MK 201 Test 1 Flashcards
Marketing
The activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Product
Bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
Three types of products
Good: physical or tangible object Service: intangible item Idea: concept or opinion
Ultimate consumers
the people who use the products and services purchased for a household
Organizational buyers
Manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale.
Utility
the benefits or value received by users of the product
Four Types of utility
Form(what), Place(where), Time(when), Possession(how)
Uncontrollable Environmental Forces
Social, economic, technological, competitive, regulatory
Fundamental objectives of marketing
Discover customers’ needs —> satisfy customers’ needs
Controllable Marketing Mix
Four P’s: Product, Place, Promotion, Price
Need
feeling deprived of basic a necessity such as food, clothing, or shelter
Want
need that is shaped by a person’s knowledge, culture, and personality
market
people with both the desire and the ability to buy a specific product
market segments
relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action
Target Market
one or more specific groups of potential customers toward which an organization directs its marketing program
Product
good, service, or idea designed to satisfy customers’ needs
Price
money or what is exchanged for
Place
distribution channel used to get the product to the customer
Promotion
communication between the seller and buyer— including advertising, public relations, sales promotions, and personal selling
marketing program
a plan that integrates the elements of the marketing mix to provide a product to a target market
customer value
The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
Relationship marketing
Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit
Customer relationship management (CRM)
The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace and become advocates after their purchase.
customer experience
the internal response that customers have to all aspects of an organization and its offering
marketing concept
the idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization’s goals
marketing orientation
an organization with a market orientation focuses its efforts on
organization
legal entity that consists of people who share a common mission
Three types of organizations
For-profit business firms nonprofit organizations government agencies
For-profit
legal entity engaged in business activities Solly with the intent of serving its employees without the intent of making a profit
Nonprofit organization
nongovernmental organization that serves its customers but does not have profit as an organizational goal
Government agency
federal, state, or local unit that provides a specific service to its constituents
Industry
the group of organizations that offer similar products
Strategy
an organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals
Structural of Organizations
Board of Directors —> Corporate Level —> Strategic business unit level —> functional level(departments)
Corporate Level
top management directs overall strategy for the entire organization
Strategic business unit level
managers set a more specific strategic direction for their business to exploit value-creating opportunities
Functional level
the specialists within an organization who actually create value are usually a member
organization
legal entity that consists of people who share a common mission
organizational purpose
describes why an organization exists, problem it wants to solve, and who it wants to be to every person it touches though its work
core values
the fundamental, passionate, and enduring principles of an organization that guide its conduct over time
mission
a statement of the organization’s function in society that often identifies its customers, markets, products, and technologies
organizational culture
the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization
goals (or objectives)
statements of an accomplishment of a task to be achieved, often by a specific time
business portfolio analysis
a technique that managers use to quantity performance measure and growth targets to analyze units (SBUs) as though they were a collection of separate investments
market penetration
promotional campaigns & price changes, least risky (current products & current markets)
product development
developing new versions of existing products by adding or upgrading features. existing categories, or developing new products in new categories, moderately risk (new products & current markets)
market development
sell current products in new markets, include new market segments, and geographic areas, moderately risky (current products & new markets)
diversification
developing new products and selling them in new markets, most risky (new products & new markets)
Strategic marketing process
planning phase, implantation, evaluation
SWOT analysis
Strengths, Weaknesses, Opportunities, Threats
Internal & favorable
strengths
External & favorable
opportunities
Internal & unfavorable
weaknesses
external & unfavorable
threats
customer value proposition
the cluster of benefits that an organization promises customers to satisfy their needs
points of difference
those characteristics of a product that make it superior to competitive substitutes
product positioning
the place a product occupies in customers’ minds on important attributes relative to the competition
marketing strategy
a marketing goal achieved usually characterized by a target market and a marketing program to reach it
marketing tactics
detailed day-to-day operational marketing actions
marketing dashboard
the visual display of the essential information related to achieving a marketing objective
diversification analysis
a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products
situation analysis
Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it.
environmental scanning
the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
social forces
the demographic and its cultural characteristics of the population
culture
the set of values, ideas, and attitudes that are learned and shared among the members of a group
Baby boomers
1946 - 1964, optimism and idealism
Gen X
1965 - 1980, independece and self-reliance, support of racial and ethinc diversity
Gen Y
1981 - 1996, social and environmental consciousness, expierences over possesions
Gen Z
individual expression and creativity, diversity and inclusivity,
multicultural marketing
combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races and ethnic groups
marketspace
an information and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digital offerings
Electronic commerce
the activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services
Internet of Thing (IoT)
the network of products embedded with connectivity-enabled electronics
Pure Competition
many sellers with similar products
Monopolistic Competition
many sellers with substitutable products in a price range
Oligopoly
few sellers control the majority of sales
Monopoly
only one seller
regulation
restrictions state and federal laws place on a business with regard to the conduct of its activities
ethics
the moral principles and values that govern the actions and decision of an individual or group
caveat emptor
the legal concept of “let the buyer beware” that was pervasive in the American business culture prior to the 1960s
triple bottom line
The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.
cause marketing
occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
economy
income, expenditures, and resources that affect the cost of running a business and household
consumer behavior
the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions
purchase decision process
the five states a buyer passes through in making choices about which products and services to buy. Problem recognition —> information search —> alternative evaluation —> purchase decision —> post purchase behavior
problem recognition
perceiving a difference between a person’s ideal state and their current situation
Information search
internal - consumers scanning their memory for personal experiences with and prior knowledge about a product. external - consumers gathering information from sources outside of their own experiences or existing knowledge — includes personal, public, and marketer-dominated sources
Alternative evaluation: assessing value
evaluative criteria - objective and subjective attributes of a product that consumers use when choosing among alternatives
purchase decision
selection of retailer and timing of purchase
post purchase behavior
satisfaction or dissatisfaction
cognitive dissonance
post purchase anxiety that an alternative product may offer more benefits than the one purchased
involvement
the personal, social, and economic significance of the purchase to the consumer
extended problem solving
high-involvement purchase situations considerable time and effort to search for external information
limited problem solving
used for purchases that do not require a great deal of time or effort seek information or rely on a friend to help them evaluate alternatives
routine problem solving
consumes spend little to no time seeking information or alternatives frequently purchased item skips to the purchase decision
motivation
the energizing force that stimulates behavior to satisfy a need
Maslow’s hierarchy of needs (bottom to top)
Physiological needs(floodwater,shelter), safety needs(no harm, financial security), social needs(friendship, love), personal needs(status, respect,prestige), self-actualization needs (self-fulfillment)
personality
an individual’s consistent behaviors or responses to recurring situations
self-concept
the way people see themselves and the way they believe others see them
Actual self-concept
how people really see themselves
ideal self-concept
how people would like to see themselves
perception
the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world
selective perception
filtering of exposure, comprehension, and retention of information
perceived risk
The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences
learning
those behaviors that result from (1) repeated experience and (2) reasoning
behavioral learning
process of developing automatic responses to a situation built up through repeated exposure to it
cognitive learning
making connections between two or more ideas or simply observing the outcomes of others’ behaviors and adjusting your own accordingly
attitude
a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way
beliefs
a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussion with other people
psychographics
the analysis of consumer lifestyles
opinion leaders
individuals who exert direct or indirect social influence over others
influencer marketing
the recruitment of individuals to advocate for products and brands rather than focusing exclusively on prospective buyers
reference group
people an individual looks to as a basis for self-appraisal or as a source of personal standards
associative group
a person is a member of
aspiration group
person would like to be a member of or would like to be identified with
dissociative group
does not want to be associated with because of differences in values or behaviors
brand community
a group of consumers that share a common passion for a particular brand fellow customers of that brand , and the product in use
social class
use to group people sharing similar values, interest, and behaviors
family life cycle
the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors
subculture
subgroups within the larger, or national, culture with unique values, ideas, and attitudes
consumer touchpoints
points of contact between a consumer and a product or brand during the purchase decision process - from problem recognition to post purchase behavior
organizational buyers
Manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale.
business-to-business marketing
the marketing of products to organizational buyers that buy products for their own use or for resale
derived demand
demand for industrial products that is driven by, or derived from, the demand for consumer products
organizational buying criteria
objective attributes of the supplier’s products and the capabilities of the supplier itself
organizational buying behavior
The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.
buying center
the group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision
e-marketplaces
online trading communities that bring together organizational buyers and suppliers to make possible the real-time exchange of information, money, products, and services
traditional auction
a seller puts an item up for sale and potential buyers are invited to bid in competitions with each other
reverse auction
a buyer communicates a need for a product and potential suppliers are invited to bid in competition with each other
