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