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MKTG 301 Test 1
Test 1 Material
| Term | Definition |
|---|---|
| The marketing mix | Product, Place, Promotion, Price |
| What is marketing? | 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. |
| Exchange | People giving up something in order to receive something they would rather have |
| Production orientation | A philosophy that focuses on the internal capabilities of the firm rather than the desires and needs of the marketplace |
| Sales orientation | The ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits |
| Marketing concept | 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 |
| Market orientation | A philosophy that assumes that a sale does not depend on an aggressive sales force but rather a customer’s decision to purchase a product; it is synonymous with the marketing concept |
| Societal marketing orientation | 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 |
| Customer value | The relationship between benefits and the sacrifice necessary to obtain those benefits |
| Customer satisfaction | Customers’ evaluation of a good or service in terms of whether it has met their needs and expectations |
| Relationship marketing | A strategy that focuses on keeping and improving relationships with current customers |
| Empowerment | Delegation of authority to resolve customer’s problems quickly—usually by the first person the customer notifies regarding a problem |
| Teamwork | Collaborative effects of people to accomplish common objectives |
| Strategic planning | The managerial process of creating and measuring a fit between the organization’s objectives and resources and the evolving market opportunities; an overall plan |
| Strategic business unit (SBU) | A subgroup of a single business of collection of related businesses within the larger organization |
| Market penetration | A marketing strategy that tries to increase market share among existing customers |
| Market development | A marketing strategy that entails attracting new customers to existing products |
| Product development | A marketing strategy that entails the creation of new products for present markets |
| Diversification | A strategy of increasing sales by introducing new products into new markets |
| Portfolio mix | A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate |
| Star | A business unit that is a fast-growing market leader |
| Cash cow | A business unit that generates more cash than it needs to maintain its market share |
| Problem child (?) | A business unit that shows rapid growth but poor profit margins |
| Dog | A business unit that has low growth potential and a small market share |
| Planning | The process of anticipating future events and determining strategies to achieve organizational objectives in the future |
| Marketing planning | Designing activities relating to marketing objectives and the changing marketing environment |
| Marketing plan | A written document that acts as a guidebook of marketing activities for the marketing manager |
| Mission statement | 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 |
| Marketing myopia | Defining a business in terms of goods and services rather than in terms of the benefits customers seek |
| SWOT analysis – What can we improve? | Identifying internal strengths (s) and weaknesses (w) and also examining external opportunities (o) and threats (t) |
| Environmental scanning | 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 |
| Competitive advantage | 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 |
| Cost competitive advantage | Being the low-cost competitor in an industry while maintaining satisfactory profit margins |
| Experience curves | Curves that show costs declining at a predictable rate as experience with a product increases |
| Product/service differentiation competitive advantage | The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition |
| Niche competitive advantage | The advantage achieved when a firm seeks to target and effectively serve a small segment of the market |
| Sustainable competitive advantage | An advantage that cannot be copied by the competition |
| Marketing objective | A statement of what is to be accomplished though marketing activities |
| Marketing strategy | 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 |
| Market opportunity analysis (MOA) | 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 |
| Implementation | The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives |
| Evaluation | Calculating the extent to which the marketing objectives have been achieved during the specified time period |
| Control | 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 the budget guidelines |
| Marketing audit | A thorough, systematic, periodic evaluation of the objectives, strategies, structure and performance of the marketing organization |
| Target market | 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 |
| Environmental management | When a company implements strategies that attempt to shape the external environment within which it operates |
| Component lifestyles | The practice of choosing goods and services that meet one’s diverse needs and interests rather than confronting to a single, traditional lifestyle |
| Demography | The study of people’s vital statistics, such as age, race, ethnicity and location |
| Generation Y | People born between 1979 and 1994 |
| Generation X | People born between 1965 and 1978 |
| Baby boomers | People born between 1946 and 1964 |
| Purchasing power | A comparison of income versus the relative cost of a standard set of goods and services in different geographic areas |
| Inflation | A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year |
| Recession | A period of economic activity characterized by negative growth, which reduces demand for goods and services |
| Basic research | Pure research that aims to confirm an existing theory or to learn more about a concept of phenomenon |
| Applied research | Research that attempts to develop new or improved products |
| Consumer product safety commission (CSPC) | A federal agency established to protect the health and safety of consumers in and around their homes |
| Food and drug administration (FDA) | A federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products |
| Federal trade commission (FTC) | A federal agency empowered to prevent persons or cooperations from using unfair methods of competition in commerce |
| Consumer behavior | Process a consumer uses to make purchase decisions, as well as to use and dispose of purchased services; also includes factors that influence purchase decisions and product use |
| Consumer decision-making process | A 5 step process used by consumers when buying goods or services |
| Need recognition | Result of an imbalance between actual and desired states |
| Want | Recognition of an unfulfilled need and a product that will satisfy it |
| Stimulus | Any unit of input affecting one or more of the five senses: sight, smell, taste, touch or hearing |
| Internal information search | The process of recalling past information stored in the memory |
| External information search | The process of seeking information in the outside environment |
| Nonmarketing-controlled information source | A product information source that is not associated with advertising or promotion |
| Marketing-controlled information source | A product information source that organizes with marketers promoting the product |
| Evoked set (consideration set) | A group of brands, resulting from an information search, from which a buyer can choose |
| Cognitive dissonance | Inner tention that a consumer experiences after recognizing an inconsistency between behavior and values or opinions |
| Involvement | The amount of time and effort a buyer invests in the search, evaluation and decision making process of consumer behavior |
| Routine response behavior | The type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time |
| Limited decision making | The type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar product category |
| Extensive decision making | The most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much more time for seeking information |
| Value | The enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct |
| Subculture | A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group |
| Social class | A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally and who share behavioral norms |
| Reference group | A group in society that influences an individual’s purchasing behavior |
| Primary membership group | A reference group with which people interact regularly in an informal, face-to-face manner, such as a family, friends and co-workers |
| Secondary membership group | A reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group |
| Aspirational reference group | A group that someone would like to join |
| Norm | A value or attitude deemed acceptable by a group |
| Nonaspirational reference group | A group with which an individual does not want to associate |
| Opinion leader | An individual who influences the opinions of others |
| Socialization process | How cultural values and norms are passed down to children |
| Personality | A way of organizing and grouping the consistencies of an individual’s reactions to situations |
| Self-contempt | How consumers perceive themselves in terms of attitudes, perceptions, beliefs and self-evaluations |
| Ideal self-image | The way an individual would like to be perceived |
| Real self-image | The way an individual actually perceives himself/herself |
| Perception | The process by which people select, organize and interpret stimuli into a meaningful and coherent picture |
| Selective exposure | The process whereby a consumer notices certain stimuli and ignores others |
| Selective distortion | A process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs |
| Selective retention | A process whereby a consumer remembers only that information that supports his or her personal beliefs |
| Motive | A driving force that causes a person to take action to satisfy specific needs |
| Maslow’s hierarchy of needs | A method of classifying human needs and motivations into 5 categories in ascending order of importance: physiological, safety, social, esteem and self-actualization |
| Learning | A process that creates changes in behavior, immediate or expected, through experience and practice |
| Stimulus generalization | A form of learning that occurs when one response is extended to a second stimulus similar to the first |
| Stimulus discrimination | A learned ability to differentiate among similar products |
| Belief | An organized pattern of knowledge that an individual holds as true about his or her world |
| Attitude | A learned tendency to respond consistently toward a given object |
| Business marketing (industrial marketing) | The marketing of goods and services to individuals and organizations for purposes other than personal consumption |
| Business-to-business electronic commerce | The use of the internet to facilitate the exchange of goods, services and information between organizations |
| Disintermediation | The elimination of intermediaries such as wholesalers or distributers from a marketing channel |
| Relationship commitment | A firm’s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely |
| Trust | The condition that exists when one party has confidence in an exchange partner’s reliability and integrity |
| Original equipment manufacturers (OEMs) | Individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers |
| North American industry classification system (NAICS) | A detailed numbering system developed by the United States, Canada and Mexico to classify North American business establishments by their main production processes |
| Derived demand | The demand for business products |
| Joint demand | The demand for two or more items used together in a final product |
| Multiplier effect | Phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product |
| Business-to-business online exchange | An electronic trading floor that provides companies with integrated links to their customers and suppliers |
| Reciprocity | A practice whereby business purchasers choose to buy from their own customers |
| Major equipment (installations) | Capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes and buildings |
| Accessory equipment | Goods such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment |
| Raw materials | Unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables and fish |
| Component parts | Either finished items ready for assembly or products that need very little processing before becoming part of some other product |
| Processed materials | Products used directly in manufacturing other products |
| Supplies | Consumable items that do not become part of the final product |
| Business services | Expensive items that do not become part of a final product |
| Buying center | All those people in an organization who become involved in the purchase decision |
| New buy | A situation requiring the purchase of a product for the first time |
| Modified buy | A situation in which the purchaser wants some change in the original good or service |
| Straight buy | A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers |
| Market | People or organizations with needs or wants and the ability and willingness to buy |
| Market segment | A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs |
| Market segmentation | The process of dividing a market into meaningful, relatively similar and identifiable segments or groups |
| Segmentation bases (variables) | Characteristics of individuals, groups or organizations |
| Geographic segmentation | Segmenting markets by region of a country or the world, market size, market density or climate |
| Demographic segmentation | Segmenting markets by age, gender, income, ethnic background and family life cycle |
| Family life cycle | A series of stages determined by a combination of age, marital status and the presence or absence of children |
| Geo-demographic segmentation | Segmenting potential customers into the neighborhood lifestyle categories |
| Benefit segmentation | The process of grouping customers into market segments according to the benefits they seek from the product |
| Usage rate segmentation | Dividing a market by the amount of product bought or consumed |
| 80/20 principle | a principle holding that 20% of all customers generate 80% of the demand |
| Satisficers | Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements |
| Optimizers | Business customers who consider numerous suppliers (both familiar and unfamiliar) solicit bids and study all proposals carefully before selecting one |
| Target market | A group of people or organizations for which an organization designs, implements and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges |
| Undifferentiated targeting strategy | A marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix |
| Concentrated targeting strategy | A strategy used to select one segment of a market for targeting marketing efforts |
| Niche | One segment of a market |
| Multisegment targeting strategy | A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each |
| Cannibalization | A situation that occurs when sales of a new product cut into sales of a firm’s existing products |
| One-to-one marketing | An individualized marketing method that utilizes customer information to build long-term, personalized and profitable relationships with each customer |
| Positioning | Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line or organization in general |
| Position | The place of a product, brand, or group of products occupies in customers’ minds relative to competing offerings |
| Product differentiation | A positioning strategy that some firms use to distinguish their products form those of competitors |
| Perceptual mapping | A means of displaying or graphing, in 2 or more dimensions, the location of products, brands or groups of products in customers’ minds |
| Repositioning | Changing customers’ perceptions of a brand in relation to competing brands |
Created by:
alexkolotos
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