Marketing Terminology Flashcards
1
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MARKETING
A
The process of planning, pricing, promoting, selling, and distributing products to satisfy customer’s needs and wants.
2
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Goods
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Tangible items of monetary value that satisfy needs and wants
3
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Services
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Intangible items of monetary value that satisfy needs and wants
4
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Utility
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An attribute of a product or service that makes it capable of satisfying consumer’s wants and needs
5
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Market
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People who share similar needs and wants and are capable of buying products
6
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Consumer market
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Consumers who purchase goods and services for personal use
7
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Industrial Market
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Businesses that buy products to use in their operations; also called the business to business market
8
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Business to business market
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Businesses that buy products to use in their operations; also called the industrial market.
9
Q
Market share
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A company’s percentage of total sales volume generated by all competition in a given market.
10
Q
Target market
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A group of people identified as those most likely to become customers
11
Q
Customer profile
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A list of information about a target market, such as age, income level, ethnicity, occupation, attitudes, lifestyle, and geographic residence.
12
Q
Marketing mix
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The four basic marketing strategies, called the four Ps: Product, place, price, and promotion
13
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The four Ps
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Product, place, price, and promotion
14
Q
Marketing plan
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A formal written document communicating the goals, objectives, and strategies of a company
15
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Executive summary
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A brief overview of an entire marketing plan
16
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Situation analysis
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The study of the external and internal strategies that affect marketing practices
17
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Marketing strategy
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Identification of target markets and determination of marketing mix choices that focus on those markets
18
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Sales forecasts
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The projection of probable future sales in units or dollars
19
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Performance standards
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An expectation of performance that reflects a company’s goals and marketing objectives
20
Q
Market segmentation
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The process of analyzing and classifying customers in a given market to create smaller, more precise target markets
21
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Demographics
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Statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, ethnicity, and occupation.
22
Q
Disposable income
A
The money left over after taxes are taken out of a consumers income
23
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Discretionary income
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The money left over from a consumer’s income after paying for basic living necessities such as food, shelter, and clothing
24
Q
Geographical
A
Segmentation of the market based on where people live
25
Psychographics
Studies of consumers based on social and psychological characteristics
26
Mass marketing
Use of a single marketing plan to reach all customers
27
Factors of production
Economic term for the four categories of resources; land, labor, capital, and entrepreneurship
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Four categories of resources
Land, labor, capital, and entrepreneurship.
| Economic term- factors of production
29
Infrastructure
The physical development of a country, including its roads, ports, sanitation facilities, and utilities
30
Entrepreneurship
The process of starting and operating your own business
31
Scarcity
The difference between what consumers want and need and what the available resources are
32
Traditional economy
The answers to the basic economic question of what, how, and for whom based on traditions and rituals
33
Command economy
An economic system in which the government decides what, when, and how much will be produced and distributed
34
GDP (gross domestic product)
The output of goods and services produced by labor and property located within a nation
35
Gross National Product (GNP)
The total dollar value of goods and services produced by a nation
36
Inflation
A period of rising prices
37
Consumer price index (CPI)
Measurement of the change in price over a period of time of approximately 400 retail goods and services used by the average urban household
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Producer price index (PPI)
Measurement of wholesale price levels in the economy
39
Business cycle
Recurring changes in economic activity, such as the expansion and contraction of an economy; expansion, peak, recession, trough, and recovery
40
Expansion
A time when the economy is flourishing; also called prosperity
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Recession
A period of economic slowdown that lasts for two quarters, or six months
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Depression
A period of prolonged recession
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Recovery
A period of renewed economic growth followed by a recession or depression
44
Exports
Goods and services sold to other countries
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Balance of trade
The difference in value between a nation’s exports and its imports
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Free trade
Commercial exchange between nations that is conducted on free market principles, without tariffs, import quotas, or other restrictive regulations
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Tariff
A tax on imports; also known as a duty
48
Quota
A limit on either the quantity or monetary value of a product that may be imported
49
Embargo
A total ban on specific goods coming into and leaving a country
50
Protectionism
A total ban on specific goods coming into and leaving a country
51
World Trade Organization (WTO)
A global coalition of more than 140 governments that makes rules governing international trade
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North American Free Trade Agreement (NAFTA)
An international trade agreement among the United States, Canada, and Mexico
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European Union (EU)
European trading bloc
54
Licensing
The process of letting another company (licensee) use a trademark, patent, special formula, company name, or some other intellectual property for a fee or royalty.
55
Contract manufacturing
The process of hiring a foreign manufacturer to make products according to certain specifications
56
Joint venture
A business enterprise that different companies set up together; often the venture involves a domestic company and a foreign company
57
Foreign direct investments (FDI)
Investments in factories, offices, and other facilities in another country that are used for a business’s operations
58
Multinationals
Large corporations that have operations in multiple countries
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Mini- nationals
Midsize or smaller companies that have operations in multiple countries
60
Globalization
The process of selling the same product and using the same promotion method in all countries
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Adaptation
Changing an existing product and/ or promotion to better suit the characteristics of a targeted country or region
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Customization
The process of creating products or promotions for certain countries or regions
63
Trademark
A brand name, brand mark, trade name, trade character, or combination of these elements that is given legal protection by the federal government
64
Copyright
The exclusive right to reproduce or sell a work authored by an individual, such as writings, music, and artwork
65
Competition
The struggle between companies to attract new customers, keep existing ones, and take away customers from other companies
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Price competition
The sale price of a product; the assumption is that consumers will buy the product with the lowest price
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Non- price competition
Competition based on factors that are not related to price, such as product quality, service and financing, business location, and reputation
68
Monopoly
Exclusive control over a product or the means of producing it
69
Nonprofit
An organization that can function like a business but uses the money it makes to fund the cause identified in its charter
70
Business risk
The possibility of financial loss
71
Profit
The money earned from conducting business after all costs and expenses have been paid
72
Supply
The amount of goods producers are willing to make and sell
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Demand
Consumer willingness and ability to buy product
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Domestic business
A business that sells its products only in its own country
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Global business
A business that sells its products to more than one country
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For- profit business
A business that seeks to make profit from its operations
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Public sector
Local, state, and federal government agencies and services, such as public libraries and state universities
78
Industry
A group of establishments primarily engaged in producing or handling the same product or group of products or in rendering the same services
79
Derived demand
The demand for industrial goods based on the demand for consumer goods and services
80
Wholesalers
Channel of distribution that obtains goods from manufacturers and resells them to industrial users, other wholesalers, and retailers
81
Retailers
Channel of distribution that buys goods from wholesalers or directly from manufacturers and resells them to the consumer
82
Production
The process of creating, expanding, manufacturing, or improving on goods and services
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Management
The business function of planning, organizing, and controlling all available resources to achieve company goals
84
Finance
A business function that involves money management
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Accounting
The discipline that keeps track of a company’s financial situation
86
Equal employment opportunity commission (EEOC)
Federal agency responsible for the fair and equitable treatment of employees with regard to hiring, firing, and promotions
87
Occupational Safety and Health Administration (OSHA)
Federal agency that provides guidelines for workplace safety and enforces those regulations
88
Securities and Exchange Commission (SEC)
Federal agency that regulates the sale of securities (stocks and bonds), licenses brokerage firms and financial advisors, and investigates dealings among corporations
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Environmental Protection Agency (EPA)
Federal agency that protects human health and our environment
90
Federal Trade Commission (FTC)
Federal agency responsible for enforcing the principles of a free enterprise system and protecting consumers from unfair or deceptive business practices.
91
Flextime
A program that allows workers to choose their work hours
92
Telecommuting
A program that involves working at home, usually on a computer, with completed jobs transmitted by e-mail or mail-in disk
93
Ad council
A nonprofit organization that helps produce public service advertising campaigns for government agencies and other qualified sponsors
94
Green marketing
Producing and promoting environmentally safe products
95
Ethics
Basic values and moral principles that guide the behavior of individuals and groups
96
Better Business Bureau (BBB)
One of the oldest nonprofit organizations that establishes self regulation among businesses
97
Price gouging
Pricing products unreasonably high when there is a high demand resulting from a monopoly or natural disaster
98
Whistle-blowing
Reporting an illegal action by ones employer
99
Feedback
A receivers response to a message
100
Barriers
Obstacles that interfere with the understanding of a message
101
Distractions
Things that compete with the massage for the listeners attention
102
Emotional barriers
Biases against the senders opinions that prevent a listener from understanding
103
Jargon
Specialized vocabulary used by members of a particular group
104
Persuade
The process used to convince someone to change a perception in order to get them to do what you want
105
Enumeration
Listing items in order
106
Generalization
A general statement or concept obtained by inference from specific cases
107
Spreadsheet programs
Software applications used to organize, calculate, and analyze numerical data
108
Desktop publishing programs
A software application that is part word processor and part graphics application, and enables users to edit and manipulate both text and graphics in one document
109
Communications programs
Software applications that enable users to electronically communicate through computers with people around the world
110
Equity
The concept of equal rights and opportunities for everyone
111
Negotiation
The process of working with different parties to find a resolution to their conflict
112
Empathy
An understanding of another persons situation or frame of mind
113
Cross- training
A process that prepares a team member to do many different activities
114
Top management
Managers who make decisions that affect the whole company
115
Middle management
Managers who implement the decisions of top management
116
Supervisory level management
Managers who supervise the activities of employees who carry out the tasks determined by middle and top management
117
Horizontal Organization
A structure where top management shares decision making with Self- managing teams of workers who set their own goals and make their own decisions
118
Empowerment
Encouragement of team members to contribute and take responsibility for the management process
119
Planning
The process of setting goals and determining how to reach them
120
Organizing
Establishment of a time frame in which to achieve a goal, assigning employees to the project, and determining a method for approaching the work.
121
Controlling
The process of setting standards and evaluating performance
122
Mission Statement
A brief paragraph or two that describes the ultimate goals of a company
123
Remedial action
Using preventative discipline or corrective discipline to encourage appropriate workplace behavior
124
Exit interview
An interview arranged by the Human Resources department when an employee leaves the company
125
Telemarketing
The process of selling over the telephone
126
Consultative selling
The process of providing solutions to customer’s problems by finding products or services that need their needs
127
Feature benefit selling
The process of matching the characteristics of a product to a customer’s needs and wants
128
Product features
Basic, physical or extended attributes of a product or service
129
Rational motive
A conscious, logical reason for a purchase
130
Emotional Motive
A feeling experienced by a customer trough association with a product or service
131
Extensive decision making
A decision making process a customer goes through when there is little experience with a product or service and there is a high degree of perceived perceived risk or high value
132
Limited decision making
The process used when a person buys goods and services that he or she has purchased before but not regularly
133
Routine decision making
The process used when a person needs little information about a product to make a decision because he or she buys it regularly
134
Pre- approach
The preparation for the face to face encounter with potential customers
135
Prospect
A potential customer; also known as a lead
136
Referrals
The names of other people who might buy a product, given to salespeople by satisfied customers
137
Endless chain method
The process of asking previous customers for names of potential customers
138
Cold canvassing
The process of locating as many potential customers as possible without checking out leads beforehand
139
Sales quotas
Dollar or unit sales goals set for the sales staff to achieve in a specified period of time
140
Merchandise approach
A way to approach a customer that focuses on making a comment or asking questions about a product in which the customer shows interest
141
Open-ended questions
The amount of money left for buying goods after all purchases received and on order have been considered
142
Objection analysis sheet
A document that lists common objections and possible responses to them
143
Substitution method
A selling method that involves recommending a different product that would still satisfy the customer’s needs
144
Boomerang method
A selling method that converts a customer’s objection into a selling point
145
Superior- point method
A selling technique that permits the salesperson to acknowledge objections as valid yet still offset them with other features and benefits
146
Third- party method
A selling method that involves using a previous customer or other neutral person who can give a testimonial about the product
147
Trial close
An initial effort to close the sale
148
Which close
A method of closing a sale that encourages a customer to make a decision between two items
149
Standing-room-only close
A method of closing a sale that is used when a product is in short supply or when the price will be going up in the near future
