Please enter something

Marketing 301: EXAM 1 VOCAB

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
question

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
question

Exchange
answer

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

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
question

Goods
answer

items that can be physically touched
question

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
question

Ideas
answer

intellectual concepts- thoughts, opinions, and philosophies
question

B2C (Business-to-consumers marketing)
answer

the process in which businesses sell to consumers
question

B2B (business-to-business marketing)
answer

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

C2C marketing
answer

the process in which consumers sell to other consumers
question

Employment marketing
answer

marketing programs to attract applicants to the hiring firm
question

Value
answer

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

Value cocreation
answer

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

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
question

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
question

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
question

Supply chain
answer

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

Entrepreneurs
answer

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

Marketing strategy
answer

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

Sustainable competitive advantage
answer

something the firm can persistently do better than its competitors
question

Customer excellence
answer

involves a focus on retaining loyal customers and excellent customer service
question

Operational excellence
answer

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

Product excellence
answer

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

Locational excellence
answer

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

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
question

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
question

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
question

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
question

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?
question

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
question

STP
answer

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

Market segment
answer

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

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
question

Target marketing
answer

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

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
question

Products
answer

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

Metric
answer

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

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
question

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
question

Market share
answer

percentage of a market accounted for by a specific entity
question

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
question

Market growth rate
answer

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

Market penetration strategy
answer

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

Market development strategy
answer

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

Product development strategy
answer

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

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
question

Related diversification
answer

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

Unrelated diversification
answer

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

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
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

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
question

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
question

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
question

Seniors
answer

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

Baby Boomers
answer

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

Generation X (Gen X)
answer

generational cohort of people born between 1965 and 1976
question

Generation Y (Gen Y)
answer

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

Millennial
answer

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

Green marketing
answer

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

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
question

Economic situation
answer

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

Inflation
answer

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

Foreign currency fluctuations
answer

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

Interest Rates
answer

these represent the cost of borrowing money
question

Political/regulatory environment
answer

comprises political parties, government organizations, and legislation and laws
question

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
question

Functional needs
answer

pertain to the performance of a product or service
question

Psychological needs
answer

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

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
question

External search for information
answer

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

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
question

External locus of control
answer

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

Performance risk
answer

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

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
question

Social risk
answer

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

Physiological risk
answer

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

Psychological risks
answer

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

Universal sets
answer

includes all possible choices for a product-category
question

Retrieval sets
answer

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

Evoked set
answer

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

Evaluative criteria
answer

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

Determinant attributes
answer

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

Consumer decision rules
answer

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

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
question

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
question

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
question

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
question

Negative word of mouth
answer

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

Motive
answer

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

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
question

Safety needs
answer

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

Love needs
answer

needs expressed through interactions with others
question

Esteem needs
answer

needs that enable people to fulfill inner desires
question

Self-actualization
answer

when a person is completely satisfied with his/her life
question

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
question

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
question

Behavioral component
answer

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

Perception
answer

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

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
question

Lifestyle
answer

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

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
question

Involvement
answer

consumer’s interest in a product or service
question

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
question

Impulse buying
answer

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

Habitual decision making
answer

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

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
question

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
question

Initiator
answer

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

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
question

Buyer
answer

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

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
question

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