Lesson 2 Marketing Variables Vocabulary

planning
process of anticipating future events and conditions and of determining the best way to achieve organizational objectives
marketing planning
implementing planning activities devoted to achieving marketing objectives
strategic planning
process of determining an organization’s primary objectives and adopting courses of action that will achieve these objectives
tactical planning
planning that guides the implementation of activities specified in the strategic plan
mission
essential purpose that differentiates one company from others
marketing strategy
overall, companywide program for selecting a particular target market and then satisfying consumers in that market through the marketing mix
first mover strategy
theory advocating that the company first to offer a product in a marketplace will be the long-term market winner
second mover strategy
theory that advocates observing closely the innovations of first movers and then improving on them to gain advantage in the market place
SWOT analysis
review that helps planners compare internal organizational strengths and weaknesses with external opportunities and threats
strategic window
limited periods when key requirements of a market and a firm’s particular competencies best fit together
target market
the group of people toward whom the firm aims its marketing efforts and ultimately its merchandise
marketing mix
blending of the four strategy elements: product, distribution, promotion, and pricing to fit the needs and preferences of a specific target market
product strategy
involves deciding what goods or services the firm should offer to a group of consumers and it includes decisions about customer service, package design, brand names, trademarks, patents, warranties, the lifecycle of a product, positioning the product in the marketplace, and new-product element
distribution strategy
marketers use this strategy to ensure consumers find their products in the proper quantities at the right times and places. Distribution decisions involve modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels.
promotion strategy
promotions often offer a product at a reduced price for a limited time, bundle two or more products together, or give away a premium (such as a toy) with purchase
pricing strategy
Deals with the methods of setting profitable and justifiable prices
environmental scanning
process of collecting information about the external marketing environment to identify and interpret potential trends
environmental management
attainment of organizational objectives by predicting and influencing the competitive, political-legal, economic, technological, and social-cultural environments
competitive environment
interactive process that occurs in the marketplace among marketers of directly competitive products, marketers of products that can be substituted for one another, and marketers competing for the consumer’s purchasing power
competitive strategy
methods through which a firm deals with its competitive environment
time-based competition
strategy of developing and distributing goods and services more quickly than competitors
political-legal environment
component of the marketing environment consisting of laws and their interpretations that require firms to operate under competitive conditions and to protect consumer rights
economic environment
factors that influence consumer buying power and marketing strategies, including stage of the business cycle, inflation and deflation, unemployment, income, and resource avilability
demarketing
process of reducing consumer demand for a good or service to a level that the firm can supply
technological environment
application to marketing of knowledge based on discoveries in science, inventions, and innovations
social-cultural environment
component of the marketing environment consisting of the relationship between the marketer, society, and culture
consumerism
social force within the environment that aids and protects the consumer by exerting legal, moral, and economic pressures on business and government
consumer rights
list of legitimate consumer expectations suggested by President John F. Kennedy
electronic business (e-business)
conducting online transactions with customers by collecting and analyzing business information, carrying out the exchanges, and maintaining online relationships with customers
electronic marketing (e-marketing)
strategic process of creating, distributing, promoting, and pricing goods and services to a target market over the internet or through digital tools
interactive marketing
buyer-seller communications in which the customer controls the amount and type of information received from a marketer through such channels as the internet and virtual reality kiosks
corporate Web sites
site designed to increase a firm’s visibility, promote its offerings, and provide information to interested parties
marketing Web sites
site whose main purpose is to increase purchases by visitors
business-to-business (B2) e-marketing
use of the internet for business transactions between organizations
business-to-consumer (B2C) e-marketing
selling directly to consumers over the internet
electronic storefronts
company websites that sell products to customers
electronic bulletin board
internet forum that allows users to post and read messages on a specific topic
blog
short for Web log- an online journal for an individual or organization
wiki
web page anyone can edit
podcast
online audio or video file that can be downloaded to other digital devices
search marketing
paying search engines, such as Google, a fee to make sure the company’s listing appears toward the top of the search results
click-through rate
percentage of people presented with a banner ad who click on it
conversion rate
percentage of visitors to a Web site who make a purchase
engagement
amount of time users spend on sites