) x (High Relative Market Share)
Stars
SBU's with a high share of high-growth markets that may need extra cash to finance their own rapid future growth. When their growth slows, they are likely to be cash cows

(High Industry Growth) x (High Relative Market Share)
Question Marks
SBU's with a low share of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it. The name implies management's dilemma for these SBU's: choosing the right ones to invest in and phasing out the rest.

(High Industry Growth) x (Low Relative Market Share)
Dogs
SBU's with low shares of slow-growth markets. Although they may generate enough cash to sustain themselves, they do not hold the promise of ever becoming real winners for the organization. Dropping SBU's that are dogs may be required, except when relationships with other SBU's, competitive considerations or potential strategic alliances exist

(Low Industry Growth) x (Low Relative Market Share)
Golden Retrievers
Profitable dogs that provide money that can be used to help stars and problem products

(i.e. Pepsi)
Diversification Analysis
a technique a firm uses to search for growth opportunities from among current and new products and markets
Market Penetration
a marketing strategy to increase the sales of current products in current markets. There is no change in either the basic product line or the markets served. Increased sales are generated by selling at higher volume or higher price
Market Development
a marketing strategy to sell current products to new markets
Product Development
a marketing strategy of selling new products to current markets
Diversification
a marketing strategy of developing new products and selling them in new markets
SWOT Analysis
an acronym describing an organization's appraisal of its internal strengths and weaknesses and its external opportunities and threats
Strategic Marketing Process
an approach whereby an organization allocates its marketing mix resources to reach its target markets
Situation Analysis
taking stock of where a firm or product has been recently, where it is now, and where it is headed
what are the four areas that form the foundation upon which a firm builds its marketing program (used in SWOT analysis)
1. Identify trends in the organization's industry
2. Analyze the organization's competitors
3. ASsess the organization itself
4. Research the organization's present and prospective customers
What are the four actions that may be undertaken after a SWOT analysis?
1. Build on a strength
2. Correct a weakness
3. Exploit an opportunity
4. Avoid a disaster-laden threat
Marketing Segmentation
the sorting of potential buyers into groups that have common needs and will respond similarly to a marketing action
Points of Difference
those characteristics of a product that make it superior to competitive substitutes
What are the four components of the implementation phase?
1. Obtaining resources
2. Designing the marketing organization
3. developing planning schedules
4. executing the marketing program designed in the planning phase
Marketing Strategy
the means by which a marketing goal is to be achieved
Marketing tactics
detailed day-to-day operational decisions essential to the overall success of marketing strategies
In the evaluation phase, what are the two responsibilities of the manager?
1. to compare the results of the marketing program with the goals in the written plans to identify deviations
2. to act on these deviations, correcting negative deviations and exploiting positive ones
Planning Gap
the difference between the projection of the path to reach a new goal and the project of the path of the results of a plan already in place
Environmental Scanning
the process of acquiring information on events outside the organization to identify and interpret potential trends
Social forces
the demographic characteristics of the population and its values
demographics
description of a population according to characteristics such as age, gender, ethnicity, income, and occupation
Generally, the US population is becoming...
larger, older and more diverse
Baby Boomers
the generation of children born between 1946 and 1964

interest in health, wellness, and appearance
Generation X
members of the US population born between 1965 and 1976

self reliant, supportive of racial and ethnic diversity, and better educated than any previous generation. Not prone to extravagance; they are cautious, pragmatic and traditional
Generation Y
Americans born between 1977 and 1994

influence on music, sports, computers, video games, and cell phones. strong -willed, passionate about the environment, and optimistic. attracted to purposeful work.
Millennials
Americans born since 1994
Metropolitan statistical area
an area that has at leaste one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration
Micropolitan statistical area
an area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration
Multicultural Marketing
marketing programs that reflect unique aspects of different races
Culture
the set of values, ideas, and attitudes that is learned and shared among the members of a group
Economy
pertains to the income and resources that affect the cost of running a business or household
Gross Income
the total amount of money made in one year by a person, household, or family unit
Disposable Income
the moeny a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation
Discretionary Income
the money that remains after paying for taxes and necessities. Often used for luxury items.
Marketspace
an information- and communication-based electronic exchange environment occupied by digitized offerings
Intranet
an Internet-based network used within the boundaries of an organization
Extranet
use Internet-based technologies to permit communication between a company and its suppliers, distributors, and other partners
Competition
alternative firms that could provide a product to satisfy a specific market's needs
Pure Competitions
when there are many sellers and they each have a similar product (i.e. wheat)
Monopolisitc Competition
when many sellers compete with substitutable products within a price range (i.e. coffee--if it's too expensive, people will switch to tea)
Oligopoly
a common industry structure in which a few companies control the majority of industry sales (i.e. wireless phones)
Pure Monopoly
When only one firm sells the product
What are the four basic forms of competition, ranging from purest to least pure competition?
1) Pure Competitions
2) Monopolistic Competition
3) Oligopoly
4) Pure Monopoly
Regulation
restrictions that state and federal laws place on businesses
What does the Sherman Antitrust Act of 1890 forbid?
1) contracts, combinations, or conspiracies in restraint of trade
2) actual monopolies or attempts to monopolize any part of trade or commerce
What does the Clayton Act of 1914 forbid?
Certain actions that are likely to lessen competition, although no actual harm has yet occurred. (made to supplement the Sherman Antitrust Act)
What is made unlawful by the Robinson-Patman Act of 1936
it was made unlawful to discriminate by charging different prices to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly
Consumerism
a movement started to increase the influence, power and rights of consumers in dealing with institutions. a grassroots movement started in the 1960s.
What are the two focuses of regulation in regards to pricing?
Price fixing and price discounting

price fixing has been determined illegal by the courts quantity price discounts are acceptable; promotional allowances or services may be given to buyers on an equal basis proportion to volume purchased; a firm can meet a competitor's price "in good faith"
What are the four regulatory concerns with regards to distribution?
1. Exclusive Dealing
2. Requirement Contracts
3. Exclusive territorial distributorship
4. Tying arrangement
Exclusive dealing
an arragnement a manufacturer makes with a reseller to handle only its products and not those of competitors. This practice is illegal under the Clayton Act only when it substantially lessens competition.
Requirement contracts
require a buyer to purchase all or part of its needs for a product from one seller for a time period. These contracts are not always illegal, but depend on the court's interpretation of their impact on distribution
Exclusive territorial distributorships
when a manufacturer grants a distributor the sole rights to sell a product in a specific geographical area. The courts have found few violations with these
Tying Arrangement
whereby a seller requires the purchaser of one product to also buy another item in the line. These contracts may be illegal when the seller has such economic power in the tying product that the seller can restrain trade in the tied product
The FTC has power to... (2)
1. issue cease and desist orders
2. order corrective advertising
Self-Regulation
an alternative to government control, whereby an industry attempts to police itself
Ethics
the moral principles and values that govern the actions and decisions of an individual or a group
Laws
society's standards and values that are enforceable in the courts
Business cultures
the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings
Caveat emptor
"let the buyer beware"
Consumer Bill of Rights (4 rights)
(JFK, 1962) Codified the ethics of exchange between buyers and sellers, including rights to safety, to be informed, to choose, and to be heard.
Economic Espionage
the clandestine collection of trade secrets or proprietary information about a company's competitors (illegal and unethical); most prevalent in high-technology industries
Code of Ethics
a formal statement of ethical principles and rules of conduct
Moral idealism
a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome; this philosophy exists in the Consumer Bill of Rights.
Utilitarianism
a personal moral philosophy that focuses on the "greatest good for the greatest number"
Social Responsibility
the idea that organizations are part of a larger society and are accountable to that society for their actions
What are the three concepts of social responsibility?
1) profit responsibility
2) stakeholder responsibility
3) societal responsibility
Profit Responsibility
holds that companies have a simple duty: to maximize profits for their owners or stockholders
Stakeholder Responsibility
focuses on the obligations an organization has to those who can affect achievement of its objectives, including consumers, employees, suppliers, and distributors.
Societal Responsibility
refers to obligations that organizations have to both the preservation of the ecological environment as well as to the general public.
Triple Bottom Line
a recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth
Green Marketing
marketing efforts to produce, promote, and reclaim environmentally sensitive products
Cause Marketing
tying the charitable contributions of a firm directly to sales produced through the promotion of one of its products (i.e. $1 of every purchase goes to breast cancer research)
Social audit
a systematic assessment of a firm's objectives, strategies, and performance in the domain of social responsibility
What are the five steps of a social audit?
1. Recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors

2. Identification of social responsibility causes or programs consistent with the company's mission

3.Determination of organizational objectives and priorities for programs and activities it will undertake.

4. Specification of the type and amount of resources necessary to achieve social responsibility objectives

5. Evaluation of programs and activities undertaken and assessment of future involvement

also:
1. recognize expectations
2. identify causes/programs
3. determine activities to do
4. plan activities
5. evaluate
Sustainable Development
conducting business in a way that protects the natural environment while making economic progress
Greenwashing
the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice
Consumer Behavior
the actions a person takes in purchasing and using products and services
Purchase Decision Process
the stages a buyer passes through in making choices about which products or services to buy
What are the five stages of the purchase decision process
1) problem recognition
2) information search
3) alternative evaluation
4) purchase decision
5) post-purchase behavior
Problem Recognition
the initial step in the purchase decision; perceiving a difference between a person's ideal and actual situations big enough to trigger a decision
Internal Search
scanning your memory for previous experiences with products or brands
Consideration Set
the group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware in the product class
What are the five situational influences that have an impact on the purchase decision process
1) the purchase task
2) social surroundings
3) physical surroundings
4) temporal effects
5) antecedent states
What are the five stages of Maslow's hierarchy from broadest to most narrow
1. Physiological needs (food, water, shelter, oxygen)
2. Safety needs (freedom from harm, financial security)
3. Social needs (friendship, belonging, love)
4. Personal needs (status, respect, prestige; self esteem)
5. Self-actualization needs (self-fulfillment; morality; creativity; spontaneity)


***higher level needs demand support of lower-level needs
Attitude
a tendency to respond to something in a consistently favorable or unfavorable way
Beliefs
a consumer's perceptions of how a product or brand performs
Derived Demand
the demand for industrial products and services is driven by demand for consumer products and services
Buying Center
the group of people in an organization who participates in the buying process
Buy Classes
three types of organizational buying situations: new buy, straight rebuy or modified rebuy
Protectionism
the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas
tariff
a government tax on goods or services entering a country, primarily serving to raise prices on imports
quota
a restriction placed on the amount of a product allowed to enter or leave a country
Global Marketing Strategy
the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
Global Brand
a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
Licensing
a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or fee
Direct Investment
when a domestic firm actually invests in and owns a foreign subsidiary or division
Dumping
when a firm sells a product in a foreign country below its domestic price or below its actual cost
Gray Market
a situation in which products are sold through unauthorized channels of distribution
Secondary Data
facts and figures that have already been recorded before the project at hand
Primary Data
facts and figures that are newly collected for a project