Marketing Exam 1 Review Terms

Exchange
People giving up something in order to receive something else that they would rather have
Product Orientation
A philosophy that focuses on the internal capabilities of the firm rather than the desires and needs of the marketplace
Sales Orientation
Based on the belief that people will buy more goods and services if aggressive sales techniques are used and that higher sales result in higher profits
Marketing Concept
The social and economic obligation for justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives
Market Oriented
Firms assume that a sale depends on a customer’s decision to purchase a product
Social Marketing Orientation
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
Customers’ 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
The delegation of authority
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
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
Positioning
Need to differentiate your product from competitors
Marketing Mix: The Four P’s
-Product
-Promotion
-Price
-Place
Strategic Business Units
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
Planning
The process of anticipating future events and determining strategies to achieve organizational objectives in the future
Market Planning
Designing activities related to marketing objectives and the changing marketing environment
Market 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 and an analysis of existing and 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 affect the future of the organization or the implementation of the marketing plan
Competitive Advantage
A set of unique features of a company and its products that are perceived by the target market is 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
The provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competition
Niche Competitive Advantage
The advantage achieved when a firm 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 market activities
Marketing Strategy
The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets
Marketing Opportunity Analysis (MOA)
The description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments
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 extent to which 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 objectives, strategies, structure, and performance of the marketing organization
Ethical Behavior
The moral principles or values that generally govern the conduct of an individual or a group
Corporate Social Responsibility
Corporate social responsibility is a business’s concern for society’s welfare
Green Marketing
The development and marketing of products designed to minimize negative effects on the environment or improve the environment
Cause-Related Marketing
For-profit and non-profit organizations cooperate to generate funds
Target Market
A defined group most likely to buy a product
Component Lifestyles
The practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle
Generation Y
-Born between 1979 and 1994
-Surpassed population of baby boomers
-Two Stages: 1) Those born in 1994 fit closer to the Teen cohort. 2) Those born in 1979 have established careers and started families.
-Purchasing power of $200 billion annually
Generation X
-Born between 1965 and 1978
-Population of 50 million
-Independent, resilient, adaptable, cautious, and skeptical
Gen Xers face a 59 percent decline in net worth from 2005 to 2010
-Xers spend 62 percent more on housing, 50 percent more on apparel, and 27 percent more on entertainment
Baby Boomers
-Born between 1946 and 1964
-Boomers are carrying substantial financial burdens, including their children’s educations, mortgages, and health care
-Boomers spend $1.8 trillion annually on food, cars, personal care, and other personal products
-Boomers are willing to change brands and try new things
Purchasing Power
Measured by comparing income to the relative cost of a standard set of goods and services in different geographic areas, usually referred to as the cost of living
Inflation
A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
Recession
A period of economic activity characterized by negative growth, which reduces demand for goods and services