Principles of Marketing – Quiz 1 – Flashcards
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marketing
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the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
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needs
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states of felt deprivation, including basic physical, social, and individual; part of human makeup
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wants
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the form human needs take as they are shaped by culture and individual personality
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demands
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human wants backed by buying power
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market offerings
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some combination of products, services, information, or experiences offered to a market to satisfy a need or want
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marketing myopia
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the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
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exchange
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the act of obtaining a desired object from someone by offering something in return
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market
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the set of all actual and potential buyers of a product or service
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marketing management
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the art and science of choosing target markets and building profitable relationships with them
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production concept
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the idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency
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product concept
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the idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements
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selling concept
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the idea that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort
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marketing concept
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a philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
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societal marketing concept
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the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
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customer relationship management
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managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty
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customer-perceived value
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the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
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customer satisfaction
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the extent to which a product's perceived performance matches a buyer's expectations
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customer-managed relationships
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marketing relationships in which customers, empowered by today's new digital technologies, interact with companies and with each other to shape their relationships with brands
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consumer-generated marketing
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brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers
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partner relationship management
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working closely with partners in other company departments and outside the company to jointly bring greater value to customers
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customer lifetime value
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the value of the entire stream of purchases that the customer would make over a lifetime of patronage
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share of customer
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the portion of the customer's purchasing that a company gets in its product categories
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customer equity
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the total combined customer lifetime values of all the company's customers
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strategic planning
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the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
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mission statement
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a statement of the organization's purpose - what it wants to accomplish in the larger environment
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business portfolio
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the collection of businesses and products that make up the company
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growth-share matrix
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a portfolio-planning method that evaluates a companies SBUs in terms of its market growth rate and relative market share
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product/market expansion grid
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a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
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market penetration
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company growth by increasing sales of current products to current market segments without changing the product
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market development
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company growth by identifying and developing new market segments for current company products
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product development
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company growth by offering modified or new products to current market segments
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diversification
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company growth through starting up or acquiring businesses outside the company's current products and markets
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value chain
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the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products
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value delivery network
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a network composed of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system in delivering customer value
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marketing strategy
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the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
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market segmentation
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dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes
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market segment
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a group of consumers who respond in a similar way to a given set of marketing efforts
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market targeting
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the process of evaluating each market segment's attractiveness and selecting one or more segments to enter
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positioning
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arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
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differentiation
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actually differentiating the market offering to create superior customer value
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marketing mix
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the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the respond it wants in the target market
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SWOT analysis
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an overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T)
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marketing implementation
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turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
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marketing control
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measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved
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return on marketing investment
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the net return from a marketing investment divided by the costs of the marketing investment
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marketing environment
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the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers
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microenvironment
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the actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
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macroenvironment
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the larger societal forces that affect the microenvironment - demographic, economic, natural, technological, political, and cultural forces
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marketing intermediaries
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firms that help the company to promote, sell, and distribute its goods to final buyers
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public
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any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives
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demography
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the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
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baby boomers
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the 78 million people born during years following World War II and lasting until 1964
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generation X
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the 45 million people born between 1965 and 1976 in the "birth dearth" following the baby boom
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millennials (generation Y)
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the 83 million children of the baby boomers, born between 1977 and 2000
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economic environment
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economic factors that affect consumer purchasing power and spending patterns
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natural environment
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natural resources that are needed as inputs by marketers or that are affected by marketing activities
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environmental sustainability
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a management approach that involves developing strategies that both sustain the environment and produce profits for the company
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technological environment
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forces that create new technologies, creating new product and market opportunities
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political environment
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laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society
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cultural environment
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institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors
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customer insights
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fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships
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marketing information system
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people and procedures for assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights
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internal databases
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electronic collections of consumer and market information obtained from data sources within the company network
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competitive marketing intelligence
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the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
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marketing research
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the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
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exploratory research
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marketing research to gather preliminary information that will help define problems and suggest hypotheses
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descriptive research
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marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers
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causal research
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marketing research to test hypotheses about cause-and-effect relationships
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secondary data
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information that already exists somewhere, having been collected for another purpose
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primary data
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information collected for the specific purpose at hand
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commercial online databases
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collections of information available from online commercial sources or accessible via the Internet
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observational research
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gathering primary data by observing relevant people, actions, and situation
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ethnographic research
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a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments"
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survey research
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gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
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experimental research
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gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
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focus group interviewing
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personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization; the interviewer "focuses" the group discussion on important issues
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online marketing research
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collecting primary data online through Internet surveys, online focus groups, web-based experiments, or tracking consumers' online behavior
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online fous groups
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gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior
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sample
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a segment of the population selected for marketing research to represent the population as a whole
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customer relationship management
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the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
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consumer buyer behavior
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the buying behavior of final consumers - individuals and households that buy goods and services for personal consumption
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consumer market
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all the individuals and households that buy or acquire goods and services for personal consumption
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culture
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the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions
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subculture
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a group of people with shared value systems based on common life experiences and situations
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social class
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relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors
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opinion leader
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a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others
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online social networks
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online social communities - blogs, social networking Websites, or even virtual worlds - where people socialize or exchange information and opinions
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group
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two or more people who interact to accomplish individual or mutual goals
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lifestyle
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a person's pattern of living as expressed in his or her activities, interests, and opinions
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personality
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the unique psychological characteristics that distinguish a person or group
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motive (drive)
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a need that is sufficiently pressing to direct the person to seek satisfaction of the need
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perception
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the process by which people select, organize, and interpret information to form a meaningful picture of the world
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learning
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changes in an individual's behavior arising from experience
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belief
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a descriptive thought that a person holds about something
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attitude
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a person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea
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complex buying behavior
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consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands
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dissonance-reducing buying behavior
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consumer buying behavior in situations characterized by high involvement but few perceived differences among brands
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habitual buying behavior
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consumer buying behavior in situations characterized by low-consumer involvement and few significantly perceived brand differences
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variety-seeking buying behavior
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consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences
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need recognition
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the first stage of the buyer decision process, in which the consumer recognizes a problem or need
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information search
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the stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into an active information search
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alternative evaluation
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the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set
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purchase decision
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the buyer's decision about which brand to purchase
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postpurchase behavior
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the stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction with a purchase
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cognitive dissonance
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buyer discomfort caused by postpurchase conflict
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new product
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a good, service, or idea that is perceived by some potential customers as new
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adoption process
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the mental process through which an individual passes from first hearing about an innovation to final adoption
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business buyer behavior
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the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
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business buying process
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the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands
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derived demand
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business demand that ultimately comes from the demand for consumer goods
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supplier development
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systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others
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straight rebuy
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a business buying situation in which the buyer routinely reorders something without any modifications
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modified rebuy
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a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
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new task
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a business buying situation in which the buyer purchases a product or service for the first time
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systems selling (solutions selling)
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buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
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buying center
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all the individuals and units that play a role in the purchase decision-making process
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users
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members of the buying organization who will actually use the purchased product or service
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influencers
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people in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives
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buyers
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people in an organization's buying center who make an actual purchase
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deciders
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people in an organization's buying center who have formal or informal power to select or approve the final suppliers
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gatekeepers
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people in an organization's buying center who control the flow of information to others
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problem recognition
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the first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service
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general need description
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the stage in the business buying process in which a buyer describes the general characteristics and quantity of a needed item
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product specification
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the stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item
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supplier search
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the stage of the business buying process in which the buyer tries to find the best vendors
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proposal solicitation
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the stage of the business buying process in which the buyer invites qualified suppliers to submit proposals
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supplier selection
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the stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers
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order-routine specification
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the stage of the business buying process in which the buyer writes the final order with the chosen suppliers, listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties
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performance review
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the stage of the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement
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e-procurement
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purchasing through electronic connections between buyers and sellers - usually online
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institutional market
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schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care
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government market
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governmental units - federal, state, and local - that purchase or rent goods and services for carrying out the main functions of government
