marketing exam 1 chapter 1-6

consumer
the ultimate user of a good and service
marketing
is the activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing mix
is a strategic toolbox that includes Product, Price, Promotion, and Place
Product
a tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses.
promotion
the coordination of a market’s communication efforts to influence attitudes or behavior
e-commerce
the buying or selling of goods and services electronically, usually over the internet
need
the recognition of any difference between a consumers actual state and some ideal or desired state
want
the desire to satisfy needs in specific ways that are culturally and socially influenced
business to business marketing
the marketing of goods and services from one organization to another
marketing concept
a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long term profitability
benefit
satisfies a need or want. the outcome sought by a customer that motivates buying behavior that satisfies a need or want
market
all the customers and potential customers who share a common need that can be satisfied by a specific product, who are willing to make the exchange and who have the authority to make the exchange
marketplace
any location or medium used to conduct an exchange
utility
the usefulness of benefit that consumers receive from a product.
production orientation
a management philosophy that emphasizes the most efficient ways to produce and distribute products
selling orientation
a managerial view of marketing as a sales function or a way to move products out of warehouses to reduce inventory
societal marketing concept
a management philosophy that markets must satisfy customers needs in ways that also benefit society and also deliver profit to the firm
market offerings
some combination of products, services, information, or experiences offered to a market to satisfy customer needs or wants
value proposition
a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased
lifetime value of a customer
the potential of a single customer’s purchase of a firm’s products generates over the customer’s lifetime
marketing plan
a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
mass market
all possible customer in a market, regardless of the differences of their specific need and wants; the way in which the target market perceive the product in comparison to competitors’ brands
market position
the way the customer perceives the product in comparison to competitors’ brands
business planning
an ongoing process of making decisions that guide the firm both in the short term and long term
business plan
a plan that includes the decisions that guide the entire organization
strategic planning
a managerial decision process that matches an organizations resources and capabilities to its market opportunities for long term growth and survival
strategic fit
aligning resources and capabilities with opportunities
strategy
basic, long-term goals and objectives
steps in strategic planning
1 .define the mission, 2. evaluate the internal& external, environment, 3. set organizational or SBU objectives, 4. Establish the business portfolio , 5. develop growth strategies
Situation analysis
an assessment of a firm’s internal and external environment
SWOT analysis
an analysis of an organization’s strength, weakness, opportunities and threats in its external environment
business portfolio
the group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities
portfolio analysis
a management tool for evaluating a firm business mix and assessing the potential of an organizations strategic business units
BCG growth market share matrix
a portfolio analysis model developed by the Boston consulting group that assesses the potential of successful products to generate cash that a firm can use to invest in new products
question marks
low market share, fast growth market
cash cow
dominant market, low growth potential market
dogs
small share, slow market. they offer specialized products in limited markets that are not likely to grow quickly
market penetration strategies
growth strategies designed to increase sales to existing products to current customers. nonusers, and users of competitive brands and served markets
market development strategies
growth strategies that introduce existing products to new markets
product development strategies
growth strategies that focus on selling new products in existing markets
diversification strategies
growth strategies that focus on both new products and new markets
marketing intelligence system
a method by which managers get information about everyday happening in the market environment
market research
the process of collecting, analyzing, and interpreting data about customers. competitors, and the business environment in order to improve marketing effectiveness
information
interpreted data
customer insight
the collection, deployment, and interpretation of information that allows business to acquire, develop and retain their customer
Research design
a plan that specifies what information markets will collect what type of study they will do
secondary data
data that have been collected for some purpose other than the problem at hand
Exploratory reseach
customer interviews focus groups, projection, case studies and ethnographic ( a technique that markets use to generate insights for the future, more rigorous studies.)
Descriptive research
a tool that probes more systemically into the problem and bases its conclusions large numbers of observation,
causal research
testing hypothesis cause and effect relationship
neuromarketing
a type of brain research that uses technologies such as functional magnetic resonance imaging (fMRI) to measure brain activity to better understand why consumers make the decision they do
Ethnography
an approach to research based on observation of people in their own homes or communities
mall intercept
a study in which researchers recruit shoppers in malls or other public areas
reliability
measurement techniques that are free of errors
representativeness
the extent to which consumers in a study are similar to a larger group in which the organization has an interest.
probability sample
in which each member of the population have some known chance of being included
non probability sample
in which personal judgement is used to select a respondent
convenience sample
non probability, composed of individuals who just happen to be available when and where the data is being collected
customer relationship management
systematically tracking consumers preferences and behaviors over time in order to tailor individualized value propositions
share of customers
the percentage of an individuals customers purchased of a product that is a single brand
customer equity
the financial value of a customer relationship throughout the lifetime of the relationship
big data
the exponential growth of data/both structure and unstructured in massive amounts.
Bid data concerns
volume, velocity, variety, and veracity
data mining
sophisticated analysis techniques to take advantage of the massive amount of transaction info now available
marketing analysts
the practice of measuring, managing, and analyzing marketing performance to max its effectiveness and optimize return on investment
predictive analysts
use large quantities of analysts within variable that have identify relationships to more accurately predict specific future outcomes
marking metrics
specific measures that help marketers watch the performance of their marketing campaigns, initiatives, channels, and when appropriate, serve as a control mechanism
consumer behavior
the process involved when individuals or groups select, purchase, use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.
consumer market
pertains to buyers who purchase goods and services for consumption rather than resale. However not all consumers are alike in their tastes
problem recognition
the process that occurs whenever the consumer sees a significant difference between his current state of affairs and some desired or ideal state; this recognition initiates the decision making process
information search
the process whereby a consumer searches for appropriate info to make a reasonable decision
evaluation criteria
the dimensions consumers use to compare competing product alternatives
heuristic
a mental rule of thumb that leads to a speedy decision by simplifying the process
brand loyalty
a pattern of repeat product purchases. accompanied by an underlying positive attitude toward the brand, base on the belief that the brand makes products superior to those of its competition
post purchase evaluation
the stage of the buyer decision process when an consumer will take additional action, based purely their satisfaction or dissatisfaction
cognitive dissonance
the anxiety or regret a consumer may feel after choosing form among several similar attractive choices
perception
the process by which people select, organize and interpret information from the outside world
exposure
the extent to which a stimulus is capable of being registered by a person’s sensory receptors
psycho graphics
the use of psychographic, sociological, and anthropological factors to construct market segments
cognition
the knowing component of attitudes, refers to the beliefs of knowledge a persona has about a product and its important characteristics
family life cycle
means of characterizing consumers within a family structure on the basis of different stages through which people pass as they grow older
hierarchy of needs
an approach that categorizes motives according to five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top
subculture
a group within a society whose members share a distinctive set of beliefs, characteristics or common experience
opinion leader
a person who is frequently able to influence others attitudes or behaviors by virtue of his or her active interest and expertise in one or more product categories
organizational markets
another name for business to business markets
derived demand
demand for business or organizational products caused by demand for consumer goods or services
inelastic demand
demand in which changes in price have little or no effect on the amount demanded
resellers
the individual or organization that buy finished goods for the purpose of reselling, renting, leasing to make a profit
government markets
the federal, state, county, and local government that buys goods and services to carry pout public objectives and to support their operation
straight rebuy
a buying situation in which business buyer make routine purchases that require minimal decision making
modified rebuy
a buying situation used by business buyers to categorize a previously made purchase that involves some change and that requires limited decision making
buying center
the group of people in an organization who participate in purchasing decision
outsourcing
the business buying process of obtaining outside vendors to provide goods or services that otherwise might be supplied in house
crowd sourcing
a practice in which firms outsource marketing activities to a community of users
reverse marketing
a business practice in which a buyers firm atttempts to identify suppliers who will produce products according to the buyers firm specification