question

business mission

answer

the organisation's purpose. usually setting out its competitive domain, which distinguishes the business from others of its type

question

competitor analysis

answer

an examination of the nature of actual and potential competitors, their objectives and strategies

question

competitor targets

answer

the organisations against which a company chooses to compete directly

question

control

answer

the stage in the marketing planning process or cycle when the performance against plan is monitored so that corrective action can be taken, if necessary

question

core strategy

answer

the means of achieving marketing objectives, including target markets, competitor targets and competitive advantage

question

customer analysis

answer

a surgery of who the customers are, what choice criteria they use, how they rate competitive offerings and on what variables they can be segmented

question

differentiation strategy

answer

the selection of one or more customer choice criteria, and positioning the offering accordingly to achieve superior customer value

question

distribution analysis

answer

an examination of movements in power bases, channel attractiveness, physical distribution and distribution behaviour

question

industry

answer

a group of companies that market products that are close substitutes for each other

question

marketing audit

answer

a systematic examination of a business's marketing environment, objectives, strategies and activities, with a view to identifying key strategic issues, problem areas and opportunities

question

marketing objectives

answer

there are two types of marketing objective - strategic thrust, which dictates which products should be sold in which markets, and strategic objectives, which are product-level objectives, such as build, hold, harvest and divest

question

marketing planning

answer

the process by which businesses analyse the environment and their capabilities, decide upon course of marketing action and implement those decisions

question

marketing structures

answer

the marketing frameworks (organisation, training and internal communications) on which marketing activities are based

question

marketing systems

answer

sets of connected parts (information, planning and control) that support the marketing function

question

strategic business unit

answer

a business or company division serving a distinct group of customers and with a distinct set of competitors, usually strategically autonomous

question

strategic issues analysis

answer

an examination of the suitability of marketing objectives and segmentation bases in the light of changes in the marketplace

question

strategic objectives

answer

product-level objectives relating to the decision to build, hold, harvest or divest products

question

strategic thrust

answer

the decision concerning which products to sell in which markets

question

SWOT analysis

answer

a structured approach to evaluating the strategic position of a business by identifying its strengths, weaknesses, opportunities and threats

question

target market

answer

a segment that has been selected as a focus for the company's offering or communications

question

value chain

answer

the set of the firm's activities that are conducted to design, manufacture, market, distribute and service its products

question

administered vertical marketing system

answer

a channel situation where a manufacturer that dominates a market through its size and strong brands may exercise considerable power over intermediaries even though they are independent

question

channel integration

answer

the way in which the players in the channel are linked

question

channel intermediaries

answer

organisations that facilitate the distribution of products to customers

question

channel of distribution

answer

the means by which products are moved from the producer to the ultimate consumer

question

channel strategy

answer

the selection of the most effective distribution channel, the most appropriate level of distribution intensity and the degree of channel integration

question

contractual vertical marketing system

answer

a franchise arrangement (e.g. a franchise) tying producers and resellers together

question

corporate vertical marketing system

answer

a channel situation where an organisation gains control of distribution through ownership

question

exclusive distribution

answer

an extreme form of selective distribution where only one wholesaler, retailer or industrial distributor is used in a geographical area to sell the products of particular supplier

question

franchise

answer

a legal contract in which a producer and channel intermediaries agree each other's rights and obligations; the intermediary usually receives marketing, managerial, technical and financial services in return for a fee

question

intensive distribution

answer

the aim of intensive distribution is to provide saturation coverage of the market by using all available outlets

question

multichannel marketing

answer

the distribution of products through a number of different channels to reach the consumer

question

retail positioning

answer

the choice of target market and differential advantage for a retail outlet

question

safety (buffer) stocks

answer

stocks or inventory held to cover against uncertainty about resupply lead times

question

selective distribution

answer

the use of a limited number of outlets in a geographical area to sell the products of a particular supplier

question

buzz marketing

answer

the passing of information about products or services by verbal or electronic means in an informal person-to-person manner

question

catalogue marketing

answer

the sale of products through catalogues distributed to agents and customers,. usually by mail or at stores

question

customer benefits

answer

those things that a customer values in a product; customer benefits derive from product features

question

customer relationship management (CRM)

answer

the methodologies, technologies and e-commerce capabilities used by firms to manage customer relationships

question

database marketing

answer

an interactive approach to marketing, which uses individually addressable marketing media and channels to provide information to a target audience, stimulate demand and stay close to customers

question

direct mail

answer

material sent through the postal service to the recipient's house or business address, promoting a product and/or maintaining an ongoing relationship

question

direct response advertising

answer

the use of the prime advertising media, such as television, newspapers and magazines, to elicit an order, enquiry or a request for a visti

question

e-commerce

answer

the use of technologies such as the internet, electronic data interchange (EDI), email and electronic payment systems to streamline business transactions

question

electronic data interchange (EDI)

answer

a pre-internet technology, which was developed to permit organisations to use linked computers for the rapid exchange of information

question

internet

answer

a vast global computer network that permits instant communication, such as the gathering and sharing of information, and that offers the facility for users to communicate with one another

question

internet marketing

answer

the achievement of marketing objectives through the utilisation of the internet and web-based technologies

question

key account management

answer

an approach to selling that focuses resources on major customers and uses a team selling approach

question

mobile marketing

answer

the sending of text messages to mobile phones to promote products and build relationships with customers

question

permission marketing

answer

marketers ask permission before sending advertisements or promotional material to potential customers; in this way customers "opt in" to the promotion rather than having to "opt out"

question

personal selling

answer

oral communication with prospective purchasers with the intention of making a sale

question

product features

answer

the characteristics of a product that may or may not convey a customer benefit

question

prospecting

answer

searching for and calling upon potential customers

question

proximity marketing

answer

the localised wireless distribution of advertising content associated with a particular place

question

salesforce evaluation

answer

the measurement of salesperson performance so that strengths and weaknesses can be identified

question

salesforce motivation

answer

the motivation of salespeople by a process that involves needs, which set encouraging drives in motion to accomplish goals

question

telemarketing

answer

a marketing communications system whereby trained specialists use telecommunications and information technologies to conduct marketing and sales activities

question

viral marketing

answer

electronic word of mouth, where promotional messages are spread using email from person to person

question

website

answer

a collection of various files including text, graphics, video and audio content created by organisations and individuals

question

advertising

answer

any paid form of non-personal communication of ideas or products in the prime media (i.e. television, the press, posters, cinema and radio, the internet and direct marketing)

question

advertising agency

answer

an organisation that specialises in providing services such as media selection, creative work, production and campaign planning to clients

question

advertising message

answer

the use of words, symbols and illustrations to communicate to a target audience using prime media

question

advertising platform

answer

the aspect of the seller's product that is most persuasive and relevant to the target consumer

question

ambush marketing

answer

any activity where a company tries to associate itself or its products with an event without paying any fee top the event owner

question

bonus pack

answer

pack giving the customer extra quantity at no additional cost

question

consumer pull

answer

the targeting of consumers with communications (e.g. promotions) designed to create demand that will PULL the product into the distribution chain

question

direct marketing

answer

(1) acuiring and retaining customers without the use of an intermediary; (2) the distribution of products, information and promotional benefits to target consumers through interactive communication in a way that allows response to be measured

question

distribution push

answer

the targeting of channel intermediaries with communications (e.g.promotions) to PUSH the product into the distribution chain

question

event sponsorship

answer

sponsorship of a sporting or other event

question

exhibition

answer

an event that brings buyers and sellers tohetjer in a commercial setting

question

experimentation

answer

the application of stimuli (e.g. two price levels) to different matched groups under controlled conditions for the purpose of measuring their effect on a variable (e.g. sales)

question

group discussion

answer

a group, usually of six to eight consumers, brought together for a discussion focusing on an aspect of a company's marketing strategy

question

hall tests

answer

bringing a sample of target consumers to a room that has been hired so that alternative marketing ideas (e.g. promotions) can be tested

question

integrated marketing communications

answer

the concept that companied co-ordinate their marketing communications tools to deliver a clear, consistent, credible and competitive message about the organisation and its products

question

media class decision

answer

the choice of prime media (i.e. the press, cinema, television, posters, radio) or some combination of these

question

media vehicle decision

answer

the choice of the particular newspaper, magazine, television spot, poster site, etc.

question

money-off promotions

answer

sales promotions that discount the normal price

question

personal selling

answer

oral communication with prospective purchasers with the intention of making a sale

question

premiums

answer

any merchandise offered free or at low cost as incentive to purchase

question

product placement

answer

the deliberate placing of products and/or their logos in movies and television programmes, usually in return for money

question

public relations

answer

the management of communications and relationships to establish goodwill and mutual understanding between an organisation and its public

question

publicity

answer

the communication of a product or business by placing information about it in the media without paying for time or space directly

question

sales promotion

answer

incentives to customers or the trade that are designed to stimulate purchase

question

sponsorship

answer

a business relationship between a provider of funds, resources or services and an individual, event or organisation that offers in return some rights and association that may be used for commercial advantage

question

target audience

answer

the group of people at which an advertisement or message is aimed

question

competitive bidding

answer

drawing up detailed specifications for a product and putting the contract out to tender

question

economic value to the customer (EVC)

answer

the amount a customer would have to pay to make the total life cycle costs of a new and a reference product the same

question

full cost pricing

answer

pricing so as to include all costs, and based on certain sales volume assumptions

question

going-rate prices

answer

prices at the rate generally applicable in the market, focusing on competitors' offerings rather than on company costs

question

marginal cost pricing

answer

the calculation of only those costs that are likely to rise as output increases

question

parallel importing

answer

when importers buy products from distributors in one country and sell them in another to distributors who are not part of the manufacturer's normal distribution; caused by significant price differences for the same product between different countries

question

price escalation

answer

the additional costs incurred in taking products to an international market, including transportation costs, distribution costs, taxes and tariffs, exchange rates and inflation rates

question

price unbundling

answer

pricing each element in the offering so that the price of the total product package is raised

question

psychological pricing

answer

taking into consideration the psychological impact of the price level that is being set

question

trade-off analysis

answer

a measure of the trade-off customers make between price and other product features, so that their effects on product preference can be established

question

differential advantage

answer

a clear performance differential over competition on factors that are important to target customers

question

exaggerated promises barrier

answer

a barrier to the matching of expected and perceived service levels caused by the unwarranted building up of expectations by exaggerated promises

question

inadequate delivery barrier

answer

a barrier to the matching of expected and perceived service levels caused by the failure of the service provider to select, train and reward staff adequately, resulting in poor or inconsistent delivery of service

question

inadequate resources barrier

answer

a barrier to the matching of expected and perceived service levels caused by the unwillingness of service providers to provide the necessary resources

question

inseparability

answer

a characteristics of services, namely that their production cannot be separated from their consumption

question

intangibility

answer

a characteristic of services, namely that they cannot be touched, seen, tasted or smelled

question

misconceptions barrier

answer

a failure by marketers to understand what customers really value about their service

question

perishability

answer

a characteristic of services, namely that the capacity of a service business, such as a hotel room, cannot be stored - if it is not occupied, there is lost income that cannot be recovered

question

relationship marketing

answer

the process of creating, maintaining and enhancing strong relationships with customers and other stakeholders

question

service

answer

any deed, performance or effort carried out for the customer

question

services marketing mix

answer

product, place, price, promotion, people, process and physical evidence

question

variability

answer

a characteristic of services, namely that being delivered by people the standard of their performance is open to variation

question

brainstorming

answer

the technique whereby a group of people generate ideas without initial evaluation; only when the list of ideas is complete is each one then evaluated

question

brand

answer

a distinctive product offering created by the use of a name, symbol, design, packaging, or some combination of these, intended to differentiate it from its competitors

question

brand equity

answer

the goodwill associated with a brand name, which adds tangible value to a company through the resulting higher sales and profits

question

brand extension

answer

the use of an established brand name on a new brand within the same broad market

question

brand stretching

answer

the use of an established brand name for brands in unrelated markets

question

brand values

answer

the core values and characteristics of a brand

question

business analysis

answer

a review of the projected sales, costs and profits for a new product to establish whether these factors satisfy company objectives

question

communications-based co-branding

answer

the linking of two or more existing brands from different companies or business units for the purposes of joint communication

question

concept testing

answer

testing new product ideas with potential customers

question

diffusion of innovation process

answer

the process by which a new product spreads throughout a market over time

question

experiential marketing

answer

the term used to describe marketing activities that involve the creation of experiences for consumers

question

family brand name

answer

a brand name used for all products in a range

question

generic brands

answer

bran names that have become so popular that product categories actually become known by the brand name

question

global branding

answer

achievement of brand penetration worldwide

question

individual brand name

answer

a brand name that does not identify a brand with a particular company

question

ingredient co-branding

answer

the explicit positioning of a supplier's brand as an ingredient of a product

question

manufacturer brands

answer

brands that are created by producers and bear their chosen brand name

question

market testing

answer

the limited launch of a new product to test sales potential

question

own-label brands

answer

brands created and owned by distributors or retailers

question

parallel co-branding

answer

the joining of two or more independent brands to produce a combined brand

question

portfolio planning

answer

managing groups of brands and product lines

question

product life cycle

answer

a four-stage cycle in the life of a product, illustrated as a curve representing the demand; the four stages being introduction, growth, maturity and decline

question

product line

answer

a group of brands that are closely related in terms of the functions and benefits they provide

question

product mix

answer

the total set of products marketed by a company

question

product-based co-branding

answer

the linking of two or more existing brands from different companies or business units to form a product in which the brand names are visible to the consumer

question

test marketing

answer

the launch of a new product in one or a few geographic areas chosen to be representative of the intended market

question

benefit segmentation

answer

the grouping of people based on the different benefits they seek from a product

question

customized marketing

answer

a market coverage strategy where a company decides to target individual customers and to develop separate marketing mixes for each

question

differentiated marketing

answer

a market coverage strategy where a company decides to target several market segments and to develop separate marketing mixes for each

question

focused marketing

answer

a market coverage strategy where a company decides to target one market segment with a single marketing mix

question

geodemographics

answer

the process of grouping households into geographic clusters based on such information as type of accommodation

question

lifestyle segmentation

answer

the grouping of people according to their pattern of living as expressed in their activities, interests and opinions

question

market segmentation

answer

the process of identifying individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy

question

mass customisation

answer

the opposite to mass production, which means that all products produced are customised to the predetermined needs of a specific customer

question

positioning

answer

the choice of target market (where the company wishes to compete) and differential advantage (how the company wishes to compete)

question

profile segmentation

answer

the grouping of people in terms of profile variables such as age and socio-economic group so that marketers can communicate to them

question

psychographic segmentation

answer

the grouping of people according to their lifestyle and personality characteristics

question

repositioning

answer

changing the target market or differential advantage, or both

question

target marketing

answer

selecting a segment as the focus for a company's offering or communications

question

undifferentiated marketing

answer

a market coverage strategy where a company decides to ignore market segment differences and to develop a single marketing mix for the whole market

question

ad hoc research

answer

a research project that focuses on a specific problem, collecting data at one point in time with one sample of respondents

question

consumer panel

answer

household consumers who provide information on their purchases over time

question

continuous research

answer

repeated interviewing of the same sample of people

question

depth interviews

answer

the interviewing of consumers individually for perhaps one or two hours with the aim of understanding their attitudes. values, behaviour and/or beliefs

question

exploratory research

answer

the preliminary exploration of a research area prior to the main data collection stage

question

focus group

answer

a group, normally of six to eight consumers, brought together for a discussion focusing on an aspect of a company's marketing

question

marketing ethnography

answer

the study of consumer behaviour in its naturally occurring context, through observation and/or discussion

question

marketing information system

answer

a system in which marketing information is formally gathered, stored, analysed and distributed to managers in accordance with their informational needs on a regular, planned basis

question

marketing research

answer

the gathering of data and information on the market

question

omnibus survey

answer

a regular survey, usually operated by a market research specialist company, which asks questions of respondents

question

qualitative research

answer

exploratory research that aims to understand consumers' attitudes, values, behaviour and beliefs

question

research brief

answer

written document stating the client's requirements

question

research proposal

answer

a document defining what the marketing research agency promises to do for its client and how much it will cost

question

retail audit

answer

a type of continuous research tracking the sales of products through retail outlets

question

sampling process

answer

a term used in research to denote the selection of a subset of the total population in order to interview them

question

secondary research

answer

data that has already been collected by another researcher for another purpose

question

attitude

answer

the degree to which a customer or prospect likes or dislikes a brand

question

awareness set

answer

the set of brands that the consumer is aware may provide a solution to a problem

question

beliefs

answer

descriptive thoughts that a person holds about something

question

buying centre

answer

a group that is involved in the buying decision; also known as a decision-making unit (DMU) in industrial buying situations

question

choice criteria

answer

the various attributes (and benefits) people use when evaluating products and services

question

classical conditioning

answer

the process of using an established relationship between a stimulus and a response to cause the learning of the same response to a different stimulus

question

cognitive dissonance

answer

post-purchase concerns of a consumer arising from uncertainty as to whether a decision to purchase was the correct one

question

cognitive learning

answer

the learning of knowledge, and development of beliefs and attitudes without direct reinforcement

question

culture

answer

the traditions. taboos, values and basic attitudes of the whole society in which an individual lives

question

decision-making process

answer

the stages that organisations and people pass through when purchasing a physical product or service

question

evoked set

answer

the set of brands that the consumer seriously evaluates before making a purchase

question

horizontal electronic marketplaces

answer

online procurement sites that cross several industries and are typically used to source low-cost supplies such as MRO items

question

information framing

answer

the way in which information is presented to people

question

information processing

answer

the process by which a stimulus is received, interpreted, stored in memory and later retrieved

question

information search

answer

the identification of alternative ways of problem solving

question

just-in-time (JIT)

answer

the JIT concept aims to minimise stocks by organizing a supply system that provides materials and components as they are required

question

lifestyle

answer

the pattern of living as expressed in a person's activities, interests and opinions

question

modified rebuy

answer

where a regular requirement for the type of product exists and the buying alternatives are known but sufficient (e.g. a delivery problem has occurred) to require some alteration to the normal supply procedure

question

motivation

answer

the process involving needs that set drives in motion to accomplish goals

question

new task

answer

refers to the first-time purchase of a product or input by an organisation

question

operant conditioning

answer

the use of rewards to generate reinforcement of response

question

perception

answer

the process by which people select, organise and interpret sensory stimulation into a meaningful picture of the world

question

personality

answer

the inner psychological characteristics of individuals that lead to consistent responses to their environment

question

reasoning

answer

a more complex form of cognitive learning where conclusions are reached by connected thought

question

reference group

answer

a group of people that influences an individual's attitude or behaviour

question

relationship marketing

answer

the process of creating, maintaining and enhancing strong relationships with customers and other stakeholders

question

reserve marketing

answer

the process whereby the buyer attempts to persuade the supplier to provide exactly what the organisation wants

question

rote learning

answer

the learning of two or more concepts without conditioning

question

selective attention

answer

the process by which people screen out those stimuli that are neither meaningful to them nor consistent with their experiences and beliefs

question

selective distortion

answer

the distortion of information received by people according their existing beliefs and attitudes

question

selective retention

answer

the process by which people retain only a selection of messages in memory

question

straight rebuy

answer

refers to a purchase by an organisation from a previously approved supplier of a previously purchased item

question

vertical electronic marketplaces

answer

online procurement sites that are dedicated to sourcing supplies for producers in one particular industry

question

vicarious learning

answer

learning from others without direct experience or reward

question

cause-related marketing

answer

the commercial activity by which businesses and charities or causes form a partnership with each other to market an image, product or service for mutual benefit

question

consumer movement

answer

an organized collection of groups and organizations whose objective it is to protect the rights of consumers

question

environmental scanning

answer

the process of monitoring and analysing the marketing environment of a company

question

ethics

answer

the moral principles and values that govern the actions and decisions of an individual or group

question

macro-environment

answer

a number of broader forces that affect not only the company but the other actors in the environment, e.g. social. political, technological and economic

question

marketing environment

answer

the actors and forces that affect a company's capability to operate effectively in providing products and services to its customers

question

micro-environment

answer

the actors in the firm's immediate environment that affect its capability to operate effectively in its chosen markets = namely, suppliers, distributors, customers and competitors

question

social responsibility

answer

the ethical principle that a person or an organisation should be accountable for hoe its actions might affect the physical environment and the general public

question

buzz marketing

answer

marketing initiatives designed to get consumers talking about a product or service

question

competitive advantage

answer

a clear performance differential over the competition on factors that are important to target customers

question

customer relationship management

answer

the methodologies, technologies and e-commerce capabilities used by firms to manage customer relationships

question

customer satisfaction

answer

the fulfilment of customers' requirements or needs

question

customer value

answer

perceived benefits minus perceived sacrifice

question

effectiveness

answer

doing the right thing, making the correct strategic choice

question

efficiency

answer

a way of managing business processes to a high standard, usually concerned with cost reduction; also called "doing things right"

question

marketing concept

answer

the achievement of corporate goals through meeting and exceeding customer needs better than the competition

question

marketing mix

answer

a framework for the tactical management of the customer relationship, including product, place, price, promotion (the 4-Ps); in the case of services, three other elements to be taken into account are process, people and physical evidence

question

marketing orientation

answer

companies with a marketing orientation focus on customer needs as the primary drivers of organisational performance

question

marketing planning

answer

the process by which businesses analyse the environment and their capabilities, decide upon courses of marketing action and implement those decisions

question

place

answer

the distribution channels to be used, outlet locations, methods of transportation

question

price

answer

(1) the amount of money paid for a product; (2) the agreed value placed on the exchange by a buyer and seller

question

product

answer

a good or service offered or performed by an organisation or individual, which is capable of satisfying customer needs

question

production orientation

answer

a business approach that is inwardly focused either on costs or on a definition of a company in terms of its production facilities

question

promotional mix

answer

advertising, personal selling, sales promotion, public relations and direct marketing

question

shareholder value

answer

the returns to a company's shareholders, which grow when the company increases its dividends or its share price rises

question

value-based marketing

answer

a perspective on marketing that emphasizes how a marketing philosophy and marketing activities contribute to the maximisation of shareholder value

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