question

marketing

answer

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

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exchange

answer

people giving up something in order to receive something else they would rather have

question

production orientation

answer

a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace

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sales orientation

answer

that belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits

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marketing concept

answer

the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants an needs while meeting organizational objectives

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marketing orientation

answer

a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept

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on-demand marketing

answer

delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer's decision and buying process

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societal marketing orientation

answer

the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests

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customer value

answer

the relationship between benefits and the sacrifice necessary to obtain those benefits

question

customer satisfaction

answer

customer's evaluation of a good or service in terms of whether it has met their needs and expectations

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relationship marketing

answer

a strategy that focuses on keeping and improving relationships with current customers

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empowerment

answer

delegation of authority to solve customers' problems quickly-usually by the first person the customer notifies regarding a problem

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teamwork

answer

collaborative efforts of people to accomplish common objectives

question

customer relationship management (CRM)

answer

a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups

question

strategic planning

answer

the managerial process of creating and maintaining a bit between the organization's objectives and resources and the evolving market opportunities

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strategic business unit (SBU)

answer

a subgroup of a single business or collection of related businesses within the larger organization

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market penetration

answer

a marketing strategy that tries to increase market share among existing customers

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market development

answer

a marketing strategy that entails attracting new customers to existing products

question

product development

answer

a marketing strategy that entails the creation of new products for present markets

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diversification

answer

a strategy of increasing sales by introducing new products into new markets

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portfolio matrix

answer

a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate

question

star

answer

in the portfolio matrix, a business unit that is a fast growing market leader

question

cash cow

answer

in the portfolio matrix, a business unit generates more cash than it needs to maintain its market share

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problem child (question mark)

answer

in the portfolio matrix, a business unit that shows rapid growth but poor profit margins

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dog

answer

in the portfolio matrix, a business unit that has low growth potential and a small market share

question

planning

answer

the process of anticipating future events and determining strategies to achieve organizational objectives in the future

question

marketing planning

answer

designing activities relating to marketing objectives and the changing marketing environment

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marketing plan

answer

a written document that acts as a guidebook of marketing activities for the marketing manager

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mission statement

answer

a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers an analysis of existing an anticipated environmental conditions

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marketing myopia

answer

defining a business in terms of goods and services rather than in terms of the benefits customers seek

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SWOT analysis

answer

identifying internal strengths and weaknesses and also examining external opportunities and threats

question

environmental scanning

answer

collection and interpretation of information about forces, events, and relationships in the external environment that may effect the future of the organization or the implementation of the marketing plan

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competitive advantage

answer

a set if unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

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cost competitive advantage

answer

being the low-cost competitor in an industry while maintaining satisfactory profit margins

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experience curves

answer

curves that show costs declining at a predictable rate as experience with a product increases

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product/service differentiation competitive advantage

answer

the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition

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niche competitive advantage

answer

the advantage achieved when a form seeks to target and effectively serve a small segment of the market

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sustainable competitive advantage

answer

an advantage that cannot be copied by the competition

question

marketing objective

answer

a statement of what is to be accomplished through marketing activities

question

marketing strategy

answer

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

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market opportunity analysis (MOA)

answer

the description and estimation of the size and sale potential of market segments that are of interest to the firm an the assessment of key competitors in these market segments

question

marketing mix

answer

a unique product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

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implementation

answer

the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives

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evaluation

answer

gauging the enter to which the marketing objectives have been achieved during the specified time period

question

control

answer

provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

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marketing audit

answer

a thorough, systematic, periodic evaluation of the performance of the marketing organization

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ethics

answer

the moral principles or values that generally govern the conduct of an individual or group

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deontological theory

answer

ethical theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma

question

utilitarian ethical theory

answer

ethical theory that is founded on the ability to predict the consequences of an action

question

casuist ethical theory

answer

ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas an their outcomes

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moral relativism

answer

an ethical theory of time-and-place ethics; that is,the belief that ethical truths depend in the individuals and groups holding them

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virtue

answer

a character trait values as being good

question

morals

answer

the rules people develop as a result of cultural values and norms

question

code of ethics

answer

a guideline to help marketing managers and other employees make better decisions

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Foreign Corrupt Practices Act (FCPA)

answer

a law that prohibits US corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries

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corporate social responsibility (CSR)

answer

a business's concern for society's welfare

question

stakeholder theory

answer

ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect if a firm's operation

question

pyramid of social responsibility

answer

a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the fir's economic performance supports the entire structure

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sustainability

answer

the idea that socially responsible companies will outperform their peers by focusing on the word's social problems and viewing them as opportunities to build profits and help the world at the same time

question

green marketing

answer

the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment

question

cause-related marketing

answer

the cooperation marketing efforts between a for-profit firm and a nonprofit organization

question

target market

answer

a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges

question

environmental management

answer

when a company implements strategies that attempt to shape the external environment within which it operates

question

component lifestyles

answer

the practice of choosing goods and services that meet one's needs and interests rather than conforming to a single, traditional lifestyle

question

demography

answer

the study of people's vital statistics, such as age, race and ethnicity, and location

question

Millennials

answer

people born between 1979 and 1994

question

Generation X

answer

people born between 1965 and 1978

question

baby boomers

answer

people born between 1946 and 1964

question

purchasing power

answer

a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas

question

inflation

answer

a measure of the decrease in the value of money, expressed as the percentage reduction in vale since the previous year

question

recession

answer

a period of economic activity characterized by negative growth, which reduces demand for goods and services

question

basic research

answer

pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon

question

applied research

answer

research that attempts to develop new or improved products

question

Consumer Product Safety Commission (CPSC)

answer

a federal agency established to protect the health ans safety of consumers in and around their homes

question

Food and Drug Administration (FDA)

answer

a federal agency charged with enforcing regulations against dealing and distributing adulterated, misbranded, or hazardous food and drug products

question

Federal Trade Commission (FTC)

answer

a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce

question

global marketing

answer

marketing that target markets throughout the world

question

global vision

answer

recognizing and reacting to international marketing opportunities, using effective global marketing strategies, being aware of threats from foreign competitors in all markets

question

gross domestic product (GDP)

answer

the total market value of all final goods and services produced in a country for a given period of time

question

outsourcing

answer

sending US jobs abroad

question

inshoring

answer

returning production jobs to the United States

question

multinational corporation

answer

a company that is heavily engaged in international trade, beyond exporting and importing

question

capital incentive

answer

using more capital than labor in the production process

question

global marketing standardization

answer

production of uniform products that can be sold the same way all over the world

question

multidomestic strategy

answer

when multinational firms enable individual subsidiaries to compare independently in domestic markets

question

Mercosur

answer

the largest Latin American trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela

question

Uruguay Round

answer

a trade agreement to dramatically lower trade barriers worldwide; created the World Trade Organization

question

World Trade Organization (WTO)

answer

a trade organization that replaced the old General Agreement on Tariffs and Taxes (GATT)

question

General Agreement on Tariffs and Taxes (GATT)

answer

a trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements

question

North American Free Trade Agreement (NAFTA)

answer

an agreement between Canada, the United States, and Mexico that created the world's then-largest free trade zone

question

Dominican Republic-Central American Free Trade Agreement (CAFTA-DR)

answer

a trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Savador, Guatemala, Honduras, Nicaragua, and the United States

question

European Union (EU)

answer

a free trade zone encompassing twenty-eight European countries

question

World Bank

answer

and international bank that offers low-interest loans, advice, and information on developing nations

question

International Monetary Fund (IMF)

answer

an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation

question

Group of Twenty (G-20)

answer

a forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability

question

exporting

answer

selling domestically produced products to buyers in other countries

question

buyer for export

answer

an intermediary in the global market that assumes all ownership risks and sells globally for its own account

question

export broker

answer

an intermediary who plays the traditional broker's roles by bringing buyer and seller together

question

export agent

answer

an intermediary who acts like a manufacturer's agent for the exporter; the export agent lives in the foreign market

question

licensing

answer

the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge

question

contract manufacturing

answer

private label manufacturing by a foreign company

question

joint venture

answer

when domestic firm buys part of a foreign company or join with a foreign company to create a new entity

question

direct foreign investment

answer

active ownership of a foreign company or of overseas manufacturing or marketing facilities

question

exchange rate

answer

the price of one country's currency in terms of another country's currency

question

dumping

answer

the sale of an exported product at a price lower than that charged for the same or a like product in the "home"market of the exporter

question

floating exchange rates

answer

a system in which prices of different currencies move up and down based on the demand for and the supply of each currency

question

countertrade

answer

a form of trade in which all or part of the payment for goods and services is in the form of other goods and services

question

blog

answer

a publicly accessible Web page that functions as an interactive journal, where readers can post comments on the author's entries

question

consumer behavior

answer

processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use

question

consumer decision-making process

answer

a five-step process used by consumers when buying goods or services

question

need recognition

answer

result of an imbalance between actual and desired states

question

want

answer

recognition of an unfulfilled need and a product that will satisfy it

question

stimulus

answer

any unit of input affecting one or more of the five senses; sight, smell, taste, touch, hearing

question

internal information search

answer

the process of recalling past information stored in the memory

question

external information search

answer

the process of seeking information in the outside environment

question

nonmarketing-controlled information source

answer

a product information source that is not associated with advertising or promotion

question

marketing-controlled information source

answer

a product information source that originates with marketers promoting the product

question

evoked set (consideration set)

answer

a group of brands resulting from an information search from which a buyer can choose

question

cognitive dissonance

answer

inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

question

involvement

answer

the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior

question

routine response behavior

answer

the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little research and decision time

question

limited decision making

answer

the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category

question

extensive decision making

answer

the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought items; requires use of several criteria for evaluating options and much time for seeking information

question

showrooming

answer

the practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal for the same item

question

culture

answer

the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next

question

value

answer

the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct

question

subculture

answer

a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group

question

social class

answer

a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms

question

reference group

answer

all of the formal and informal groups in society that influence an individual's purchasing behavior

question

primary membership group

answer

a reference group with which people interact regular;y in an informal, face-to-face manner, such as family, friends, and coworkers

question

secondary membership group

answer

a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group

question

aspirational reference group

answer

a group that someone would like to join

question

norm

answer

a value or attitude deemed acceptable by a group

question

nonaspirational reference group

answer

a group with which an individual does not want to associate

question

opinion leader

answer

an individual who influences the opinions of others

question

socialization process

answer

how cultural values and norms are passed down to children

question

personality

answer

a way of organizing and grouping the consistencies of an individual's reactions to situations

question

self-concept

answer

how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations

question

ideal self-image

answer

the way an individual would like to be perceived

question

real self-image

answer

the way an individual actually perceives himself or herself

question

perception

answer

the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture

question

selective exposure

answer

the process whereby a consumer notices certain stimuli and ignores others

question

selective distortion

answer

a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs

question

selective retention

answer

a process whereby a consumer remembers only tht information that supports his or her personal beliefs

question

motive

answer

a driving force that causes a person to take action to satisfy specific needs

question

Maslow's hierarchy of needs

answer

a method of classifying human needs into five categories in ascending order of importance: Physiological, safety, social, esteem, and self-actualization

question

learning

answer

a process that creates changes in behavior, immediate or expected, through experience practice

question

stimulus generalization

answer

a form of learning that occurs when one response is extended to a second stimulus similar to the first

question

stimulus discrimination

answer

a learned ability to differentiate among similar products

question

belief

answer

an organized pattern of knowledge that an individual holds as true about his or her world

question

attitude

answer

a learned tendency to respond consistently toward a given object

question

business marketing (industrial, business-to-business, B-to-B, or B2B marketing)

answer

the marketing of goods and services to individuals and organizations for purposes other than personal consumption

question

business product (industrial product)

answer

a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers

question

consumer product

answer

a product bought to satisfy an individual's personal wants or needs

question

business-to-business electronic commerce (B-to-B or B2B e-commerce)

answer

the use of the internet to facilitate the exchange of goods, services, and information between organizations

question

stickiness

answer

a measure of Web site's effectiveness; calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit

question

strategic alliance (strategic partnership)

answer

a cooperative agreement between business firms

question

relationship commitment

answer

a firm's belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely

question

trust

answer

the condition that exists when one party has confidence in an exchange partner's reliability and integrity

question

keiretsu

answer

a network of interlocking corporate affiliates

question

original equipment manufacturers (OEMs)

answer

individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to the other producers or to consumers

question

North American Industry Classification System (NAICS)

answer

a detailed numbering system developed by the Unites States, Canada, and Mexico to classify North American business establishments by their main production processes

question

derived demand

answer

the demand for business products

question

joint demand

answer

the demand for two or more items used together in a final product

question

multiplier effect (accelerator principle)

answer

phenomenon in which a small increase or decrease in consumer demand can produce much larger change in demand for the facilities and equipment needed to make the consumer product

question

business-to-business online exchange

answer

an electronic trading floor that provides companies with the integrated links to their customers and suppliers

question

reciprocity

answer

a practice whereby business purchasers choose to buy from their own customers

question

major equipment (installations

answer

capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings

question

accessory equipment

answer

goods, such as portable tools and office equipment that are less expensive and shorter-lived than major equipment

question

raw materials

answer

unprocessed extractive or agricultural products such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish

question

component parts

answer

either finished items ready for assembly or products that need very little processing before becoming part of some other product

question

Processed materials

answer

products used directly in manufacturing other products

question

supplies

answer

consumable items that so not become part of the final product

question

business services

answer

expense items that do not become part of a final product

question

buying center

answer

all those people in an organization who become involved in the purchase decision

question

new buy

answer

a situation requiring the purchase of a product for the first time

question

modified rebuy

answer

a situation in which the purchaser wants some change in the original good or service

question

straight rebuy

answer

a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers

Marketing Exam 1 Chapters 1-7 Vocab – Flashcards

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