question

Marketing

answer

the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients partners and society at large

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Marketing plan

answer

a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements

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Exchange

answer

the trade of things of value between the buyer and the seller so that each is better off as a result

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Marketing Mix (four Ps)

answer

product, price, place, and promotion- the controllable set of activities that a firm uses to respond to the wants of its target markets

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Goods

answer

items that can be physically touched

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Service

answer

any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer

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Ideas

answer

intellectual concepts- thoughts, opinions, and philosophies

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B2C (Business-to-consumers marketing)

answer

the process in which businesses sell to consumers

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B2B (business-to-business marketing)

answer

the process of selling merchandise or services from one business to another

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C2C marketing

answer

the process in which consumers sell to other consumers

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Employment marketing

answer

marketing programs to attract applicants to the hiring firm

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Value

answer

reflects the relationship of benefits to costs, or what the consumer gets for what he/she gives

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Value cocreation

answer

customers act as collaborators with a manufacturer or retailer to create the product or service

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Transactional orientation

answer

regards the buyer-seller relationship as a series of individual transactions, so anything that happened before or after the transaction is of little importance

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Relational orientation

answer

a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship

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Customer relationship management (CRM)

answer

a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers

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Supply chain

answer

the group of firms that make and deliver a given set of goods and services

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Entrepreneurs

answer

a person who organizes, operates, and assumes the risk of a new business venture

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Marketing strategy

answer

a firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage

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Sustainable competitive advantage

answer

something the firm can persistently do better than its competitors

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Customer excellence

answer

involves a focus on retaining loyal customers and excellent customer service

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Operational excellence

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involves a firm's focus on efficient operations and excellent supply chain management

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Product excellence

answer

involves a focus on achieving high-quality products; effective branding and positioning is key

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Locational excellence

answer

a method of achieving excellence by having a strong physical location and/or Internet presence

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Marketing plan

answer

a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements

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Planning phase

answer

the part of the strategic marketing planning process when marketing executives, in conjunction with other top managers, 1) define the mission or vision of the business and 2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success

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Implementation phase

answer

the part of the strategic marketing planning process when marketing managers 1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning and 2) implement the marketing mix using the four Ps

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Control phase

answer

the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take nay necessary corrective actions

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Mission statement

answer

a broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives?

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Situation analysis

answer

second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats

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STP

answer

the processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits

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Market segment

answer

a group of consumers who respond similarly to a firm's marketing efforts

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Market segmentation

answer

the process of dividing the market into groups of customers with different needs, wants, or characteristics- who therefore might appreciate products or services geared especially for them

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Target marketing

answer

the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market

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Market positioning

answer

involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products

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Products

answer

anything that is of value to a consumer and can be offered through a voluntary marketing exchange

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Metric

answer

a measuring system that quantifies a trend, dynamic, or characteristic

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Strategic business unit (SBU)

answer

a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives

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Product line

answer

groups of associated items, such as those that consumers use together or think of as part of a group of similar products

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Market share

answer

percentage of a market accounted for by a specific entity

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Relative market share

answer

a measure of the product's strengths in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry

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Market growth rate

answer

the annual rate of growth of the specific market in which the product competes

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Market penetration strategy

answer

a growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers

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Market development strategy

answer

a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international

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Product development strategy

answer

a growth strategy that offers a new product or service to a firm's current target market

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Diversification strategy

answer

a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve

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Related diversification

answer

a growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity

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Unrelated diversification

answer

a growth strategy whereby a new business lacks any common elements with the present business

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Macroenvironmental factors

answer

aspects of the external environment that affect a company's business, such as the culture, demographic, social issues, technological advantages, economic situation, and political/regulatory environment

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Culture

answer

the set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society; exists on two levels: visible artifacts (behavior, dress, symbols, physical settings, ceremonies) and underlying values (thought processes, beliefs, and assumptions)

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Country culture

answer

entails easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colors, and food preferences, and more subtle aspects, which are trickier to identify

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Demographics

answer

information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education

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Generational cohort

answer

a group of people of the same generation- typically have similar purchase behaviors because they have shared experiences and are in the same stage of life

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Seniors

answer

America's fastest-growing generational cohort; people aged 55-64 years

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Baby Boomers

answer

generational cohort of people born after World War II, between 1946 and 1964

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Generation X (Gen X)

answer

generational cohort of people born between 1965 and 1976

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Generation Y (Gen Y)

answer

generational cohort of people born between 1977 and 1995; biggest cohort since the original postwar baby boom

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Millennial

answer

consumers born between 1977 and 2000 and the children of the Baby Boomers

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Green marketing

answer

involves a strategic effort by firms to supply customers with environmentally friendly merchandise

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Technological advances

answer

macroenvironmental factor that has greatly contributed to the improvement of the value of both products and services in the past few decades

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Economic situation

answer

macroeconomic factor that affects the way consumers buy merchandise and spend money, both in a marketer's home country and abroad

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Inflation

answer

refers to the persistent increase in the prices of goods and services

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Foreign currency fluctuations

answer

changes in the value of a country's currency relative to the currency of another country; can influence spending

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Interest Rates

answer

these represent the cost of borrowing money

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Political/regulatory environment

answer

comprises political parties, government organizations, and legislation and laws

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Need recognition

answer

the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state

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Functional needs

answer

pertain to the performance of a product or service

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Psychological needs

answer

pertain to the personal gratification consumers associate with a product or service

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Internal search for information

answer

occurs when the buyer examines his/her own memory and knowledge about the product or service, gathered through past experiences

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External search for information

answer

occurs when the buyer seeks information outside his/her personal knowledge base to help make the buying decision

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Internal locus of control

answer

refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities

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External locus of control

answer

refers to when consumers believe that fate or other external factors control all outcomes

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Performance risk

answer

involves the perceived danger inherent in a poorly performing product or service

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Financial risk

answer

risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service

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Social risk

answer

the fears that consumers suffer when they worry others might not regard their purchases positively

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Physiological risk

answer

the fear of an actual harm should a product not perform properly

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Psychological risks

answer

associated with the way people will feel if the product or service does not convey the right image

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Universal sets

answer

includes all possible choices for a product-category

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Retrieval sets

answer

includes those brands or stores that the consumer can readily bring forth from memory

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Evoked set

answer

comprises the alternative brands or stores that the consumer states he/she would consider when making a purchase decision

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Evaluative criteria

answer

consist of a set of salient, or important, attributes about a particular product

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Determinant attributes

answer

product or service features that are important to the buyer and on which competing brands or stores are perceived to differ

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Consumer decision rules

answer

the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives

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Compensatory decision rule

answer

at work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones

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Multi-attribute model

answer

a compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes or characteristics. The model uses a weighted average score based on the importance of various attributes and performance on those issues

question

Noncompensatory decision rule

answer

at work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes

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Decision heuristics

answer

mental shortcuts that help consumers narrow down choices; ex: price, brand, and product presentation

question

Conversion rate

answer

percentage of consumers who buy a product after viewing it

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Postpurchase cognitive dissonance

answer

the psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyer's remorse

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Negative word of mouth

answer

occurs when consumers spread negative information about a product, service, or store to others

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Motive

answer

a need or want that is strong enough to cause the person to seek satisfaction

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Maslow's Hierarchy of Needs

answer

a paradigm for classifying people's motives. It argues that when lower-level, more basic needs (physiological and safety) are fulfilled, people turn to satisfying their higher-level human needs (social and personal)

question

Physiological needs

answer

those relating to the basic biological necessities of life: food, drink, rest, and shelter

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Safety needs

answer

one of the needs in the PSSP hierarchy of needs; pertain to protection and physical well-being

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Love needs

answer

needs expressed through interactions with others

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Esteem needs

answer

needs that enable people to fulfill inner desires

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Self-actualization

answer

when a person is completely satisfied with his/her life

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Attitude

answer

a person's enduring evaluation of his/her feelings about and behavior tendencies toward an object or idea; consists of three components: cognitive, affective, and behavioral

question

Cognitive component

answer

a component of attitude that reflects what a person believes to be true

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Affective component

answer

a component of attitude that reflects what a person feels about the issue at hand- his/her like or dislike of something

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Behavioral component

answer

a component of attitude that comprises the actions a person takes with regard to the issue at hand

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Perception

answer

the process by which people select, organize, and interpret information to form a meaningful picture of the world

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Learning

answer

refers to a change in a person's thought process or behavior that arises from experience and takes place throughout the consumer decision process

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Lifestyle

answer

a component of psychographics; refers to the way a person lives his/her life to achieve goals

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Reference group

answer

one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors

question

Culture

answer

the set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society; exists on two levels: visible artifacts (behavior, dress, symbols, physical settings, ceremonies) and underlying values (thought processes, beliefs, and assumptions)

question

Situational factors

answer

factor affecting the consumer decision process; those that are specific to the situation that may override, or at least influence, psychological and social issues

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Involvement

answer

consumer's interest in a product or service

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Extended problem solving

answer

a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk

question

Limited problem solving

answer

occurs during a purchase decision that calls for, at most, a moderate amount of effort and time

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Impulse buying

answer

a buying decision made by customers on the spot when they see the merchandise

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Habitual decision making

answer

a purchase decision process in which consumers engage with little conscious effort

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B2B (business-to-business marketing)

answer

the process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and retailers

question

Derived demand

answer

the linkage between consumers' demand for a company's output and its purchase of necessary inputs to manufacture or assemble that particular output

question

Resellers

answer

marketing intermediaries that resell manufactured products without significantly altering their form

question

Wholesalers

answer

those firms engaged in buying, taking title to, often storing, and physically handling goods in large quantities, then reselling the goods (usually in smaller quantities) to retailers or industrial or business users

question

Distributors

answer

a type of reseller or marketing intermediary that resells manufactured products without significantly altering their form, often buy from manufacturers and sell to other businesses like retailers in a B2B transaction

question

Request for proposals (RFP)

answer

a process through which buying organizations invite alternative suppliers to bid on supplying their required components

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Web portal

answer

an Internet site whose purpose is to be a major starting point for users when they connect to the web

question

Buying center

answer

the group of people typically responsible for the buying decisions in large organizations

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Initiator

answer

the buying center participant who first suggests buying the particular product or service

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Influencer

answer

the buying center participant whose views influence other members of the buying center in making the final decision

question

Decider

answer

the buying center participant who ultimately determines any part of or the entire buying decision- whether to buy, what to buy, how to buy, or where to buy

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Buyer

answer

the buying center participant who handles the paperwork of the actual purchase

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User

answer

the person who consumes or sues the product or service purchased by the buying center

question

Gatekeeper

answer

the buying center participant who controls information or access to decision makers and influencers

question

Organizational culture

answer

reflects the set of values, traditions, and customs that guide a firm's employees' behaviors

question

Autocratic buying center

answer

a buying center in which one person makes the decision alone, though there may be multiple participants

question

Democratic buying center

answer

a buying center in which the majority rules in making decisions

question

Consultative buying centers

answer

a buying center in which one person makes the decision but he/she solicits input from others before doing so

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Consensus buying center

answer

a buying center in which all members of the team must reach a collective agreement that they can support a particular purchase

question

New buy

answer

in a B2B setting, a purchase of a good or service for the first time; the buying decision is likely to be quite involved because the buyer or the buying organization does not have any experience with the item

question

Modified rebuy

answer

refers to when the buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, options or so forth

question

Straight rebuys

answer

refers to when the buyer or buying organization simply buys additional units of products that have previously been purchased

question

Globalization

answer

refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders

question

Globalization of production/Offshoring

answer

refers to manufactures'' procurement of goods and services from around the globe to take advantage of national differences in the cost and quality of various factors of production (labor, energy, land, capital)

question

General Agreement on Tariffs and Trade (GATT)

answer

organization established to lower trade barriers, such as high tariffs on imported goods and restrictions on the number and types of imported products that inhibited the free flow of goods across borders

question

World Trade Organization (WTO)

answer

replaced the GATT in 1994; differs from the GATT in that it is an established institution based in Geneva, Switzerland, instead of simply an agreement; represents the only international organization that deals with the global rules of trade among nations

question

International Monetary Fund

answer

established with the original General Agreement on Tariffs and Trade (GATT); primary purpose is to promote international monetary cooperation and facilitate the expansion and growth of international trade

question

World Bank Group

answer

a development bank that provides loans, policy advice, technical assistance, and knowledge-sharing services to low- and middle-income countries in an attempt to reduce poverty in the developing world

question

Trade deficit

answer

results when a country imports more goods than it exports

question

Trade surplus

answer

occurs when a country has a higher level of exports than imports

question

Gross domestic product (GDP)

answer

defined as the market value of the goods and services produced by a country in a year; the most widely used standardized measure of output

question

Gross national income (GNI)

answer

consists of GDP plus the net income earned from investments abroad (minus any payments made to nonresidents who contribute to the domestic economy)

question

Purchasing power parity (PPP)

answer

a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency

question

Human development index (HDI)

answer

a composite measure of three indicators of the quality of life in different countries: life expectancy at birth, educational attainment, and whether the average incomes are sufficient to meet the basic needs of life in that country

question

Infrastructure

answer

the basic facilities, services, and installations needed for a community or society to function, such as transportation and communications systems, water and power lines, and public institutions like schools, post offices, and prisons

question

Tariff/Duty

answer

a tax levied on a good imported into a country

question

Dumping

answer

the practice of selling a good in a foreign market at a price that is lower than its domestic price or below its cost

question

Quota

answer

designates the maximum quantity of a product that may be brought into a country during a specified time period

question

Boycott

answer

a group's refusal to deal commercially with some organization to protest against its policies

question

Exchange control

answer

refers to the regulation of a country's currency exchange rate

question

Exchange rate

answer

the measure of how much one currency is worth in relation to another

question

Trade agreements

answer

intergovernmental agreements designed to manage and promote trade activities for specific regions

question

Trading bloc

answer

consists of those countries that have signed a particular trade agreement

question

Exporting

answer

producing goods in one country and selling them in another

question

Franchising

answer

a contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor

question

Strategic alliances

answer

a collaborative relationship between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another

question

Joint venture

answer

formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared

question

Direct investment

answer

when a firm maintains 100% ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries

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