Marketing Chapter 1-6 – Flashcards
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Customer Relationship Management
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Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
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customers
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The purchasers of organizations' products; the focal point of all marketing activities
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exchanges
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the provision or transfer of goods, services, or ideas in return for something of value
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green marketing
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A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
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market orientation
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An organizationwide commitment to researching and responding to customer needs
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marketing
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The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
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marketing concept
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A managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals
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marketing environment
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The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
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marketing mix
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Four marketing activities?product, pricing, distribution, and promotion?that a firm can control to meet the needs of customers within its target market
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product
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A good, a service, or an idea
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relationship marketing
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Establishing long-term, mutually satisfying buyer?seller relationships
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Stakeholders
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Constituents who have a ?stake,? or claim, in some aspect of a company's products, operations, markets, industry, and outcomes
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target market
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A specific group of customers on whom an organization focuses its marketing efforts
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value
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A customer's subjective assessment of benefits relative to costs in determining the worth of a product
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Customer lifetime value
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A key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts
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centralized organization
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A structure in which top-level managers delegate little authority to lower levels
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competitive advantage
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The result of a company matching a core competency to opportunities it has discovered in the marketplace
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core competencies
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Things a company does extremely well, which sometimes give it an advantage over its competition
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Corporate strategy
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A strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals
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decentralized organization
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A structure in which decision-making authority is delegated as far down the chain of command as possible
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first-mover advantage
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The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace
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late-mover advantage
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The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace
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market
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A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
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market growth/market share matrix
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A helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy
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market opportunity
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A combination of circumstances and timing that permits an organization to take action to reach a particular target market
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market share
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The percentage of a market that actually buys a specific product from a particular company
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Marketing cost analysis
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Analysis of costs to determine which are associated with specific marketing efforts
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Marketing implementation
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The process of putting marketing strategies into action
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marketing objective
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A statement of what is to be accomplished through marketing activities
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marketing plan
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A written document that specifies the activities to be performed to implement and control the organization's marketing strategies
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marketing strategy
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A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
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mission statement
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A long-term view, or vision, of what the organization wants to become
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performance standard
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An expected level of performance against which actual performance can be compared
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Sales analysis
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Analysis of sales figures to evaluate a firm's performance
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strategic business unit (SBU)
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A division, product line, or other profit center within the parent company
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Strategic marketing management
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The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
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Strategic performance evaluation
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Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed
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strategic planning
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The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy
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strategic windows
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Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market
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sustainable competitive advantage
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An advantage that the competition cannot copy
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SWOT analysis
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Assessment of an organization's strengths, weaknesses, opportunities, and threats
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Better Business Bureau (BBB)
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A system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms
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Brand competitors
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Firms that market products with similar features and benefits to the same customers at similar prices
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business cycle
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A pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery
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buying power
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Resources, such as money, goods, and services, that can be traded in an exchange
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competition
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Other organizations that market products that are similar to or can be substituted for a marketer's products in the same geographic area
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consumerism
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Organized efforts by individuals, groups, and organizations to protect consumers' rights
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depression
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A stage of the business cycle when unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy
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discretionary income
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Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
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disposable income
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After-tax income
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Environmental analysis
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The process of assessing and interpreting the information gathered through environmental scanning
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Environmental scanning
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The process of collecting information about forces in the marketing environment
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Federal Trade Commission (FTC)
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An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling
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Generic competitors
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Firms that provide very different products that solve the same problem or satisfy the same basic customer need
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income
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For an individual, the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period
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Monopolistic competition
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A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product
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monopoly
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A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
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National Advertising Review Board (NARB)
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A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement
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oligopoly
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A competitive structure in which a few sellers control the supply of a large proportion of a product
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Product competitors
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Firms that compete in the same product class but market products with different features, benefits, and prices
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prosperity
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A stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power (provided the inflation rate stays low)
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Pure competition
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A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
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recession
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A stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending
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recovery
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A stage of the business cycle in which the economy moves from recession or depression toward prosperity
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Sociocultural forces
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The influences in a society and its culture(s) that change people's attitudes, beliefs, norms, customs, and lifestyles
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Technology
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The application of knowledge and tools to solve problems and perform tasks more efficiently
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Total budget competitors
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Firms that compete for the limited financial resources of the same customers
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Wealth
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The accumulation of past income, natural resources, and financial resources
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willingness to spend
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An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces
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cause-related marketing
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The practice of linking products to a particular social cause on an ongoing or short-term basis
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codes of conduct
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Formalized rules and standards that describe what the company expects of its employees
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corporate, culture
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A set of values, beliefs, goals, norms, and rituals that members of an organization share
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ethical issue
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An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
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marketing citizenship
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The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
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marketing ethics
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Principles and standards that define acceptable marketing conduct as determined by various stakeholders
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Organizational,
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A set of values, beliefs, goals, norms, and rituals that members of an organization share
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social responsibility
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An organization's obligation to maximize its positive impact and minimize its negative impact on society
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strategic philanthropy
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The synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits
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Sustainability
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The potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies
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Big data
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Massive data files that can be obtained from both structured and unstructured databases
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Conclusive research
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Research designed to verify insights through objective procedures and to help marketers in making decisions
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Crowdsourcing
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Combines the words crowd and outsourcing and calls for taking tasks usually performed by a marketer or researcher and outsourcing them to a crowd, or potential market, through an open call
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customer advisory boards
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Small groups of actual customers who serve as sounding boards for new-product ideas and offer insights into their feelings and attitudes toward a firm's products and other elements of its marketing strategy
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database
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A collection of information arranged for easy access and retrieval
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descriptive research
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Research conducted to clarify the characteristics of certain phenomena to solve a particular problem
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Experimental research
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Research that allows marketers to make causal inferences about relationships
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exploratory research
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Research conducted to gather more information about a problem or to make a tentative hypothesis more specific
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focus group
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An interview that is often conducted informally, without a structured questionnaire, in small groups of 8 to 12 people, to observe interaction when members are exposed to an idea or a concept
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hypothesis
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An informed guess or assumption about a certain problem or set of circumstances
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in-home (door-to-door) interview
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A personal interview that takes place in the respondent's home
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mail survey
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A research method in which respondents answer a questionnaire sent through the mail
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marketing decision support system (MDSS)
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Customized computer software that aids marketing managers in decision making
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marketing information system (MIS)
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A framework for managing and structuring information gathered regularly from sources inside and outside the organization
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Marketing research
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The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
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nonprobability sampling
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A sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen
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on-site computer interview
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A variation of the shopping mall intercept interview in which respondents complete a self-administered questionnaire displayed on a computer monitor
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online survey
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A research method in which respondents answer a questionnaire via e-mail or on a website
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personal interview survey
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A research method in which participants respond to survey questions face-to-face
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population
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All the elements, units, or individuals of interest to researchers for a specific study
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Primary data
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Data observed and recorded or collected directly from respondents
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probability sampling
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A type of sampling in which every element in the population being studied has a known chance of being selected for study
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quota sampling
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A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from eachgroup
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random sampling
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A form of probability sampling in which all units in a population have an equal chance of appearing in the sample, and the various events that can occur have an equal or known chance of taking place
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reliability
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A condition that exists when a research technique produces almost identical results in repeated trials
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research design
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An overall plan for obtaining the information needed to address a research problem or issue
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sample
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A limited number of units chosen to represent the characteristics of a total population
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Sampling
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The process of selecting representative units from a total population
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Secondary data
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Data compiled both inside and outside the organization for some purpose other than the current investigation
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Shopping mall intercept interviews
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A research method that involves interviewing a percentage of individuals passing by ?intercept? points in a mall
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single-source data
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Information provided by a single marketing research firm
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Statistical interpretation
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Analysis of what is typical and what deviates from the average
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stratified sampling
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A type of probability sampling in which the population is divided into groups with a common attribute and a random sample is chosen within each group
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telephone depth interview
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An interview that combines the traditional focus group's ability to probe with the confidentiality provided by telephone surveys
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telephone survey
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A research method in which respondents' answers to a questionnaire are recorded by an interviewer on the phone
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validity
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A condition that exists when a research method measures what it is supposed to measure
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Benefit segmentation
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The division of a market according to benefits that consumers want from the product
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breakdown approach
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Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it
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buildup approach
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Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered
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business market
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Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
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Company sales potential
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The maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product
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concentrated targeting strategy
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A market segmentation strategy in which an organization targets a single market segment using one marketing mix
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consumer market
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Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits
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customer forecasting survey
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A survey of customers regarding the types and quantities of products they intend to buy during a specific period
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cycle analysis
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An analysis of sales figures for a three- to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner
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Delphi technique
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A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts
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differentiated targeting strategy
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A strategy in which an organization targets two or more segments by developing a marketing mix for each segment
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Executive judgment
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A sales forecasting method based on the intuition of one or more executives
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expert forecasting survey
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Sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors
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Geodemographic segmentation
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?A method of market segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information
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heterogeneous market
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A market made up of individuals or organizations with diverse needs for products in a specific product class
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homogeneous market
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A market in which a large proportion of customers have similar needs for a product
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Market density
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The number of potential customers within a unit of land area
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Market potential
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The total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity
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market segment
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Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs
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Market segmentation
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The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs
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market test
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Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts
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Micromarketing
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An approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets
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random factor analysis
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An analysis attempting to attribute erratic sales variations to random, nonrecurrent events
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regression analysis
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A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or income
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sales force forecasting survey
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A survey of a firm's sales force regarding anticipated sales in their territories for a specified period
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sales forecast
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The amount of a product a company expects to sell during a specific period at a specified level of marketing activities
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seasonal analysis
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An analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales
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Segmentation variables
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Characteristics of individuals, groups, or organizations used to divide a market into segments
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time series analysis
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A forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analyses
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Trend analysis
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An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales
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undifferentiated targeting strategy
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A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product
