Fundamentals of Marketing – Midterm 1

Marketing
The process of planning the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organization objectives.
Production Oriented
Occurs when organizations pay little attention to what customers need, concentrating instead on what they are capable of producing.
Selling Orientation
Occurs when companies believe that the more they sell the more profit they will make.
Marketing Concept
The process of determining the needs and wants of a target market and delivering a set of desired satisfactions to that target market more effectively than the competition.
Socially Responsible Marketing
The notion that business should conduct itself in the best interests of consumers and society.
Cause Marketing (Chapter 1)
An organization’s support of causes that benefit society.
Social Network
A website that connects people with different kinds of interests for the purpose of socializing (e.g., Facebook or Twitter).
Brand Democratization
A situation in which the customer can interact with a brand, giving the customer some control over the marketing of the brand (as in online user-generated content).
Consumer-Generated Content
Online content created by consumers for consumers (often the content is related to a branded good).
Content Marketing
A marketing format that involves the creation and sharing of relevant brand-oriented content in order to acquire customers.
Market
A group of people who have a similar need for a product or service, the resources to purchase it, and the willingness and ability to buy it.
Needs Assessment
The initial stage of marketing planning in which a company collects appropriate information to determine if a market is worth pursuing.
Market Analysis
The collection of appropriate information (i.e., information regarding demand, sales volume potential, production capabilities, and resources necessary to produce and market a given product) to determine if a market is worth pursuing.
Consumer Analysis
The monitoring of consumer behavior changes (tastes, preferences, lifestyles) so that marketing strategies can be adjusted accordingly.
Target Market
A group of customers who have certain characteristics in common.
Marketing Mix
The four strategic elements of product, price, distribution, and marketing communications.
Product Strategy
Marketing decisions about such variables as product quality, product features, brand names, packaging, customer service, guarantees, and warranties.
Price Strategy
The development of pricing structure that is fair and equitable for consumers and still profitable for the organization.
Distribution Strategy
The selection and management of marketing channels and the physical distribution of products.
Marketing Channel
A series of firms or individuals that participate in the flow of goods and services from producer to final users or customers.
Marketing Communications Strategy
The blending of advertising, sales promotion, event marketing and sponsorship, personal selling, and public relations to present a consistent and persuasive message about a product or service.
Integrated Marketing Communications (IMC)
The coordination of various forms of marketing communications into an unified program that maximizes impact on consumers and other types of customers.
Sales Promotion
Activity that provides special incentives to bring about immediate action from consumers, distributors, and an organization’s sales force.
Public Relations
A variety of activities and communications that organizations undertake to monitor, evaluate, influence, and adapt to the attitudes, opinions, and behaviours of their publics.
Experiential Marketing
A type of marketing that creates awareness of a product by having the customer directly interact with the product (e.g., distributing free samples of a product at street level).
Event Marketing
The process, planned by a sponsoring organization, of integrating a variety of communications elements behind an event theme.
Public Image
The reputation that a product, service, or company has among its various publics.
Customer Relationship Management (CRM)
Strategies designed to optimize profitability, revenue, customer retention, and customer satisfaction.
Loyalty (Frequent Buyer) Programs
Offer the consumer a small bonus, such as points or “play money”, when they make a purchase; the bonus accumulates with each new purchase.
Customer Relationship Management Program
Analyzes data about customers’ buying behavior, their preferences when buying, and their likes and dislikes to create individualized marketing programs to meet unique customer needs.
Business Ethics
The study and examination of moral and social responsibility in relation to business practices and decision making in business.
Gross Domestic Product (GDP)
The total value of goods and services produced in a country on an annual basis.
Inflation
The rising price level for goods and services that results in reduced purchasing power.
Monopoly
A market in which there is a single seller of a particular good or service for which there are no close substitutes.
Oligopoly
A market situation in which a few large firms control the market.
Monopolistic Competition
A market in which there are many competitors, each offering a unique marketing mix based on price and other variables.
Pure Competition
A market in which many small firms market similar products.
Direct Competition
Competition from alternative products and services.
Indirect Competition
Competition from substitute products that offer customers the same benefit.
Market Share
The sales volume of one competing product or company expressed as a percentage of total market sales volume.
Market Leader
The largest firm in the industry and the leader in strategic action.
Market Challenger
Firm or firms attempting to gain market leadership through aggressive marketing efforts.
Market Follower
A company that is generally satisfied with its market-share position.
Market Nicher
A firm that concentrates resources on one or more distinguishable market segments.
Niche Marketing
Targeting a product line to one particular segment and committing all marketing resources to the satisfaction of that segment.
Demographics
The study of the characteristics of a population.
Census Metropolitan Area (CMA)
An area that encompasses all rural and urban areas that are linked to a city’s urban core, either socially or economically.
Blended Family
A family structure created by separation or divorce; two separate families merge into a single household as spouses remarry.
Sandwich Generation
A generation of parents who are simultaneously caring for children and aging relatives.
Disposable Income
Actual income after taxes and other expense; it is income available for basic necessities and optional purchases.
Subculture
A subgroup of a culture that has a distinctive mode of behavior.
Mass Customization
The creation of systems that can produce products and personalize messages to a target audience of one.
Industry Canada
Regulates the legal environment for marketing and other business practices in Canada.
Competition Act
Brings together a number of related laws to help consumers and businesses function in Canada.
Self-Regulation
A form of regulation whereby and industry sets standards and guidelines for its members to follow.
Problem Recognition
In the consumer buying process, a stage in which a consumer discovers a need or an unfulfilling desire.
Information Search
Conducted by an individual, once a problem or need has ben defined.
Evoked Set
A group of brands that a person would consider acceptable among competing brands in a class of product.
Cognitive Dissonance
An individual’s unsettled state of mind after an action he or she has taken.
Need
A state of deprivation or the absence of something useful.
Motives
The conditions that prompt the action necessary to satisfy a need.
Hierarchy of Needs
The classification of consumers’ needs in an ascending order from lower-level needs to higher-level needs.
Personality
Distinguishing psychological characteristics of a person that produce relatively consistent and enduring responses to the environment in which that person lives.
Self-Concept Theory
States that the self has four components: real self, self-image, looking-grass self, and ideal self.
Attitudes
An individual’s feelings, favorable or unfavorable, toward an idea or object.
Perception
How individuals receive and interpret messages.
Lifestyle
A person’s pattern of living as expressed in his or her activities, interests, opinions, and values.
Reference Group
A group of people with a common interest that influences the members’ attitudes and behavior.
Double Targeting
Devising a single marketing strategy for both sexes.
Social Class
The division of people into ordered groups on the basis of similar values, lifestyles, and social history.
Culture
Behaviour learned from external sources that influences the formation of value systems that hold strong sway over every individual.
Subculture
A subgroup of a culture that has a distinctive mode of behavior.
Business-to-Business (B2B)
Markets comprising individuals and organizations that acquire goods and services that are then used in the production of other goods or services that are sold or supplied to others.
Outsourcing
The contracting out of services or functions previously done in-house (e.g., a firm contacts out its computer services functions).
Organizational Buying
The decision-making process that firms follow to establish what products they need to purchase, and then identify, evaluate, and select a brand and a supplier for those products.
Derived Demand
Demand for products sold in the business-to-business market that is actually driven by consumer demand.
Joint or Shared Demand
A situation in which industrial products can be used only in conjunction with others, when the production and marketing of one product is dependent on another.
Vendor Analysis
An evaluation of potential suppliers based on an assessment of their technological ability, consistency in meeting product specifications, delivery, ability to provide needed quantity, and price.
Buying Committee
A formal purchasing group involving members from across a business organization who share responsibility for making a purchase decision.
Buying Centre
An informal purchasing group in which individual with a variety of roles influence the purchase decision but may not have direct responsibility for the decision to purchase.
Partnership Marketing
A process that involves cooperation and collaboration among members of a channel of distribution that do business with one another.
Project Teams
Groups of sales representatives formed to deal with customers’ needs more effectively.
Reverse Marketing
An effort by organizational buyers to build relationships that allow them to influence the specifications of supplier’s goods and services to fit the buyer’s (and, by extension, the customers’) needs.
E-Procurement
An Internet-based business-to-business marketplace through which participants are able to purchase good for one another.
Need Description
In business-to-business marketing, a stage where a buying organization identifies the general characteristics of the items and services it requires.
Product Descriptions (Specifications)
In a B2B context, a description of the characteristics of a product and organization requires. The description is used by potential suppliers when preparing bids to supply the product.
Supplier Search
A stage in the business-to-business buying process in which a buyer looks for potential suppliers.
Proposal Solicitation
A procedure whereby a buying organization seeks and evaluates written proposals from acceptable suppliers.
Bid
A written tender submitted by a specific deadline.
Closed Bid
A written, sealed bid submitted by a supplier for review and evaluation by the purchaser on a particular date.
Open Bid
An informal submission of a price quotation in written or verbal form by a potential supplier.
Quotation
A written document, usually from a sales representative, that states the terms of price quoted.
Supplier Selection
The stage in the business-to-business buying organization evaluates the proposals from various suppliers and selects the one that matches its needs.
Order and Reorder Routine
In business-to-business marketing, the placing of an order and the establishment of a repeat order process with a supplier.
Performance Reviews
The final step in the buying process, where the buying organization establishes a system of obtaining and evaluating feedback on the performance of the supplier’s products.
Not-for-Profit Marketing
The marketing efforts and activities of not-for-profit organizations.
Social Marketing
Marketing activity that increases the acceptability of social ideas.
Organization Marketing
Marketing that seeks to gain or maintain acceptance of an organization’s objectives and services.
People Marketing
The marketing of an individual or group of people to create a favourable impression of that individual or group.
Place Marketing
Drawing attention to an creating a favourable attitude toward a particular place, be it a country, province, region, or city.
Idea Marketing
Marketing activity that encourages the public to accept and agree with certain issues and causes.
Cause Marketing (Chapter 16)
Marketing activity that increases the acceptability of social ideas.