Marketing Chapter 1-4 – Flashcards
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Utility
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want-satisfying power of a good or service
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Marketing
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organizational function and 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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exchange process
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activity in which two or more parties give something of value to each other to satisfy perceived needs
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consumer orientation
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Business philosophy incorporating the marketing concept that emphasized first determining unmet consumer needs and then designing a system for satisfying them
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marketing concept
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consumer orientation with the objective of achieving long-run success
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relationship marketing
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development and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit
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marketing myopia
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managements failure to recognize the scope of its business
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person marketing
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marketing efforts designed to cultivate the attention, interest, and preferences of a target market toward a person (political candidate or celebrity)
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place marketing
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marketing efforts to attract people and organizations o a particular geographic area
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cause marketing
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identification and marketing of a social issue, cause, or idea to selected target markets
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event marketing
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marketing of sporting, cultural, and charitable activities to selected target market
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organization marketing
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marketing by mutual-benefit organizations, service organizations, and government organizations intended to persuade others to accept their goals, receive their services or contribute to them in some way
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production orinentation
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manufacturers stressed production of quality products and then looked for people to purchase them
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sales orientation
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assumes that customers will resist purchasing nonessential goods and services and that the task of of personal selling and advertising is to persuade them to buy
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sellers market
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market in which there were more buyers for fewer goods and services
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buyers market
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market in which there were more goods and services than people willing to buy them
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bottom line
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business jargon that refers to the overall profitability of an organization
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transaction-based marketing
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traditional view of marketing that is being replaced by a different, longer-term approach that emphasizes building relationships with one customs at a time
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lifetime value of a customer
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the revenues and intangible benefits that a customer brings to an organization over an average lifetime, minus the investment the firm has made to attract and keep the customer
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mobile marketing
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marketing messages transmitted via wireless technology
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interactive marketing
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refers to buyer-seller communications in which the customer controls the amount and type of information received from a marketer
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buzz marketing
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repeat customers that spread the word and create buzz. Can be very effective in attracting new customers
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wholesalers
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marketing intermediaries
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exchange functions
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buying and selling
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physical distribution functions
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transporting and storing goods
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facilitating functions
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standardizing and grading, financing, risk taking, and securing marketing information. These help the marketer perform the exchange and physical distribution functions
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ethics
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moral standards of behavior expected by a society
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social responsibility
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marketing philosophies, policies, procedures, and actions whose primary objective is to enhance society
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planning
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process of anticipating future events and conditions and of determine the best way to achieve organizational objectives. Important for both large and small companies
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marketing planning
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implementing planning activities devoted to achieving marketing objectives
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strategic planning
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process of determining an organizations primary objectives and adopting courses of action that will achieve these objectives
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tactical planning
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planning that guides the implementation of activities specified in the strategic plan
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mission
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essential purpose that differentiates one company from others
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Porter's five forces
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strategy developed by Michael Porter that identifies five competitive forces that influence planning strategies: threat of new entrants, the bargaining power of suppliers, the threat of substitute products, and rivalry among competitors
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first mover strategy
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Theory advocating that the company first to offer a product in a marketplace will be the long-term market winner
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second mover straegy
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Theory that advocates observing closely the innovations of first movers and then improving them to gain an advantage in the marketplace
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SWOT analysis
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Review that helps planners compare internal organizational strengths and weaknesses with external opportunities and threats
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strategic window
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Limited periods when key requirements of a market and a firm's particular competencies best fit together
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marketing mix
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blending of the four strategy elements- product, price, promotion, and distribution- to fit the needs and preferences of a specific target market
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strategic business units (SBUs)
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key business units within diversified firms
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objectives
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goals laid out in companies complete mission statement
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marketing strategy
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company wide program for selecting a particular target market and then satisfying customers in that market through blending together the 4 P's of the marketing mix
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sustainable competitive advantage
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companies try to create this so other companies simply cannot provide the same value to their customers that they do
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core competencies
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a company's strengths, what it does well. Capabilities that customers value and competitors find difficult to duplicate
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target market
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group of people toward whom the firm aims its marketing efforts adn ultimately its merchanidse
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product strategy
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includes decisions about customer service, package design, brand names, trademarks, patents, warranties, life cycle of the product, and new-product development
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distribution strategy
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used to ensure that customers find their products in the proper quantities at the right times and places
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promotion
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communications link between sellers and buyers that may go through sales people of indirectly through advertisements
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integrated marketing communications (IMC)
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used to coordinate all promotional activities so that the consumer receives a unified and consistent message
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pricing strategy
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deals with the methods of setting profitable and justifiable prices
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rule of three
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in any industry, the three strongest, most efficient companies dominate between 70 and 90 percent of the market
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portfolio analysis
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evaluating company's products and divisions to determine the strongest and weakest
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category
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focuses the attention of company managers so that they can respond effectively to changing consumer demand within limited markets
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market share/market growth matrix
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places SBUs in a four quadrant chart that plots market share against market growth potential
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market share
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the percentage of a market that a firm currently controls
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environmental scanning
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process of collecting information about the external marketing environment to identify and interpret potential trends
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environmental management
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attainment of organizational objectives by predicting and influencing the competitive, political-legal, economic, technological, and social-cultural environments
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competitive environment
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process that occurs in the marketplace among marketers of directly competitive products
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political-legal environment
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component of the marketing environment made up of laws and their interpretations that require firms to operate under competitive conditions and to protect consumer rights
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economic environment
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factors that influence consumer buying power and marketing strategies, including stage of the business cycle, inflation and deflation, unemployment, income, and resource availability
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demarketing
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process of reducing consumer demand for a good or service to a level that the firm can supply
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technological environment
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application to marketing of knowledge based on discoveries in science, inventions, and innovations
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social-cultural environment
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component of the marketing environment consisting of the relationship between the marketer, society, and culture
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consumerism
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social force within the environment that aids and protects the consumer by exerting legal, moral, and economic pressures on business and government
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consumer rights
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list of legitimate consumer expectations suggested by President John F. Kennedy
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marketing ethics
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marketer's standards of conduct and moral values
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social responsibility
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marketing philosophies, policies, procedures, and actions that have the enhancement of society's welfare as a primary objective
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green marketing
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production, promotion, and reclamation or environmentally sensitive products
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strategic alliance
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partnerships with other firms in which the partners combine resources and capital to create competitive advantages in a new market
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monopoly
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when an organization is the sole supplier of a good or service in the marketplace
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deregulation movement
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ended total monopoly protection for most utilities over past three decades
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anti-trust
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laws designed to prevent restraints on trade such as business monopolies
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oligopoly
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market structure in which relatively few sellers compete and where high start up costs form barriers to keep out new competitors
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competitive strategy
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methods through which a firm deals with its competitive environment
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time-based competition
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strategy of developing and distributing goods and services more quickly than competitors
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gross domestic product (GDP)
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sum of all goods and services produced by a nation in a year
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business cycle
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pattern of stages in the level of economic activity: prosperity, recession, depression, and recovery
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inflation
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rising prices caused by some combination of excess consumer demand and increases in the costs of one or more factors of production
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unemployment
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proportion of people in the economy actively seeing work that do not have jobs
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discretionary income
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money available to spend after buying necessities such as food, clothing, and housing
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VoIP (Voice over Internet protocol)
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a phone connection through a personal computer with any type of broadband internet connection
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ecology
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relationship between organisms and their natural environment
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planned obsolescence
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intentional design, manufacture, and marketing of products with limited durability
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e-business
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conducting online transactions with customers by collecting and analyzing business information, carrying out the exchanges, and maintaining online relationships with customers
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e-marketing
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process of creating, distributing, promoting, and pricing goods and services to a target market over the internet or through digital tools
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interactive marketing
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buyer-seller communications in which the customer controls the amount and type of information received from a marketer through such channels as the internet
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corporate web site
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site designed to increase a firm's visibility, promote its offerings, and provide information to interested parties
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marketing web site
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site whose main purpose is to increase purchases by visitors
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business-to-business (B2B) e-marketing
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use of the internet for business transactions between organizations
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business- to-consumer (B2C) e-marketing
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selling directly to consumers over the internet
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electronic storefronts
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company web site that sells products to customers
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phishing
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high-tech scam that uses authentic looking e-mail or pop-up messages to get unsuspecting victims to reveal person information
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spam
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popular name for junk e-mail
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blog
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short for web log that is an online journal for an individual or organization
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search marketing
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paying search engines such as Google, a fee to make sure the company's listing appears toward the top of the search results
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click-through rate
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percentage of people presented with a banner ad who click on it
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conversion rate
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percentage of visitors to a web site who make a purchase
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electronic exchange
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online marketplace that caters to a specific industry's needs
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e-procurement
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use of the internet by organizations to solicit bids and purchase goods and services from suppliers
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electronic shopping cart
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file that holds items the online shopper has chosen to
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bot
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software program that allows online shoppers to compare the price of a particular product offered by several online retailers
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encryption
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the process of encoding data for security purposes
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secure sockets layer
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technology that secures a web site by encrypting information and providing authentication
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electronic signatures
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electronic identification that allows legal contracts such as home mortgages and insurance policies to be executed online
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firewall
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electronic barrier between a company's internal network and the internet that limits access into and out of the network
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vishing
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scam that collects personal inforaion though voice response systems, stands for voice phishing
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channel conflict
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conflict between manufacturers, wholesalers, and retailers
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electronic bullitin board
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internet forum that allows users to post and read messages on a specific topic
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wiki
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web page that anyone can edit
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podcast
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online audio or video file that can be downloaded to other digital devices
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banner ad
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strip message placed in high-visibility areas of frequently visited web-sites
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pop-up ad
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separate window that pops up with an advertising message
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Preroll video ad
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brief marketing message that appears before expected video content
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widget
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tiny interactive applications that internet users can copy and add to their own pages to play music, video, or slide shows
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web-to-store shoppers
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consumers who use the internet as a tool to aid them at brick-and-mortar retailers
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engagement
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amount of time users spend on sites
