Principles of Marketing Chapters 1-6 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Marketing
answer
companies create value for customers and build strong relationships in order to capture value from customers in return
question
Needs
answer
states of felt deprivation
question
Wants
answer
the form human needs take as they are shaped by culture and individual personality
question
Demands
answer
human wants that are backed up by buying power
question
Market offerings
answer
combination of products, services, info, or experience offered to market to satisfy a need or want
question
Marketing myopia
answer
mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
question
Customer equity
answer
total combined customers lifetime values of all of the company's customers
question
Exchange
answer
the act of obtaining a desired object from someone by offering something in return
question
Marketing management
answer
art and science of choosing target markets and building profitable relationships with them
question
Consumer-managed relationships
answer
marketing relationships in which customers interact with companies
question
Selling concept
answer
consumers won't buy firm's products unless firm does large-scale selling and promotion effort
question
Production concept
answer
consumers favor available and highly affordable products
question
Product concept
answer
consumers favor products with quality, performance, and features
question
Marketing concept
answer
achieving organizational goals depends on knowing needs and wants of markets
question
Social marketing concept
answer
companies marketing decisions should consider consumers wants and interests
question
Share of customer
answer
portion of the customer's purchasing that a company gets in its product categories
question
Consumer generated marketing
answer
brand exchanges created by consumers themselves
question
Partner relationship management
answer
working with partners in other companies departments and outside the company to jointly bring greater value to customers
question
Customer lifetime value
answer
value of entire stream of purchases a customer makes over a lifetime of patronage
question
Customer-perceived value
answer
comparison of customer evaluation between markets based on benefits and costs
question
Strategic planning
answer
process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
question
Growth-share matrix
answer
a portfolio-planning method that evaluates a company's SBUs in terms of its market growth rate and relative market share
question
Diversification
answer
company growth through starting up or acquiring businesses outside the company's current products and markets
question
Value chain
answer
the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products
question
Value delivery network
answer
the network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system
question
Market segmentation
answer
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.
question
market targeting
answer
the process of evaluating each market segment's attractiveness and selecting one or more segments to enter
question
Positioning
answer
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
question
Differentiation
answer
actually differentiating the market offering to create superior customer value
question
Marketing implementation
answer
turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
question
Microenvironment
answer
the actors close to the company that affect marketing management's ability to build and maintain successful relationships with target customers
question
Macroenvironment
answer
the larger societal forces that affect the microenvironment- demographic, economic, natural, technological, political, and cultural forces
question
Examples of Microenvironment
answer
the company, suppliers, marketing intermediaries, competitors, and publics
question
Examples of Macroenvironment
answer
demographic environment (baby boomers, generation X &Y etc.), economic environment, natural environment, technological environment, political and social environment, and cultural environment
question
marketing intermediaries
answer
firms that help the company to promote, sell, and distribute its goods to final buyers
question
baby boomers
answer
the 78 million people born during the years following World War II and lasting until 1964
question
Generation X
answer
49 million people born between 1965 and 1976
question
Generation Y
answer
83 million children of the baby boomers between 1977 and 2000
question
economic environment
answer
economic factors and affect consumer purchasing power and spending patterns
question
natural environment
answer
natural resources that are needed as inputs by marketers or that are affected by marketing activities
question
technological environment
answer
forces that create new technologies, creating new product and market opportunities
question
political environment
answer
laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society
question
cultural environment
answer
institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors
question
Marketing information system
answer
people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the info to generate and validate actionable customer and market insights.
question
internal databases
answer
electronic collections of consumer and market information obtained from data sources within the company network
question
marketing research
answer
the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
question
exploratory research
answer
marketing research used to gather preliminary information that will help define problems and suggest hypotheses
question
descriptive research
answer
marketing research used to better describe marketing problems, situations, or markets
question
causal research
answer
marketing research used to test hypotheses about cause-and-effect relationships
question
observational research
answer
gathering primary data by observing relevant people, actions, and situations
question
ethnographic research
answer
a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments"
question
survey research
answer
gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
question
experimental research
answer
gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
question
online marketing research
answer
collecting primary data online through Internet surveys, online focus groups, Web-based experiments, or tracking consumers' online behavior
question
sample
answer
a segment of the population selected for marketing research to represent the population as a whole
question
online focus groups
answer
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
question
consumer buyer behavior
answer
the buying behavior of final consumers- individuals who buy goods and services for personal consumption
question
consumer market
answer
all the individuals and households that buy or acquire goods and services for personal consumption
question
social class
answer
relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors
question
word-of-mouth influence
answer
the impact of the personal words and recommendations of trusted friends, associates, and other consumers on buying behavior
question
opinion leader
answer
a person within a reference group who, because of special social skills/knowledge, exerts social influence on others
question
lifestyle
answer
a person's pattern of living as expressed in his or her activities, interests, and opinions
question
personality
answer
the unique psychological characteristics that distinguish a person or group
question
motive
answer
a need that is sufficiently pressing to direct the person to seek satisfaction of the need
question
perception
answer
the process by which people select, organize and interpret information to form a meaningful picture of the world
question
learning
answer
changes in an individual's behavior arising from experience
question
belief
answer
a descriptive thought that a person holds about something
question
attitude
answer
a person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea
question
cognitive dissonance
answer
buyer discomfort caused by postpurchase conflict
question
adoption process
answer
the mental process through which an individual passes from first hearing about an innovation to final adoption
question
business buyer behavior
answer
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
question
business buying process
answer
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
question
derived demand
answer
the business demand for products and services that ultimately derives from the demand for consumer goods
question
supplier development
answer
systematic development of networks of supplier- partners to ensure an appropriate and dependable supply of products and materials exists for us in making products or reselling them to others
question
straight rebuy
answer
a business buying situation in which the buyer routinely reorders something without any modifications
question
modified rebuy
answer
a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
question
new task
answer
a business buying situation in which the buyer purchases a product or service for the first time
question
systems selling
answer
buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
question
product value analysis
answer
carefully analyzing a product's or service's components to determine if they can be redesigned and made more effectively and efficiently to provide greater value
question
E-procurement
answer
purchasing performed through electronic connections between buyers and sellers- usually online
question
Geographic segmentation
answer
dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods
question
demographic segmentation
answer
dividing the market into segments based on variables such as age, gender income, life-cycle stage, occupation, education, religion, ethnicity, and generation
question
age and life-cycle segmentation
answer
dividing a market into different age and life-cycle groups
question
gender segmentation
answer
dividing a market into different segments based on gender
question
income segmentation
answer
dividing a market into different income segments
question
psychographic segmentation
answer
dividing a market into different segments based on social class, lifestyle, or personality characteristics
question
behavioral segmentation
answer
dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product
question
occasion segmentation
answer
dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
question
benefit segmentation
answer
dividing the market into segments according to the different benefits that consumers seek from the product
question
intermarket segmentation
answer
forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries
question
undifferentiated marketing
answer
otherwise known as mass marketing, a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
question
differentiated marketing
answer
otherwise known as segmented marketing, a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
question
concentrated marketing
answer
otherwise known as niche marketing, a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
question
micromarketing
answer
tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing
question
local marketing
answer
tailoring brands and promotions to the needs and wants of local customer segments- cities, neighborhoods, and even specific stores
question
individual marketing
answer
tailoring products and marketing programs to the needs and preferences of individual customers
question
product position
answer
the way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products
question
competitive advantage
answer
an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices
question
value proposition
answer
the full positioning of a brand- the full mix of benefits on which it is positioned
question
positioning statement
answer
a statement that summarizes company or brand positioning using this form: To (target segment or need) our (brand) is (concept) that (point of difference)
