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.
