Marketing Test 1.2 – Flashcards
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marketing
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the process of creating, distributing, promoting, and pricing goods, services, and ideas 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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four marketing activities- product, pricing, distribution, and promotion- that a firm can control to meet the needs of customers with in its target market
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product
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a good, a service, or an idea
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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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consituents 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 to achieve its goals
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marketing orientation
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an organizationwide commitment to researching adn responding to customer needs
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relationship marketing
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establishing long-term, mutually satisfying buyer-seller relationships
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customer relationship management (CRM)
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using information about customers to create marketing stratedgies that develop and sustain desirable customer relationships
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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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marketing management
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the process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently
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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 planning
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the process of establishing an orgaizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan
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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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marketing plan
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a written document that specifies the activities to be performed to implement and control an organization's marketing activities
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core competencies
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thing a firm 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 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 a firm's capabilities
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competitive advantage
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the result of a company's matching a core competency to opportunities in the marketplace
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SWOT analysis
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a tool that marketers use to access an organization's strengths, weaknesses, opportunities, and threats
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mission statement
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a long-term view of what the organization wants to become
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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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corporate strategy
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a strategy that determines the means for using resources in the various functional areas to reach the organization's goals
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strategic business unit (SBU)
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a division, product line, or other profit center within a 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 form a particular company
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market-growth/market-share mix
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a strategic planning tool based on the philosophy that a product's market growth rate and market share are important in determining marketing strategy
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sustainable competitive advantage
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an advantage that the competition cannot copy
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marketing planning
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the process of assessing opportunities and resources, determining objectives, defining strategies, and establishing guidelines for implementation and control of the marketing program
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marketing implementation
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the process of putting marketing strategies into action
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intended strategy
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the strategy the company decide on during the planning phase
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realized strategy
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the strategy that actually takes place
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external customers
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individuals who patronize a business
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internal marketing
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coordinating internal exchanges between the firm and its employees to achieve successful external exchanges between the firm and its customers
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total quality management (TQM)
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A philosophy that uniform commitment to quality in all areas of the organization will promote a culture that meets customers' perceptions of quality
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benchmarking
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comparing the quality of the firm's goods, services, or processes with that of the best-performing competitors
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empowerment
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giving customer contact employees authority and responsibility to make marketing decisions on their own
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centralized organization
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a structure in which top management delegates little authority to levels below it
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decentralized organization
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a structure in which decision-making authority is delegated as far down the chain of command as possible
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marketing control process
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establishing performance standards and trying to match actual performance to those standards
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performance standard
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an expected level of performance
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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 or can be substituted for a firm's products 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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generic competitors
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firms that provide very different products that solve the same problem or satisfy the same basic customer need
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total budget competitors
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firms that compete for the limited financial resources of the same customers
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monopoly
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a competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
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oligopoly
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a competitive structure in which a few sellers control the supply of a large proportion of a product
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monopolistic competition
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a competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product
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pure competition
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a market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
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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, influenced 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 pricing, 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 influence in a society and its cultures 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 focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
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marketing ethics
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Principles and standards that define acceptable marketing conduct as determined by various stakeholders
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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
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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' rights
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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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consumer market
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purchasers and household members who intend to consume or benefit from the purchased products and do not by products to 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 other 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 markets
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markets 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 with 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 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
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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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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 geodemographic markets
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benefit segmentation
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the division of a market according to benefits that customers 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 industrywide marketing activity
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company sales potential
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the maximum percentage of market potential that an individual firm 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
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executive judgment
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sales forecasting based on the intuition of one or more executives
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customer forecasting survey
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a survey of customers regarding the types and quantities of products they intend to buy during a specific period
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sales force forecasting survey
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a survey of a firm's sales force regarding anticipated sales in their territories for a specified period
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expert forecasting survey
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sales forecasts prepared experts such as economists, management consultants, advertising executives, college professors, or other persons outside the firm
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Delphi technique
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a procedure in which experts create initial forecasts, submit them to the company for averaging, and the refine the forecasts
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time-series analysis
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a forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, adn random factor analyses
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trend analysis
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an analysis that focuses on aggregate sales data over a period of many years to determine general trends in actual sales
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cycle analysis
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an analysis of sales figures for a period of three to five years to ascertain whether sales fluctuate in a consistent, periodic manner
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seasonal analysis
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an analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales
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random factor analysis
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an analysis attempting to attribute erratic sales variation to random, nonrecurrent events
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regression analysis
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a method of predicting sales based on finding a relationship between past sales and one or more variables, such as population or income
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market test
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making a product available to buyers in one or more test areas and measuring purchases and consumer responses
