Chp 2: Key Terms – Flashcards

specifies a target market and a related marketing mix. It is a big picture of what a firm will do in some market. Two interrelated parts are needed: -target market -marketing mix

a fairly homogeneous (similar) group of customers to whom a company wishes to appeal. a marketing mix is tailored to fit some specific target customers

the controllable variables the company puts together to satisfy this target group.

"rifle approach" a marketing strategy specifies some particular target customers.

"shotgun approach" the typical production-oriented approach—vaguely aims at "everyone" with the same marketing mix. assumes that everyone is the same—and it considers everyone to be a potential customer

It is useful to reduce all the variables in the marketing mix to four basic ones: Product Place Promotion Price

concerned with developing the right "product" for the target market. This offering may involve a physical good, a service, or a blend of both.

concerned with all the decisions involved in getting the right product to the target market's Place. A product isn't much good to a customer if it isn't available when and where it's wanted.

A way for product to reaches customers any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer.

concerned with telling the target market or others in the channel of distribution about the right product. Sometimes is focused on acquiring new customers and sometimes it's focused on retaining current customers. includes personal selling, mass selling, and sales promotion.

_____ setting must consider the kind of competition in the target market and the cost of the whole marketing mix. A manager must also try to estimate customer reaction to possible ______. Besides this, the manager must know current practices as to markups, discounts, and other terms of sale. And if customers won't accept the ______, all of the planning effort is wasted.

A written statement of a marketing strategy and the time-related details for carrying out the strategy. It should spell out the following in detail: 1) what marketing mix will be offered, to whom (that is, the target market), and for how long 2) what company resources (shown as costs) will be needed at what rate (month by month perhaps) 3) what results are expected (sales and profits perhaps monthly or quarterly, customer satisfaction levels, and the like). should also include some control procedures so that whoever is to carry out the plan will know if things are going wrong. This might be something as simple as comparing actual sales against expected sales with a warning flag to be raised whenever total sales fall below a certain level.

Any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.

Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time.

Advertising that tries to develop selective demand for a specific brand rather than a product category.

The expected earnings stream (profitability) of a firm's current and prospective customers over some period of time.

Total stream of purchases that a customer could contribute to the company over the length of the relationship.

A personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase; often the key to building repeat business.

The marketing mix is distinct from and better than what's available from a competitor.

Moving into totally different lines of business—perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.

Putting marketing plans into operation.

Trying to increase sales by selling present products in new markets.

Trying to increase sales of a firm's present products in its present markets—probably through a more aggressive marketing mix.

The process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans

Blends all of the firm's marketing plans into one big plan.

Communicating with large numbers of potential customers at the same time.

Short-run decisions to help implement strategies.

Direct spoken communication between sellers and potential customers, usually in person but sometimes over the telephone or even via a video conference over the Internet.

Offering new or improved products for present markets.

Any unpaid form of nonpersonal presentation of ideas, goods, or services.

Identifies and lists the firm's strengths and weaknesses and its opportunities and threats.

Those promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel.

The managerial process of developing and maintaining a match between an organization's resources and its market opportunities.