Chapter 1 Flashcards
Marketing Management
The leading and managing of the facets of marketing to improve individual, unit, and organizational performance.
Marketing stakeholders
any person or entity inside or outside a firm with whom marketing interacts, impacts, and is impacted by.
Social Marketing
The concept that, at the broadest level, members of society at large can be viewed as a stakeholder for marketing.
Sustainability
The practicing of business that meets humanity’s needs without harming future generations.
Value
A ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits.
Exchange
The giving up of something of value for something desired.
Production Orientation
The maximization of production capacity through improvements in products and production activities without much regard for what is going on in the marketplace.
Sales Orientation
The increase of sales and consequently production capacity utilization by having sales people “push”
Marketing Concept
Business philosophy that emphasizes an organization wide customer orientation with the objective of achieving long-run profits.
Marketing Mix or 4p’s of marketing
Product, price, place, and promotion – the fundamental elements that comprise the marketer’s tool kit that can be developed in unique combinations to set the product or brand apart from competition.
Customer-centric
placing the customer at the core of the enterprise and focusing on investments in customers over the long term.
Differentiation
communicating and delivering value in different ways to different customer groups.
Market Orientation
the implementation of the marketing concept, based on an understanding of customers and competitors.
Customer Orientation
placing the customer at the core of all aspects of the enterprise.
Relationship orientation
investing in keeping and cultivating profitable current customers instead of constantly having to invest in gaining new ones.
One –to-one marketing
directing energy and resources into establishing a learning relationship with each customer and connecting that knowledge with the firm’s production and service capabilities to fulfill that customer’s needs in as customary a manner as possible.
Mass customization
combining flexible manufacturing with flexible marketing to greatly enhance customer choice.
Marketing (Big M)
the dimension of marketing that focuses on external forces that affect the organization and serves as the driver of business strategy.
Strategic Marketing
the long-term, firm-level commitment to investing in marketing-supported at the highest organization level-for the purpose of enhancing organizational performance.
Market creation
approaches that drive the market toward fulfilling a whole new set of needs that customers did not realize was possible or feasible before.
Marketing (little m)
the dimension of marketing that focuses on the functional or organizational level of the organization.
Tactical marketing
marketing activities that take place at the functional or operational level of a firm.
Marketing metrics
tools and processes designed to identity, track, evaluate, and provide key benchmarks for improvement of marketing activities.
Benefit
The advantageous outcome from the advantage found in a product feature.
Utility
The want-satisfying power of a good or service. There are four types of utility: form utility, time utility, place utility, and ownership utility.
Value proposition
The whole bundle of benefits a company promises to deliver to the customer, not just the benefits of the product itself.
Customer satisfaction
The level of liking an individual harbors for an offering.
Customer loyalty
A customer’s commitment to a company and its products and brands for the long run.
Customer retention
Low propensity among a firm’s customer base to consider switching to other providers.
Value chain
The synthesis of activities within a firm involved in designing, producing, marketing, delivering, and supporting its products or services.
Value-creating activity
Activities within a firm’s value chain that act to increase the value of its products and services for its customers. These can take the form of either primary activities or support activities.
Marketing planning
The ongoing process of developing and implementing market-driven strategies for an organization.
Marketing plan
The resulting document that records the marketing planning process in a useful framework.
Market-driven strategic planning
used to describe the process at the corporate or strategic business unit (SBU) level of marshaling the various resource and functional areas of the firm toward a central purpose around the customer.
Corporate-level strategic plan
An umbrella plan for the overall direction of the corporation developed above the strategic business unit (SBU) level.
SBU – level strategic plan
Planning that occurs within each of the firm’s strategic business units (SBUs) designed to meet individual performance requirements and contribute satisfactorily to the overall corporate plan.
Portfolio analysis
A tool used in strategic planning for Multibusiness Corporation that views SBUs, and sometimes even product lines, as a series of investments from which it expects maximization of returns.
GE Business Screen
A popular approach for in-firm portfolio analysis that categorizes business units’ level of contribution to the overall firm based on two factors: business position and market attractiveness.
Functional – level plans
Plans for each business function that makes up one of the firm’s strategic business units (SBU’s). These include core business function within each SBU such as operations, marketing, finance, as well as other pertinent operational areas.
Mission statement
The verbal articulation of an organizations purpose, or reason for existence.
Strategic vision
Often included within a firm’s mission statement, it is a discussion of what the company would like to become in the future.
Goals
General statements of what the firm wishes to accomplish in support of the mission and vision.
Objectives
Specific, measureable, and potentially attainable milestones necessary for a firm to achieve its goals.
Strategy
A comprehensive plan stating how the organization will achieve its mission and objectives.
Generic strategy
An overall directional strategy at the business level.
Competitive strategy
An organization-wide strategy designed to increase a firm’s performance within the marketplace in terms of its competitors.
Core competencies
The activities a firm can do exceedingly well.
Distinctive competencies
A firm’s core competencies that are superior to those of their competitors.
Sustainable competitive advantage
The resulting advantage a firm has when it invests in distinctive competencies.
Strategic type
Firms of a particular strategic type have a common strategic orientation and a similar combination of structure, culture, and processes consistent with that strategy. Four strategic types are prospectors, analyzers, defenders, and reactors- depending on a firm’s approach to the competitive marketplace.
First-mover advantages
When a firm introduces a new market offering, thus defining the scope of the competitive marketplace.
Situation analysis
An analysis of the macro- and micro-level environment within which a firm’s marketing plan is being developed.
SWOT analysis
A convenient framework used to summarize key finding from a firm’s situational analysis into a matrix of strengths, weaknesses, opportunities, and threats.
Market penetration strategies
Strategies designed to involve investing against existing customers to gain additional usage of existing products.
Product development strategies
Strategies designed to recognize the opportunity to invest in new products that will increase usage from the current customer base.
Market development strategies –
Strategies designed to allow for expansion of the firm’s product line into hereto-fore untapped markets, often internationally.
Diversification strategies
Strategies designed to seize on opportunities to service new markets with new products.
Marketing control
The process of measuring marketing results and adjusting the firm’s marketing plan as needed.
Market information system (MIS)
A continuing process of identifying, collecting, analyzing, accumulating, and dispensing critical information to marketing decision makers.
Marketing intelligence
The collecting, analyzing, and storing of data from the macro environment on a continuous basis.
Demographics
The characteristics of human populations and population segments, especially when used to identify consumer markets.
Microeconomics
The study of individual economic activity.
Macroeconomics
The study of economic activity in terms of broad measures of output and input as well as the interaction among various sectors of an entire economy.
Market research
The methodical identification, collection, analysis, and distribution of data related to discovering then solving marketing problems or opportunities enhancing good decision making.
Management research deliverable
The definition of what management wants to do with marketing research.
Research problem
The definition of what information is needed to help management in a particular situation.
Exploratory research
research geared toward discovery that can either answer the research question or identify other research variables for further study. It is generally the first step in the marketing research process.
Descriptive research
Research designed to explain or illustrate some phenomenon.
Casual research
Descriptive research designed to identify associations between variables.
Primary data
Data is collected specifically for a particular research question.
Secondary data
Data collected for some other purpose other the problem currently being considered.
Qualitative research
Less structured research not meant to be used for statistical analysis that can employ methods such as surveys and interviews to collect data.
Quantitative research
research used to develop a measured understanding using statistical analysis to assess and quantify the results.
Focus group
A qualitative research method that consists of a meeting (either in person or increasingly online or 6-10 people that is moderated by a professional who carefully moves the conversation through a defined agenda in an unstructured, open format.
In-depth interview
A qualitative research method that consists of an unstructured (or loosely structured) interview with an individual who has been chosen based on some characteristic of interest, often a demographic attribute.
Surveys
A quantitative research method that employs structured questionnaires given to a sample group of individuals representing the population of interest and intended to solicit specific responses to explicit questions.
Behavioral data
Information about when, what, and how often customers purchase products and services as well as other customer “touches”.
Observational data
The documentation of behaviors patterns among the population of interest.
Mechanical observation
A variation of observational data that uses a device to chronicle activity,
Open-ended questions –
Question format that encourages respondents to be expressive and offers them the opportunity to provide more detailed, qualitative responses.
Close-ended questions
Question format that encourages respondents to provide specific responses.
Census
A comprehensive record of each individual in the population.
Sample
A subgroup of the population selected for participation in research.
Probability sampling
The specific protocol used to identify and select individuals from the population in which a population element has a known nonzero chance of being selected.
Nonprobability sampling
The selection of individual for statistical research in which the probability of everyone in the population being included in the sample is not identified.
Data collection
Distributing a survey to its respondents, recording the respondents’ responses, and making the data available for analysis.
Online database
Data stored on a server that is accessed remotely over the Internet or some other telecommunications network.
Demographics
The characteristics of human populations and population segments, especially when used to identify consumer markets.
Family life cycle
The changes in life stage that transform an individual’s buying habits.
Lifestyle
An individual’s perspective on life that manifests itself in activities, interest, and opinions.
Gender roles
Behaviors regarded as proper for men and women in a particular society.
Motivation
The stimulating power that induces and then directs an individual’s behavior.
Attitude
Learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
multiattribute model
A model that measures an individual’s attitudes toward an object by evaluating it on several important attributes.
Perception
A system to select, organize, and interpret information to create a useful, informative picture of the world.
Selective awareness
A psychological tool an individual uses to help focus on what is relevant and eliminate what is not relevant.
Selective distortion
the process in which an individual can misunderstand information or make it fit existing beliefs
Selective retention
the process of placing in one’s memory only those stimuli that support existing beliefs and attitudes about a product or brand.
Memory
where people store all past learning events
Short-term memory
the information an individual recalls at the present time. Sometimes referred to as working memory
Long-term memory
enduring memory storage that can remain with an individual for years or even a lifetime
Learning
any change in the content or organization of long-term memory or behavior.
Conditioning
the creation of a psychological association between two stimuli
Cognitive learning
active learning that involves mental processes that acquire information to work through problems and manage life situations
Personality
an individual’s set of unique personal qualities that produce distinctive responses across similar situations
Brand personality
the association between a brand and an individual’s specific personality characteristics
Culture
a system of values, beliefs, and morals shared by a particular group of people that permeates over time
Language
an established system of ideas and phonetics shared by members of a particular culture that serves as their primary communication tool
Cultural values
Principles shared by a society that assert positive ideals
Nonverbal communication
the means of communicating through facial expressions, eye behavior, gestures, posture, and any other body language
Subculture
a group with a culture that shares similar cultural artifacts created by differences in ethnicity, religion, race, or geography
Family
a group of two or more people living together and related by birth, marriage, or adoption
Household life cycle (HLC)
a structured set of chronological activities a particular household follows over time.
Social class
a ranking of individuals into harmonized groups based on demographic characteristics such as age, education, income, and occupation
Aspirational purchases
products bought outside the individual’s social standing
Opinion leaders
individuals with expertise in certain products or technologies who classify, explain, and then bestow information to the broader audience
Market mavens
individuals who have information about many kinds of products, places to shop, and other facets of markets, and initiate discussions with consumers and respond to request from consumers for market information.
Reference group
a group of individuals whose beliefs, attitudes, and behavior influence the beliefs, attitudes, and behavior of an individual
Desirability
the extent and direction of the emotional connection an individual wishes to have with a particular group
Degree of affiliation
the amount of interpersonal contact an individual has with the reference group
Primary group
a reference group an individual has frequent contact with
Secondary group
a reference group with which an individual has limited contact.
Involvement
a significant outcome of an individual’s motivation that mediates the product choice decision. It is activated by three elements: background and psychological profile, aspirational focus, and the environment at the time of the purchase decision.
High-involvement learning
the learning process in which an individual is stimulated to acquire new information
Low-involvement learning
the learning process in which an individual is not prompted to value new information, characterized by little or no interest in learning about new product offerings
Real state
an individual’s perceived reality of present time
Preferred state
an individual’s desires that reflect how he or she would like to feel or live in the present time.
Minimal information search
when a consumer makes a purchase decision based on very little information or investigation
Extensive information search
when a consumer makes a purchase decision based on a thorough process of investigation and research
Limited information search
when a consumer makes a purchase decision based on incomplete information and/or lack of personal knowledge
Internal information sources
all information stored in memory and accessed by the individual regarding a purchase decision
External information sources
additional information an individual seeks from outside sources when internal information is not sufficient to make a purchase decision.
Complete set
the very large set of possible alternatives a consumer considers during the initial search for information
Awareness set
a reduced set of possible alternatives a consumer considers after eliminating available options based on gather information and personal preferences
Consideration (evoked) set
a refined list that encompasses the strongest options an individual considers in a purchase decision once he or she has obtained additional information and carried out an evaluation.
Emotional choice
a product choice based more on emotional attitudes about a product rather than rational thought.
Attitude-based choice
a product choice that relies on an individual’s beliefs and values to direct his or her assessment
Attribute-based choice
a product choice based on the premise that product choice are made by comparing brands across a define set of attributes
after purchase
Post-purchase dissonance
a feeling of doubt or anxiety following a recent purchase, generally attributed with high-involvement, large purchases
Instrumental performance
the actual performance features of the product in terms of what it was promised to do
Symbolic performance
the image-building aspects of the product in terms of how it makes the consumer feel after purchase
