Exam 1 Flashcards
Product orientation
a philosophy that focuses on the internal capabilities
of the firm rather than on the desires and needs of the marketplace
sales orientation
the belief that people will buy more goods and services if
aggressive sales techniques are used and that high sales result in high profits
marketing concept
the idea that the social and economic justification for an
organization’s existence is the satisfaction of customer wants and needs while
meeting organizational objectives
market orientation
a philosophy that assumes that a sale does not depend on an aggressive
sales force but rather on a customer’s decision to purchase a product; it is synonymous with the
marketing concept
societal marketing orientation
the idea that an organization exists not only
to satisfy customer wants and needs and to meet organizational objectives but
also to preserve or enhance individuals’ and society’s long-term best interests
customer value
the relationship
between benefits and the sacrifice
necessary to obtain those benefits
customer satisfaction
customers’ evaluation of a good or service in terms of
whether it has met their needs and expectations
relationship marketing
a strategy that focuses on keeping and improving
relationships with current customers
strategic planning
the managerial process of creating and maintaining a fit
between the organization’s objectives and resources and the evolving market
opportunities
strategic business units (sbu)
a subgroup of a single business or collection
of related businesses within the larger organization
market penetration
a marketing strategy that tries to increase market share among existing
customers
market development
a marketing strategy that entails attracting new customers to existing
products
product development
a marketing strategy that entails the creation of new products for present
markets
diversification
a strategy of increasing sales by introducing new products into new markets
Present market includes
market penetration and product development
new market includes
market development and diversification
portfolio matrix
a tool for allocating resources among products or strategic
business units on the basis of relative market share and market growth rate
star
a business unit that is a fast-growing market leader
cash cow
a business unit that generates more cash than it needs to maintain its market
share
problem child (question mark)
a business unit that shows rapid growth but poor profit
margins
dog
a business unit that has low growth potential and a small market share
planning
the process of anticipating future events and determining strategies
to achieve organizational objectives in the future
marketing PLANNING
designing activities relating to marketing objectives and
the changing marketing environment
marketing PLAN
a written document that acts as a guidebook of marketing
activities for the marketing manager
mission statement
a statement of the firm’s
business based on a careful analysis of
benefits sought by present and potential
customers and an analysis of existing and
anticipated environmental conditions
marketing myopia
defining a business in terms of goods and services rather
than in terms of the benefits customers seek
swot analysis
identifying internal strengths (S) and weaknesses (W) and
also examining external opportunities (O) and threats (T)
environmental scanning
collection and interpretation of information about
forces, events, and relationships in the external environment that may affect the
future of the organization or the implementation of the marketing plan
competitive advantage
a set of unique features of a company and its
products that are perceived by the target market as significant and superior to
those of the competition
three types of competitive advantage
- Cost
- Product/service differentiation
- Niche
cost competitive advantage
being the low-cost competitor in an industry
while maintaining satisfactory profit margins
Product/service differentiation competitive advantage
the provision of
something that is unique and valuable to buyers beyond simply offering a lower
price than that of the competition
niche competitive advantage
the advantage achieved when a firm seeks to
target and effectively serve a small segment of the market
sustainable competitive advantage
an advantage that cannot be copied by the competition
marketing strategy
the activities of selecting and describing one or more
target markets and developing and maintaining a marketing mix that will
produce mutually satisfying exchanges with target markets
marketing mix (four p’s)
a unique blend of product, place (distribution),
promotion, and pricing strategies designed to produce mutually satisfying
exchanges with a target market
product strategies include
The heart of the marketing mix, the starting point, is the product offering and
product strategy.
* The product includes not only the physical unit but also its:
− Package and warranty
− After-sale service
− Brand name
− Company image
− Value
place (distribution) strategies include
Place, or distribution, strategies are concerned with making products available
when and where customers want them.
* Physical distribution involves all the business activities concerned with storing
and transporting raw materials or finished products.
promotion strategies include
Promotion includes:
− Advertising
− Public relations
− Sales promotion
− Personal selling
* Promotion’s role in the marketing mix is to bring about mutually satisfying
exchanges with target markets by informing, educating, persuading, and
reminding them of the benefits of an organization or a product.
pricing strategies include
Price is what a buyer must give up in order to obtain a product.
* Price is often the most flexible of the four Ps.
− Marketers can raise or lower prices more frequently and easily than they can change other
marketing mix variables.
social control
any means used to maintain behavioral norms and regulate
conflict
deontological theory
ethical theory that states that people should adhere to their obligations
and duties when analyzing an ethical dilemma
utilitarian ethical theory
ethical theory that is founded on the ability to
predict the consequences of an action
act utilitarianism
In act utilitarianism, a person performs the acts that benefit the most people, regardless of
personal feelings or societal constraints such as laws.
rule utilitarianism
A rule utilitarian seeks to benefit the most people but through the fairest and most just means
available.
casuist ethical theory
ethical theory that compares a current ethical dilemma
with examples of similar ethical dilemmas and their outcomes
moral relativism
a theory of time-and-place ethics; that is, the belief that ethical truths depend
on the individuals and groups holding them
virtue
a character trait valued as being good
corporate social responsibility
a business’s concern for society’s
welfare
stakeholder theory
ethical theory stating that social responsibility is paying
attention to the interest of every affected stakeholder in every aspect of a firm’s
operation
sustainability
the idea that socially responsible companies will outperform
their peers by focusing on the world’s social problems and viewing them as
opportunities to build profits and help the world at the same time
cause-related marketing
the cooperative marketing efforts between a for-
profit firm and a nonprofit organization
target market
a group of people or organizations for which an organization designs,
implements, and maintains a marketing mix intended to meet the needs of that group, resulting in
mutually satisfying exchanges
demography
the study of people’s vital statistics, such as age, race and
ethnicity, and location
gen z
people born between 1995
and 2010
millennials
people born between 1979 and 1994
gen x
people born between 1965 and 1978
baby boomers
people born between 1946 and 1964
Three economic areas of greatest concern to most marketers are:
- Consumers’ incomes
- Inflation
- Recession
purchasing power
a comparison of income versus the relative cost of a standard set of
goods and services in different geographic areas
inflation
a measure of the decrease in the value of money, expressed as the
percentage reduction in value since the previous year
recession
a period of economic activity characterized by negative growth,
which reduces demand for goods and services
global marketing
marketing that targets markets throughout the world
global vision
recognizing and reacting to international marketing
opportunities, using effective global marketing strategies, and being aware of
threats from foreign competitors in all markets
absolute advantage
when a country can produce a product or service at a
lower cost than any other country or when it is the only country that can provide
the product or service
principle of competitive advantage
each country should specialize in the
products or services that it can produce most readily and cheaply and trade
those products or services for goods and services that foreign countries can
produce most readily and cheaply
multinational corporation
a company that is heavily engaged in international
trade, beyond exporting and importing
global marketing standardization
production of uniform products that can
be sold the same way all over the world
multidomestic strategy
when multinational firms enable individual
subsidiaries to compete independently in domestic markets
key external factors of global marketing
- Culture
− Economic development
− The global economy
− Political structure and actions
− Demographic makeup
− Natural resources
exporting
selling domestically produced products to buyers in other countries
buying for export
an intermediary in the global market that assumes all ownership
risks and sells globally for its own account
export broker
an intermediary who plays the traditional broker’s role by bringing
buyer and seller together
export agent
an intermediary who acts like a manufacturer’s agent for the
exporter; the export agent lives in the foreign market
licensing
the legal process whereby a
licensor allows another firm to use its
manufacturing process, trademarks,
patents, trade secrets, or other proprietary
knowledge
contract manufacturing
private-label manufacturing by a foreign company
joint venture
when a domestic firm buys part of a foreign company or joins
with a foreign company to create a new entity
− Potentially very lucrative, but also potentially very risky
