Marketing Exam 1 Chapters 1-7 Vocab

marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
exchange
people giving up something in order to receive something else they would rather have
production orientation
a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
sales orientation
that belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
marketing concept
the idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants an needs while meeting organizational objectives
marketing orientation
a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; it is synonymous with the marketing concept
on-demand marketing
delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process
societal marketing orientation
the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests
customer value
the relationship between benefits and the sacrifice necessary to obtain those benefits
customer satisfaction
customer’s evaluation of a good or service in terms of whether it has met their needs and expectations
relationship marketing
a strategy that focuses on keeping and improving relationships with current customers
empowerment
delegation of authority to solve customers’ problems quickly-usually by the first person the customer notifies regarding a problem
teamwork
collaborative efforts of people to accomplish common objectives
customer relationship management (CRM)
a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
strategic planning
the managerial process of creating and maintaining a bit between the organization’s objectives and resources and the evolving market opportunities
strategic business unit (SBU)
a subgroup of a single business or collection of related businesses within the larger organization
market penetration
a marketing strategy that tries to increase market share among existing customers
market development
a marketing strategy that entails attracting new customers to existing products
product development
a marketing strategy that entails the creation of new products for present markets
diversification
a strategy of increasing sales by introducing new products into new markets
portfolio matrix
a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
star
in the portfolio matrix, a business unit that is a fast growing market leader
cash cow
in the portfolio matrix, a business unit generates more cash than it needs to maintain its market share
problem child (question mark)
in the portfolio matrix, a business unit that shows rapid growth but poor profit margins
dog
in the portfolio matrix, a business unit that has low growth potential and a small market share
planning
the process of anticipating future events and determining strategies to achieve organizational objectives in the future
marketing planning
designing activities relating to marketing objectives and the changing marketing environment
marketing plan
a written document that acts as a guidebook of marketing activities for the marketing manager
mission statement
a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers an analysis of existing an anticipated environmental conditions
marketing myopia
defining a business in terms of goods and services rather than in terms of the benefits customers seek
SWOT analysis
identifying internal strengths and weaknesses and also examining external opportunities and threats
environmental scanning
collection and interpretation of information about forces, events, and relationships in the external environment that may effect the future of the organization or the implementation of the marketing plan
competitive advantage
a set if unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
cost competitive advantage
being the low-cost competitor in an industry while maintaining satisfactory profit margins
experience curves
curves that show costs declining at a predictable rate as experience with a product increases
product/service differentiation competitive advantage
the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
niche competitive advantage
the advantage achieved when a form seeks to target and effectively serve a small segment of the market
sustainable competitive advantage
an advantage that cannot be copied by the competition
marketing objective
a statement of what is to be accomplished through marketing activities
marketing strategy
the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets
market opportunity analysis (MOA)
the description and estimation of the size and sale potential of market segments that are of interest to the firm an the assessment of key competitors in these market segments
marketing mix
a unique product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
implementation
the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives
evaluation
gauging the enter to which the marketing objectives have been achieved during the specified time period
control
provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines
marketing audit
a thorough, systematic, periodic evaluation of the performance of the marketing organization
ethics
the moral principles or values that generally govern the conduct of an individual or group
deontological theory
ethical theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma
utilitarian ethical theory
ethical theory that is founded on the ability to predict the consequences of an action
casuist ethical theory
ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas an their outcomes
moral relativism
an ethical theory of time-and-place ethics; that is,the belief that ethical truths depend in the individuals and groups holding them
virtue
a character trait values as being good
morals
the rules people develop as a result of cultural values and norms
code of ethics
a guideline to help marketing managers and other employees make better decisions
Foreign Corrupt Practices Act (FCPA)
a law that prohibits US corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries
corporate social responsibility (CSR)
a business’s concern for society’s welfare
stakeholder theory
ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect if a firm’s operation
pyramid of social responsibility
a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the fir’s economic performance supports the entire structure
sustainability
the idea that socially responsible companies will outperform their peers by focusing on the word’s social problems and viewing them as opportunities to build profits and help the world at the same time
green marketing
the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment
cause-related marketing
the cooperation marketing efforts between a for-profit firm and a nonprofit organization
target market
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges
environmental management
when a company implements strategies that attempt to shape the external environment within which it operates
component lifestyles
the practice of choosing goods and services that meet one’s needs and interests rather than conforming to a single, traditional lifestyle
demography
the study of people’s vital statistics, such as age, race and ethnicity, and location
Millennials
people born between 1979 and 1994
Generation X
people born between 1965 and 1978
baby boomers
people born between 1946 and 1964
purchasing power
a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas
inflation
a measure of the decrease in the value of money, expressed as the percentage reduction in vale since the previous year
recession
a period of economic activity characterized by negative growth, which reduces demand for goods and services
basic research
pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
applied research
research that attempts to develop new or improved products
Consumer Product Safety Commission (CPSC)
a federal agency established to protect the health ans safety of consumers in and around their homes
Food and Drug Administration (FDA)
a federal agency charged with enforcing regulations against dealing and distributing adulterated, misbranded, or hazardous food and drug products
Federal Trade Commission (FTC)
a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
global marketing
marketing that target markets throughout the world
global vision
recognizing and reacting to international marketing opportunities, using effective global marketing strategies, being aware of threats from foreign competitors in all markets
gross domestic product (GDP)
the total market value of all final goods and services produced in a country for a given period of time
outsourcing
sending US jobs abroad
inshoring
returning production jobs to the United States
multinational corporation
a company that is heavily engaged in international trade, beyond exporting and importing
capital incentive
using more capital than labor in the production process
global marketing standardization
production of uniform products that can be sold the same way all over the world
multidomestic strategy
when multinational firms enable individual subsidiaries to compare independently in domestic markets
Mercosur
the largest Latin American trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela
Uruguay Round
a trade agreement to dramatically lower trade barriers worldwide; created the World Trade Organization
World Trade Organization (WTO)
a trade organization that replaced the old General Agreement on Tariffs and Taxes (GATT)
General Agreement on Tariffs and Taxes (GATT)
a trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements
North American Free Trade Agreement (NAFTA)
an agreement between Canada, the United States, and Mexico that created the world’s then-largest free trade zone
Dominican Republic-Central American Free Trade Agreement (CAFTA-DR)
a trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Savador, Guatemala, Honduras, Nicaragua, and the United States
European Union (EU)
a free trade zone encompassing twenty-eight European countries
World Bank
and international bank that offers low-interest loans, advice, and information on developing nations
International Monetary Fund (IMF)
an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
Group of Twenty (G-20)
a forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability
exporting
selling domestically produced products to buyers in other countries
buyer for export
an intermediary in the global market that assumes all ownership risks and sells globally for its own account
export broker
an intermediary who plays the traditional broker’s roles by bringing buyer and seller together
export agent
an intermediary who acts like a manufacturer’s agent for the exporter; the export agent lives in the foreign market
licensing
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
contract manufacturing
private label manufacturing by a foreign company
joint venture
when domestic firm buys part of a foreign company or join with a foreign company to create a new entity
direct foreign investment
active ownership of a foreign company or of overseas manufacturing or marketing facilities
exchange rate
the price of one country’s currency in terms of another country’s currency
dumping
the sale of an exported product at a price lower than that charged for the same or a like product in the “home”market of the exporter
floating exchange rates
a system in which prices of different currencies move up and down based on the demand for and the supply of each currency
countertrade
a form of trade in which all or part of the payment for goods and services is in the form of other goods and services
blog
a publicly accessible Web page that functions as an interactive journal, where readers can post comments on the author’s entries
consumer behavior
processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use
consumer decision-making process
a five-step process used by consumers when buying goods or services
need recognition
result of an imbalance between actual and desired states
want
recognition of an unfulfilled need and a product that will satisfy it
stimulus
any unit of input affecting one or more of the five senses; sight, smell, taste, touch, hearing
internal information search
the process of recalling past information stored in the memory
external information search
the process of seeking information in the outside environment
nonmarketing-controlled information source
a product information source that is not associated with advertising or promotion
marketing-controlled information source
a product information source that originates with marketers promoting the product
evoked set (consideration set)
a group of brands resulting from an information search from which a buyer can choose
cognitive dissonance
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
involvement
the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
routine response behavior
the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little research and decision time
limited decision making
the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
extensive decision making
the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought items; requires use of several criteria for evaluating options and much time for seeking information
showrooming
the practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal for the same item
culture
the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next
value
the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
subculture
a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group
social class
a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms
reference group
all of the formal and informal groups in society that influence an individual’s purchasing behavior
primary membership group
a reference group with which people interact regular;y in an informal, face-to-face manner, such as family, friends, and coworkers
secondary membership group
a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group
aspirational reference group
a group that someone would like to join
norm
a value or attitude deemed acceptable by a group
nonaspirational reference group
a group with which an individual does not want to associate
opinion leader
an individual who influences the opinions of others
socialization process
how cultural values and norms are passed down to children
personality
a way of organizing and grouping the consistencies of an individual’s reactions to situations
self-concept
how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations
ideal self-image
the way an individual would like to be perceived
real self-image
the way an individual actually perceives himself or herself
perception
the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
selective exposure
the process whereby a consumer notices certain stimuli and ignores others
selective distortion
a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs
selective retention
a process whereby a consumer remembers only tht information that supports his or her personal beliefs
motive
a driving force that causes a person to take action to satisfy specific needs
Maslow’s hierarchy of needs
a method of classifying human needs into five categories in ascending order of importance: Physiological, safety, social, esteem, and self-actualization
learning
a process that creates changes in behavior, immediate or expected, through experience practice
stimulus generalization
a form of learning that occurs when one response is extended to a second stimulus similar to the first
stimulus discrimination
a learned ability to differentiate among similar products
belief
an organized pattern of knowledge that an individual holds as true about his or her world
attitude
a learned tendency to respond consistently toward a given object
business marketing (industrial, business-to-business, B-to-B, or B2B marketing)
the marketing of goods and services to individuals and organizations for purposes other than personal consumption
business product (industrial product)
a product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers
consumer product
a product bought to satisfy an individual’s personal wants or needs
business-to-business electronic commerce (B-to-B or B2B e-commerce)
the use of the internet to facilitate the exchange of goods, services, and information between organizations
stickiness
a measure of Web site’s effectiveness; calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit
strategic alliance (strategic partnership)
a cooperative agreement between business firms
relationship commitment
a firm’s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely
trust
the condition that exists when one party has confidence in an exchange partner’s reliability and integrity
keiretsu
a network of interlocking corporate affiliates
original equipment manufacturers (OEMs)
individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to the other producers or to consumers
North American Industry Classification System (NAICS)
a detailed numbering system developed by the Unites States, Canada, and Mexico to classify North American business establishments by their main production processes
derived demand
the demand for business products
joint demand
the demand for two or more items used together in a final product
multiplier effect (accelerator principle)
phenomenon in which a small increase or decrease in consumer demand can produce much larger change in demand for the facilities and equipment needed to make the consumer product
business-to-business online exchange
an electronic trading floor that provides companies with the integrated links to their customers and suppliers
reciprocity
a practice whereby business purchasers choose to buy from their own customers
major equipment (installations
capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings
accessory equipment
goods, such as portable tools and office equipment that are less expensive and shorter-lived than major equipment
raw materials
unprocessed extractive or agricultural products such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish
component parts
either finished items ready for assembly or products that need very little processing before becoming part of some other product
Processed materials
products used directly in manufacturing other products
supplies
consumable items that so not become part of the final product
business services
expense items that do not become part of a final product
buying center
all those people in an organization who become involved in the purchase decision
new buy
a situation requiring the purchase of a product for the first time
modified rebuy
a situation in which the purchaser wants some change in the original good or service
straight rebuy
a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers