Exam 1 Flashcards
Marketing
The process of discovering and satisfying consumer needs
Exchange
The trade of things of value between buyer and seller so that each is better off after the trade.
Market
People with both the desire and the ability to buy a specific offering.
Target Market
One or more specific groups of potential consumers toward which an organization directs its marketing program.
The Four P’s
Product
Price
Promotion
Place
Marketing Mix
The controllable factors—product, price, promotion, and place—that can be used by the marketing manager to solve a marketing problem.
Environmental Forces
The uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.
Customer Value
The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
Relationship Marketing
Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.
Marketing Program
A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
Market Segments
The relatively homogeneous groups of prospective buyers who (1) have common needs and (2) will respond similarly to a marketing action.
Marketing Concept
The idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization’s goals.
Marketing Orientation
An organization with a market orientation focuses its efforts on (1) continuously collecting information about customers’ needs, (2) sharing this information across departments, and (3) using it to create customer value.
Customer Relationship Management
The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace and become advocates after their purchase.
Customer Experience
The internal response that customers have to all aspects of an organization and its offering.
Societal Marketing Concept
The view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.
Product
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value.
Ultimate Consumers
The people who use the products and services purchased for a household. Also called consumers, buyers, or customers.
Organizational Buyers
Those manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale.
Utility
The benefits or customer value received by users of the product.
Profit
The money left after a for-profit organization subtracts its total expenses from its total revenues and is the reward for the risk it undertakes in marketing its offerings.
Strategy
Choosing what to focus on and what not to focus on in order to deliver value to your customers and stakeholders
Organizational Purpose
Describes why an organization exists, what problems it wishes to solve, and who it wants to be to every person it touches through its work.
Core Values
The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.
Mission
A statement of the organization’s function in society that often identifies its customers, markets, products, and technologies. Often used interchangeably with vision.
Organizational Culture
The values, ideas, attitudes, and norms of behavior that are learned and shared among the members of an organization.
Goals
Statements of an accomplishment of a task to be achieved, often by a specific time. Also called objectives.
Objectives
Statements of an accomplishment of a task to be achieved, often by a specific time. Also called goals.
Market Share
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
Marketing Plan
A road map for the marketing actions of an organization for a specified future time period, such as one year or five years.
Marketing Dashboard
The visual display of the essential information related to achieving a marketing objective.
Marketing Metric
A measure of the quantitative value or trend of a marketing action or result.
Business Portfolio Analysis
A technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units (SBUs) as though they were a collection of separate investments.
Diversification Analysis
A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
Strategic Marketing Process
The approach whereby an organization allocates its marketing mix resources to reach its target markets.
Four guiding principles under the strategic marketing process:
Customers are different
Customers change
Competitors change and react
Organizational resources are limited
Situation Analysis
Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it.
SWOT Analysis
An acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.
Market Segmentation
Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.
Customer Value Proposition
The cluster of benefits that an organization promises customers to satisfy their needs.
Points of Difference
Those characteristics of a product that make it superior to competitive substitutes.
Marketing Strategy
The means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.
Marketing Tactics
The detailed day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies.
Organizational Strategy
A shared vision that an organization chooses for why it exists, what it will do, and how it will do it.
MCG Portfolio Analysis Matrix
Market Share vs Market Growth
Diversification Analysis/Ansoff’s Growth Matrix
New/Existing products vs. new/existing markets
Question mark product
Low Market Share, High Market Growth
Dog product
Low Market Share, Low Market Growth
Cow Product
High Market Share, Low Market Growth
Star Product
High Market Share, High Market Growth
Market Penetration Strategy
Existing product in existing market
Market Development Strategy
Existing product in new market
Product Development Strategy
New product in existing market
Diversification Strategy
New produit in new market
Three-step marketing process includes:
SWOT Analysis as a result of situation analysis
Developing a market focused value proposition
Designing market programs across the 4Ps
Developing a market focused value proposition is done through
Segmentation, Targeting, and positioning
Customer Centricity
A business strategy that’s based on putting your customer first and at the core of your business in order to provide a positive experience and build long-term relationships.
Marketing Myopia
A narrow-minded approach to marketing wherein businesses focus excessively on their products or services rather than understanding and catering to the needs and desires of their customers.
Environmental Scanning
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
Social Forces
The demographic characteristics of the population and its culture.
Demographics
Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.
Baby Boomers
Includes the generation of 76 million children born between 1946 and 1964.
Generation X
Includes the 55 million people born between 1965 and 1980. Also called the baby bust.
Generation Y
Includes the 62 million Americans born between 1981 and 1996. Also called the echo-boom.
Generation Z
The post-millennial generation, which includes consumers born between 1997 and 2010.
Blended Family
A family formed by merging two previously separated units into a single household.
Multicultural Marketing
Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races.
Culture
The set of values, ideas, and attitudes that are learned and shared among the members of a group.
Value consciousness
The concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior.
Economy
Pertains to the income, expenditures, and resources that affect the cost of running a business and household.
Gross income
The total amount of money made in one year by a person, household, or family unit. Also known as money income at the Census Bureau.
Disposable Income
The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.
Discretionary Income
The money that remains after paying for taxes and necessities.
Technology
Inventions or innovations from applied science or engineering research.
Marketspace
An information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digital offerings.
Electronic Commerce
The activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services. Also called e-commerce.
Internet Of Things
The network of products embedded with connectivity-enabled electronics.
Competition
The alternative firms that could provide a product to satisfy a specific market’s needs.
Barriers to entry
Business practices or conditions that make it difficult for new firms to enter the market.
Regulation
Restrictions state and federal laws place on a business with regard to the conduct of its activities.
Consumerism
A grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.
Self-regulation
An alternative to government control whereby an industry attempts to police itself.
Environmental Forces:
Social
Economic
Technological
Competitive
Regulatory
The 5 C’s of Marketing
Company
Context
Customers
Collaborators
Competitors
Warren Buffet quote
It takes 20 years to build a reputation and five minutes to ruin it
Purchase Decision Process:
Problem recognition
Information search
Alternative evaluation
Purchase decision,
Postpurchase behavior
Involvement
The personal, social, and economic significance of the purchase to the consumer.
Influencers of the Purchase Process
Marketing mix influences
Sociocultural influences
Situational influences
Psychological influences
Consumer touchpoints
A marketer’s product, service, or brand points of contact with a consumer from start to finish in the purchase decision process.
Consumer journey map
A visual representation of all the touchpoints a consumer comes into contact with before, during, and after a purchase.
Motivation
The energizing force that stimulates behavior to satisfy a need.
Personality
A person’s consistent behaviors or responses to recurring situations.
Perception
The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
Perceived Risk
The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.
Learning
Those behaviors that result from (1) repeated experience and (2) reasoning.
Brand Loyalty
A favorable attitude toward and consistent purchase of a single brand over time.
Attitude
A learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
Beliefs
A consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.
Opinion Leaders
Individuals who exert direct or indirect social influence over others.
Word of mouth
The influencing of people during conversations.
Reference groups
People to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
Brand community
A specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use.
Social Class
The relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped.
Family Life Cycle
The distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.
Subcultures
Subgroups within the larger, or national, culture with unique values, ideas, and attitudes.
Consumer Behavior
The study of consumers and the processes they use to choose, consume, and dispose or products and services, including consumers’ emotional, mental, and behavioral responses.
Complex Buying Behavior
High involvement, Significant brand differences
Variety Seeking Behavior
Low involvement, Significant brand differences
Dissonance Reducing Buying Behavior
High involvement, Few brand differences
Habitual Buying Behavior
Low involvement, Few brand differences
Business-to-business marketing
The marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of products and services that they can produce and market to others.
Organizational Buyers
Those manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale.
North American Industry Classification System (NAICS)
Provides common industry definitions for Canada, Mexico, and the United States.
Derived Demand
Demand that is derived from a source other than the primary buyer of the product.
Organizational Buying Behavior
The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.
Buying Center
The group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.
Buy classes
Consist of three types of organizational buying situations: straight rebuy, new buy, and modified rebuy.
New Buy
First time purchase
Straight rebuy
Re purchase
Modified rebuy
Re purchase with modifications
E marketplaces
Online trading communities that bring together buyers and supplier organizations to make possible the real-time exchange of information, money, products, and services. Also called B2B exchanges or e-hubs.
Traditional Auction
In an e-marketplace, an online auction in which a seller puts up an item for sale and would-be buyers are invited to bid in competition with each other.
Reverse Auction
In an e-marketplace, an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.
B2B Marketing compared to B2C
Group size
Emotion/Logic based
Process time
Importance of brand
Cost per conversion
Smaller group
More logic based
Longer process
Very important
More expensive per conversion
Industrial Markets
Buy Raw materials and turn them into things (Largest market size)
Reseller Markets
Product doesn’t change
Government Markets
Government entities (smallest market size)
B2B Buying Decision Process
Problem Recognition
Information Research
Alternative Evaluation
Purchase Decision
Post-purchase behavior
Inbound Marketing
Creating content that people want to read about
Marketing Research
The process of answering “why” and “what now”
Measures of success
Criteria or standards used in evaluating proposed solutions to the problem.
Constraints
In a decision, the restrictions placed on potential solutions to a problem.
Data
The facts and figures related to the project that are divided into two main parts: secondary data and primary data.
Secondary Data
Facts and figures that have already been recorded prior to the project at hand.
Primary Data
Facts and figures that are newly collected for the project.
Observational Data
Facts and figures obtained by watching how people actually behave, using mechanical, personal, or neuromarketing data collection methods.
Questionnaire Data
Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
Information technology
Includes all of the computing resources that collect, store, and analyze data.
Cross tabulation
A method of presenting and analyzing data involving two or more variables to discover relationships in the data. Also known as cross tab.
Sales forecast
The total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts.
Benefits of Market Research
Focus your position in the market
Eliminates boardroom biases
Helps minimize investment risk
Facilities strategic planning
Identifies whitespace opportunities
Helps you differentiate vs. competition
Five-Step market Research Approach
Define the problem
Develop the research plan
Collect relevant information
Develop findings
Take Martketing actions
Insight
A deep truth, relevant to your brand and audience, that if solved has the power to move the customer to a desired future state
