Principles of Marketing Exam 1 Vocabulary – Flashcards
Unlock all answers in this set
Unlock answersquestion
Marketing
answer
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
question
Exchange
answer
People giving up something in order to receive something else they would rather have
question
Production orientation
answer
a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the market place
question
Sales orientation
answer
the belief that people will buy more goods and services of aggressive sales techniques are used and that high sales result in high profits
question
Marketing concept
answer
the idea that the social and economic justification for an organizations existence is the satisfaction of customer wants and needs while meeting organizational objectives
question
Market orientation
answer
a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customers decision to purchase a product; it is synonymous with the marketing concept
question
Societal marketing orientation
answer
the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and societies long-term best interests
question
Customer value
answer
the relationship between benefits and the sacrifice necessary to obtain those benefits
question
Customer satisfaction
answer
customers evaluation of a goof or service in terms of whether it has met their needs and expectations
question
Relationship marketing
answer
a strategy that focuses on keeping and improving relationships with current customers
question
Empowerment
answer
delegation of authority to solve customers problems quickly - usually by the first person the customer notifies regarding a problem
question
Teamwork
answer
collaborative efforts of people to accomplish common objectives
question
Customer relationship management (CRM)
answer
a company wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
question
on-demand marketing
answer
on-demand marketing delivers relevant experiences throughout the customers decision and buying process that are integrated across both physical and virtual environments
question
Strategic planning
answer
The managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities
question
Strategic business unit (SBU)
answer
a subgroup of a single business or collection of related businesses within the larger organization
question
Market penetration
answer
a marketing strategy that tries to increase marketshare among existing customers
question
Product development
answer
a marketing strategy that entails the creation of new products for present markets
question
Market develpoment
answer
a marketing strategy that entails attracting new customers to existing markets
question
Diversification
answer
a strategy of increasing sales by introducing new products into new markets
question
portfolio matrix
answer
a tool for allocating resources among products or strategic business units on the bases of relative market share and market growth rate
question
Star
answer
in the portfolio matrix, a business that is fast growing market leader
question
Cash cow
answer
in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share
question
Dog
answer
in the portfolio matrix, a business unit that has a low growth potential and small market share
question
problem child (question mark)
answer
in the portfolio matrix, a business unit that shows rapid growth but poor profit margins
question
Planning
answer
the process of anticipating future events and determining strategies to achieve organizational objectives in the future
question
Market planning
answer
designing activities relating to marketing objectives and the changing marketing environment
question
Marketing plan
answer
a written document that acts as a guide book of marketing activities for the marketing manager
question
Mission statement
answer
a statement of the firms business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
question
marketing myopia
answer
defining business in terms of goods and services rather than in terms of the benefits customers seek
question
SWOT analysis
answer
identifying internal strengths and weaknesses and also examining external opportunities and threats
question
Environmental scanning
answer
collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization and the implementation of the marketing plan
question
Competitive advantage
answer
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
question
Cost competitive advantage
answer
being the low-cost competitor in an industry while maintaining satisfactory profit margins
question
Experience curves
answer
curves that show costs declining at a predictable rate as experience with a product increases
question
Product/service differentiation competitive advantage
answer
the provision of something that is unique and valuable to buyers beyond simply offering a lower price that that of the competition
question
Niche competitive advantage
answer
the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
question
Sustainable competitive advantage
answer
an advantage that cannot be copied by the competition
question
Marketing objective
answer
a statement of what is to be accomplished through marketing activities
question
Marketing strategy
answer
The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets
question
market opportunity analysis (MOA)
answer
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
question
Marketing mix (four Ps)
answer
A unique bend of product, place(distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
question
Implementation
answer
The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plans objectives
question
Evaluation
answer
Gauging the extent to which the marketing objectives have been achieved during the specified time period
question
Control
answer
provides the mechanisms for evaluating marketing results in light of the plans objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines
question
Marketing audit
answer
a thorough systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
question
Ethics
answer
The moral principles or values that generally govern the conduct of an individual or a group
question
Deontological theory
answer
ethical theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma
question
Utilitarian ethical theory
answer
ethical theory that is founded on the ability to predict the consequences of an action
question
Casuist ethical theory
answer
ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes
question
Moral relativsim
answer
an ethical theory of time-- and place ethics; that is, the belief that ethical truths depend on the individuals and groups holding them
question
Virtue
answer
a character trait valued as being good
question
Morals
answer
the rules people develop as a result of cultural values and norms
question
code of ethics
answer
a guideline to help marketing managers and other employees make better decisions
question
Foreign corrupt practices act (FCPA)
answer
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
question
Corporate social responsibility (CSR)
answer
a businesses concern for societies welfare
question
Stakeholder theory
answer
ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firms operation
question
Pyramid of corporate social responsibility
answer
a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firms economic performance supports the entire structure
question
Sustainability
answer
the idea that socially responsible companies will outperform their peers by focusing on the worlds social problems and viewing them as opportunities to build profits and help the world at the same time
question
Green marketing
answer
the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment
question
Cause related marketing
answer
the cooperative marketing efforts between a for-profit firm and a nonprofit organization
question
target market
answer
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges
question
Environmental management
answer
when company implements strategies that attempt to shape the external environment within which it operates
question
Component lifestyle
answer
the practice of choosing goods and services that meet ones diverse needs and interest rather than conforming to a single, traditional lifestyle
question
Milennial
answer
people born between 1979 and 1994
question
Generation X
answer
people born between 1965 and 1978
question
Baby boomers
answer
people born between 1946 and 1964
question
Purchasing power
answer
a comparison of income versus the relative cost of standard set of goods and services in different geographic areas
question
Inflation
answer
a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
question
recession
answer
a period of economic activity characterized by negative growth, which reduces demand for goods and services
question
basic research
answer
Pure research that aims to confirm an existing theory or to learn more about concept of phenomenon
question
Applied research
answer
research that attempts to develop new or improved products
question
Consumer product safety commission (CPSC)
answer
a federal agency established to protect the health and safety of consumers in and around their homes
question
Food and drug administration
answer
a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products
question
Federal trade commission (FTC)
answer
a federal agency empowered to prevent persons or corporations fro using unfair methods of competition in commerce
question
Global marketing
answer
marketing that targets markets throughout the world
question
Global vision
answer
recognizing and reacting to international marketing opportunities using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
question
Gross domestic product (GDP)
answer
the total market value of all final goods and services produced in a country for a given time period
question
Outsourcing
answer
sending U.S. jobs abroad
question
Inshoring
answer
returning production jobs to the U.S.
question
Multinational corporation
answer
a company that is heavily engaged in international trade, beyond exporting and importing
question
Capital intensive
answer
using more capital than labor in the production process
question
Global marketing standardization
answer
production of uniform products that can be sold the same way all over the world
question
Multi-domestic strategy
answer
when multinational firms enable individual subsidiaries to compete interdependently in domestic markets
question
Mercosur
answer
The largest latin american trade agreement
question
Uruguay round
answer
a trade agreement to dramatically lower trade barrier worldwide; created the WTO
question
World trade organization (WTO)
answer
a trade organization that replaced the old general agreement on tariffs and trade (GATT)
question
General agreement on tariffs and trade (GATT)
answer
a trade agreement that contained loopholes enabling countries to avoid trade barrier reduction agreements
question
North american fair trade agreement (NAFTA)
answer
an agreement between Canada, U.S., and Mexico that created the worlds then largest free trade zone
question
Dominican republic-Central America free trade agreement (CAFTA-DR)
answer
a trade agreement instituted in 2005 that include the DR and central american countries
question
European union
answer
a free trade zone consisting of 28 countries in Europe
question
World bank
answer
An international bank that offers low-interest loans, advice, and information to developing countries
question
International monetary fund(IMF)
answer
an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
question
Group of twenty (G-20)
answer
a forum of international economic development that promotes discussion between industrial and emerging -market countries on key issues related to global economic stability
question
Exporting
answer
selling domestically produced products to buyers in other countries
question
Buyer for export
answer
an intermediary in the global market that assumes all ownership risks and sells globally for its own support
question
Licensing
answer
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
question
Contract manufacturing
answer
private label manufacturing by a foreign company
question
joint venture
answer
when a domestic form buys part of a foreign company or joins with a foreign company to create a new entity
question
Direct foreign investment
answer
active ownership of a foreign company or of overseas manufacturing or marketing facilities
question
exchange rate
answer
the price of one countries currency in terms of another countries currency
question
Floating exchange rates
answer
a system in which prices of different currencies move up and own based on the demand for and the supply of each currency
question
Dumping
answer
the sale of an exported product at a price lower than that charged for the same or like product in the "home: market of the exporter
