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Production

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-actually making goods or performing services

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Customer Satisfaction

answer

-extent to which a firm fulfills a customer's needs, desires, and expectations

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Innovation

answer

-the development and spread of new ideas, goods, and services -plays a part in economic growth and development

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Marketing

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-performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client

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Pure subsistence economy

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-each family unit produces everything it consumes -no need to exchange goods and no marketing involved

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Macro-marketing

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-social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society

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Economies of Scale

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-as a company produces larger numbers of a particular product, the cost of each unit of the product goes down

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Universal functions of marketing

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-buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information

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Buying function

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-looking for and evaluating goods and services

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Selling function

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-involves promoting the product

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Transporting function

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-movement of goods from one place to another

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Storing function

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-involves holding goods until customers need them

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Standardization and grading

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-involves sorting products according to size and quality -reduces need for inspection and sampling

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Financing

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-provides necessary cash and credit to produce, transport, store, promote, sell, and buy products

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Risk taking

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-involves bearing the uncertainties that are part of the marketing process

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Market information function

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-involves collection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities, whether in the firm's own neighborhood or in a market overseas

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Intermediary

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-someone who specials in trade rather than production

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Collaborators

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-forms that facilitate or provide one or more of the marketing functions other than buying or selling

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E-commerce

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-exchanges between individuals or organizations (and activities that facilitate these exchanges) bases on application of information technology

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Economic system

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-the way an economy organizes to use scarce resources to produce goods and serves and distribute them for consumption by various people and group son the society

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Command economy

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-government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why

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Market-directed economy

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-individual decisions of the many producers and consumers make the macro-level decisions for the whole economy

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Simple trade era

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-time when families traded or sold their "surplus" output to local distributors

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Production era

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-time when a company focuses on production of a few specific products, perhaps because a few of these products are available in the market -"If we an make it, it will sell"

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Sales era

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-time when a company emphasizes selling because of increased competition

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Marketing department era

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-a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's activities

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Marketing company era

answer

-time when, in addition to short-run marketing planning, marketing people develop long-range planes and the whole company effort is guided by the marketing concept

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Marketing concept

answer

-an organization aims all of its efforts at satisfying its customers at a profit -customer satisfaction, total company effort, profit

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Production orientation

answer

-making whatever products are easy to produce and then trying to sell them

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Marketing orientation

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-trying to carry out the marketing concept, tries to offer customers what they need

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Tiple bottom line

answer

-measures an organization's economic, social, and environmental outcomes -a measure of long-term success

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Customer value

answer

-difference between the benefits a customer sees from a market offer and the costs of obtaining those benefits

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Micro-macro dilemma

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-what is good for some firms and consumers may bot be good for society as a whole

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Social responsibility

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-firm's obligation to improve its positive effects on society and reduce its negative effects

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Marketing ethics

answer

-moral standards that guide marketing decisions and actions

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Marketing management process

answer

-process of planning marketing activities, directing the implementation of the plans, and controlling these plans

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Strategic (management) planning

answer

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

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Marketing strategy

answer

-specifies a target market and related marketing mix

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Target market

answer

-fairly homogenous (similar) group of customers to whom a company wishes to appeal

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Marketing mix

answer

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

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Target marketing

answer

-says that a marketing mix is tailored to fit some specific target customers

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Mass marketing

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-the typical production-oriented approach -vaguely aims at "everyone" with the same marketing mix

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The four P's

answer

-product -place -promotion -price -customer is not part of the 4 P's

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Channel of distribution

answer

-any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer

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Personal selling

answer

-involves direct spoken communication between sellers and potential customers

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Customer service

answer

-a personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase -often key to building repeat customers

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Mass selling

answer

-communicating with large numbers of customers at the same time

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Advertising

answer

-main form of mass selling -any pairs form of non personal presentation of ideas, goods, or services by an identified sponsor

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Publicity

answer

-any unpaid for of no personal presentation of ideas, goods, or services -including getting favorable coverage in newspaper stories or on television

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Sales promotion

answer

-refers to those promotions activities (other than advertising, publicity, and sales) that stimulate interest, trail, or purchase by final customers or others in the channel

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Marketing plan

answer

-written statement of a marketing strategy and the time-related details for carrying out the strategy

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Implementation

answer

-putting marketing plans into operation

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Operations decisions

answer

-short-run decisions to help implement strategies -many many be needed

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Marketing program

answer

-blends all the firm's marketing plans into one "big" plane

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Customer lifetime value

answer

-total stream of purchases that a customer could contribute to the company over the length of the relationship

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Customer equity

answer

-expected earnings stream (profitability) of a firm's current and prospective customers over one period of time

question

Breakthrough opportunities

answer

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

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Competitive advantage

answer

-means that a firm has a marketing mix that the target market sees as better than a competitor's mix

question

SWOT analysis

answer

-identifies and lists the firm's strengths, weaknesses, opportunities, and threats

question

Differentiation

answer

-means that the marketing mix is distinct from what is available from a competitor

question

Market penetration

answer

-means trying to increase sales of a firm's present products in its present market, probably through a more aggressive marketing mix

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Market development

answer

-trying to increase sales by selling present products in new markets

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Product development

answer

-offering new or improved products for present markets

question

Diversification

answer

-moving into totally different lines of business, perhaps entirely unfamiliar products, markets, or even level sin the production-marketing system

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Mission Statement

answer

-sets out the organizations basic purpose for being -makes objectives clear from the start so different angers don't hold unspoken and conflicting objectives

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Competitive Environment

answer

-affects the number and types of competitors the marketing manager faces and how they may behave

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Sustainable competitive advantage

answer

-marketing mix that customers see as better than a competitor's mic an cannot be quickly or easily copied -marketing managers should actively seek this

question

Competitor analysis

answer

-organized approach for evaluation the strengths and weaknesses of current or potential competitors' marketing strategies

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Competitive rivals

answer

-closest competitors -marketing managers usually narrow focus of their analysis on them

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Competitor matrix

answer

-organized table that compares the strengths and weaknesses of a company with those if its competitive rivals -useful tool for organizing the competitor analysis

question

Economic environment

answer

-macro-economic factors (including national income, economic growth, and inflation) that affect patterns of consumers and business spending

question

Technology

answer

-application of science to convert an economy's resources to output

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Nationalism

answer

-emphasis on a country's interests before everything else -strong sentiments affect how mark-marketing works

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North American Free Trade Agreement (NAFTA)

answer

-lays out plan to reshape the rules of trade among the United States, Canada, and Mexico

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Cultural and social environment

answer

-affects how and why people live and behave as they do, which affects customers buying behavior and eventually the economic, political, and legal environments. -literacy rates affect promotion -technology adoption rates are different across the globe AKA Cell Phones -different rate of growth in different regions of USA -changes in cultural values and social attitudes come slowly, so should be anticipated

question

Gross domestic product (GDP)

answer

-the total market values of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country -measure of national income

question

Gross national income (GNI)

answer

-measure similar to GDP, but doesn't include income earned by foreigners who own resources in that nation -measure of national income

question

Senior citizens

answer

-people over 65 -increase sure to better health care and American's living longer lives

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Baby boomers

answer

-born between 1946-1964 -powerful demographic force because of their large numbers ex) tourism, health care, and financial searches are morte important to middle-aged and retired

question

Generation X

answer

-Gen X, born immediately following baby boom 1965-1977 -smaller in numbers than baby boomers, better educated

question

Generation Y

answer

-Millennials, born 1978-1994 -echo boom, when baby boomers had kids -attractive market for housing, appliances, furniture, and electronics

question

Generation Z

answer

-born since 1995 -still young so emerging values are speculative -born into world of technology and ethnically diverse so more accepting -realistic worldview vs optimistic, prefer brands with long-term value/safety/security

question

Sustainability

answer

-idea that its important to meet present needs without compromising the ability of future generations to meet their own needs

question

Market

answer

-group of potential customers with similar needs who are willings to exchange something of value with sellers offering various goods or services, way of satisfying those needs

question

Generic market

answer

-market with broadly similar needs and sellers offering various, diverse, ways of satisfying those needs

question

Product-market

answer

-market with very similar needs and sellers offering various close substitute ways of satisfying those needs

question

Market segmentation

answer

-two-step process of 1) naming broad product-markets and 2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes

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Segmenting

answer

-aggregating process closeting people with similar needs into a "market segment"

question

Market segment

answer

-relatively homogenous group of customers who will respond to a marketing mix in a similar way

question

Single target market approach

answer

-segmenting the market and picking one of the homogenous segments as the firm's target market

question

Multiple target market approach

answer

-segmenting the market and choosing two or more segments, and then treating each as a separate target markets needing a different marketing mix

question

Combined target market approach

answer

-combining two or more submarkets into one larger target market as a basis for one strategy

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Combiners

answer

-try to increase the size of their target markets by combining two or more segments

question

Segmenters

answer

-aim at one or more homogenous segments and try to develop a different marketing mix for each segment

question

Qualifying dimensions

answer

-those relevant to including a customer type in a product-market

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Determining dimensions

answer

-those that actually affect the customer's purchase of a specific product or brand in a product-market

question

Clustering techniques

answer

-try to find similar patterns within sets of data

question

Customer relationship management (CRM)

answer

-variation of the clustering approach -where the seller fine-tunes the marketing effort with information from a detailed customer database

question

Positioning

answer

-refers to how customers think about proposed or present brands in a market

question

Economic buyers

answer

-people who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money -economists assumer all consumers are this

question

Economic needs

answer

-concerned with making the best use of a consumer's time and money, as the consumer judges it -what the economic-buyer theory says that consumers decide what to buy based on

question

Discretionary income

answer

-what is left of income after paying taxes and paying for necessities -where a family's purchase of "luxuries" comes from

question

Needs

answer

-the basic forces that motivate a person to do something

question

Wants

answer

-"needs" that are learned during a person's life

question

Drive

answer

-a strong stimulus that encourages action to reduce a need

question

Physiological needs

answer

-concerned with biological needs: food, liquid, rest, and sex

question

Safety needs

answer

-concerned with protection and physical well-being involving health, financial security, medicine, and exercise.

question

Social needs

answer

-concerned with love, friendship, status, and esteem (things that involve a person's interaction with others)

question

Personal needs

answer

-concerned with an individuals need for personal satisfaction, unrelated to what others think or do

question

Perception

answer

-how we gather and interpret information from the worlds around us -consumers select varying ways to meet their needs sometimes bc of differences in perceptions

question

Selective exposure

answer

-our eyes and minds seek out and notice only information that interests us

question

Selective perception

answer

-we screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs

question

Selective retention

answer

-we remember only what we want to remember

question

Learning

answer

-a change in a peron's though process caused by prior experience

question

Cues

answer

-products, signs, ads, and other stimuli in the environment -makes consumer chose different responses

question

Response

answer

-effort to satisfy a drive

question

Reinforcement

answer

-the learning process occurs when the response is followed by satisfaction, reduction in the drive

question

Attitude

answer

-person's point of view toward something

question

Belief

answer

-a person's opinion about something

question

Expectation

answer

-an outcome or event that a person anticipates or looks forward to -attitudes and beliefs combine to form this

question

Trust

answer

-confidence a person has in the promises or actions of another person, brand, or company

question

Psychographics or Lifestyle analysis

answer

-the analysis of a person's day-to-days pattern of living as expressed in the person's activities, interests, and opinions (AIO's)

question

Empty nesters

answer

-people whose children are gown and who are now able to spend their money in other ways

question

Social class

answer

-group of people who have approximately equal social positions as viewed by others in the society

question

Reference group

answer

-refers to the people to whom an individual looks when forming attitudes about a particular topic

question

Opinon leader

answer

-person who influences others

question

Culture

answer

-whole set of beliefs, attitudes, and ways of doing things of a reasonably homogenous set of people

question

Extensive problem solving

answer

-consumers use this when they put much effort into deciding how to satisfy a needs, as is likely for a completely new purchaser or to satisfy an important need

question

Limited problem solving

answer

-used by consumers when some effort is required in decided the best way to satisfy a need

question

Routinized response behavior

answer

-consumers uses this when he or she regularly sleets a particular way of satisfying a need when it occurs

question

Low-involvement purchases

answer

-purchases that have little importance or relevance for the customers -typical for routinized response behavior

question

Dissonance

answer

-feeling of uncertainty about whether the correct decision was made -buyers have second thoughts and wonder if they made the correct decision after a purchase

question

Adoption process

answer

-the steps individuals go through on the way to accepting or rejecting a new idea -when consumers face a really new concept and their previous experience isn't relevant 1) awareness: comes to know about product but lacks details, may not know how it works or what it does 2) interest: becomes interested, gathers general information and facts about product 3) evaluation: begins to give product a mental trial, applying it to her situation 4) trial: buy the product to experiment with, if to expensive may never reach this phase 5) decision: decides to either adopt or reject, reinforcement leads to adoption 6) confirmation: adopter continues to rethink decision and searches for support on decisions, aka further reinforcement

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