Exam 1 Study Guide Flashcards
Marketing Management
The leading and managing of the facets of marketing to improve individual, unit, and organizational performance.
Marketing’s Stakeholders
Any person or entity inside or outside a firm with whom marketing interacts, impacts, and is impacted by.
Societal 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.
Product 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 salespeople “push” product into the hands of customers.
Marketing Concept
Business philosophy that emphasizes an organization-wide customer orientation with the objective of achieving long-run profits.
Marketing Mix (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 the competition.
Offering
A product or service that delivers value to satisfy a need or want.
Solution
A bundle of benefits from an offering that solves a problem or fills the need of a customer.
Differentiation
Communicating and delivering value in different ways to different customer groups.
Customer Orientation
Placing the customer at the core of all aspects of the enterprise.
Market Orientation
The implementation of the marketing concept, based on an understanding of customers and competitors.
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 operational 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 identify, track, evaluate, and provide key benchmarks for improvement of marketing activities.
Marketing Analytics
The practice of measuring, managing, and analyzing marketing performance to maximize marketing effectiveness and optimize return on marketing investment (ROMI).
Return on Marketing Investment (ROMI)
What impact an investment in marketing has on a firm’s success, especially financially.
Corporate Social Responsibility (CSR)
A firm’s behaviors and strategies that are undertaken in order to have a positive impact on the world.
Global Experience Learning Curve
The process by which an understanding of marketing beyond home markets develops over time as a company gains more international business.
Foreign Marketing
Occurs when a firm develops local distribution and service representation outside its home market, either through local intermediaries or its own marketing and sales force.
International Marketing
Implies that the firm is marketing outside their home (domestic) market and also manufactures outside that market.
Global Marketing
Implies that the firm realizes that all world markets (including the company’s own domestic market) are, in reality, a single market with many different segments.
Developed Economies
Specific economies that have fueled world economic growth for much of the 20th century, including Western Europe, the United States, and Japan.
Emerging Markets
Growing economies that have developed over the last 25 years that are projected to contribute toward 75 percent of world economic growth over the next 20 years.
Regional Market Zones
A group of countries that create formal relationships for mutual economic benefit through lower tariffs and reduced trade barriers.
European Union (EU)
A successful regional marketing zone founded more than 50 years ago by six European countries (Belgium, France, Italy, Luxembourg, The Netherlands, and West Germany) with the Treaty of Rome and that now includes 28 countries.
NAFTA (North American Free Trade Agreement)
Created to eliminate tariffs between Canada, Mexico, and the United States, and which stands as the single largest economic alliance today.
Mercosur
Inaugurated in 1995, it is the most powerful market zone in South America and includes the major economies of South America: Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay.
ASEAN
Founded in 1967, it is the most important Asian market zone and includes 10 countries running the entire length of the Pacific Rim (Brunei Darussalam, Indonesia, Malaysia, Philippines, Cambodia, Laos, Myanmar, Singapore, Thailand, and Vietnam).
Exporting
The most common method for entering foreign markets, it offers firms the ability to penetrate foreign markets with minimal investment and very little risk.
Exporter
International market specialist that helps companies by acting as the export marketing department.
Distributor
Represents the company and often many others in foreign markets.
Contractual Agreements
Enduring, nonequity relationships with another company that allow a company to expand its participation in a foreign market.
Licensing
When a firm offers other manufacturers the right to use its brand in exchange for a set fee or percentage of sales.
Franchising
A contractual agreement in which a firm provides a contracted company in a foreign market with a bundle of products, systems, services, and management expertise in return for local market knowledge, financial consideration, and local management experience.
Strategic Alliances
A market entry strategy designed to spread the risk of foreign investment among its partners. Examples of strategic alliances would be international joint ventures or direct foreign investment.
Joint Venture
A partnership of two or more participating companies that differs from other strategic alliances in that (1) management duties are shared and a management structure is defined; (2) other corporations or legal entities, not individuals, formed the venture; and (3) every partner holds an equity position.
Direct Foreign Investment
A strategic alliance with long-term implications in which a company moves manufacturing or operations into a foreign market.
Decision Making Authority
An issue that arises when companies grow internationally and lines of authority become longer and more complicated, resulting in difficulty in defining decision-making protocols.
Degree of Centralization
The degree to which decisions are made at the firm’s home office.
Global Product Lines
Products that are sold across country borders.
Geographic Regions
An international organizational structure that divides international markets by geography, building autonomous regional organizations that perform business functions in the geographic areas.
Matrix Structure
An international organizational structure that encourages regional autonomy among organizations while building product competence in key areas around the world.
Country-of-origin Effect
The influence of the country of manufacture, assembly, or design on a customer’s positive or negative perception of a product.
Global Marketing Themes
Global advertising strategy in which a basic template is used for global ads that allows for slight modifications depending on local markets.
Global Marketing with Local Content
Global advertising strategy in which a firm keeps the same global marketing theme as the home market but adapts it with local content.
Basket of Global Advertising Themes
Global advertising strategy in which distinct ads built around several marketing messages are created that local marketers can select from to best fit their specific market situation.
Local Market Ad Generation
Global marketing strategy in which a firm allows local marketers to create local ads that do not necessarily coordinate with its global marketing messages.
Transfer Pricing
The cost companies charge internally to move products between subsidiaries or divisions.
Dumping
A global pricing issue that refers to the practice of charging less than their actual costs or less than the product’s price in the firm’s home markets.
Gray Market
A global pricing issue that references the unauthorized diversion of branded products into global markets.
Marketing Ethics
A societal and professional standard of right and fair practices that are expected of marketing managers in their oversight of strategy formulation, implementation, and control.
Triple Bottom Line (TBL)
A metric for evaluating not only the financial results of the company but the broader social equity, economic, and environmental considerations as well.
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.
Customer Value Proposition
A strategic tool facilitating communication of an organization’s ability to share resources and offer a superior value package to targeted customers.
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 Activities
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
The process at the corporate or strategic business unit (SBU) level of a firm that acts to marshal the various resource and functional areas toward a central purpose around the customer.
Strategic Business Unit (SBU)
A relatively autonomous division or organizational unit of a large company that operates independently but within the corporate umbrella, exercising control over most of the factors affecting its long-term performance.
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 corporations that views SBUs, and sometimes even product lines, as a series of investments from which it expects maximization of returns.
Boston Consulting Group (BCG) Growth-Share Matrix
A popular approach for in-firm portfolio analysis that categorizes business units’ level of contribution to the overall firm based on two factors: market growth rate and competitive position.
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 (SBUs). These include core business functions within each SBU such as operations, marketing, and finance, as well as other pertinent operational areas.
Mission Statement
The verbal articulation of an organization’s 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, measurable, and potentially attainable milestones necessary for a firm to achieve its goals.
SMART Objectives
An acronym to reminds folks doing marketing planning that their objectives should be specific, measurable, attainable, relevant, and time-defined.
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 Advantage
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 findings 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 heretofore untapped markets, often internationally.
Diversification Strategies
Strategies designed to seize on opportunities to serve new markets with new products.
Marketing Control
The process of measuring marketing results and adjusting the firm’s marketing plan as needed.
Inbound Logisitcs
How the firm goes about sourcing raw materials for production
Operations
How the firm converts raw materials into final products
Outbound Logistics
How the firm distributes final products to the marketplace
Marketing and Sales
How the firm communicates the value proposition to the marketplace
Service
How the firm supports customer during and after the sale
Firm infrastructure
How the firm is set up for doing business
Human Resources Management
How the firm ensures it has the right people in place; trains them, and keeps them
Technology Development
Hoe the firm embraces technology usage for the benefit of customers
Procurement
How the firm deals with vendors and quality issues
Prospector
Firm exhibits continual innovation by finding and exploiting new product and market opportunities
Analyzer
Firm relies heavily on analysis and imitation of the successes of other organizations, especially prospectors
Defender
Firm searches for market stability and production of only limited product line directed at a narrow market segment, focusing on protecting established turf
Reactor
Firm lacks coherent strategic plan or apparent means of effectively competing; reactors do well to merely survive in the competitive marketplace
Market Research
The methodical identification, collection, analysis, and distribution of data related to discovering and then solving marketing problems or opportunities and enhancing good decision making.
Market Information System (MIS)
A continuing process of identifying, collecting, analyzing, accumulating, and dispensing critical information to marketing decision makers.
Data Security
Entails steps to protect digital data, such as those in a database, from destructive forces and from the unwanted actions of unauthorized users, such as a cyberattack or a data breach.
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.
Persona
A “fictional” holistic profile created by marketing of their actual current and desired customers.
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.
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.
Causal Research
Descriptive research designed to identify associations between variables.
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 behavioral patterns among the population of interest.
Mechanical Observation
A variation of observational data that uses a device to chronicle activity.
Probability Sampling
The specific protocol used to identify and select individuals from the population in which each population element has a known nonzero chance of being selected.
Nonprobability Sampling
The selection of individuals for statistical research in which the probability of everyone in the population being included in the sample is not identified.
Customer Relationship Management (CRM)
A comprehensive business model for increasing revenues and profits by focusing on customers.
Customer Value Co-creation
In today’s marketplace, customers and providers combine forces to co-create offerings of value.
Customer Experience Management
An organization-wide strategic focus on ensuring that all aspects of a customer’s encounters with the firm meet or exceed their expectations.
Customer Empowerment
Reflects the extent to which a firm consistently provides its customers various avenues to (a) connect with the firm and actively shape the nature of their encounters and (b) connect and collaborate with each other.
Customer Lifetime Value
The total value (including revenue earned) generated for a firm through building a life-long relationship with a customer.
Return on Customer Investment (ROCI)
A calculation that estimates the projected financial returns from a customer. It is a useful strategic tool for deciding which customers deserve what levels of investment of various resources.
Firing a Customer
The shifting of investment of resources from a less attractive customer to more profitable ones.
Customer Touchpoints
Where the selling firm touches the customer in some way, thus allowing for information about him or her to be collected.
Data Warehouse
A compilation of customer data generated through touchpoints that can be transformed into useful information for marketing management decision making and marketing planning.
Data Mining
A sophisticated analytical approach to using the massive amounts of data accumulated through a firm’s CRM system to develop segments and microsegments of customers for purposes of either market research or development of market segmentation strategies.
Database Marketing
Direct marketing involving the utilization of the data generated through CRM practices to create lists of customer prospects who are then contacted individually by various means of marketing communication.
Organizational Learning
The analysis and refinement phase of the CRM process that is based on customer response to the firm’s implementation strategies and programs.
Formalization
The formal establishment of a firm’s structure, processes and tools, and managerial knowledge and commitment to support its culture.
Customer Mind-set
An individual’s belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job.
Big Data
The ever-increasing quantity and complexity of data that is continuously being produced by various technological sources. Characterized by four components: volume, velocity, variety, veracity.
Structured Data
Data that is generated in such a way that a logical organization is imposed on it during its generation, thus enabling it to be more readily analyzable for knowledge creation.
Unstructured Data
Data that is generated in such a way that it does not possess a specific organizational structure that renders it readily analyzable for knowledge creation.
Semi-structured Data
Data that contains elements of both structured and unstructured data. Semi-structured data contains some elements that can be viably organized by machines but also elements that are not structured enough for automated analysis.
Influencer
In the context of social media, influencers are individuals who have built a reputation for their knowledge and expertise on a specific topic. They make regular posts about that topic on their preferred social media channels and generate large followings of enthusiastic, engaged people who pay close attention to their views.
Influencer Marketing
A form of social media marketing involving endorsements and product placement from influencers, people and organizations who have a purported expert level of knowledge or social influence in their field.
Marketing Analytics
The practice of measuring, managing, and analyzing marketing performance to maximize marketing effectiveness and optimize return on marketing investment (ROMI).
Marketing Analyst
An individual familiar with different forms of market and customer data and who is trained to conduct different market analyses, as well as the computational costs associated with those analyses.
Descriptive Analytics
Summary analytics of raw data, typically in a visual format, as a first step before considering more complex and costly analyses.
Diagnostic Analytics
Data utilized to explore the relationships between different marketing-relevant factors that influence the organization’s performance either directly or indirectly.
Predictive Analytics
Data utilized to make predictions about future marketing outcomes of interest.
Prescriptive Analytics
Data used to determine the optimal level of marketing-relevant factors for a specific context by considering how adjusting their levels in varying ways will impact different marketing outcomes.
Sentiment Analysis
A type of analytic method that identifies the general attitude (for example, positive, negative, or neutral) contained within a message through an analysis of its content.
Attribution
A key factor in assessing the impact of the marketing mix; attribution can be thought of as determining how to give appropriate credit to different elements of the marketing mix through the measurement of their effects.
Content Filtering
An analytic method that identifies which products or services to recommend based on a determination of how similar a product or service seems to be to those that the customer has demonstrated a preference for in the past, or is currently considering.
Collaborative Filtering
Predicts a customer’s preferences for products or services based on the observed preferences of customers who are perceived to be similar.
Marketing Dashboard
A comprehensive system of metrics and information uniquely relevant to the role of the marketing manager in a particular organization. Dashboards provide managers with up-to-the-minute information necessary to run their operation.
