Marketing Chapter 1-4

Utility
want-satisfying power of a good or service
Marketing
organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
exchange process
activity in which two or more parties give something of value to each other to satisfy perceived needs
consumer orientation
Business philosophy incorporating the marketing concept that emphasized first determining unmet consumer needs and then designing a system for satisfying them
marketing concept
consumer orientation with the objective of achieving long-run success
relationship marketing
development and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit
marketing myopia
managements failure to recognize the scope of its business
person marketing
marketing efforts designed to cultivate the attention, interest, and preferences of a target market toward a person (political candidate or celebrity)
place marketing
marketing efforts to attract people and organizations o a particular geographic area
cause marketing
identification and marketing of a social issue, cause, or idea to selected target markets
event marketing
marketing of sporting, cultural, and charitable activities to selected target market
organization marketing
marketing by mutual-benefit organizations, service organizations, and government organizations intended to persuade others to accept their goals, receive their services or contribute to them in some way
production orinentation
manufacturers stressed production of quality products and then looked for people to purchase them
sales orientation
assumes that customers will resist purchasing nonessential goods and services and that the task of of personal selling and advertising is to persuade them to buy
sellers market
market in which there were more buyers for fewer goods and services
buyers market
market in which there were more goods and services than people willing to buy them
bottom line
business jargon that refers to the overall profitability of an organization
transaction-based marketing
traditional view of marketing that is being replaced by a different, longer-term approach that emphasizes building relationships with one customs at a time
lifetime value of a customer
the revenues and intangible benefits that a customer brings to an organization over an average lifetime, minus the investment the firm has made to attract and keep the customer
mobile marketing
marketing messages transmitted via wireless technology
interactive marketing
refers to buyer-seller communications in which the customer controls the amount and type of information received from a marketer
buzz marketing
repeat customers that spread the word and create buzz. Can be very effective in attracting new customers
wholesalers
marketing intermediaries
exchange functions
buying and selling
physical distribution functions
transporting and storing goods
facilitating functions
standardizing and grading, financing, risk taking, and securing marketing information. These help the marketer perform the exchange and physical distribution functions
ethics
moral standards of behavior expected by a society
social responsibility
marketing philosophies, policies, procedures, and actions whose primary objective is to enhance society
planning
process of anticipating future events and conditions and of determine the best way to achieve organizational objectives. Important for both large and small companies
marketing planning
implementing planning activities devoted to achieving marketing objectives
strategic planning
process of determining an organizations 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
Porter’s five forces
strategy developed by Michael Porter that identifies five competitive forces that influence planning strategies: threat of new entrants, the bargaining power of suppliers, the threat of substitute products, and rivalry among competitors
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 straegy
Theory that advocates observing closely the innovations of first movers and then improving them to gain an advantage in the marketplace
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
marketing mix
blending of the four strategy elements- product, price, promotion, and distribution- to fit the needs and preferences of a specific target market
strategic business units (SBUs)
key business units within diversified firms
objectives
goals laid out in companies complete mission statement
marketing strategy
company wide program for selecting a particular target market and then satisfying customers in that market through blending together the 4 P’s of the marketing mix
sustainable competitive advantage
companies try to create this so other companies simply cannot provide the same value to their customers that they do
core competencies
a company’s strengths, what it does well. Capabilities that customers value and competitors find difficult to duplicate
target market
group of people toward whom the firm aims its marketing efforts adn ultimately its merchanidse
product strategy
includes decisions about customer service, package design, brand names, trademarks, patents, warranties, life cycle of the product, and new-product development
distribution strategy
used to ensure that customers find their products in the proper quantities at the right times and places
promotion
communications link between sellers and buyers that may go through sales people of indirectly through advertisements
integrated marketing communications (IMC)
used to coordinate all promotional activities so that the consumer receives a unified and consistent message
pricing strategy
deals with the methods of setting profitable and justifiable prices
rule of three
in any industry, the three strongest, most efficient companies dominate between 70 and 90 percent of the market
portfolio analysis
evaluating company’s products and divisions to determine the strongest and weakest
category
focuses the attention of company managers so that they can respond effectively to changing consumer demand within limited markets
market share/market growth matrix
places SBUs in a four quadrant chart that plots market share against market growth potential
market share
the percentage of a market that a firm currently controls
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
process that occurs in the marketplace among marketers of directly competitive products
political-legal environment
component of the marketing environment made up 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 availability
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
marketing ethics
marketer’s standards of conduct and moral values
social responsibility
marketing philosophies, policies, procedures, and actions that have the enhancement of society’s welfare as a primary objective
green marketing
production, promotion, and reclamation or environmentally sensitive products
strategic alliance
partnerships with other firms in which the partners combine resources and capital to create competitive advantages in a new market
monopoly
when an organization is the sole supplier of a good or service in the marketplace
deregulation movement
ended total monopoly protection for most utilities over past three decades
anti-trust
laws designed to prevent restraints on trade such as business monopolies
oligopoly
market structure in which relatively few sellers compete and where high start up costs form barriers to keep out new competitors
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
gross domestic product (GDP)
sum of all goods and services produced by a nation in a year
business cycle
pattern of stages in the level of economic activity: prosperity, recession, depression, and recovery
inflation
rising prices caused by some combination of excess consumer demand and increases in the costs of one or more factors of production
unemployment
proportion of people in the economy actively seeing work that do not have jobs
discretionary income
money available to spend after buying necessities such as food, clothing, and housing
VoIP (Voice over Internet protocol)
a phone connection through a personal computer with any type of broadband internet connection
ecology
relationship between organisms and their natural environment
planned obsolescence
intentional design, manufacture, and marketing of products with limited durability
e-business
conducting online transactions with customers by collecting and analyzing business information, carrying out the exchanges, and maintaining online relationships with customers
e-marketing
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
corporate web site
site designed to increase a firm’s visibility, promote its offerings, and provide information to interested parties
marketing web site
site whose main purpose is to increase purchases by visitors
business-to-business (B2B) 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 web site that sells products to customers
phishing
high-tech scam that uses authentic looking e-mail or pop-up messages to get unsuspecting victims to reveal person information
spam
popular name for junk e-mail
blog
short for web log that is an online journal for an individual or organization
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
electronic exchange
online marketplace that caters to a specific industry’s needs
e-procurement
use of the internet by organizations to solicit bids and purchase goods and services from suppliers
electronic shopping cart
file that holds items the online shopper has chosen to
bot
software program that allows online shoppers to compare the price of a particular product offered by several online retailers
encryption
the process of encoding data for security purposes
secure sockets layer
technology that secures a web site by encrypting information and providing authentication
electronic signatures
electronic identification that allows legal contracts such as home mortgages and insurance policies to be executed online
firewall
electronic barrier between a company’s internal network and the internet that limits access into and out of the network
vishing
scam that collects personal inforaion though voice response systems, stands for voice phishing
channel conflict
conflict between manufacturers, wholesalers, and retailers
electronic bullitin board
internet forum that allows users to post and read messages on a specific topic
wiki
web page that anyone can edit
podcast
online audio or video file that can be downloaded to other digital devices
banner ad
strip message placed in high-visibility areas of frequently visited web-sites
pop-up ad
separate window that pops up with an advertising message
Preroll video ad
brief marketing message that appears before expected video content
widget
tiny interactive applications that internet users can copy and add to their own pages to play music, video, or slide shows
web-to-store shoppers
consumers who use the internet as a tool to aid them at brick-and-mortar retailers
engagement
amount of time users spend on sites