Marketing Final Exam Part 1

marketing
the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationship with stakeholders in a dynamic environment
customers
the purchasers of organizations’ products; the focal point of all marketing activities
target market
a specific group of customers on whom an organization focuses its marketing efforts
marketing mix
four marketing activities that a firm can control to meet the needs of customers within its target market
product
a good, service, or idea
marketing mix activities
product, place, price, promotion
value
customer’s subjective assessment of benefits relative to costs in determining the worth of a product
exchanges
provision or transfer of goods, services, or ideas in return for something of value
stakeholders
constituents who have a “stake”, or claim, in some aspect of a company’s products, operations, markets, industry, and outcomes
marketing environment
competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
marketing concept
a managerial philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals
Production Orientation
manufactured goods in high demand, but intense competition
Sales Orientation
Need to focus on selling products to many buyers
Market Orientation
an organization wide commitment to researching and responding to customer needs
customer relationship management (CRM)
using information about customers to create marketing strategies that develop and sustain desirable customer relationships
relationship marketing
establishing long-term, mutually satisfying buyer-seller relationships
customer lifetime value
a key measurement that forecasts a customer’s lifetime economic contribution based on continued relationship marketing efforts
green marketing
a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
strategic marketing management
the process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
strategic planning
the process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy
mission statement
a long-term view, or vision, of what the organization wants to become
corporate strategy
a strategy that determines the means for utilizing resources int he various functional areas to reach the organization’s goals
strategic business unit (SBU)
a division, product line, or other profit center within the parent company
market
a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
market share
the percentage of a market that actually buys a specific product from a particular company
market growth/market share matrix
a helpful business tool, base don the philosophy that a product’s market growth rate and its market share are important considerations in determining its marketing strategy.
stars
dominant share of the market and good prospects for growth (BCG)
cash cows
dominate share of the market, but low prospects for growth (BCG)
dogs
subordinate share of the market and low prospects for growth
question marks
small share of a growing market and require a large amount of cash to build market share
core competencies
things a company does extremely well, which sometimes give it an advantage over its competition
market opportunity
a combination fo circumstances and timing that permits an organization to take action to reach a particular target market
strategic windows
temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market
competitive advantage
the result of a company matching a core competency to opportunities it has discovered in the marketplace
SWOT analysis
assessment of an organization’s strengths, weaknesses, opportunities, and threats
opportunities
favorable conditions in the environment that could produce rewards for the organization if acted upon
threats
barriers that could prevent the company from reaching its objectives
first-mover advantage
the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace
late-mover advantage
the ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace
marketing objective
statement of what is to be accomplished through marketing activities
marketing strategy
plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
sustainable competitive advantage
an advantage that the competition cannot copy
marketing implementation
the process of putting marketing strategies into action
centralized organization
a structure in which top-level managers delegate little authority to lower levels
decentralized organization
decision-making authority is delegated as far down the chain of command as possible
strategic performance evaluation
establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed
performance standard
an expected level of performance against which actual performance can be compared
sales analysis
analysis of sales figures to evaluate a firm’s performance
marketing cost analysis
analysis of costs to determine which are associated with specific marketing efforts
marketing plan
a written condiment that specifies the activities to be performed to implement and control the organization’s marketing strategies
environmental scanning
the process of collecting information about forces in the marketing environment
environmental analysis
process of assessing and interpreting the information gathered through environmental scanning
competition
other organizations that market products that are similar to or can be substituted for a marketer’s products in the same geographic area
brand competitors
firms that market products with similar features and benefits to the same customers at similar prices; Coke v Pepsi
product competitors
firms that compete in the same product class but market products with different features, benefits, and prices; Coke v. juice
generic competitors
firms that provide very different products that solve the same problem or satisfy the same basic customer need; Coke v. tap water
total budget competitors
firms that compete for the limited financial resources of the same customers; Coke v. gum
monopoly
competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
oligopoly
a competitive structure in which a few sellers control the supply
monopolistic competition
a competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product
pure competition
a market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
businss cycle
a pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery
prosperity
a stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power (provided the inflation rate stays low)
recession
a stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending
depression
a stage of the business cycle when unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy
recovery
a stage of the business cycle in which the economy moves from recession or depression toward prosperity
buying power
resources, such as money, goods, and services, that can be traded in an exchange
income
for an individual the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period
disposable income
after-tax income
discretionary income
disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
credit
enables people to spend future income now or in the near future
wealth
the accumulation of past income, natural resources, and financial resources
willingness to spend
an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces
Federal Trade Commission (FTC)
an agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling
Better Business Bureau (BBB)
system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms
National Advertising Review Board (NARB)
self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement
technology
application of knowledge and tools to solve problems and perform tasks more efficiently
dynamics of technology
constant change that often challenges the structures of social institutions, including social relationships, the legal system, religion, education, business, and leisure
reach of technology
broad nature as technology moves through society
self-sustaining nature of technology
technology acts as a catalyst to spur even faster development
technology assessment
managers attempt to foresee effects of new products and processes their firm’s operations, on other business organizations, and on society in general
sociocultural forces
influences in a society and its culture(s) that change people’s attitudes, beliefs, norms, customs, and lifestyles
consumerism
organized efforts by individuals, groups, and organizations to protect consumers’ rights
social responsibility
organization’s obligation to maximize its positive impact and minimize its negative impact on society
marketing citizenship
adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
stakeholder orientation
companies that consider the diverse perspectives of stakeholders in their daily operations and strategic planning
marketing ethics
principles and starboards that define acceptable marketing conduct as determined by various stakeholders
cause-related marketing
the practice of linking products to a particular social cause on an ongoing or short-term basis
strategic philanthropy
synergistic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefits
sustainability
potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies
Consumerism rights
informed, choose, heard
ethical issue
identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
product recalls
Companies ask customers to return products found to be defective
bribery
incentive offered in exchange for an illicit advantage
price gouging
pricing products at exorbitant levels
bait and switch pricing
gain consumer interest with a low-priced product, but then switch the buyer to a more expensive item or add-on
channel stuffing
shipping surplus inventory to wholesalers and retailers at an excessive rate
Organizational/corporate culture
set of values, beliefs, goals, norms, and rituals that members of an organization share
codes of conduct
formalized rules and standards that describe what the company expects of its employees
ethics
individual and group decisions
social responsibility
total effect of marketing decisions on society