Key Terms Flashcards
What is Marketing?
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
What is exchange?
People giving up something in order to receive something else they would rather have
what is production orientation?
a philosophy that focuses on the internal rather than on the desires and needs of the marketplace
what is 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
what is the 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
What is 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 buy a product, it is synonymous with the marketing concept
what is 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 societies long term best interests
what is customer value?
the relationship between benefits and the sacrifice necessary to obtain those benefits
what is customer satisfaction?
Customers evaluation of a good or service in terms of whether it has met their expectations
what is strategic planning?
the managerial process of creating and maintaining a fit between the firms objectives and resources and the evolving market opportunities
what is a strategic business unit (SBU)?
a subgroup of a single business or collection of related businesses within the larger firm
what is market penetration?
a marketing strategy that tries to increase market share among existing customers
what is market development?
a marketing strategy that entails attracting new customers to existing products
what is product development?
a marketing strategy that entails the creation of new products for present markets
what is diversification?
a strategy of increasing by introducing ne products into new markets
what is a portfolio/boston matrix?
a tool for allocating resources among products or SBUs on the basis or relative market share and market growth rate
what is a star in the BM?
a business unit that is a fast growing market leader
what is a cash cow in the BM?
a business unit that generates more cash than it needs to maintain its market share
what is a problem child/ question mark in the BM?
a business unit that shows rapid growth but poor profit margins
what is a dog in the BM?
a business unit that has low growth potential and a small market share
what is marketing planning
designing activities relating to marketing objectives and the changing marketing environment
what is a mission statement
a statement of the firms business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environments conditions
what is swot analysis?
identifying internal strengths and weaknesses and also examining external opportunities and threats
What is cultural orientation?
This orientation looks at marketplace meaning (brand identity). Both marketers and consumers have the ability to shape meaning and co-create meaning (brand identity) together
what is a marketing plan?
a written document that acts as a guidebook of marketing activities for the marketing manager
what is 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
what is environmental scanning?
collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organisation or the implementation of the marketing plan
what is a cost leader advantage?
being the low cost competitor in the market while maintaining satisfactory profit margins
what is differentiation advantage?
the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
what is niche advantage?
the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
what is the marketing mix?
a unique blend of product, place, promotion and pricing strategies designed to produce mutually satisfying exchanges with a target market
what is a target market?
a group of people or organisations for which an organisation designs, implements and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges
what is a marketing objective?
a statement of what is to be accomplished through marketing activities. These have to fit the SMART ( specific, measurable, attainable, realistic, time bound, tangible) criteria in order for you to benchmark your success against competition
what is the external marketing environment?
factors which can influence the profitability of a firm that are outside of the firms control.
what is the mirco business environment?
factors that the business can influence and are internal to the business eg the price of a product
what is the macro business environment?
factors that the business has little control over and are external to the business. Eg political influences
what is inflation?
a measure of the decrease in the value of money expressed as the percentage reduction in value since the previous year
what is recession?
a period of economic activity characterized by negative growth, which reduces demand for goods and services
what is the political environment?
refers to the government policies and their impact on an organisation or an industry. Includes fiscal and tax policy, employment legislation etc
what is the economic environment?
the external factors that impacts both consumers and businesses through the effect of supply and demand. Includes inflation, recession, boom etc
what is the social environment?
beliefs, attitudes and values of people within a society that are shaped by institutional forces within a marketplace. eg demographics
what is the technological environment?
technology advancements that foster service, product and process innovations as well as a firms ability to respond
what is the ecological environment?
refers to the naturals resources that are required to develop and sustain marketing activities, affected by marketing activities and the way they are protected for the future
what is the legal environment?
laws and regulations that govern marketing practices
what is consumer behaviour?
processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services, also includes factors that influence purchase decisions and product use
what is value?
a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
what is perceived value?
the value a consumer expects to obtain from a purchase
what is utilitarian value?
a value derived from a product or service that helps the consumer solve problems and accomplish tasks eg. being able to do your washing because you have bought a washing machine
what is hedonic value?
a value that acts as an end in itself rather than as a means to an end. the value is provided entirely throught the experience and emotions associated with consumption
what is the consumer decision making process?
a five step process used by consumers when buying goods or services
what is the first step of the consumer decision making process and what is iT?
Need recognition: result of an imbalance between actual and desired states
what is a want?
recognition of an unfulfilled need and a product that will satisfy it
what is the 2nd step in the consumer decision making process?
Information search
what is an internal information search?
the processes of recalling past information stored in memory
what is an external information search?
the process of seeking information in the outside environment
what is a non- marketing controlled information search?
a product information source that is not associated with advertising or promotion
what is evaluation of alternatives?
a factor within the consumer decision making process in which the consumer narrows down products based on their most important attributes. This is called the cut-off criteria
what is an evoked set?
a group of brands resulting from an information search from which a buyer can choose.
what is purchase behaviour?
the consumer debates whether to buy something. marketing helps determine what attributes are mor=st important to consumer
what is post purchase behavior?
consumers question their purchase after its made. This is called cognitive dissonance. Marketers try to minimize this by effective follow up communication to avoid refunds and encourage the consumer to buy again
what is cognitive dissonance?
Inner tension that a consumer experiences after recognizing an inconsistency between behaviour and values or opinions. eg. worries that your purchase may become old tech in a few months
what is involvement?
the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behaviour.
what is routine response behaviour?
the type of decision making exhibited by consumers buying frequently bought, low cost goods and services, requires little search and decision time
what is limited decision making?
the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar product category
what is extensive decision making?
the most complex type of decision making, used when buying an unfamiliar, expensive product or an infrequently bought item, requires use of several criteria for evaluating options and much time for seeking information
what is a reference group?
all of the formal and informal groups in society that influence an individual’s purchasing decision
what is a primary membership group?
a reference group with which people interact regularly in an informal, face to face manner, such as family and friends and co-workers
what is a secondary membership group?
a reference with which people associate less consistently and more formally than a primary membership group such as a club or professional group
what are the psychological influences on consumer decision buying decisions?
perception, motivation and learning
what is perception?
the process by which people select, organize and interpret stimuli into a meaningful and coherent picture
what is selective exposure?
a process whereby a consumer notices certain stimuli and ignores others
what is selective distortion?
a process whereby a consumer changes or distorts information that conflicts with his feelings or beliefs
what is selective retention?
the process whereby a consumer remembers only that information that supports his or her beliefs
what is maslows hierachy of needs?
a method of classifying human needs and motivations into five categories in ascending order of importance:physiological, safety, social, self esteem and self actualization
what is learning? ( in relation to psycholocal influences on consumer buying decisions?)
a process that creates changes in behaviour, immediate or expected, through experience and practice
what is stimulus generalization?
a form of learning that occurs when one response is extended to a second stimulus similar to the first. eg an individual buys a new product from a company because they are familiar with the brand
what is stimulus discrimination?
a learned ability to discriminate among similar products
what is a market?
people or organisations with needs or wants and the willingness and ability to buy
what is a market segement?
a subgroup of people or organisations sharing one or more characteristics that cause them to have similar product needs
what is market segmentation?
the process of dividing a market into meaningful, relatively similar and identifiable segments or groups
what is geographic segmentation?
segmenting markets by region of a country or the world, market size, market density, or climate
what is demographic segmentation?
segmenting markets by age, gender, income, ethnic background, and family life cycle
what is the family life cycle?
a series of stages determined by a combination of age, marital status and the presence or absence of children
what is pyschographic segmentation?
segmenting markets on the basis of personality, motives , lifestyles and geodemographics
what is geodemographic segementation?
segmenting potential customers into neighbourhood lifestyle categories
what is benefit segmentation?
the process of grouping customers into market segments according to the benefits they seek from the product
what is useage rate segmentation?
dividing a market by the amount of product bought or consumed
what is an undifferentiated targeting strategy?
a marketing approach taht views the market as one big market with no individual segments and thus uses a single marketing mix
what is a concentrated targeting strategy?
a strategy used to select one segment of a market for targeting marketing efforts
what is multisegment targeting?
a strategy that chooses two or more well defined market segments and develops a distinct marketing mix for each
what is cannibalization?
a situation that occurs when sales of a new product cut into sales of a firms existing products
what is positioning?
developing a specific marketing mix to influence potential customers overall perception of a brand, product line or organization in general
what is perceptual mapping?
a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers minds
what is repositioning?
changing consumers perceptions of a brand in relation to competing brands
what is marketing research?
the process of planning,collecting and analyzing data relevant to a marketing decesion
what is a marketing research problem?
determining what information is needed and how that infomation can be obtained efficently and effectively
what is a marketing research objective?
the specific infomation needed to solve a marketing resarch problem, the objective should be provide insightful decision making infomation
what is secondary data?
data prevoiusly collected for any purpose other than the one at hand
what is primary data?
information that is collected for the first time, used for solving the particular problem under investigation
what is big data?
the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data
what is survey research?
the most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions and attitudes
what is a focus group?
seven to ten people who participate in a group discussion led by a moderator
what is observational research?
a research method that relies on four types of observation: people watching an activity, machines watching people and machines watching an activity
what is an experiment?
a method of gathering primary data in which the researcher alters oone or more variables while observing the effects of those alterations on another variable
what is a sample?
a subset from a larger poulation
what is a probablity sample?
a sample in which every element in the population has a known staistical likelihood of being selected
what is a random sample?
a sample arranged in such a way that every element of the pouplation has an equal chance of being selected as part of the sample
what is a nonprobablity sample?
any sample in which lettle or no attempt is made to get a representative cross section of the population
what is a convience sample?
a form of nonprobability sample using respondents who are convient or readily accessible to the researcher for example employees,friends
what is a measurement error?
an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process
what is a random error?
an error that occurs when the selected sample is an imperfect representation of the overall population
what is a sampling error?
an error that occurs when a sample somehow does not represent the target population
what is a frame error?
an error that occurs when a sample drwn from a population differs from the target population
what is a product?
everything, both favourable and unfavourable, that a person recevies in exchange
what is a convience product?
a relatively inexpensive item that merits little shopping effort
what is a shooping product?
a product that requires comparison shopping because it is usually more expensive than a convience product and is found in fewer stores
what is a specialty product?
a particular item for which consumers search extensively and are very reluctant to accept substitutes
what is a unsought product?
a product unknown to the potential buyer or a known product that the buyer does not active
what is a product item?
a specific version of a product that can be designated as a distinct offering among an organisations products
what is a product line?
a group of closely related product items
what is a product mix?
all products that an organisation sells
what is a brand mark?
the elements of a brand that cannot be spoken
what are the functions of packaging?
1) containing and protecting products
2) promoting products
3) facilitating product storage, use and convienece
4) facilitating recycling and reducing environmental damage
what are the uses of branding?
encourage customer loyalty
help new products suceed
what is a product category?
all brands that satisfy a particular need
what is innovation?
a product perceived as new by a potential adopter
what is diffusion?
the process by which the adoption of an innovation spreads
describe an innovator in regards to a consumer
young, educated, affluent. want the latest things
describe an early adaptor in regards to a consumer
opinion leaders and cool people
describe an early majority consumer
risk averse, rely on word of mouth from friends and family. more thought in the buying decesion making process
describe a late majority consumer
forced into buying the product because society is moving on eg. anolog to colour tv.
describe a laggard consumer
tend to be independant and suspicious of new technologies. adopt things because they have too
how do u extend the product life cycle
change product, change product use, change product image, change product positioning
what is a supply chain?
a connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function
what are the benefits of supply chain management?
Reduced inventory, transportation, warehousing, and packageing costs. Higher revenues
what are marketing channels?
a set of interdependant organizations that eases the transfer of ownership as products move from producer to business user or consumer
what are the three levels of distribution intensity?
intensive, selected and exclusive
what is intensive distribution?
aimed at having a product available in every outlet where target customers might want to buy it
what is selective distribution?
achieved by screening dealers to eliminate all but a few in a single area
what is exclusive distribution?
establishes one or few dealers within a given area
what are the four types of distribution discrepancy?
Temporal, spatial, discrepancy of quantity and discrepancy of assortment
what is temporal discrepancy?
a situation that occurs when a product is produced but a customer is not ready to buy it
what is spatial discrepancy?
the difference between the location of a producer and the location of widely scattered markets
what is discrepancy of quantity?
the difference between the amount of product produced and the amount demanded
what is discrepancy of assortment?
the lack of all the items a customer needs to receive full satisfaction from a product or products
what is profit maximisation?
setting prices so the total revenue is as large as possible relative to total costs
what is sales maximisation?
short term objective to maximise sales
what is status quo pricing?
a pricing objective that maintains existing prices or meets the competitions prices
what is price skimming?
where a firm charges a high introductory price, often coupled with heavy promotion
what is penetration pricing?
where a firm charges a relativly low price for a product when it is first rolled out as a way to reach the mass market
what is promotion?
communication by marketers that informs, persuades and reminds potential buyers of a product in order to influence an opinion or elicit a respone
what is informative promotion?
promotion that: 1)Increases awareness
2) explains how the product works
3) suggest new uses
4) build company image
what is persuasive promotion?
promotion that:encourages brand switching and changes the pereceptions of customers
what is reminder promotion?
Promotion that: 1) Reminds customers that product may be needed
2) remind customers where to buy product
what is advertising?
one way, impersonal mass communication about a product that is paid for by marketers
what is the promotional mix?
the combination of promotional tools- including advertising, public rlations, personal selling, sales promotion and social media used to rech the target market
what is public relations?
the marketing function that evaluates public attitudes and executes a program of action to earn public understanding and acceptance
what is sales promotion?
marketing activities- other than personal selling, advertising and PR that stimulates consumer buying and dealer effectiveness (short term incentive)
what is personal selling?
a purchase situation involving a personal, paid-for communication between two peope in an attempt to influence each other.
what is intergrated marketing communications (IMC)
the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets a consumer
what are two main types of advertising?
instituional and product advertising
what is institional advertising?
advertising designed to enhance a companys image rather than promote a particular product
what is product advertising?
advertising that touts the benefits of specific good or service
what is pioneering advertising?
advertising designed to stimulate primary demand for a new product
what is competitive advertising?
advertising designed to influence demand for a specific brand
what is comparitive advertising?
advertising that compares two or more specifically named brands eg tescos price match on aldi
what is a media mix?
the combination of media to be used for a promotional campaign
what is audience selectivity?
A medium’s ability to reach a precisely defined market
Coupons, premiums, contests, free samples, and frequent buyer programs are examples of
consumer sales promotion
what is bait pricing?
tries to get customers into the store with misleading advertising and then uses high-pressure selling to persuade the consumer to buy something else more expensive
what is price lining?
Often a seller will establish a series of prices for a family of merchandise items. There may be several different models at specific price points but no prices in between
