question

Value

answer

The benefits a customer receives from buying a good or service

question

Marketing

answer

An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

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Consumer

answer

The ultimate user of a good or service

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Marketing Concept

answer

A management orientation that focuses on identifying and satisfying consumer needs to ensure the organizations long-term profitability

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Need

answer

The recognition of any difference between a consumers actual state and some ideal or desired state

question

Want

answer

The desire to satisfy needs in specific ways that are culturally and socially influenced

question

Benefit

answer

The outcome sought by a customer that motivates buying behavior--that satisfies a need or want

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Demand

answer

Customers desires for products coupled with the resources needed to obtain them

question

Market

answer

All the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange

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Marketplace

answer

Any location or medium used to conduct an exchange

question

Virtual Goods

answer

Digital products consumers buy for use in online contexts

question

Utility

answer

The usefulness or benefit consumers receive from a product

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Exchange

answer

The process by which some transfer of value occurs between a buyer and a seller

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Product

answer

A tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses

question

Production Orientation

answer

A management philosophy that emphasizes the most efficient ways to produce and distribute products

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Selling Orientation

answer

A managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory

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Consumer Orientation

answer

A business approach that prioritizes the satisfaction of customers needs and wants

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Total Quality Management (TQM)

answer

A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement

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Instapreneur

answer

A businessperson who only produces a product when it is ordered

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Triple Bottom Line Orientation

answer

A business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices

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Customer Relationship Management (CRM)

answer

A systematic tracking of consumers preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individuals unique wants and needs. CRM allows firms to talk to individual customers and to adjust elements of their marketing programs in light of how each customer reacts

question

Attention Economy

answer

A company's success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs rather than just dollars

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Social Marketing Concept

answer

A management philosophy that marketers must satisfy customers' needs in ways that also benefit society and also deliver profit to the firm

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Sustainability

answer

A product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs

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Green Marketing

answer

A marketing strategy that supports environment stewardship, thus creating a differential benefit in the minds of consumers

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Return On Investment (ROI)

answer

The direct financial impact of a firms expenditure of a resource such as time or money

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Popular Culture

answer

The music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market

question

Consumer Goods

answer

The goods individuals consumers purchase for personal or family use

question

Services

answer

Intangible products that are exchanged directly between the producer and the customer

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Business-to-Business Marketing

answer

The marketing of goods and services from one organization to another

question

Industrial Goods

answer

Goods individuals or organizations buy for further processing or for their own use when they do business

question

E-Commerce

answer

The buying and selling of goods and services electronically, usually over the internet

question

Shrinkage

answer

Losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise

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Anticonsumption

answer

The deliberate defacement of products

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Not-for-Profit Organizations

answer

Organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members

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Value Proposition

answer

A marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased

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Lifetime Value of a Customer

answer

The potential profit a single customer's purchase of a firm's products generates over the customer's lifetime

question

Distinctive Competency

answer

A superior capability of a firm in comparison to its direct competitors

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Differential Benefit

answer

Properties of products that set them apart from competitors' products by providing unique customer benefits

question

Value Chain

answer

A series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has the potential to either add or remove value from the product the customer eventually buys

question

Marketing Scorecards

answer

Feedback vehicles that report (often in quantified terms) how the company or brand is actually doing in achieving various goals

question

Metrics

answer

Measurements or "scorecards" marketers use to identify the effectiveness of different strategies or tactics.

question

Amafessionals

answer

Consumers who contribute ideas to online forums for the fun and challenge rather than to receive a paycheck, so their motivation is to gain psychic income rather than financial income

question

Consumer-Generated Content

answer

Everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers

question

Social Networking

answer

Online platforms that allow a user to represent him or herself via a profile on a web site and provide and receive links to other members of the network to share input about common interests

question

Physical URLs

answer

New apps that enable user-generated clouds of content to form around products; barcode scans allow the user to upload content or see what others have already uploaded

question

Folksonomy

answer

A classification system that relied on users rather than preestablished systems to sort contents

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Wisdom of Crowds

answer

Under the right circumstances, groups are smarter than the smarted people in them, meaning that large numbers of consumers can predict successful products

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Open Source Model

answer

A practice used in the software industry in which companies share their software codes with one another to assist in the development of a better product

question

Marketing Plan

answer

A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy

question

Mass Market

answer

All possible customers in a market, regardless of the differences in their specific needs and wants

question

Market Segment

answer

A distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market

question

Target Market

answer

The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts

question

Market Position

answer

The way in which the target market perceives the product in comparison to competitors' brands

question

Marketing Mix

answer

A combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers

question

Price

answer

The assignment of value, or the amount the consumer must exchange to receive the offering

question

Promotion

answer

The coordination of a marketer's communication efforts to influence attitudes or behavior

question

Place

answer

The availability of the product to the customer at the desired time and location

question

Business Planning

answer

An ongoing process of making decisions that guides the firm both in the short term and for the long term

question

Business Plan

answer

A plan that includes the decisions that guide the entire organization

question

Marketing Plan

answer

A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy

question

Business Ethics

answer

Rules of conduct for an organization

question

Code of Ethics

answer

Written standards of behavior to which everyone in the organization must subscribe

question

Strategic Planning

answer

A managerial decision process that matches an organization's resources and capabilities to its market opportunities for long-term growth and survival

question

Strategic Business Units (SBUs)

answer

Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors

question

Functional Planning

answer

A decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization's long-term strategic plan

question

Operational Planning

answer

A decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization's functional plan

question

Mission Statement

answer

A formal statement in an organization's strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources

question

Situation Analysis

answer

An assessment of a firm's internal and external environments

question

Internal Environment

answer

The controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization

question

External Environment

answer

The uncontrollable elements outside an organization that may affect its performance either positively or negatively

question

SWOT Analysis

answer

An analysis of an organization's strengths and weaknesses and the opportunities and threats in its external environment

question

Business Portfolio

answer

The group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities

question

Portfolio Analysis

answer

A management tool for evaluating a firm's business mix and assessing the potential of an organization's strategic business units

question

BCG Growth-Market Share Matrix

answer

A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products

question

Stars

answer

SBUs with products that have a dominant market share in high-growth markets

question

Cash Cow

answer

SBUs with a dominant market share in a low-growth-potential market

question

Question Marks

answer

SBUs with low market shares in fast-growth markets

question

Dogs

answer

SBUs with a small share of a slow-growth market. They are businesses that offer specialized products in limited markets that are not likely to grow quickly

question

Market Development Strategies

answer

Growth strategies that introduce existing products to new markets

question

Product Development Strategies

answer

Growth strategies that focus on selling new products in existing markets

question

Diversification Strategies

answer

Growth strategies that emphasize both new products and new markets

question

Control

answer

A process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis

question

Return on Marketing Investment (ROMI)

answer

Quantifying just how an investing in marketing has impact on the firms success, financially and otherwise

question

Action Plans

answer

Individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. Action plans are sometimes referred to as "marketing programs"

question

Operational Plans

answer

Plans that focus on the day-to-day execution of the marketing plan. Operational plans include detailed directions for the specific activities to be carries out, who will be responsible for them, and time lines for accomplishing the tasks

question

World Trade

answer

The flow of goods and services among different countries-- the value of all the exports and imports of the worlds nations

question

Counter-trade

answer

A type of trade in which goods are paid for with other items instead of with cash

question

General Agreement on Tariffs and Trade (GATT)

answer

International treaty to reduce import tax levels and trade restrictions

question

World Trade Organization (WTO)

answer

An organization that replaced GATT; the WTO sets trade rules for its member nations and mediates disputes between nations

question

Protectionism

answer

A policy adopted by a government to give domestic companies an advantage

question

Import Quotas

answer

Limitations set by a government on the amount of a product allowed to enter or leave a country

question

Embargo

answer

A quota completely prohibiting specified goods from entering or leaving a country

question

Tariffs

answer

Taxes on imported goods

question

Gross Domestic Product (GDP)

answer

The total dollar value of goods and services produced by a nation within its borders in a year

question

Gross National Product (GNP)

answer

A value of all goods and services produced by a country's citizens or organizations, whether located within the country's borders or not

question

Economic Infrastructure

answer

The quality of a country's distribution, financial, and communications systems

question

Level of Economic Development

answer

The broader economic picture of a country

question

Standard of Living

answer

An indicator of the average quality and quantity of goods and services consumed in a country

question

Least Developed Country (LDC)

answer

A country at the lowest stage of economic development

question

Developing Countries

answer

Countries in which the economy is shifting its emphasis from agriculture to industry

question

BRIC Countries

answer

Refers to Brazil, Russia, India, and China, the largest and fastest growing of the developing countries with over 40 percent of the world's population

question

Developed Country

answer

A country that boasts sophisticated marketing systems, strong private enterprise, and bountiful market potential for many goods and services

question

Group of 8 (G8)

answer

An informal forum of the eight most economically developed countries that meets annually to discuss major economic and political issues facing the international community

question

Business Cycle

answer

The overall patterns of change in the economy--including periods of prosperity, recession, depression, and recovery--that affect consumer and business purchasing power

question

Competitive Intelligence (CI)

answer

The process of gathering and analyzing publicly available information about rivals

question

Discretionary Income

answer

The portion of income people have left over after paying for necessities such as housing, utilities, food, and clothing

question

Product Competition

answer

When firms offering different products compete to satisfy the same consumer needs and wants

question

Brand Competition

answer

When firms offering similar goods or services compete on the basis of their brand's reputation or perceived benefits

question

Monopoly

answer

A market situation in which one firm, the only supplier of a particular product, is able to control the price, quality, and supply of that product

question

Oligopoly

answer

A market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers

question

Monopolistic Competition

answer

A market structure in which many firms, each having slightly different products, offer unique consumer benefits

question

Perfect Competition

answer

A market structure in which many small sellers, all of whom offer similar products, are unable to have an impact on the quality, price, or supply of a product

question

Patent

answer

A legal mechanism to prevent competitors from producing or selling an invention, aimed at reducing or eliminating competition in a market for a period of time

question

Nationalization

answer

When a domestic government reimburses a foreign company (often not for the full value) for its assets after taking it over

question

Expropriation

answer

When a domestic government seizes a foreign company's assets without any reimbursement

question

Local Content Rules

answer

A form of protectionism stipulating that a certain proportion of a product must consist of components supplied by industries in the host country or economic community

question

U.S. Generalized System of Preferences (GSP)

answer

A program to promote economic growth in developing countries by allowing duty-free entry of goods into the U.S.

question

Demographics

answer

Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure

question

Cultural Values

answer

A society's deeply held beliefs about right and wrong ways to live

question

Collectivist Cultures

answer

Cultures in which people subordinate their personal goals to those of a stable community

question

Individualist Cultures

answer

Cultures in which people tend to attach more importance to personal goals than to those of the larger community

question

Social Norms

answer

Specific rules dictating what is right or wrong, acceptable or unacceptable

question

Ethnocentrism

answer

The tendency to prefer products or people of one's own culture

question

Bribery

answer

When someone voluntarily offers payment to get an illegal advantage

question

Extortion

answer

When someone in authority extracts payment under duress

question

Export Merchants

answer

Intermediaries a firm uses to represent it in other countries

question

Licensing Agreement

answer

An agreement in which one firm gives another form the right to produce and market its product in a specific country or region in return for royalties

question

Franchising

answer

A form of licensing involving the right to adapt an entire system of doing business

question

Strategic Alliance

answer

Relationship developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in the target country

question

Joint Venture

answer

A strategic alliance in which a new entity owned by two or more firms allows the partners to pool their resources for common goals

question

Straight Extension Strategy

answer

Product strategy in which a firm offers the same product in both domestic and foreign markets

question

Product Adaption Strategy

answer

Product strategy in which a firm offers a similar but modified product in foreign markets

question

Product Invention Strategy

answer

Product strategy in which a firm develops a new product for foreign markets

question

Backward Invention Strategy

answer

Product strategy in which a firm develops a less advanced product to serve the needs of people living in countries without electricity or other elements of a developed infrastructure

question

Free Trade Zones

answer

Designated areas where foreign companies can warehouse goods without paying taxes or customs duties until they move the goods into the marketplace

question

Gray Market Goods

answer

Items manufactured outside a country and then imported without the consent of the trademark holder

question

Dumping

answer

A company tries to get a toehold in a foreign market by pricing its products lower than it offers them at home

question

Marketing Research Ethics

answer

Taking an ethical and above-broad approach to conducting marketing research that does no harm to the participant in the process of conducting the research

question

Marketing Information System (MIS)

answer

A process that first determines what information marketing managers need and then gathers, sorts, analyzes, stores, and distributes relevant and timely marketing information to system users

question

Intranet

answer

An internal corporate communication network that uses Internet technology to link company departments, employees, and databases

question

Marketing Intelligence System

answer

A method by which marketers get information about everyday happenings in the marketing environment

question

Marketing Research

answer

The process of collecting, analyzing, and interpreting data about customers, competitors, and the business environment in order to improve marketing effectiveness

question

Syndicated Research

answer

Research by firms that collect data on a regular basis and sell the reports to multiple firms

question

Custom Research

answer

Research conducted for a single firm to provide specific information its managers need

question

Marketing Decision Support System (MDSS)

answer

The data, analysis software, and interactive software that allow managers to conduct analyses and find the information they need

question

Data Mining

answer

Sophisticated analysis techniques to take advantage of the massive amount of transaction information now available

question

Research Design

answer

A plan that specifies what information marketers will collect and what type of study they will do

question

Secondary Data

answer

Data that have been collected for some purpose other than the problem at hand

question

Exploratory Research

answer

A technique that marketers use to generate insights for future, more rigorous studies

question

Focus Group

answer

A product-oriented discussion among a small group of consumers led by a trained moderator

question

Case Study

answer

A comprehensive examination of a particular firm or organization

question

Ethnography

answer

An approach to research based on observations of people in their own homes or communities

question

Descriptive Research

answer

A tool that probes more systematically into the problem and bases its conclusions on large numbers of observations

question

Cross-Sectional Design

answer

A type of descriptive technique that involves the systematic collection of quantitative information

question

Longitudinal Design

answer

A technique that tracks the responses of the same sample of respondents over time

question

Casual Research

answer

A technique that attempts to understand cause-and-effect relationships

question

Experiments

answer

A technique that tests predicted relationships among variables in a controlled environment

question

Telemarketing

answer

The use of the telephone to sell directly to consumers and business customers

question

Mall-Intercept

answer

A study in which researchers recruit shoppers in malls or other public area

question

Unobtrusive Measures

answer

Measuring traces of physical evidence that remain after some action has been taken

question

Cookies

answer

Text files inserted by the Web site sponsor into a Web surfer's hard drive that allows the site to track the surfer's move

question

Predictive Technology

answer

Analysis techniques that use shopping patterns of large numbers of people to determine which products are likely to be purchased if others are

question

Validity

answer

The extent to which research actually measures what it was intended to measure

question

Reliability

answer

The extent to which research measurement techniques are free of errors

question

Representativeness

answer

The extent to which consumers in a study are similar to a larger group in which the organization has an interest

question

Sampling

answer

The process of selecting respondents for a study

question

Probability Sample

answer

A sample in which each member of the population has some known chance of being included

question

Non-probability Sample

answer

A sample in which personal judgement is used to select respondents

question

Convenience Sample

answer

A non-probability sample composed of individuals who just happen to be available when and where the data are being collected

question

Back-Translation

answer

The process of translating material to a foreign language and then back to the original language

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