Marketing 201 Final Exam Vocabulary

Customer value
Buyers’ benefits, including quality, convenience, on-time delivery, and before-and after-sale service at a specific price
Environmental forces
The uncontrollable social, economic, technological, competitive, and regulatory forces that affect the results of a marketing decision
Exchange
The trade of things of value between a buyer and a seller so that each is better off
Market
People with both the desire and the ability to buy a specific offering
Market orientation
Focusing organizational efforts to collect and use information about customers’ needs to create customer value
Market segments
Relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action
Marketing
The activity for creating and delivering offerings that benefit the organization, its stakeholders, and society.
Marketing concept
The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization’s goal.
Marketing mix
The controllable factors — product, price, promotion, and place — that the marketing manager can use to solve a marketing problem
Organizational buyers
Manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale
Product
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
Relationship marketing
Linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit
Societal marketing concept
The view that organizations should discover and satisfy the needs of consumers in a way that also provides for society’s well-being
Target market
One or more specific groups of potential consumers toward which an organization directs its marketing program
Ultimate consumers
The people who use the products and services purchased for a household
Utility
The benefits or customer value received by users of the product
Business
The underlying industry or market sector of an organization’s offering
Goals (objectives)
Statements of an accomplishment of a task to be achieved, often by a specific time
Market segmentation
The aggregating of potential buyers into groups that have common needs and will respond similarly to a marketing action
Market share
Ratio of a firm’s sales to the total sales of all firms in the industry
Marketing dashboard
The visual computer display of essential marketing information
Marketing plan
A road map for the marketing activities of an organization for a specified future time period
Marketing strategy
The means by which a marketing goal is to be achieved
Mission
A statement or vision of an organization’s function in society
Situation analysis
Taking stock of where a firm or product has been recently, where it is now, and where it is headed
Strategy
An organization’s long-term course of action that delivers a unique customer experience while achieving its goals
SWOT analysis
An acronym describing an organization’s appraisal of its internal strengths and weaknesses and its external opportunities and threats
Code of ethics
A formal statement of ethical principles and rules of conduct
Competition
Alternative firms that could provide a product to satisfy a specific market’s needs
Demographics
Description of a population according to characteristics such as age, gender, ethnicity, income and occupation
Multicultural marketing
Marketing programs that reflect unique aspects of different races
Regulation
Restrictions that state and federal laws place on business
Self-regulation
An alternative to government control, whereby an industry attempts to police itself
Social forces
The demographic characteristics and the culture of the population
Social responsibility
The idea that organizations are part of a larger society and are accountable to that society for their actions
Technology
Inventions or innovations from applied science or engineering research
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 discussions with other people
Brand loyalty
A favorable attitude toward and consistent purchase of a single brand over time
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
Family life cycle
The distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors
Opinion leaders
Individuals who exert direct or indirect social influence over others
Perceived risk
The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences
Purchase decision process
The five stages a buyer passes through in making choices about which products and services to buy: (1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) post purchase behavior
Reference groups
People to whom an individual looks as a basis for self-appraisal or as a source of personal standards
Subcultures
Subgroups within the larger, or national , culture with unique values, ideas, and attitudes
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
Derived demand
The demand for industrial products and services that is driven by, or derived from, the demand for consumer products and services
e-marketplaces
Online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services. Also called B2B exchanges of e-hubs
North American Industry Classification System (NAICS)
Provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the “North American Free Trade Agreement” (NAFTA)
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
Data
The fact and figures related to the project that are divided into two main parts: Secondary data and Primary data
Information technology
Involves operating computer networks that can store and process data
Marketing research
The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
Measures of success
Criteria or standards used in evaluating proposed solutions to the problem
Observational data
Facts and figures obtained by watching, either mechanically or in person, how people actually behave
Primary data
Facts and figures that are newly collected for the project
Questionnaire data
Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors
Secondary data
Facts and figures that have already been recorded prior to the project at hand
80/20 rule
A concept that suggest 80 percent of a firm’s sales are obtained from 20 percent of its customers
Market-product grid
A framework to relate the market segments of potential buyers to products offered or potential marketing actions
Product differentiation
A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products
Product positioning
The place a product occupies in consumers’ minds based on important attributes relative to competitive products
Product repositioning
Changing the place a product occupies in a consumer’s mind relative to competitive products
Business products
Products organizations buy that assist in providing other products for resale. Also called “B2B products or industrial products”
Consumer products
Products purchased by the ultimate consumer
Customer experience management (CEM)
The process of managing the entire customer experience within the company
Four I’s of service
The four unique elements that distinguish services from goods: intangibility, inconsistency, inseparability, and inventory
new-product process
The seven stages an organization goes through to identify opportunities and convert them into salable products or services
Product item
A specific product that has a unique brand, size, or price
Product line
A group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range
Product mix
Consists of all of the product lines offered by an organization
Services
Intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value
Brand equity
The added value a brand name gives to a product beyond the functional benefits provided
Brand name
Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller’s products or services
Branding
A marketing decision in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors
Multibranding
A branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment
Multiproduct branding
A branding strategy in which a company uses one name for all its products in a product class
off-peak pricing
Charging different prices during different seasons of the year and different times of the day or during different days of the week to reflect variations in demand for the service
Product life cycle
Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline
Seven P’s of services marketing
An expanded marketing mix concept for services that includes the four Ps (product, price, promotion, and place or distribution) as well as people, physical environment, and process
Break-even analysis
A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output
Demand curve
A graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price
Price elasticity of demand
The percentage change in quantity demanded relative to a percentage change in price
Total cost
The total expense incurred by a firm in producing and marketing a product. Total cost is the sum of fixed cost and variable cost
Total revenue
The total money received from the sales of a product
Value
The rain of perceived benefits to price; or value = (Perceived benefits/Price)
Channel conflict
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
Customer service
The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience
Disintermediation
A source of channel conflict that occurs when a channel member bypasses another member and sells or buys products direct
Dual distribution
An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product
Exclusive distribution
A level of distribution density whereby only one retailer in a specific geographical area carries the firm’s product
Intensive distribution
A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible
Logistics
Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
Marketing channel
Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
Reverse logistics
A process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution or disposal
Selective distribution
A level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products
Supply chain
The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users
Vendor-managed inventory (VMI)
An inventory management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items
Vertical marketing systems
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
Brokers
Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales
Category management
An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category
Multichannel retailers
Retailers that utilize and integrate a combination of traditional store formats and non store formats such as catalogs, television home shopping, and online retailing
Retail life cycle
The process of growth and decline that retail outlets, like products, experience, consisting of the early growth, accelerated development, maturity, and decline stages
Retailing mix
The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise
Scrambled merchandising
Offering several unrelated product lines in a single store
Telemarketing
Using the telephone to interact with and sell directly to consumers
Wheel of retailing
A concept that describes how new forms of retail outlets enter the market
Advertising
Any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor
Communication
The process of conveying a message to others that requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding
Direct marketing
A promoton alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet
Direct orders
The result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction
Lead generation
The result of a direct marketing offer designed to generate interest in a product or service and a request for additional information
Personal selling
The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision
Pull strategy
Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product
Push strategy
Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
Sales promotion
A short-term inducement of value offered to arouse interest in buying a product or service
Order getter
A salesperson who sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service
Order taker
A salesperson who processes routine orders and reorders for products that were already sold by the company
Sales plan
A statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed
Cross-channel shopper
An online consumer who researches products online and then purchases them at a retail store
Viral marketing
An Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs