Marketing Strategy Chapter1-7 – Flashcards
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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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Customers
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The purchasers of organizations' products; the focal point of all marketing activities
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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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Marketing mix
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for 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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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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Exchanges
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the provision or transfer of goods services, or ideas in return for something of value
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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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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 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 on to achieve its goals
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market orientation
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an organization wide commitment to researching and responding to customer needs
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customer relationship management (CRM)
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using information about customers to create marketing strategies that develop and sustain desirable customer relationships
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relationship marketing
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establishing long-term, mutually satisfying buyer-seller relationships
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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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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 planning
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the process of establishing an organizational corporate strategy, marketing objectives, marketing strategy, and a marketing plan
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mission statement
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a longterm view, or vision, of what the organization wants to become
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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 goal
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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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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 share
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the percentage of a market that actually buys a specific product from a particular company
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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 share are important considerations in determining its marketing strategy
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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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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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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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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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SWOT analysis
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assessment of an organization's strengths, weaknesses, opportunities, and threats
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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 the marketplace
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last-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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marketing objective
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a statement of what is to be accomplished through marketing activities
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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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sustainable competitive advantage
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an advantage that the competition cannot copy
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marketing implementation
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the process of putting marketing strategies into action
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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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decentralized organization
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a structure in which decision-marketing authority is delegated as far down the chain of command as possible
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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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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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marketing cost analysis
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analysis of costs to determine which are associated with specific marketing efforts
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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 activities
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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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environmental analysis
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the process of assessing and interpreting the information gathered through environmental scanning
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competition
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other firms that market products that are similar to air can be substituted for a firm's product in the same geographic area
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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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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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total budget competitors
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firms that compete for the limited financial resources of the same customers
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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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disposable income
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after-tax income
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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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willingness to spend
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an inclination to buy because of expected satisfaction from a product, infuenced by the ability to buy and numerous psychological and social forces
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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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Federal trade commission(FTC)
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an agency that regulates a variety of business practices and curbs false advertising, misleading proving, and deceptive packaging and labeling
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better business bureau
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a local, nongovernmental regulatory agency, supported by local businesses, that helps settle problems between customers and specific business firms
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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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technology
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the application of knowledge and tools to solve problems and perform tasks more efficiently
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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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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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marketing citizenship
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the adoption of a strategic forces for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
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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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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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strategic philanthropy approach
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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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consumerism
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organized efforts by individuals, groups, and organizations to protect consumers' right
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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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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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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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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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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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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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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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hypothesis
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an informed guess or assumption about a certain problem or et f circumstances
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reliability
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a condition that exists when a search technique produces almost identical results in repeated trials
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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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primary data
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data observed and recorded or collected directly from respondents
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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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statistical interpretation
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analysis of what is typical and what deviates form the average
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single-source data
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information provided by a single marketing research firm
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marketing decision support system (MDSS)
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costomized computer software that aids marketing managers in decision making
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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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business market
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individuals or groups that purchase a specific kind of product for resale, direct use in producing her products, or use in general daily operations
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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
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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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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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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 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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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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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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segmentation variables
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characteristics of individuals, groups, or organizations used to divide a market into segments
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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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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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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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benefit segmentation
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the division of a market according to benefits that consumers want from the product
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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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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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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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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
