Marketing Strategy Exam 1 – Flashcards
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Marketing
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An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
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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; therefore, the organization should focus on improving production and distribution efficiency.
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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 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
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Holistic Marketing
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A marketing strategy developed by thinking of the business as a whole, its place in the broader economy and society
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Relationship Marketing
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A strategy that focuses on keeping and improving relationships with current customers
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Marketing Network
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The company and its supporting stakeholders, with whom it has built mutually profitable business relationships
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Internal Marketing
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The notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers.
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Performance Marketing
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Understanding the financial and nonfinancial returns to business and society from marketing activities and programs
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Core Competency
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A skill set that is difficult for competitors to imitate, can be leveraged in different businesses, and contributes to the benefits enjoyed by customers within each business
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Value Delivery Network
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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.
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Supply Chain
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Consists of all parties involved, directly or indirectly, in obtaining raw materials or a product
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Mission Statement
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A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
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Corporate Culture
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The attitudes or beliefs that are shared by a particular organization
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Scenario Analysis
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An approach for assessing risk that uses several possible alternative outcomes (scenarios) to obtain a sense of the variability among returns.
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Marketing Opportunity
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A potentially favorable condition in which a business can capitalize on a changing trend or an increasing demand for a product by a demographic group that has yet to be recognized by its competitors.
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Marketing Opportunity Analysis (MOA)
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An area of buyer need and interest in which there is a high probability that a company can profitably satisfy that need.
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Strategic Group
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The set of companies that pursue a similar strategy within a specific industry
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Partner Relationship Management (PRM)
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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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Marketing Information System (MIS)
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System for gathering and organizing marketing information used in decision-making
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Marketing Intelligence System
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The systematic collection and analysis of publicly available information about competitors and developments in the marketing environment
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Cohorts
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Group of people who share some common quality
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Subcultures
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A group of people within a culture that distinguish themselves from the primary culture to which they belong.
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Consumerist Movement
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An organized movement of citizens and government to strengthen the rights and powers of buyers in relation to sellers.
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Market Demand
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The demand by all the consumers of a given good or service
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Market Share
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An organization's portion of the total industry (sector) sales in a specific market
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Market Penetration Index
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A comparison of the current level of market demand to the potential demand level.
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Market Forecast
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The market demand corresponding to the level of industry marketing expenditure
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Market Potential
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The total revenue that can be obtained from the market segment
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Product-penetration Percentage
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The percentage of ownership or use of a product or service in a population.
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Company Demand
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The company's estimated share of market demand at alternative levels of company marketing effort in a given time period
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Total Market Potential
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The maximum sales available to all firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions.
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Market-buildup Method
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Identifying all the potential buyers in each market and estimating their potential purchases.
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Brand Development Index (BDI)
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The percentage of a brand's total sales in an area divided by the total population in the area; it indicates the sales potential of a particular brand in a specific market area.
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Purchase Probability Scale
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A scale to measure the probability of a buyer making a particular purchase.
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Marketing Insights
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Diagnostic information about how and why we observe certain effects in the marketplace, and what that means to marketers.
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Marketing Decision Support System (MDSS)
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Customized computer software that aids marketing managers in decision making
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Brand Knowledge
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The set of associations that consumers hold in memory regarding the brand's features, benefits, users, perceived quality, and overall attitude as a result of prior brand marketing activities.
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Brand Promise
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Expressed in terms of what it is that the brand promises the customer
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Internal branding
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To make sure employees and marketing partners are inspired about the brand
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Brand Community
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A specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use
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Brand Value Chain
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A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create brand value.
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Brand Audit
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Analyzes history, success, everything dealing with the brand.
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Brand-tracking Studies
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Collect quantitative data from consumers over time to provide consistent, baseline information about how brands and marketing program are performing.
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Branded Variants
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Specific brand lines supplied to specific retailers or distribution channels
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Brand Dilution
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Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.
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Customer-perceived Value (CPV)
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The difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives
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Total customer benefit
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The perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the product, service, people, and image
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Total customer cost
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The bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering, including monetary, time, energy, and psychic costs
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Value proposition
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The whole cluster of benefits the company promises to delivery
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Value delivery system
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All the expectancies the customer will have on the way to obtaining and using the offering
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Quality
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The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs
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Profitable customer
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A person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing that customer
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Customer profitability analysis (CPA)
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A means of assessing and ranking customer profitability through accounting techniques such as activity-based costing
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Activity-based costing (ABC)
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Accounting procedures that can quantify the true profitability of different activities by identifying their actual costs
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Customer relationship management (CRM)
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The process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty
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Customer churn
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High customer defection
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Frequency programs
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Designed to provide rewards to customers who buy frequently and in substantial amounts
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Club membership programs
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Programs open to everyone who purchases a product or service, or limited to an affinity group of those willing to pay a small fee
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Customer database
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An organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for marketing purposes
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Database marketing
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The process of building, maintaining, and using customer databases and other databased for the purpose of contacting, transacting, and building customer relationships
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Business database
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Complete information about business customers' past purchases; past volumes, prices, and profits
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Data warehouse
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A collection of current data captured, organized, and stored in a company's contact center
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Data mining
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The extracting of useful information about individuals, trends, and segments from the mass of data
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Reference prices
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Pricing information a consumer retains in memory that is used to interpret and evaluate a new price
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Market-skimming pricing
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Pricing strategy where prices start high and are slowly lowered over time to maximize profits from less price-sensitive customers
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Fixed costs (overhead)
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Costs that do not vary with production or sales revenue
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Variable costs
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Costs that vary directly with the level of production
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Average cost
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The cost per unit at a given level of production; it is equal to total costs divided by production
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Experience (learning) curve
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A decline in the average cost with accumulated production experience
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Target costing
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Deducting the desired profit margin from the price at which a product will sell, given its appeal and competitors' prices
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Markup
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Pricing an item by adding a standard increase to the product's cost
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Target-return pricing
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Determining the price that would yield the firm's target rate of return on investment
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Everyday low pricing (EDLP)
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In retailing, a constant low price with few or no price promotions and special sales
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High-low pricing
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Charging higher prices on an everyday basis but then running frequent promotions and special sales
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Going-rate pricing
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Price based largely on competitors' prices
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Countertrade
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Offering other items in payment for purchases
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Net price analysis
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Analysis that encompasses company list price, average discount, promotional spending, and co-op advertising to arrive at net price
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Price discrimination
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A company sells a product or service at two or more prices that do not reflect a proportional difference in costs
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Yield pricing
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Situation in which companies offer discounted but limited early purchases, high-priced late purchases, and the lowest rate on unsold inventory just before it expires
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Marketing communications
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The means by which firms attempt to inform, persuade, and remind consumers - directly or indirectly - about products and brand that they sell
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Informational appeals
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Elaborates on product or service attributes or benefits
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Transformational appeal
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Elaborate on a nonproduct-related benefit or image
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Principle of congruity
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Psychological mechanism that states that consumers like to see seemingly related objects as being as similar as possible in their favorability
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Personal communications channels
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Two or more persons communicating directly face-to-face, person-to-audience, over the telephone or through email
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Integrated marketing communications (IMC)
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A concept of marketing communications planning that recognizes the added value of a comprehensive plan
