Marketing 305 Exam 1 Study Guide

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value
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the benefits a customer receives from buying a good or service
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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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stakeholders
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buyers, sellers, or investors in a company, community, community residents, and even citizens of the nations where goods and services are made or sold. in other words, any person or organization that has a “stake” in the outcome
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consumer
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the ultimate user of a good or service
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marketing concept
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a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long-term profitability
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need
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the recognition of any difference between a consumer’s actual state and some ideal or desired state
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want
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the desire to satisfy needs in specific ways that are culturally and socially influenced
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benefit
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the outcome sought by a customer that motivates buying behavior – that satisfies a need or want
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demand
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customers’ desires for products coupled with the resources needed to obtain them
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market
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all the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make an exchange
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marketplace
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any location or medium used to conduct an exchange
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utility
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the usefulness or benefit consumers receive from a product
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exchange
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the process by which some transfer of value occurs between a buyer and a seller
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product orientation
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a management philosophy that emphasizes the most efficient ways to produce and distribute products
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selling orientation
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a managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory
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consumer orientation
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a management philosophy that focuses on ways to satisfy customers’ needs and wants
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total quality management (TQM)
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a management philosophy that involves all employees from the assembly line onward in continuous quality improvement
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instapreneur
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a business person who only produces a product when it is ordered
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triple bottom line orientation
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a business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices
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customer relationship management (CRM)
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a strategy that involves systematically tracking consumers’ preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual’s unique wants and needs
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social marketing concept
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a mangement philosophy that marketers must satisfy customer’s needs in ways that also benefit society and also deliver profit to the firm
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sustainability
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a product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs
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return on investment (ROI)
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the direct financial impact of a firm’s expenditure of a resource such as time or money
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popular culture
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the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market
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myths
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stories containing symbolic elements that express the shared emotions and ideals of a culture
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product
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a tangible good, service, idea, or some combination of these that satisfies consumer or business a customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses
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consumer goods
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the goods individual consumers purchase for personal or family use
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services
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intangible products that are exchanged directly between the producer and the consumer
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business to business marketing
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the marketing of those goods and services that business and organizational customers need to produce other goods and services, for resale or support their operations
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industrial goods
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goods individuals or organizations buy for further processing or for their own use when they do business
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e-commerce
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the buying or selling of goods and services electronically, usually over the internet
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non-for-profit organizations
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organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members
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target market
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the market segments on which an organization focuses its marketing plan and toward it which it directs its marketing efforts
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value proposition
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a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased
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lifetime value of a customer
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how much profit companies expect to make from a particular customer, including each and every purchase he will make from them now and in the future. to calculate lifetime value, companies estimate the amount the person will spend and then subtract what it will cost the company to maintain this relationship
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distinctive competency
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a superior capability of a firm in comparison to its direct competitors
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differential benefit
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properties of products that set them apart from competitors’ products by providing unique customer benefits
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value chain
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a series of activities involced in designing, producing, marketing, delivering, and supporting any product. each link in the cahin has the potential to either add or remove value from the product the customer eventually buys
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consumer-generated value
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everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers
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web 2.0
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the new generation of the world wide web that incorporates social networking and user interactivity
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wisdom of crowds
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under the right circumstances, groups are smarter thatn the smartest people in them, meaning that large numbers of consumers can predict successful products
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open source model
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a practice used in the software industry in which companies share their software codes with anyone to assist in the development of a better product
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consumer addiction
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a physiological or psychological dependency on goods or services
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marketing plan
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a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
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mass market
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all possible customers in a market, regardless of the differences in their specific needs and wants
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market segment
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a distinct group[ of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market
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market position
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the way in which the target market perceives the product in comparison to competitors’ brands
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marketing mix
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a combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers
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four p’s
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product, price, promotion, and place
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price
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the assignment of value, or the amount the consumer must exchange to receive the offering
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price
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the assignment of value, or the amount the consumer must exchange to receive the offering
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promotion
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the coordination of a marketer’s marketing communications efforts to influence attitudes or behavior; the coordination of efforts by a marketer to inform or persuade consumers or organizations about goods, services, or ideas
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place
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the availability of the product to the consumer at the desired time and location
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business planning
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an ongoing process of marking decisions that guides the firm both in the short term and for the long term
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business plan
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a plan that includes the decisions that guide the entire organization
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marketing plan
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a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
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business ethics
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rules of conduct for an organization
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code of ethics
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written standards of behavior to which everyone in the organization must subscribe
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strategic planning
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a managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth and survival
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strategic business units (SBUs)
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individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors
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functional planning
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a decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization’s long-term strategic plan
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operational planning
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a decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization’s functional plans
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mission statement
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a formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources
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situation analysis
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an assessment of a firm’s internal and external environment
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internal environment
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the controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization
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external environment
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the uncontrollable elements outside an organization that may affect its performance either positively or negatively
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SWOT analysis
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an analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment
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strategic planning step 1
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define the mission : come up with an organization’s specific plan, more specifically, the research statement
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strategic planning step 2
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evaluate the internal and external environment : process called situational analysis – an assessment of a firm’s internal and external environment
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strategic planning step 3
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set organizational or SBU objectives : goals that direct outgrowth of the mission statment and broadly identify what the firm hopes to accomplish within the general time frame of the firm’s long-range business plan. objectives need to be specific, measurable, attainable, and sustainable
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strategic planning step 4
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establish a business portfolio : how to best allocate resources across these businesses to ensure growth for the total organization. each SBU has its own focus within the firm’s overall sstrategic plan, and each jas its own target market and strategies for reaching its objectives
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business portfolio
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the group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities
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portfolio analysis
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a management tool for evaluating a firm’s business mix and assessing the potential of an organizations SBUs
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BCG growth-market share matrix
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a portfolio analysis model developed by the boston consulting group that assesses the potential of successful products ot generate cash that a firm can then use to invest in new products
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stars
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SBUs with products that have dominant market share in high-growth markets
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cash cows
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SBUs with a dominant market share in a low-growth potential market
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question marks
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SBUs with low markets shares in fast-growth markets
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dogs
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SBUs with a small share of a slow-growth market. they are businesses that offer specialized products in limited markets that are not likely to grow correctly
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strategic planning step 5
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develop growth strategies : strategic planning at the SBU level entails evaluating growth strategies
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market penetration strategies
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growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets
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market development strategies
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growth strategies that introduce existing products to new products
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product development strategies
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growth strategies that focus on selling new products in existing markets
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diversification strategies
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growth strategies that emphasize both new products and new markets
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marketing planning step 1
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perform a situation analysis : conduct an analysis of the marketing environment by building on the SWOT analysis
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marketing planning step 2
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set marketing objectives : develop specific marketing objectives: more specific to the firm’s brands, sizes, product features, and other marketing mix-related elements
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marketing planning step 3
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develop marketing strategies : make make decisions about what activities they must accomplish to achieve the marketing objectives
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marketing planning step 4
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implement and control the marketing plan : means to determine to what degree they are actually meeting their stated marketing objectives (often called control, which is composed of measuring, comparing, and making adjustments)
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control
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a process that entails measuring the actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis
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return on marketing investment (ROMI)
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quantifying just how an investment in marketing has an impact on the firm’s success, financially, and otherwise
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action plans
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individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. Action plans are sometimes referred to as “marketing programs”
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operational plans
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plans that focus on the day to day execution of the marketing plan. Operational plans include detailed directions for the specific activities to be carried out, who will be responsible for the, and time lines for accomplishing the tasks
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corporate culture
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the set of values, norm, and beliefs that influence the behavior of everyone in the organization
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World Trade
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The flow of goods and services among different countries–the value of all the exports and imports of the world’s nations.
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Countertrade
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A type of trade in which goods are paid for with other items instead of with cash.
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General Agreement on Tariffs and Trade (GATT)
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International treaty to reduce import tax levels and trade restrictions.
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World Trade Organizations (WTO)
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An organization that replaced GATT; the WTO sets trade rules for its member nations and mediates between nations.
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Protectionism
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A policy adopted by a government to give domestic companies and advantage.
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Import quotas
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Limitations set by a government on the amount of a product allowed to enter or leave a country.
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Embargo
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A quota completely prohibiting specified goods from entering or leaving a country.
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Tariffs
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Taxes on imported goods.
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Economic communities
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Group of countries that band together to promote trade among themselves and to make it easier for member nations to compete elsewhere.
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Gross Domestic Product (GDP)
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The total dollar value of goods and services produced by a nation within its borders in a year.
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Gross National Product (GNP)
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The value of all goods and services produced by a country’s citizens or organizations, whether located within the country’s borders or not.
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Economic Infrastructure
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The quality of a country’s distribution, financial, and communications systems.
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level of economic development
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The broader economic picture of a country.
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Standard of living
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An indicator of the average quality and quantity of goods and services consumed in a country.
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Least developed country (LDC)
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A country at the lowest stage of economic development.
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Developing Countries
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Countries in which the economy is shifting its emphasis form agriculture to industry.
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BRIC countries
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Refers to Brazil, Russia, India, and China, the largest and fastest growing of the developing countries with over 40 percent of the world’s population.
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Developed Country
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A country that boasts sophisticated marketing systems, strong private enterprise, and bountiful market potential for many goods and services.
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Group of 8 (G8)
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An informal forum of the eight most economically developed countries that meets annually to discuss major economic and political issues facing the international community.
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Business cycle
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The overall patterns of change in the economy– including periods of prosperity, recession, depression, and recovery–that affect consumer and business purchasing power.
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Competitive Intelligence (CI)
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The process of gathering and analyzing publicly available information about rivals.
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Discretionary Income
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The portion of income people have left over after paying for necessities such as housing, utilities, food, and clothing.
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Product competition
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When firms offering different products compete to satisfy the same consumer needs and wants.
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brand competition
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When firms offering similar goods or services compete on the basis of their brand’s reputation or perceived benefits.
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monopoly
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A market situation in which one firm, the only supplier of a particular product, is able to control the price, quality, and supply of that product.
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oligopoly
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A market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers.
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monopolistic competition
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A market structure in which many firms, each having slightly different products, offer unique consumer benefits.
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Perfect Competition
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A market structure in which many small sellers, all of whom offer similar products, are unable to have an impact on the quality, price, or supply of a product.
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nationalizaton
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When a domestic government reimburses a foreign company (often not for the full value) for its assets after taking it over.
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expropriation
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When a domestic government seizes a foreign company’s assets without any reimbursement.
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local content rules
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A form of protectionist stipulating that a certain proportion of a product must consist of components supplied by industries in the host country or economic community.
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U.S. Generalized System of Preference (GSP)
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A program to promote economic growth in developing countries by allowing duty-free entry of good s into the U.S.
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Demographics
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Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure.
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Cultural Values
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A society’s deeply held beliefs about right and wrong ways to live.
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Collectivist Cultures
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Cultures in which people subordinate their personal goals to those of a stable community.
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Social norms
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Specific rules dictating what is right or wrong, acceptable or unacceptable.
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Ethonocentrism
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The tendency to prefer products or people of one’s own culture.
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Bribery
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When someone voluntarily offers payment to gen an illegal advantage.
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Extortion
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When someone in authority extracts payment under duress.
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Export merchants
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Intermediaries a firm uses to represent it in other countries.
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Licensing agreement
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An agreement in which one firm gives another firm the right to produce and market its product in a specific country or region in return for royalties.
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Franchising
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A form of licensing involving the right to adapt an entire system of doing business.
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Strategic alliance
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Relationship developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in the target country.
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Joint Venture
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A strategic alliance in which a new entity owned by two or more firms allows the partners to pool their resources from common goals.
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Straight extension strategy
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Product strategy in which a firm offers the same product in both domestic and foreign markets.
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Product adaptation strategy
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Product strategy in which a firm offers a similar but modified product in foreign markets.
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Product invention strategy
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Product strategy in which a firm develops a new product for foreign markets.
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Backward invention strategy
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Product strategy in which a firm develops a less advanced product to serve the needs of people living in countries without electricity or other elements of a developed infrastructure.
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Free trade zones
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Designated areas where foreign companies can warehouse goods without paying taxes or customs duties until they move the goods into the marketplace.
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gray market goods
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Items manufactured outside a country and then imported without the consent of the trademark holder.
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Dumping
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A company tries to get a toehold in a foreign market by pricing its products lower than it offers them at home.
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Consumer behavior
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:The process we use to select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy needs/desires
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The Consumer Decision-Making Process Step 1
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Problem Recognition
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The Consumer Decision-Making Process Step 2
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Information search
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The Consumer Decision-Making Process Step 3
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evaluating alternatives
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The Consumer Decision-Making Process Step 4
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product choice
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The Consumer Decision-Making Process Step 5
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post purchase evaluation
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Problem Recognition
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Occurs whenever the consumer sees a significant difference between his/her current state and the desired/ideal state
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Information Search
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The process whereby a consumer searches for appropriate information to make a reasonable decision
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search marketing
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Marketing strategies that involve the use of internet search engines.
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search engine optimization
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a systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business
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search engine marketing
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search marketing strategy in which marketers pay for ads or better positioning
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sponsored search ads
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paid ads that appear at the top or beside the internet search engine results
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comparison shopping agents or shopbots
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web apps that help online shoppers find what they are looking for at the lowest price and provide customer reviews and ratings of products sellers
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Behavioral targeting
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:Marketers deliver ads for products consumers look for by watching what they do online
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evaluative criteria
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The dimensions consumers use to compare completing product alternatives.
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brand loyalty
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a pattern of repeat product purchases, accompanied by an underlying positive attitude toward the brand, based on the belief that the brand makes products superior to those of its competition.
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Consumer satisfaction/dissatisfaction
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The overall feelings or attitude a person has about a product after purchasing it.
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Heuristics
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:A mental rule of thumb used for a speedy decision by simplifying the process
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Cognitive dissonance
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The anxiety or regret a consumer may feel after choosing from among several similar attractive choice
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Perception
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:Process we use to select, organize, and interpret information from outside world
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Motivation
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Internal state that drives us to satisfy needs by activating goal-oriented behavior
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Learning
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:A relatively permanent change in behavior caused by information or experience
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Classical conditioning
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a type of learning in which one learns to link two or more stimuli and anticipate events
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Operant conditioning
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a method of influencing behavior by rewarding desired behaviors and punishing undesired ones
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Cognitive learning theory
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Theory of learning that stresses the importance of internal mental processes and that views people as problem solvers who actively use information from the world around them to master their environment.
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Cognition
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the mental process of knowing, including awareness, reasoning, and judgment
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Personality
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The set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment
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Self-concept
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all our thoughts and feelings about ourselves, in answer to the question, “Who am I?”
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Lifestyle
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:A pattern of living that determines how people choose to spend their time, money, and energy
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Psychographics
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The use of psychological, sociological and anthropological factors to construct amrket segments.
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sensory marketing
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marketing techniques that link distinct sensory experiences such as a unique fragrance with a product or service
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Time poverty
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Consumers’ belief that they are more pressed for time than ever before.
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Culture
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:The values, beliefs, customs, and tastes produced or practiced by a group of people
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Subculture
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:A group within a society who share a distinctive set of beliefs, characteristics, or common experiences
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Microcultures
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Groups of consumers who identify with a specific activity or art form.
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Consumerism
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A social movement that attempts to protect consumers from harmful business practices
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Environmentalism
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Seeks conservation and improvement of the natural environment
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Kyoto Protocol
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Controlling global warming by setting greenhouse gas emissions targets for developed countries.
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Environmental stewardship
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a position taken by an organization to protect or enhance the natural environment as it conducts its business activities
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Social class
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The overall rank or social standing of groups of people within a society, according to factors such as family background, education, occupation, and income
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Mass-class
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the hundreds of millions of global consumers who now enjoy a level of purchasing power that’s sufficient to let them afford high-quality products- except for big-ticket items like college educations, housing, or luxury cars
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Reference group
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An actual or imaginary individual or group that has a significant effect on an individual’s evaluations, aspirations, or behavior
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Opinion leaders
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Those individuals held in great respect becasue of their position, expertise, or peronsality, who may informally and unintentionally influence others
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market fragmentation
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The creation of many consumer groups due to a diversity of distinct needs and wants in modern society
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target marketing strategy
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Dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments.
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segmentation
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The process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics
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segmentation variables
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Dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences.
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Generation Y
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The group of consumers born between 1979 and 1994.
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demographics
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Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, occupation, education and family structure.
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generational marketing
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Marketing to members of a generation, who tend to share the same outlook and priorities.
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Generation X
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The group of consumers born between 1965 and 1978.
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baby boomers
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The segment of people born between 1946 and 1964.
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cultural diversity
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A management practice that actively seeks to include people of different sexes, races, ethnic groups, and religions in an organization’s employees, customers, suppliers, and distribution channel partners.
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geodemography
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A segmentation technique that combines geography with demographics. “birds of a feather flock together”
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geocoding
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Customizing Web advertising so that people who log on in different places will see ad banners for local businesses.
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psychographics
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The use of psychological, sociological, and anthropological factors to construct market segments. Such as shared activities, interest , and opinions or AIO’s
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values and lifestyles (VALS2)
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A psychographic system that divides the entire US population into eight segments according to what drives them psychologically as well as by their economic resources
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behavioral segmentation
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A technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service.
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80/20 rule
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A marketing rule of thumb that 20 percent of purchasers account for 80 percent of a product’s sales. *20% of households in US account for 80% of the usage of Miracle Whip
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long tail
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A new approach to segmentation based on the idea that companies can make money by selling small amounts of items that only a few people want, provided they sell enough different items. Ex. Amazon
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usage occasions
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An indicator used in behavioral market segmentation based on when consumers use a product most.
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organizational demographics
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helps a business-to-business marketer to understand the needs and characteristics of its potential customers
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NAICS (North American Industry Classification System)
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many industries use this to obtain information about the size and number or companies operating in a particular industry
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targeting
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A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers.
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target market
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The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts.
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Viable target
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– Members of the segment similar to each other in their product needs and wants, and at the same time, different from consumers in other segments? -Can marketers measure the segment? -Is the segment large enough to be profitable? -Can marketing communications reach the segment? -Can the marketer adequately serve the needs of the segment?
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segment profile
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A description of the “typical” customer in a segment.
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*might include
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demographics, location, lifestyle info, and a description of how frequently the customer buys the product
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undifferentiated targeting strategy
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Appealing to a broad spectrum of people.
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differentiated targeting strategy
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Developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace.
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concentrated targeting strategy
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Focusing a firm’s efforts on offering one or more products to a single segment. Ex. people in business suits mostly wear black socks
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custom marketing strategy
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An approach that tailors specific products and the messages about them to individual customers.
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mass customization
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An approach that modifies a basic good or service to meet the needs of an individual. EX. Dell
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positioning
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Develop a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition.
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Steps taken to decide how to position a product or service
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1. Analyze competitor’s position 2. Offer a good or service with a competitive advantage 3. Finalize the marketing mix 4. Evaluate responses and modify as needed
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repositioning
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Redoing a product’s position to respond to marketplace changes.
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retro brand
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A once-popular brand that has been revived to experience a popularity comeback, often by riding a wave of nostalgia.
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brand personality
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A distinctive image that captures a good’s or service’s character and benefits. EX. Elle magazine
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perceptual map
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A technique to visually describe where brands are “located” in consumers’ minds relative to competing. EX. Vogue, Glamour, Family Circle, Redbook, etc. brands.
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CRM (customer relationship management)
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A systematic tracking of consumers’ preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual’s unique wants and needs.
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one-to-one marketing
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1. Identify customers and get to know them in as much detail as possible 2. Differentiate their needs and their value to the company 3. Interact with customers and improve cost efficiency and the effectiveness of the interaction 4. Customize some aspect of the goods or services that you offer to each customer.
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touchpoint
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Any point of direct interface between customers and a company (online, by phone, or in person)
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share of customer
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The percentage of an individual customer’s purchase of a product that is a single brand.
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lifetime value of a customer
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The potential profit a single customer’s purchase of a firm’s products generates over the customer’s lifetime.
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customer equity
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The financial value of a customer relationship throughout the lifetime of the relationship.
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CEM (customer experience management)
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Customer experience management – The concept of holistically aligning a firm’s people, processes, systems, and strategies to maximize the customer’s experience will all aspects of your firm and its brands.
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Marketing
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_____ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation.
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De-Marketing
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To avoid traffic gridlock in large metro areas, _____ is undertaken to encourage commuters to carpool and use mass transit.
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Product Concept
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Henry Ford’s philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the _____.
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Social Responsibility
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Ben & Jerry’s challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to include concern for individual and community welfare in their day-to-day decisions. Actions by companies to do well by doing good reflects _____.
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Market Targeting
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Selecting which markets to serve is called __________.
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Share of Customer
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Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other product items. Based on previous purchase history, the company recommends related CDs, books, or videos that might be of interest. This helps Amazon.com capture a greater _____.
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Perceived Customer Value
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FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these aforementioned benefits against the monetary and psychic costs of using the service, they are acting upon _____.
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Understand customers’ needs, wants, and demands
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The fundamental reason America’s most admired firms, including Southwest Airlines and Harley-Davidson, conduct extensive research is to _____.
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Supply Chain Management
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Through _____, many companies today are strengthening their connections to partners all along the channel, from raw materials to components to final products that are carried to final buyers.
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Value Proposition
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A promise of value to be delivered and a belief from the customer that value will be experienced.
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Mission
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Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its _____ as creating “abundant food and a healthy environment.”
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Stars; Cash Cow
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In the BCG approach, _____ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into _____.
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Market Penetration
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Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. Starbucks management is considering whether the company can achieve deeper _____.
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Diversification
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Sony had long been known as a producer or audio visual hardware, but had little experience producing the “software” such as movies and music. Its acquisition of Columbia pictures to get into this new business is illustrative of the ________________ growth strategy.
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Market Development
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Walmart has successfully launched its stores in Mexico, Canada, and China, as well as other countries throughout the world representing which market growth strategy?
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Distinctive Core Competancy
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Colgate toothpaste, the flagship product of Colgate-Palmolive Company, has been a success for generations. The parent company’s success is so well known that it could enter the solar energy business, but that would not take advantage of its what it is known to do best, providing a plethora of brands to large groups of customers. This reflects that Colgate-Palmolive should base its mission on its _____.
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Value-Delivery System
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Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient _____.
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Position
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In the minds of consumers, BMW is “The Ultimate Driving Machine.” It has clearly defined that high performance, style, and price distinguish it from the competition. In so doing, BMW has established a strong market ________________.
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Market Control
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After running a television campaign to get customers to come into its store, the sales people at Best Buy asked each customer making a purchase where they had heard about the event. The clerks noted whether or not the customers said they had seen the television advertisements, allowing the company to assess just how successful the campaign had been. This is an example of which stage of the marketing process?
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Segmenting, Targeting, and Positioning
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In defining my marketing strategy, I must first divide the market into distinctive groups with common needs, determine which group(s) are most attractive for me to effectively serve, then develop a marketing mix that meets the needs of my group. This three step process involves:
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Legal
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Marketers must bear in mind the ________ environment, including regulations, interest groups, public policies, and government agencies that limit organizations and individuals in terms of what products and services they use and how they use them.
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Political; Technological
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Many point to Twitter and Facebook as the catalysts for the historical revolutions in Egypt and Tunisia in recent weeks. One may argue that these changes in the ____________environment have been influenced by changes in the _________ environment.
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Economic; Natural
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In spite of the problems Toyota has run into in the past year, people are still eager to purchase its hybrid Prius (as well as fuel efficient electric and hybrid competitors). One might say that some of this movement toward fuel efficiency is a money saving response to the ___________ environment, while others may be interested in cutting down damaging effects of fuel consumption on the __________ environment.
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Demographic
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California and the US are changing as the result of immigration from Asia and Latin America, the aging of the population, and the relatively weakening of household financial positions. These are all examples of changes in which environment?
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Recession
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During a _______________ the growth rates of income, production, and employment all fall below zero.
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Publics
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A company’s marketing environment includes various _____ that consists of any group that has an actual or potential interest in, or impact on, an organization’s ability to achieve its objectives.
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Ethics; Social Responsibility
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The recent rash of business scandals and increased concerns about the environment has created fresh interest in the issues of _____ and _____.
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Baby Boomers
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___________ are the largest generational segment of the US population
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Food, Housing, and Transportation
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This group of expenses that use up most household expenditures:
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More for Less
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TJ Maxx offers designer brands and deep discounted pricing. This winning formula, which they say gives customers the Max for the Minimum is also known as
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Service Differentiation
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Nordstrom positions itself by the type of personal attention it affords customers who shop in their stores to create a positive customer experience
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Loyalty
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Consumers can show their allegiance to brands, stores, or companies. This method of segmentation id called _________.
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Personnel
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The university catalog points out that all of its professors hold Ph.D. degrees from the world’s most prestigious university. In so doing, it is positioning itself based upon its __________.
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Different people want a different mix of benefits from the products they buy
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Why does Procter & Gamble offer products that compete with one another on the same supermarket shelves?
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Psychographic
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As a business consultant, what type of segmentation would you suggest to marketers who cater to people of certain social classes, lifestyles, and personality characteristics?
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More for More
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Neiman Marcus claims superior quality, performance and style. The owners provide customers the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning is Neiman Marcus using?
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Undifferentiated Marketing
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Mass Marketers such as Target and Walmart ignore market segment differences and target the whole market with one basic offer. What is their approach to segmentation
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Demographic
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Pendergraf Pet Supplies divides the pet market according to the owners’ race, occupation, income, and family life cycle. What kind of segmentation does Pendergraf use?
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Value Proposition
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The answer to the customers’ question “Why should I buy your brand” is found in the
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Subcultures
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Each culture contains smaller ____________, or groups of people with shared value systems based upon common life experiences and situations.
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The vet is the influencer
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Murray and Seymour are my cats. I purchase food for them based on the recommendation of my veterinarian. Which of the following correctly describes the roles played in this process:
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Aspirational Groups
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__________are ones to which the individual wishes to belong, as when a teenage basketball player hopes to someday be like LeBron James
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Personality
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_____ refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment. It is usually described in traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness.
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Complex Buying Behavior
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Blake is in the process of buying a new car. He is highly involved in the purchase and perceives significant differences among his three favorite models. Blake will likely undertake _____.
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Perception
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_____ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
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Post Purchase Cognitive Dissonance
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Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvantages of his new car as he learned more about other cars available. Bill is experiencing _____.
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Social Classes
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Society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors are known as___________
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Need recognition and information search
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After trying out his friend’s new iPhone, Murray decided that perhaps he should get one himself. He immediately logged onto the Apple website to find learn more. Which two stages of the buyer decision process are illustrated here.

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