Marketing 305 Final Exam

marketing
the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
marketing plan
a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P’s, action programs, and projected or pro forma income
exchange
the trade of things of value between the buyer and the seller so that each is better off as a result
marketing mix
product, price, place, and promotion – the controllable set of activities that a firm uses to respond to the wants of its target markets
goods
items that can be physically touched
service
any intangible offering that involves a deed, performance, of effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer
ideas
intellectual concepts – thoughts, opinions, and philosophies
business-to-consumer marketing
the process in which businesses sell to consumers
business-to-business marketing
the process of selling merchandise or services from one business to another
C2C marketing
the process in which consumers sell to other consumers
employment marketing
marketing programs to attract applicants to the hiring firm
value
reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives
value cocreation
customers act as collaborators with a manufacturer or retailer to create the product or service
marketing strategy
a firm’s target market, marketing mix, and method of obtaining a sustainable competitive advantage
sustainable competitive advantage
something the firm can persistently do better than its competitors
customer excellence
involves a focus on retaining loyal customers and excellent customer service
operational excellence
involves a firm’s focus on efficient operations and excellent supply chain management
product excellence
involves a focus on achieving high-quality products; effective branding and positioning is key
locational excellence
a method of achieving excellence by having a strong physical location or internet presence
marketing plan
a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P’s, action programs, and projected or pro forma income statements
planning phase
the part of the strategic marketing planning process when marketing executives define the mission or vision of the business and evaluate the situation by assessing how various players affect the firm’s potential for success
implementation phase
the part of the strategic marketing planning process when marketing managers identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning and implement the marketing mix using the four P’s
control phase
the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions
mission statement
a broad description of a firm’s objectives anad the scope of activities it plans to undertake; attempts to answer two main questions: what type of business is it? What does it need to do to accomplish its goals a objectives
situation analysis
second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment in terms of its opportunities and threats
STP
the process of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits
market segment
a group of consumers who respond similarly to a firm’s marketing efforts
market segmentation
the process of dividing the market into groups of customers with different needs, wants, or characteristics – who therefore might appreciate products or services geared especially for them
target marketing
the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market
market positioning
involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
products
anything that is of value to a consumer and can be offered through a voluntary marketing exchange
metric
a measuring system that quantifies a trend, dynamic, or characteristic
strategic business unit
a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objective
product line
groups of associated items, such as those that consumers use together of think of as part of a group of similar products
market share
percentage of a market accounted for my a specific entity
relative market share
a measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry
market growth rate
the annual rate of growth of the specific market in which the product competes
market penetration strategy
a growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers
market development strategy
a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international
product development strategy
a growth strategy that offers a new product or service to a firm’s current target market
diversification strategy
a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve
related diversification
a growth strategy whereby the current target market and marketing mix shares something in common with the new opportunity
unrelated diversification
a growth strategy whereby a new business lacks any common elements with the present business
need recognition
the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual needy state to a different desired state
functional needs
pertain to the performance of a product or service
psychological needs
pertain to the personal gratification consumers associate with a product or service
internal search for information
occurs when the buyer examines his or her own memory ad knowledge about the product or srevice, gathered through past experiences
external search for information
occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision
internal locus of control
refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities
external locus of control
refers to when consumers believe that fate or other external factors control all outcomes
performance risk
involves the perceives danger inherent in a poorly performing product or service
financial risk
risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service
social risk
the fears that consumers suffer when they worry others might not regard their purchases positively
physiological risk
the fear of an actual harm should a product not perform properly
psychological risk
associated with the way people will feel if the product or service does not convey the right image
universal state
includes all possible choices for a product category
retrieval state
includes those brands or stores that the customer can readily bring forth from memory
evoked state
comprises the alternative brands of stores that the consumer states he of she would consider when making a purchase decision
evaluative criteria
consist of a set of salient, or important, attributes about a particular product
determinant attributes
product or service features that are important to the buyer and on which competing brands of stores are perceived to differ
compensatory decision rules
at work when the consumer is evaluating alternatives and trades off one characteristic against another; such that good characteristics compensate for bad ones
consumer decision rules
the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives
multi-attribution tool
a compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes or characteristics. The model uses a weighted average score based on the importance of various attributes and performance on those issues
noncompensatory decision rule
at work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes
decision hueristics
mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation
conversion rate
percentage of consumers who buy a product after viewing it
postpurchase cognitive dissonance
the psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers’ remorse
negative word of mouth
occurs when consumers spread negative information about a product, service, or store to others
geographic segmentation
the grouping of consumers on the basis of where they live
demographic segmentation
the grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education
psychographics
used in segmentation; delves into how consumers describe themselves; allows people to describe themselves using those characteristics that help them chose how they occupy their time and what underlying psychological reasons determine those choices
self-value
goals for life, not just the goals one wants to accomplish on a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life
self-concept
the image a person has of himself
lifestyles
refers to the way a person lives his or her life to achieve goals
VALS
a psychographic tool developed by SRI Consulting Business Intelligence; classifies consumers into eight segments: innovators, thinkers, believers, achievers, strivers, experiencers, makers, or survivors
geodemographic segmentation
the grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics
benefit segmentation
the grouping of consumers on the basis of the benefits they derive from products or services
behavioral segmentation
a segmentation method that divides customers into groups based on how they use the product or service, some common behavioral measures include occasion and loyalty
occasion segmentation
a type of behavioral segmentation based on when a product or service is purchased or consumed
loyalty segmentation
strategy of investing in loyalty initiatives to retain the firm’s most profitable customers
undifferentiated targeting strategy
a marketing strategy a firm can use if the product of service is perceived to provide the same benefits to everyone, with no to develop separate strategies for different groups
differentiated strategy
a strategy through which a firm targets several market segments with a different offering for each.
concentrated targeting strategy
a marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that markets needs
mircomarketing
an extreme form of segmentation that tailors a product or service to suit an individual customers wants or needs
value proposition
the unique value that a product or service provides to its customers and how it is better than and different from those of competitors
positioning
involves a process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
value
reflects the relationship of benefits to costs, of what the consumer gets for what he or she gives
marketing research
a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas
secondary data
pieces of information that have already been collected from other sources and usually are readily available
primary data
data collected to address specific research needs
external secondary data
data collected from sources outside the firm
syndicated data
data available for a fee from commercial research firms
scanner data
a type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at check-out counters
panel data
information collected from a group of consumers
internal secondary data
data collected from a firm’s own data taken from their day to day operations
data warehouse
large computer files that store millions and even billions of pieces of individual data
data mining
the use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variables
exploratory research
attempts to begin to understand the phenomenon of interest; also provides initial information when the problem lacks any clear definition
conclusive research
provides the information needed to confirm preliminary insights, which managers can use to pursue appropriate courses of action
observation
an exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny
crowdsourcing
an exploratory research technique that uses social media to obtain ideas an content from a large group of people
in-depth interview
an exploratory research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue
focus group interviews
a research technique in which a small group of persons comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry
survey
a systematic means of collecting information from people that generally uses a questionaire
questionaire
a form that features a set of questions designed to gather information from respondents and thereby accomplish the researchers objectives; questions can be either unstructured or structured
unstructured questions
open-ended questions that allow respondents to answer in their own words
structured questions
closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate
sample
a group of customers who represent the customers of interest in a research study
experimental research
a type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a casual effect on another variable
data
raw numbers or facts
information
organized, analyzed, interpreted data that offer value to marketers
churn
the number of consumers who stop using a product or service, divided by the average number of consumers or that product or service