Ch 1-9 Flashcards
1
Q
buying function
A
Looking for and evaluating goods and services.
2
Q
collaborators
A
Firms that provide one or more of the marketing functions other than buying.
3
Q
command economy
A
Government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why.
4
Q
customer satisfaction
A
The extent to which a firm fulfills a consumer’s needs, desires, and expectations.
5
Q
customer value
A
The difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits.
6
Q
economic system
A
The way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in the society.
7
Q
financing
A
Provides the necessary cash and credit to produce, transport, store, promote, sell, and buy products.
8
Q
innovation
A
The development and spread of new ideas, goods, and services.
9
Q
intermediary
A
Someone who specializes in trade rather than production.
10
Q
macro-marketing
A
A social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society.
11
Q
market information function
A
The collection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities.
12
Q
market-directed economy
A
The individual decisions of the many producers and consumers make the macro-level decisions for the whole economy.
13
Q
marketing
A
The performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client.
14
Q
marketing company era
A
A time when, in addition to short-run marketing planning, marketing people develop long-range plans—sometimes five or more years ahead—and the whole-company effort is guided by the marketing concept.
15
Q
marketing concept
A
The idea that an organization should aim all of its efforts at satisfying its customers—at a profit.
16
Q
marketing department era
A
A time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm’s activities.
17
Q
marketing ethics
A
The moral standards that guide marketing decisions and actions.
18
Q
marketing metrics
A
Numeric data that allow marketing managers to evaluate performance, often against a set target or goal.
19
Q
marketing orientation
A
Trying to carry out the marketing concept.
20
Q
micro–macro dilemma
A
What is good for some producers and consumers may not be good for society as a whole.
21
Q
production
A
Actually making goods or performing services.
22
Q
production era
A
A time when a company focuses on production of a few specific products—perhaps because few of these products are available in the market.
23
Q
production orientation
A
Making whatever products are easy to produce and then trying to sell them.
24
Q
pure subsistence economy
A
Each family unit produces everything it consumes.
25
purpose orientation
An organization’s reason for being that extends beyond profit and creates value for stakeholders, including customers, employees, suppliers, investors, and communities
26
risk taking
Bearing the uncertainties that are part of the marketing process.
27
sales era
A time when a company emphasizes selling because of increased competition.
28
selling function
Promoting the product.
29
simple trade era
A time when families traded or sold their surplus output to local distributors.
30
social responsibility
A firm’s obligation to improve its positive effects on society and reduce its negative effects.
31
standardization and grading
Sorting products according to size and quality.
32
storing function
Holding goods until customers need them.
33
transporting function
The movement of goods from one place to another.
34
triple bottom line
A measure of long-term success that includes an organization’s economic, social, and environmental outcomes.
35
universal functions of marketing
Buying, selling, transporting, storing, standardizing and grading, financing, risk taking, and market information.
36
acquisition cost
The expense required to acquire a new customer.
37
advertising
Any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.
38
breakthrough opportunities
Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time.
39
channel of distribution
Any series of firms or individuals who participate in the flow of products from producer to final user or consumer.
40
competitive advantage
A firm has a marketing mix that the target market sees as better than a competitor’s mix.
41
customer equity
The expected earnings stream (profitability) of a firm’s current and prospective customers over some period of time.
42
customer lifetime value (CLV)
Total profits a single customer contributes to a firm over the length of the relationship.
43
customer service
A personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase; often the key to building repeat business.
44
differentiation
The marketing mix is distinct from and better than what’s available from a competitor.
45
diversification
Moving into totally different lines of business—perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.
46
implementation
Putting marketing plans into operation.
47
market development
Trying to increase sales by selling present products in new markets.
48
market penetration
Trying to increase sales of a firm’s present products in its present markets—probably through a more aggressive marketing mix.
49
marketing analytics
The practice of measuring, managing, and analyzing marketing performance to maximize its efficiency and effectiveness.
50
marketing management process
The process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling the plans.
51
marketing mix
The controllable variables that the company puts together to satisfy a target group. The four p's: product, price, promotion, place (distribution)
52
marketing plan
A written statement of a marketing strategy and the time-related details for carrying out the strategy.
53
marketing program
Blends all of the firm’s marketing plans into one big plan.
54
marketing strategy
Specifies a target market and a related marketing mix.
55
mass marketing
The typical production-oriented approach that vaguely aims at everyone with the same marketing mix.
56
mass selling
Communicating with large numbers of potential customers at the same time.
57
operational decisions
Short-run decisions to help implement strategies.
58
personal selling
Direct spoken communication between sellers and potential customers, usually in person but sometimes over the telephone or even via an online conference.
59
product development
Offering new or improved products for present markets.
60
publicity
Any unpaid form of nonpersonal presentation of ideas, goods, or services.
61
retention rate
The percentage of customers retained as compared to the total number of customers.
62
S.W.O.T. analysis
Identifies and lists the firm’s strengths and weaknesses and its opportunities and threats.
63
sales promotion
Those promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel.
64
strategic (management) planning
The managerial process of developing and maintaining a match between an organization’s resources and its market opportunities.
65
target market
A fairly homogeneous (similar) group of customers to whom a company wishes to appeal.
66
target marketing
A marketing mix is tailored to fit some specific target customers.
67
artificial intelligence (AI)
Having machines operate like humans with respect to learning and decision making.
68
Baby Boomers
People born between 1946 and 1964.
69
black swan event
events which are highly improbable and have severe consequences
70
competitive environment
The number and types of competitors the marketing manager must face and how they may behave.
71
competitive rivals
A firm’s closest competitors.
72
competitor analysis
An organized approach for evaluating the strengths and weaknesses of current or potential competitors’ marketing strategies.
73
cultural and social environment
Affects how and why people live and behave as they do.
74
economic environment
Macroeconomic factors, including national income, economic growth, and inflation, that affect patterns of consumer and business spending.
75
economies of scale
As a company produces larger numbers of a particular product, the cost of each unit of the product goes down.
76
free trade
Refers to agreements between countries to not restrict imports and exports.
77
Generation Alpha
people born since 2010
78
Generation X (Gen X)
People born between 1965 and 1977.
79
Generation Y (Gen Y)
People born between 1978 and 1994. Also called millennials.
80
Generation Z (Gen Z)
People born since 1995.
81
gross domestic product (GDP)
The total market value of all goods and services provided in a country’s economy in a year by both residents and nonresidents of that country.
82
gross national income (GNI)
A measure that is similar to GDP, but GNI does not include income earned by foreigners who own resources in that nation.
83
intelligent agent
A device that observes an environment and acts to achieve a goal.
84
machine learning
A type of computer algorithm where a software application becomes more accurate in predicting outcomes without actual programming.
85
market share
The portion of total sales in a product category accounted for by a particular brand.
86
metaverse
a virtual reality space where users can interact with the environment and other users
87
mission statement
A statement that sets out the organization’s basic purpose for being.
88
nationalism
An emphasis on a country’s interests before everything else.
89
purpose statement
an aspirational reason for being, inspiring action, and which benefits customers, employees, investors, and society at large
90
senior citizens
People older than 65.
91
sustainability
The idea that it’s important to meet present needs without compromising the ability of future generations to meet their own needs.
92
sustainable competitive advantage
A marketing mix that customers see as better than a competitor’s mix and cannot be quickly or easily copied.
93
technology
The application of science to convert an economy’s resources to output.
94
clustering techniques
Approaches used to try to find similar patterns within sets of data.
95
combined target market approach
Combining two or more submarkets into one larger target market as a basis for one strategy.
96
combiners
Firms that try to increase the size of their target markets by combining two or more segments.
97
customer relationship management (CRM)
An approach where the seller fine-tunes the marketing effort with information from a detailed customer database.
98
dynamic behavioral segmentation
The use of real-time data to continuously update a customer’s placement in a market segment.
99
generic market
A market with broadly similar needs and sellers offering various, often diverse, ways of satisfying those needs.
100
market
A group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services—that is, ways of satisfying those needs.
101
market segment
A relatively homogeneous group of customers who will respond to a marketing mix in a similar way.
102
market segmentation
A two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.
103
multiple target market approach
Segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix.
104
positioning
Refers to how customers think about proposed or present brands in a market.
105
positioning statement
Statement that concisely identifies the firm’s desired target market, product type, primary benefit or point of differentiation, and the main reasons a buyer should believe the firm’s claims.
106
product-market
A market with very similar needs and sellers offering various close substitute ways of satisfying those needs.
107
segmenters
Aim at one or more homogeneous segments and try to develop a different marketing mix for each segment.
108
segmenting
An aggregating process that clusters people with similar needs into a market segment.
109
single target market approach
Segmenting the market and picking one of the homogeneous segments as the firm’s target market.
110
adoption process
The steps individuals go through on the way to accepting or rejecting a new idea.
111
attitude
A person’s point of view toward something.
112
belief
A person’s opinion about something.
113
cues
Products, signs, ads, and other stimuli in the environment.
114
culture
The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people.
115
discretionary income
What is left of disposable income after paying for necessities.
116
dissonance
Tension caused by uncertainty about the rightness of a decision.
117
drive
A strong stimulus that encourages action to reduce a need.
118
economic buyers
People who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money.
119
economic needs
Needs concerned with making the best use of a consumer’s time and money—as the consumer judges it.
120
empty nesters
People whose children are grown and who are now able to spend their money in other ways.
121
expectation
An outcome or event that a person anticipates or looks forward to.
122
extensive problem solving
When consumers put much effort into deciding how to satisfy a need.
123
learning
A change in a person’s thought processes caused by prior experience.
124
lifestyle analysis
The analysis of a person’s day-to-day pattern of living as expressed in that person’s Activities, Interests, and Opinions (AIOs). See also Psychographics.
125
limited problem solving
When a consumer is willing to put some effort into deciding the best way to satisfy a need.
126
low-involvement purchases
Purchases that have little importance or relevance for the customer.
127
needs
The basic forces that motivate a person to do something.
128
opinion leader
A person who influences others.
129
perception
How we gather and interpret information from the world around us.
130
personal needs
An individual’s need for personal satisfaction unrelated to what others think or do.
131
physiological needs
Biological needs such as the need for food, drink, rest, and sex.
132
predictive analytics
A process used to analyze data to make predictions about unknown future events.
133
psychographics
The analysis of a person’s day-to-day pattern of living as expressed in that person’s Activities, Interests, and Opinions (AIOs). See also Lifestyle analysis.
134
purchase situation
Takes into account the purpose, time available, and location where a purchase is made.
135
reference group
The people to whom an individual looks when forming attitudes about a particular topic.
136
reinforcement
Occurs in the learning process when the consumer’s response is followed by satisfaction—that is, reduction in the drive.
137
response
An effort to satisfy a drive.
138
routinized response behavior
When consumers regularly select a particular way of satisfying a need when it occurs.
139
safety needs
Needs concerned with protection and physical well-being.
140
selective exposure
Our eyes and minds seek out and notice only information that interests us.
141
selective perception
People screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.
142
selective retention
People remember only what they want to remember.
143
social class
A group of people who have approximately equal social position as viewed by others in the society.
144
social needs
Needs concerned with love, friendship, status, and esteem—things that involve a person’s interaction with others.
145
societal needs
an individual’s desire to see the needs of others or the natural world fulfilled.
146
trust
The confidence a person has in the promises or actions of another person, brand, or company.
147
wants
Needs that are learned during a person’s life.
148
business and organizational customers
Any buyers who buy for resale or to produce other goods and services.
149
buying center
All the people who participate in or influence a purchase.
150
competitive bid
Terms of sale offered by different suppliers in response to the buyer’s purchase specifications.
151
Foreign Corrupt Practices Act
A law passed by the U.S. Congress in 1977 that prohibits U.S. firms from paying bribes to foreign officials.
152
just–in–time delivery
Reliably getting products there just before the customer needs them.
153
modified rebuy
The in-between process where some review of the buying situation is done—though not as much as in new-task buying or as little as in straight rebuys.
154
multiple buying influence
Several people share in making a purchase decision—perhaps even top management.
155
negotiated contract buying
Agreeing to a contract that allows for changes in the purchase arrangements.
156
new–task buying
When an organization has a new need and the buyer wants a great deal of information.
157
North American Industry Classification System (NAICS) codes
Codes used to identify groups of firms in similar lines of business.
158
outsource
When the buying organization chooses to contract with an outside firm to produce goods or services rather than producing them internally.
159
purchasing managers
Buying specialists for their employers.
160
purchasing specifications
A written (or electronic) description of what the firm wants to buy.
161
requisition
A request to buy something.
162
straight rebuy
A routine repurchase that may have been made many times before.
163
vendor analysis
Formal rating of suppliers on all relevant areas of performance.
164
white papers
An authoritative report or guide that addresses important issues in an industry and offers solutions.
165
big data
Data sets too large and complex to work with typical database management tools.
166
confidence interval
The range on either side of an estimate from a sample that is likely to contain the true value for the whole population.
167
consumer panel
A group of consumers who provide information on a continuing basis.
168
customer journey map
The story and graphic diagram of a customer’s experience in the buying process from need awareness through the purchase process and post-purchase relationship.
169
data warehouse
A place where databases are stored so that they are available when needed.
170
decision support system (DSS)
A computer program that makes it easy for marketing managers to get and use information as they are making decisions.
171
depth interview
Where a researcher asks detailed, open-ended questions to get people to share their thoughts on a topic, without giving them many directions or guidelines about what to say.
172
experimental method
A research approach in which researchers compare the responses of two or more groups that are similar except on the characteristic being tested.
173
focus group interview
An interview of 6 to 10 people in an informal group setting.
174
General Data Protection Regulation (GDPR)
A set of laws on data protection and privacy for all individuals within the European Union.
175
hypotheses
Educated guesses about the relationships between things or about what will happen in the future.
176
informational privacy
Anything that limits others’ access to personal data that people consider sensitive or confidential.
177
marketing dashboard
Displays up-to-the-minute marketing information in an easy-to-read format—much like a car’s dashboard shows the speedometer and fuel gauge.
178
marketing information system (MIS)
An organized way of continually gathering, accessing, and analyzing information that marketing managers need to make ongoing decisions.
179
marketing model
A statement of relationships among marketing variables.
180
marketing research
Procedures to develop and analyze new information to help marketing managers make decisions.
181
marketing research process
A five-step application of the scientific method that includes (1) defining the problem, (2) analyzing the situation, (3) getting problem-specific data, (4) interpreting the data, and (5) solving the problem.
182
observation method
Researchers try to see or record what the subject does naturally.
183
personal data
Information that can be used by itself or in combination with other information to identify someone.
184
population
In marketing research, the total group you are interested in.
185
primary data
Information specifically collected to solve a current problem.
186
qualitative research
Seeks in-depth, open-ended responses, not yes or no answers.
187
quantitative research
Seeks structured responses that can be summarized in numbers—such as percentages, averages, or other statistics.
188
research proposal
A plan that specifies what marketing research information will be obtained and how.
189
response rate
The percentage of people contacted in a research sample who complete the questionnaire.
190
sample
A part of the relevant population.
191
scientific method
A decision-making approach that focuses on being objective and orderly in testing ideas before accepting them.
192
secondary data
Information that has been collected or published already.
193
sentiment analysis
An automated process of analyzing and categorizing social media to determine the amount of positive, negative, and neutral online comments a brand receives.
194
situation analysis
An informal study of what information is already available in the problem area.
195
statistical packages
Easy-to-use computer programs that analyze data.
196
validity
The extent to which data measure what they are intended to measure.
197
accessories
Short-lived capital items—tools and equipment used in production or office activities
198
augmented reality (AR)
An overlay of a computer-generated image, sound, text, or video onto a user’s view of the physical world.
199
battle of the brands
The competition between dealer brands and manufacturer brands.
200
brand equity
The value of a brand’s overall strength in the market.
201
brand evangelism
meaning that customers are so enthusiastic about a brand that they actively spread positive word-of-mouth.
202
brand familiarity
How well customers recognize and accept a company’s brand.
203
brand insistence
Customers insist on a firm’s branded product and are willing to search for it.
204
brand name
A word, letter, or a group of words or letters.
205
brand nonrecognition
Final customers don’t recognize a brand at all—even though intermediaries may use the brand name for identification and inventory control.
206
brand preference
Target customers usually choose the brand over other brands, perhaps because of habit or favorable past experience.
207
brand recognition
Customers remember the brand.
208
brand rejection
Potential customers won’t buy a brand unless its image is changed.
209
branding
The use of a name, term, symbol, or design—or a combination of these—to identify a product.
210
business products
Products meant for use in producing other products.
211
capital item
A long-lasting product that can be used and depreciated for many years.
212
components
Processed expense items that become part of a finished product.
213
consumer products
Products meant for the final consumer.
214
convenience products
Products a consumer needs but isn’t willing to spend much time or effort shopping for.
215
dealer brands
Brands created by intermediaries. See also Private brands.
216
derived demand
Demand for business products derives from the demand for final consumer products.
217
emergency products
Products that are purchased immediately when the need is great.
218
expense item
A product whose total cost is treated as a business expense in the period it’s purchased.
219
family brand
A brand name that is used for several products.
220
farm products
Products grown by farmers, such as oranges, sugarcane, and cattle.
221
Federal Fair Packaging and Labeling Act
A 1966 law requiring that consumer goods be clearly labeled in easy-to-understand terms.
222
generic products
Products that have no brand at all other than identification of their contents and the manufacturer or intermediary.
223
heterogeneous shopping products
Shopping products the customer sees as different and wants to inspect for quality and suitability.
224
homogeneous shopping products
Shopping products the customer sees as basically the same and wants at the lowest price.
225
impulse products
Products that are bought quickly as unplanned purchases because of a strongly felt need.
226
individual brands
Separate brand names used for each product.
227
individual product
A particular product within a product line.
228
installations
Important capital items such as buildings, land rights, and major equipment.
229
Lanham Act
A 1946 law that spells out what kinds of marks (including brand names) can be protected and the exact method of protecting them.
230
licensed brand
A well-known brand that sellers pay a fee to use.
231
manufacturer brands
Brands created by producers.
232
natural products
Products that occur in nature—such as timber, iron ore, oil, and coal.
233
new unsought products
Products offering really new ideas that potential customers don’t know about yet.
234
non-fungible tokens (NFTs)
A virtual product that includes a record of ownership of primarily digital media.
235
packaging
Promoting, protecting, and enhancing the product.
236
private brands
Brands created by intermediaries. See also Dealer brands.
237
Product
The need-satisfying offering of a firm.
238
product assortment
The set of all product lines and individual products that a firm sells.
239
product line
A set of individual products that are closely related.
240
product line length
The number of individual products in a product line.
241
professional services
Specialized services that support a firm’s operations.
242
quality
A product’s ability to satisfy a customer’s needs or requirements.
243
raw materials
Unprocessed expense items—such as logs, iron ore, and wheat—that are moved to the next production process with little handling.
244
regularly unsought products
Products that stay unsought but not unbought forever.
245
service
An intangible offering involving a deed, performance, or effort.
246
service mark
Those words, symbols, or marks that are legally registered for use by a single company to refer to a service offering.
247
shopping products
Products that a customer feels are worth the time and effort to compare with competing products.
248
specialty products
Consumer products that the customer really wants and makes a special effort to find.
249
staples
Products that are bought often, routinely, and without much thought.
250
supplies
Expense items that do not become part of a finished product.
251
trademark
Those words, symbols, or marks that are legally registered for use by a single company.
252
unsought products
Products that potential customers don’t yet want or know they can buy.
253
warranty
What the seller promises about its product.
254
brand managers
Manage specific products, often taking over the jobs formerly handled by an advertising manager. See also Product managers.
255
concept testing
Getting reactions from customers about how well a new-product idea fits their needs.
256
Consumer Product Safety Act
A 1972 law that set up the Consumer Product Safety Commission to encourage more awareness of safety in product design and better quality control.
257
continuous improvement
A commitment to constantly make things better one step at a time.
258
continuous innovations
New products that don’t require customers to learn new behaviors.
259
discontinuous innovations
New products that require that customers adopting the innovation significantly change their behavior.
260
dynamically continuous innovations
New products that require minor changes in customer behavior.
261
empowerment
Giving employees the authority to correct a problem without first checking with management.
262
fad
An idea that is fashionable only to certain groups who are enthusiastic about it—but these groups are so fickle that a fad is even more short-lived than a regular fashion.
263
fashion
Currently accepted or popular style.
264
Federal Trade Commission (FTC)
Federal government agency that polices antimonopoly laws.
265
market growth
A stage of the product life cycle when industry sales grow fast—but industry profits rise and then start falling.
266
market introduction
A stage of the product life cycle when sales are low as a new idea is first introduced to a market.
267
market maturity
A stage of the product life cycle when industry sales level off and competition gets tougher.
268
new product
A product that is new in any way for the company concerned.
269
patent
Grants the inventor the ability to “exclude others from making, using, offering for sale, or selling the invention.”
270
product liability
The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products.
271
product life cycle
The stages a new-product idea goes through from beginning to end.
272
product managers
Manage specific products, often taking over the jobs formerly handled by an advertising manager. See also Brand managers.
273
prototype
An early sample or model built to test a concept.
274
return on investment (ROI)
Ratio of net profit (after taxes) to the investment used to make the net profit, multiplied by 100 to get rid of decimals.
275
sales decline
A stage of the product life cycle when new products replace the old.
276
total quality management (TQM)
The philosophy that everyone in the organization is concerned about quality, throughout all of the firm’s activities, to better serve customer needs.
