Test 1 (Ch. 1-6) Flashcards
the activity for creating, communicating, delivering, and exchanging offerings that benefit customers, the organization, its stakeholders, and society at large
Marketing
Trade of things of value between buyer and seller
exchange
Theses four things need to occur in order for _______ to occur:
- Two or more parties with unsatisfied needs
- A desire and ability on their part to be satisfied
- A way for the parties to communicate
- something to exchange
Marketing
People with both the desire and the ability to buy a specific offering
Market
One or more specific groups of potential consumers toward which an organization directs its marketing program
Target marketing
What are the four P’s?
Product, price, promotions, place
A good, service, or idea to satisfy the customer’s needs
Product
What is exchanged for the product
Price
A means of communication between the seller and buyer
Promotion
A means of getting the product to the consumer
Place
The four P’s are the elements of __________
The marketing mix
The marketing mix elements are called
Controllable factors
A cluster of benefits that an organization promises customers to satisfy their needs
Customer value proposition
Forces that are beyond marketers control such as: social, economic, technological, competitive, and regulatory forces
Environmental forces
The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale server at a specific price
Customer value
Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit
Relationship marketing
A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
Marketing program
The idea that the organization should strive to satisfy the needs of the customers while also trying to achieve the organization’s goals
Marketing concept
An organization that focuses its efforts on continuously collecting information about customer’s needs, sharing this information across the market, and using it to create customer value have a _______ orientation
Market
The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offers so that buyers will choose them in the marketplace
Customer Relationship Management (CRM)
The internal response that customers have to all aspects of an organization and its offerings
Customer experience
The view that organizations should satisfy the needs of consumers in a way that provides for society’s well being
Societal marketing concept
The people who use the products and services purchased for a household
Ultimate consumers
Those manufactures, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale
Organizational buyers
The benefits or customer value received by users of the product
Utility
Legal entity that consists of people who share a common mission
Organization
A privately owned organization such as Target, Nike, etc. that serves its customers to earn a profit so that it can survive
Business firm
The money left after a business firm’s total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings
Profit
A nongovernmental organization that serves its customers but does not have profit as an organizational goal
Nonprofit organization
An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals
Strategy
Where top management directs overall strategy for the entire organization
Corporate level
Subsidiary, division, or unit of an organization that markets a set of related offering to a clearly defined group of customers
Strategic Business Unit (SBU)
Where groups of specialists actually create value for the organization
Functional level
Consist of a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals
Cross-functional teams
The fundamental, passionate, and enduring principles that guide its conduct over time
Core values
Employees, shareholders, board of directors, suppliers, distributors, creditors, unions, government, local communities, and customers are examples of _________
Stakeholders
A statement of the organization’s function in society that often identifies its customers. markets. products, and technologies
Mission
The set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization
Organizational culture
Describes the clear, broad, underlying industry or market sector of an organization’s offerings
Business
The strategies an organization develops to provide value to the customers it serves
Business model
Statements of an accomplishment of a task to be achieved, often by a specific time
Goals or objectives
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
Market share
The visual computer display of the essential information related to achieving a marketing objective
Marketing dashboard
The measure of the quantitative value or trend of a marketing activity or result
Marketing Metric
Presents information about an organization’s marketing metrics graphically so marketers can quickly spot deviations from plans and take corrective actions
Data visualization
Road map for the marketing activities of an organization for a specified future times period such as one year or five years
Marketing Plan
The organizations special capabilities that distinguish it from other organizations and provide customer value
Competencies
A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation
Competitive advantage
The technique managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units (SBUs) as though they were a collection of separate investments
Business portfolio analysis
The annual rate of growth of the strategic business units’ industry
Market growth rate
The sales of the strategic business units divided by the sales of the largest firm in the industry
Relative market share
Strategic business units (SBUs) that generate large amounts of cash, far more than they can invest profitably in themselves
Cash cows
Strategic business units (SBUs) with a high share of high -growth markets that may need extra cash to finance their own rapid future growth
Stars
Strategic business units (SBUs) with a low share of high-growth markets
Question marks
Strategic business units (SBUs) with low shares of slow-growth markets
Dogs
A technique that helps a firm search for growth opportunities from amount current and new markets as well as current and new products
Diversification analysis
Marketing strategy to increase sales of current products in current markets, such as selling more Ben & Jerry’s Bonnaroo Buzz Fair Trade-sourced ice cream to U.S. consumers
Market Penetration
A marketing strategy to sell current products to new markets
Market development
A marketing strategy of selling new products to current markets
Product development
A marketing strategy of developing new products and selling them in new markets
Diversification
An organization allocates its marketing mix resources to reach its target markets
Strategic Marketing process
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
Situation analysis
An acronym describing an organization’s appraisal of its internal strengths and weakness and its external opportunities and threats
SWOT analysis
Aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action
Market Segmentation
Characteristics of a product that make it superior to competitive substitutes
Points of difference
The means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it
Marketing strategy
Detailed day-to-day operational decisions essential to the overall success of marketing strategies
Marketing tactics
A road map for the entire organization for a specified future period of time, such as one year or five years
Business plan
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
Environmental scanning
The demographic characteristics of the population and its values
Social forces
Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation
Demographics
A combination of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races
Multicultural Marketing
Incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group
Culture
The concern for obtaining the best quality, features, and performance of a product or service for a given price
Value consciousness
Pertains to the income, expenditures, and resources that affect the cost of running a business and household
Economy
The total amount of money made in one year by a person, household, or family unity
Gross income
The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation
Disposable income
The money that remains after paying for taxes and necessities (used for luxury items such as a cruise)
Discretionary income
Refers to inventions or innovations from applied science or engineering research
Technology
An information and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings
Marketspace
Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services
Electronic commerce
The alternative firms that could provide a product to satisfy a specific market’s needs
Competition
There are many sellers and have similar products
Pure competition
Many sellers compete with substitutable products within a price range
Monopolistic competition
Occurs only when one firm sells the product
Pure monopolies
Business practices or conditions that make it difficult for new firms to enter the market
Barriers to entry
Restrictions state and federal laws place on business with regard to the conduct of its activities
Regulation
A grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions
Consumerism
where an industry attempts to police itself
Self-regulation
Moral principles and values that govern the actions and decisions of an individual or group
Ethics
Society’s values and standards that are enforceable in the courts
Laws
The set of values, ideas, and attitudes that are learned and shared among the members of a group
Culture
Compromise the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings
Business cultures
Caveat emptor means
Let the buyer beware
Codified the ethics of exchange between buyers and sellers. These were the right to safety, to be informed, to choose, and to be heard
Consumer Bill of Rights
Clandestine collection of trade secrets or proprietary information about a company’s competitors
Economic espionage
A set of values, ideas, and attitudes that is learned and shared among the members of an organization
Corporate culture
A formal statement of ethical principles and rules of conduct
Code of ethics
Employees who report unethical or illegal actions of their employers
Whistleblowers
Personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome
Moral idealism
A personal moral philosophy that focuses on “the greatest good for the greatest number of people” by assessing the costs and benefits of the consequences of ethical behavior
Utilitarianism
The organizations are part of a larger society and are accountable to the society for their actions
Social responsibility
Holds that companies have a simple duty: to maximize profits for their owners or stockholders
Profit responsibility
Focuses on the obligations an organization has to those who can affect achievement of its objectives
Stakeholder responsibility
Refers to obligations that organizations have to the preservation of the ecological environment and to the general public
Societal responsibility
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
Triple-bottom line
Marketing efforts to produce, promote, and reclaim environmentally sensitive products - takes many forms
Green 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
Cause marketing
A systematical assessment of a firm’s objectives, strategies, and performance in terms of social responsibility
Social audit
Involves conduction business in a way that protects the natural environment while making economic progress
Sustainable development
The actions a person takes in purchasing and using products and services, including mental and social processes that come before and after these actions
Consumer behavior
Process with the five stages of problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior
Purchase-decision process
The initial step in the purchase decision, is perceiving a difference between a person’s ideal and actual situations big enough to trigger a decision
Problem recognition
Scan your memory for previous experiences with products or brands
Internal search
When past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low
External search
Sources who are relatives, friends that the consumer trusts
Personal sources
Sources including various product-rating organizations such as Consumer Reports, government agencies, and TV consumer programs
Public sources
Sources such as information from sellers including advertising, company websites, salespeople, and point-of-purchase displays in stores
Marketer-dominated sources
The group of brands that you would consider from among all the brands of which you are aware in the product class
Consideration set
The feeling of post-purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives
Cognitive Dissonance
The personal, social, and economic significance of the purchase to the consumer
Involvement
Have an impact on the purchase decision process: the purchase task, social surrounding, physical surrounding, temporal effects, and antecedent
Situational influences
The energizing force that stimulates behavior to satisfy a need
Motivation
Refers to a person’s consistent behaviors or responses to recurring situations
Personality
The way people see themselves and the way they believe others see them
Self-concept
The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world
Perception
A filtering of exposure, comprehension, and retention
Selective perception
Occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconstant
Selective exposure
Involves interpreting information so that it is consistent with your attitudes and beliefs
Selective comprehension
Means that consumers do not remember all the information they see, read, or hear, even minutes after exposure to it
Selective retention
Means that you see or hear messages without being aware of them
Subliminal perception
Represents the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences
Perceived risk
Refers to those behaviors that result from repeated experience and reasoning
Learning
The process of developing automatic responses to a situation built up through repeated exposure to it
Behavioral learning
A need that moves an individual to action
Drive
A stimulus or symbol perceived by consumers
Cue
The action taken by a consumer to satisfy the drive
Response
Known as the reward
Reinforcement
Occurs when a response elicited by one stimulus (cue) is generalized to another stimulus
Stimulus generalization
REfers to a person’s ability to perceive differences in stimuli
Stimulus discrimination
Involves making connection between two or more ideas or simply observing the outcomes of others’ behaviors and adjusting your own accordingly
Cognitive learning
A favorable attitude toward and consistent purchase of a single brand over time
Brand loyalty
A learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way
Attitude
A consumer’s subjective perception of how a product or brand performs on different attributes
Beliefs
A mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them
Lifestyle
The practice of combining psychology, lifestyle, and demographics, is often used to uncover consumer motivations for buying and using products and services
Psychographics
Consumers motivated by ideals are guided by knowledge and principle
Ideals-motivated groups
Mature, reflective, and well-educated people who value order, knowledge, and responsibility
Thinkers
Conservative, conventional people with concrete beliefs based on traditional, established codes: family, religion, community, and the nation
Believers
Consumers motivated by achievement look for products and services that demonstrate success to their peers or to a peer group they aspire to
Achievement-motivated groups
People with a busy, goal-directed lifestyle and a deep commitment to career and family
Achievers
People who are trendy, fun-loving and less self-confident than achievers
Strivers
Consumers motivated by self-expression desire social or physical activity, variety, and risk
Self-expression motivated groups
Young, enthusiastic, and impulsive consumers who become excited about new possibilities but are equally quick to cool
Experiencers
With fewer resources, express themselves and experience the world by working on it - raising children or fixing a car
Makers
Two segments that stand apart
High and low-resource groups
Successful, sophisticated, take-charge people with high self-esteem and abundant resources of all kinds
Innovators
With the least resources of any segment, focus on meeting basic need (safety and security) rather than fulfilling desires
Survivors
Individuals who exert direct or indirect social influence over others
Opinion leaders
The influencing of people during conversations
Word of mouth
People to whom an individual looks as a basis for self appraisal or as a source of personal standards
Reference groups
A group to which a person actually belongs, including fraternities and sororities, social clubs, and the family
Membership group
A group that a person wishes to be a member of or wishes to be identified with, such as a professional society
Aspiration group
A group that a person wishes to maintain a distance from because of differences in values or behavior
Dissociative group
The process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers
Consumer socialization
Describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors
Family life cycle
Married couple with children younger than 18
Traditional family
What are the five roles that exist in the purchase process?
Information gatherer, influencer, decision maker, purchaser, and user
The relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped
Social class
Subgroups within the larger, or national, culture with unique values, ideas, and attitudes
Subcultures
Marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others
Business marketing
Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale
Organizational buyers
Organizational buyers are divided into three markets. What are the three names?
Industrial, reseller, and government
Wholesalers and retailers that buy physical products and resell them again without any reprocessing
Resellers
Firms that reprocess a product or service they buy before selling it again to the next buyer
Industrial firms
The federal, state, and local agencies that buy goods and services for the constituents they serve
Government units
Provides common industry definitions for Canada, Mexico, and the United States
North American Industry Classification System (NAICS)
The demand for industrial products and services is driven by, or derived from, demand for consumer products and services
Derived demand
The objective attributes of the supplier’s products and services and the capabilities of the supplier itself
Organizational buying criteria
Refer to standards for registration and certification of a manufacturer’s quality management and assurance system based on an on-site audit of practices of procedure
ISO 9000
Involves the deliberate effort by organizational buyers to build relationships that shape suppliers’ products services, and capabilities to fit a buyer’s needs and those of its customers
Supplier development
Inventory system that reduces the inventory of production parts to those to be used within hours or days, on-time delivery is becoming an even more important buying criterion and, in some instances, a requirement
Just-in-time
An industrial buying practice in which two organization agree to purchase each other’s products and services
Reciprocity
Exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer
Supply partnership
Supply partnerships that include provisions
Sustainable procurement
Several people in an organization who participate in the buying process. They share common goals, risks, and knowledge important to a purchase decision
Buying center
The people in the organization who actually use the product or service, such as a secretary who will use a new word processor
Users
Affect the buying decisions, usually by helping define the specifications for what is bought
Influencers
Have formal authority and responsibility to select the supplier and negotiate the terms of the contract
Buyers
Have the formal or informal power to select or approve the supplier that receives the contract
Deciders
Control the flow of information in the buying center
Gatekeepers
The 3 types of buying situations are called
Buy classes
When the organization is the first-time buyer of the product or service
New buy
Where the buyer or purchasing manager reorders an existing product or service from the list of acceptable suppliers, probably without even checking with users or influencers from the engineering, production, or quality control departments
Straight rebuy
In this buying situation the users, influencers, or deciders in the buying center want to change the product specifications, price, delivery schedule, or supplier
Modified rebuy
The decision making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and supliers
Organizational buying behavior
An evaluation of whether components and assemblies will be purchased from outside suppliers or build by the company itself
Make-buy decision
A systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs
Value analysis
A list of firms believed to be qualified to supply a given item
Bidder’s list
Brings together buyers and supplier organizations
E-marketplaces
A seller puts an item up for sale and would-be buyers are invited to bid in competition with each other
Tradition auction
A buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other
Reverse auction
