MKTG: Principles of Marketing, Student Edition 9; Vocab CH 1-4 – Flashcards
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Marketing
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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
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People giving up something in order to receive something else they would rather have
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Product orientation
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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
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The belief that people will buy more good and services if aggressive sales techniques are used and that high sales result in high profits
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Marketing concept
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The idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives
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Market Orientation
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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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Societal marketing orientation
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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
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The relationship between benefits and the sacrifice necessary to obtain those benefits
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Customer Satisfaction
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Customers' evaluation of a good or service in terms of whether it has met their needs and expectations
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Relationship Marketing
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A strategy that focuses on keeping and improving relationships with current customers
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Empowerment
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Delegation of authority to solve customers' problems quickly - usually by the first person the customer notifies regarding a problem
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Teamwork
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Collaborative efforts of people to accomplish common objectives
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Customer Relationship Management (CRM)
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A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.
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On-Demand Marketing
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On-demand marketing delivers relevant experiences throughout the consumer's decision and buying process that are integrated across both physical and virtual environments
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Strategic Planning
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The managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market oppoprtunities
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Strategic Business Unit (SBU)
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A subgroup of a single business or collection of related businesses within the larger organization
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Market Penetration
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A marketing strategy that tries to increase market share among existing customers
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Market Development
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A marketing strategy that entails attracting new customers to existing products
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Product Development
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A marketing strategy that entails the creation of new products for present markets
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Diversification
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A strategy of increasing sales by introducing new products into new markets
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Portfolio Matrix
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A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
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Star
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In the portfolio matrix, a business unit that is a fast-growing market leader
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Cash Cow
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In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share
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Problem Child (Question Mark)
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In the portfolio matrix, a business unit that shows rapid growth but poor profit margins
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Dog
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In the portfolio matrix, a business unit that has low growth potential and a small market share
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Planning
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The process of anticipating future events and determining strategies to achieve organizational objectives in the future
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Marketing Planning
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Designing activities relating to marketing objectives and the changing marketing environment
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Marketing Plan
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A written document that acts as a guidebook of marketing activities for the marketing manager
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Mission statement
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A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
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Marketing Myopia
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Defining a business in terms of goods and services rather than in terms of the benefits customers seek
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SWOT Analysis
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Internal: Strengths, Weaknesses External: Opportunities, Threats
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Environmental Scanning
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Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
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Competitive advantage
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A set of 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
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Being the low-cost competitor in an industry while maintaining satisfactory profit margins
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Experience Curves
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Curves that show costs declining at a predictable rate as experience with a product increases
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Product/Service Differentiation
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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
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The advantage achieved when a firm seeks to target and effectively serve a small segment of the market
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Sustainable Competitive Advantage
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An advantage that cannot be copied by the competition
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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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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)
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The description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments
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Marketing Mix (Four P's)
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Product, Place, Price, Promotion
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Implementation
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A process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes that plan's objectives
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Evaluation
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Gauging the extend to which the marketing objectives have been achieved during the specified time period
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Control
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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
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A thorough systematic periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
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Ethics
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The moral principle or values that generally govern the conduct of an individual or group
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Deontological Theory
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Ethical theory that states that people should adhere to their obligations and duties when Analyzing an ethical Dilemma
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Utilitarian Ethical Theory
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Ethical theory that is founded on the ability to predict the consequences of an action
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Casuist ethical theory
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Ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes
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Moral Relativism
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An ethical theory of time-and-place ethics; that is, the ethical truths depend on the individuals and groups holding them
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Virtue
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A character trait valued as being good
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Morals
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The rules people develop as a result of cultural values and norms
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Code of Ethics
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A guideline to help marketing managers and other employees make better decisions
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Foreign Corrupt Practices Act (FCPA)
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A law that prohibits U.S. 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)
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A business's concern for society's welfare
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Stakeholder Theory
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Ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation
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Pyramid of corporate social responsibility
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A model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilites and that the firm's economic performance supports the entire structure
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Sustainability
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The idea that socially responsible companies will outperform their peers by focusing on the world's social problems an viewing them as opportunities to build profits and help the world at the same time
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Green Marketing
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The development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment
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Cause-related Marketing
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The cooperative marketing efforts between a for-profit firm and a nonprofit organization
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Target Market
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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
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Environmental management
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When a company implements strategies that attempt to shape the external environment within which it operates
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Component lifestyles
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The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle
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Demography
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The study of people's vital statistics, such as age, race and ethnicity, and location
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Millennials
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People born between 1979 and 1994
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Generation X
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People born between 1965 and 1978
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Baby Boomers
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People born between 1946 and 1964
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Purchasing Power
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A comparison of income versus the relative cost of a standard set of goods and services in different geographic areas
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Inflation
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A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
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Recession
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A period of economic activity characterized by negative growth, which reduces demand for goods and services
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Basic research
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Pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
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Applied research
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Research that attempts to develop new or improved products
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Consumer Product Safety Commission (CPSC)
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A federal agency established to protect the health and safety of consumers in and around their homes
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Food and Drug Administration (FDA)
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A federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products
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Federal Trade Commission (FTC)
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A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
