Exam 1 Flashcards
Consumer
the ultimate user of a good or service
Marketing
Marketing is 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.
marketing mix
a combination of the product itself, the price of the product, the promotional activities that it, and the place where it is made available, that together create a desired response among a set of predefined consumers
four ps
product, price, promotion, and place
product
A tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses.
promotion
the coordination of a marketer’s communication efforts to influence attitudes or behavior
place
the availability of the product to the customer at the desired time and location
channel of distribution
the series of firms or individuals that facilitates the movement of a product from the producer to the final customer
price
the assignment of value, or the amount the consumer must exchange to receive the offering
exchange
The process by which some transfer of value occurs between a buyer and a seller
consumer goods
The goods individual consumers purchase for personal or family use.
services
Intangible products that are exchanged directly between the producer and the customer
business-to-business marketing
The marketing of goods and services from one organization to another
industrial goods
Goods that individuals or organizations buy for further processing or for their own use when they do business
e-commerce
the buying or selling of goods and services electronically, usually over the internet
not-for-profit organizations (nongovernmental organizations [NGO’s])
Organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members.
marketing concept
A management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long-term profitability
need
The recognition of any difference between a consumer’s actual state and some ideal or desired state.
want
The desire to satisfy needs in specific ways that are culturally and socially influenced.
benefit
The outcome sought by a customer that motivates buying behavior that satisfies a need or want.
demand
Customers’ desires for products coupled with the resources needed to obtain them.
market
all the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange
marketplace
Any location or medium used to conduct an exchange
rentrepreneurs
Enterprising consumer who make money by renting out their possessions when they aren’t using them.
collaborative consumption
a term used to refer to the activities practiced by rentrepreneurs
utility
The usefulness or benefit that consumers receive from a product
stakeholders
Buyers, sellers, or investors in a company; community residents; and even citizens of the nations where goods and services are made or sold; in other words, any person or organization that has a “stake” in the outcome.
production orientation
a management philosophy that emphasizes the most efficient ways to produce and distribute products
selling orientation
a managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory
customer orientation
a business approach that prioritizes the satisfaction of customers’ needs and wants
Total Quality Management (TQM)
a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement
triple bottom line orientation
a business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices
societal marketing concept
a management philosophy that marketers must satisfy customers’ needs in ways that also benefit society and also deliver profit to the firm
Sustainability
a product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs
green marketing
a marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers
Accountability
A process of determining just how much value an organization’s marketing activates create and their impacts on the bottom line.
return on investment (ROI)
The direct financial impact of a firm’s expenditure of a resource, such as time or money
Mobile Marketing
interacting with consumers via mobile devices (i.e. phones, tablets, and wearable screens such as smart watches)
User-Generated content (also known as consumer-generated content)
Marketing content and activities created by consumers and users of a brand such as advertisements, online reviews, blogs, social media, input to new product development or serving as wholesalers or retailers, online review, blogs, and social media
User-Generated content (also known as consumer-generated content)
Marketing content and activities created by consumers and users of a brand such as advertisements, online reviews, blogs, social media, input to new product development or serving as wholesalers or retailers, online review, blogs, and social media
branded content
marketing communication developed by a brand to provide educational or entertainment value rather than to sell the brand in order to develop a relationship with consumers; may indicate the brand is the sponsor
Corporate Citizenship
also referred to a corporate social responsibility, refers to a firm’s responsibility to the community in which they operate and to society in general
screen addicts
consumers who spend so much time on smartphones, tablets, and computers that it interferes with more normal activities and productivity
growth hackers
experts who work on apps and sites to better hook consumers and keep them coming back and staying longer
Value proposition
A marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased
brandfests
Events that companies host to thank customers for their loyalty
Lifetime value of a customer
The potential profit a single customer’s purchase of a firm’s products generates over the customer’s lifetime
competitive advantage
A firm’s edge over its competitors that allows it to have higher sales, higher profits, and more customers and enjoy greater success year after year
distinctive competency
a superior capability of a firm in comparison to its direct competitors
differential benefit
properties of product that set them apart from competitors’ products by providing unique customer benefits
marketing scorecard
Feedback vehicles that report (often n quantified terms) how the company or brand is actually doing in achieving various goals
metrics
measurements or “scorecards” that marketers use to identify the effectiveness of different strategies or tactics
value chain
a series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has the potential to either add or remove value from the product the customer eventually buys.
haul videos
videos consumer post on YouTube that detail the latest stuff they bought
Web 1.0
The beginning phase of the internet that offered static content provided by the owner of the site
Web 2.0
The second generation of the World Wide Web that incorporated social networking and user interactivity via two-way communication
Web 3.0
The current generation of the web that offers consumers real-time instant communications through live chats and instant messaging and marketers the ability to track customers’ online behavior.
Web 4.0
The web gives consumers access to thousands of apps and makes the avility to use their smartphones and tablets to access brands anywhere and anytime a necessity.
cloud
a network of servers that provide an almost infinite amount of storage space
social networking platforms
online platforms that allow a user to represent himself or herself via a profile on a website and provide and receive links to other members of the network to share input about common interests.
folksonomy
A classification system that relies on users rather than preestablished systems to sort contents`
wisdom of crowds
under the right circumstances, groups are smarter than the smartest people in them, meaning that large numbers of consumers can predict successful products
crowdsourcing
A practice where firms outsource marketing activities (such as selecting an ad) to a community of users
consumer addiction
A physiological or psychological dependency on goods or services including alcoholism, drug addiction, cigarettes, shopping, and use of the Internet
shrinkage
Losses experienced by retailers as a result of shoplifting, employee theft, and damage to merchandise
anticonsumption
The deliberate defacement of products
mass market
All possible customers in a market, regardless of the differences in their specific needs and wants
market segment
A distinct group of customers within a larger market who are similar to one another in some way and and whose needs differ from other customers in the larger market.
Target market
The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts.
Greenhouse Effect
The turning of our atmosphere into a kind of greenhouse as a result of the addition of carbon dioxide and other greenhouse gasses.
global warming
A warming of the planet earth that will have disastrous effects on the planet
Arab Spring
A series of anti-government protest and uprising in a number of Arab countries facilitated by new social media tools available to people in the region
world trade
the flow of goods and services among different countries- the value of all the exports and imports of the world’s nations.
countertrade
A type of trade in which goods are paid for with other items instead of with cash
General Agreement on Tariffs and Trade (GATT)
International treaty to reduce import tax levels and trade restrictions.
World Trade Organization (WTO)
An organization that replaced GATT; the WTO sets trade rules for its member nations and mediates disputes between nations.
World Bank
An international lending institution that seeks to reduce poverty and improve the lives of people by improving economies and promoting sustainable development
International Monetary Fund (IMF)
An international organization that seeks to ensure the stability of the international monetary exchange by controlling fluctuations in exchange rates
foreign exchange rate (forex rate)
The price of a nation’s currency in terms of another currency.
balance of payments
A statement of how much trade a country has going out compared to how much it has coming in. If a country is buying more than it is selling, it will have a negative balance of payments.
protectionism
A policy adopted by a government to give domestic companies an advantage
import quotas
Limitations set by a government on the amount of a product allowed to enter a country
embargo
A quota completely prohibiting specified goods from entering or leaving a country
tariffs
Taxes on imported goods
economic communities
groups of countries that band together to promote trade among themselves and to make it easier for member nations to compete elsewhere
least developed country (LDC)
A country at the lowest stage of economic development
gross domestic product (GDP)
The total dollar value of goods and services produced by a nation within its borders in a year
economic infrastructure
The quality of a country’s distribution, financial, and communications systems.
level of economic development
The broader economic picture of a country
standard of living
An indicator of the average quality and quantity of goods and services consumed in a country
developing countries
Countries in which the economy is shifting its emphasis from agriculture to industry
bottom of the pyramid (BOP)
The collective name for the group of consumers throughout the world who live on less than $2 a day.
sachet
Affordable one-use packages of cleaning products, fabric softeners, shampoo, etc., for sale to consumers in least developed and developing countries.
BRICS countries
Also referred to as the BRICS, Brazil, Russia, India, China, and South Africa are the fastest-growing of the developing countries. With more than 3 billion people, they represent over 42% of the world’s population and about 20% of the gross world product
developed countries
A country that boasts sophisticated marketing systems, strong private enterprise, and bountiful market potential for many goods and services.
Group of 7 (G7)
An informal forum of the seven most economically developed countries that meets annually to discuss major economic and political issues facing the international community. Formerly the G8, Russia was excluded from the group as a result of its invasion of Crimea in 2014.
business cycle
The overall patterns of change in the economy- including periods of prosperity, recession, depression, and recovery- that affect consumer and business purchasing power.
competitive intelligence (CI)
The process of gathering and analyzing publicly available information about rivals.
drones
Unmanned aerial vehicles or flying robots controlled remotely using GPS technology
unmanned aerial vehicles (UAVs)
Another name for drones
patent
A legal mechanism to prevent competitors from producing or selling an invention, aimed at reducing or eliminating competition in a market for a period of time
nationalization
When a domestic government reimburses a foreign company (often not for the full value) for its assets after taking it over
expropriation
when a domestic government seizes a foreign company’s assets without any reimbursement
Local content rules
a form of protectionism stipulating that a certain proportion of a product must consist of components supplied by industries in the host country or economic community
U.S. Generalized System of Preferences (GSP)
A program to promote economic growth in developing countries by allowing duty-free entry of goods into the U.S.
demographics
Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure
cultural values
A society’s deeply held beliefs about right and wrong ways to live
collectivist cultures
cultures in which people subordinate their personal goals to those of a stable community
individualist cultures
Cultures in which people tend to attach more importance to personal goals than to those of the larger community
Social norms
Specific rules dictating what is right or wrong, acceptable or unacceptable
Consumer ethnocentrism
Consumers’ feeling that products from their own country are superior or that it is wrong to buy products produced in another country
export merchants
Intermediaries a firm uses to represent it in other countries
licensing agreement
An agreement in which one firm gives another firm the right to produce and market its product in a specific country or region in return for royalties
franchising
A form of licensing involving the right to adapt an entire system of doing business
strategic alliance
Relationship developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in the target community
joint venture
a strategic alliance in which a new entity owned by two or more firms allows the partners to pool their resources for common goals
straight extension strategy
product strategy in which a firm offers the same product in both domestic and foreign markets
product adaptation strategy
product strategy in which a firm offers a similar but modified product in foreign markets
product invention strategy
product strategy in which a firm develops a new product for foreign markets
backward invention
product strategy in which a firm develops a less advanced product to serve the needs of people living in countries without electricity or other elements of a developed infrastructure
free trade zones
designated areas where foreign companies can warehouse goods without paying taxes or customs duties until they move the goods into the marketplace
gray market goods
items manufactured outside a country and then imported without the consent of the trademark holder
dumping
a company tries to get a toehold in a foreign market by pricing its products lower than it offers them at home
utilitarian approach
ethical philosophy that advocates the decision that does the best job of protecting the moral rights of all
rights approach
ethical philosophy that advocates the decision that does the best job of protecting the moral rights of all
fairness or justice approach
ethical philosophy that advocates the decision that treats all human beings equally
common good approach
ethical philosophy that advocates the decision that contributes to the good of all in the community.
virtue approach
ethical philosophy that advocates the decision that is in agreement with certain ideal values
ethical relativism
suggest that what is ethical in one culture is not necessarily the same as in another culture
business ethics
basic values that guide a firm’s behavior
code of ethics
written standards of behavior to which everyone in the organization must subscribe
bribery
when someone voluntarily offers payment to get an illegal advantage
extortion
when someone in authority extracts payment under duress
green customers
those consumers who are most likely to actively look for and buy products that are eco-friendly
fair trade suppliers
companies that pledge to pay a fair price to producers in developing countries, to ensure that the workers who produce the goods receive a fair wage, and to ensure that these manufacturers rely where possible on environmentally sustainable production practices
locavorism
the trend for shoppers to actively look or products that come from farms within 50 to 100 miles of where they live
sustainability metrics
tools that measure the benefits an organization achieves through the implementation of sustainability
business planning
an ongoing process of making decision that guides the firm both in the short term and in the long term
business plan
a plan that includes the decisions that guide the entire organization
marketing plan
a document that describes the marking environment, outlines the marketing objectives and strategy and identifies how the company will implement and control the strategies embedded in the plan.
strategic planning
a managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth
strategic business units (SBUs)
individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors
functional planning
a decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization’s long-term strategic plan.
market planning
The functional planning marketers do. Market planning typically includes both a broad three- to five-year marketing plan to support the firm’s strategic plan and a detailed annual plan for the coming year
operational planning
a decisions process that focuses on developing detailed plans for day-to-day activities that carry out an organization’s functional plans.
mission statement
a formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources
situation analysis
An assessment of a firm’s internal and external environments
internal environment
the controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization
external environment
The uncontrollable elements outside an organization that many affect its performance either positively or negatively
SWOT Analysis
An analysis of an organization’s strengths and weaknesses and the opportunities and threats in the external environment
business portfolio
The group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities
portfolio analysis
A management tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units.
BCG gowth-market share matrix
A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products
stars
SBUs with products that have a dominant market share in high-growth markets
cash cows
SBUs with a dominant market share in a low-growth-potential market
questions marks
SBUs with low market shares in fast-growth markets
dogs
SBUs with a small share of a slow-growth market. They are businesses that offer specialized products in limited markets that are not likely to grow quickly
Market Penetration strategies
Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets.
market development strategies
growth strategies that introduce existing products to new markets
product development strategies
growth strategies that focus on selling new products in existing markets
diversification strategies
growth strategies that emphasize both new products and new markets
control
a process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this anaysis.
activity metrics
metrics focused on measuring and tracking specific activities taken within a firm that are part of different marketing processes.
outcome metrics
metrics focused on measuring and tracking specific events identified as key business outcomes that result from marketing processes
return on marketing investment (ROMI)
Quantifying just how an investment in marketing has an impact on the firm’s success, financially and otherwise
action plans
individual support plans included in a marketing plan that provides guidance for implementation and control of the various marketing strategies within the plan. Action plans are sometimes referred to as “marketing programs”
leading indicators
Performance indicators that provide insight into the performance of current efforts in a way that allows a marketer to adjust relevant marketing activities (hopefully) resulting in performance improvements against the current action plan
laggin indicators
Performance indicators that provide insight into the performance of an action plan based on outcomes realized
operational plans
plans that focus on the day-to-day execution of the marketing plan. Operational plans include detailed directions for the specific activities to be carried out, who will be responsible for them, and timelines to accomplish the tasks.
market research ethics
taking an ethical and aboveboard approach to conducting market research that does no harm to the participant in the process of conducting the research
database
an organized collection (often electronic) of data that can be searched and queried to provide information about contacts, products, customer, inventory, and more
marketing information system (MIS)
a process that first determines what information marketing managers need and then gathers, sorts, analyzes, stores, and distributes relevant and timely marketing information to system users.
intranet
an internal corporate communication network that uses internet technology to link company departments, employees, and databases
market intelligence system
A method by which marketers get information about what’s going on in the world that is relevant to their business
reverse engineering
the process of physically deconstructing a competitor’s product to determine how it’s put together
market research
the process of collecting, analyzing, and interpreting data about customers, competitors, and the business environment in order to improve marketing effectiveness
syndicated research
research by firms that collect data on a regular basis and sell the reports to multiple firms
customer research
research conducted for a single firm to provide specirfic information its managers need
marketing decision support system (MDSS)
The data, analysis software and interactive software that allow managers to conduct analyses and find the information they need
data
Raw, unorganized facts that need to be processed
information
interpreted data
customer insights
the collection, deployment, and interpretation of information that allows a business to acquire, develop, and retain their customers
research design
A plan that specifies what information marketers will collect and what type of study they will do
secondary data
data that have been collected for some purpose other than the problem at hand
primary data
data from research conducted to help make a specific decision
exploratory research
a technique that marketers use to generate insights for future, more rigorous studies
focus group
a product-oriented discussion among a small group of consumers led by a trained moderator
market research online community (MROC)
A privately assembled group of people, usually by a market research firm or department, utilized to gain insight into customer sentiments and tendencies
case study
a comprehensive examination of a particular firm or organization
ethnography
an approach to research based on observations of people in their own homes or communities
descriptive research
a tool that probes more systematically into the problem and bases its conclusion on large numbers of observations
cross-sectional design
a type of descriptive technique that involves the systematic collection of quantitative information
longitudianl design
a technique that tracks the responses of the same sample of respondents over time
causal research
a technique that attempts to understand cause-and-effect relationships
experiments
a technique that tests predicted relationships among variables in a controlled environment
neuromarketing
a type of brain research that uses technologies such as functional magnetic resonance imaging (fMRI) to measure brain activity to better understand why consumers make the decisions they do
telemarketing
the use of the telephone to sell directly to consumers and business customers
mall intercept
a study in which researchers recruit shoppers i malls or other public areas
unobtrusive measures
measuring traces of physical evidence that remain after some action has been taken
mechanical observation
a method of primary data collection that relies on machines to capture human behavior in a form that allows for future analysis and interpretation
eye tracking tecnology
a type of mechanical observation technology that uses sensors and sophisticated software to track the position and movement of an individual’s eyes to gain context-specific insights into how individuals interact with and respond to different visual elements and stimuli
cookies
text files inserted by a website sponsor into a web surfer’s hard drive that allows the site to track the surfer’s moves
predictive technology
Analysis techniques that use shopping patterns of large numbers of people to determine which products are likely to be purchased if others are
bounce rate
a marketing metric for analyzing website traffic. It represents the percentage of visitors who enter the site (typically at the home page) and “bounce” (leave the site) rather than continuing to view additional pages on the site
validity
the extent to which research actually measures what it was inteded to measure
internal validity
the extent to which the results of a research study accurately measure what the study intended to measure by ensuring proper research design, including efforts to ensure that any potentially confounding factors where not included or introduced at any point during the execution of the research study
external validity
the extent to which the results of a research study can be generalized to the population its sample was intended to represent, providing a higher level of confidence that the findings can be applied outside of the setting where the research was conducted
reliability
the extent to which research measurement techniques are free of errors
representativeness
the extent to which consumers in a study are similar to a larger group in which the organization has an interest
sampling
the process of selecting respondents for a study
probability sample
a sample in which each member of the population has some known chance of being included
nonprobability sample
a sample in which personal judgment is used to select respondents
convenience sample
a nonprobability sample composed of individuals who just happen to be available when and where the data are being collected
back-translation
the process of translating material to a foreign language and then back to the original language
Integrated marketing communication (IMC)
A strategic business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences.
