Marketing Midterm Review (Ch.1-9)

Marketing
an organizational function and set processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
Exchange
the trade of things of value between the buyer and the seller so that each is better off as a result
Marketing Mix (Four Ps)
Product, price, place, and promotion – the controllable set of activities that a firm uses to respond to the wants of its target markets
B2C (Business-to-consumers) Marketing
the process in which businesses sell to consumers
B2B (business-to-business) Marketing
the process of selling merchandise or serves from one business to another
C2C Marketing
the process in which consumers sell to other consumers
Customer Relationship Management (CRM)
a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customers
Supply Chain
the group of firms that make and deliver a given set of goods and services
Marketing Strategy
(1) a firm’s target market, (2) marketing mix, (3) and method of obtaining a sustainable competitive advantage
Marketing Segment
a group of consumers who respond similarly to a firm’s marketing efforts
Marketing Segmentation
the process of dividing the market into groups of customers with different needs, wants, or characteristics – who therefore might appreciate products or services geared especially for them
Marketing Positioning
involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
Strategic Business Unit (SBU)
a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have different mission or objectives
Market Share
percentage of a market accounted for by a specific entity
Exhibit 2.7 – Study and Know it!
Exhibit 2.7 – Study and Know it!
Market development Strategy
a growth strategy that employs the existing marketing offering to reach new market segments, wether domestic or international
Business Ethics
refers to a branch of ethical study that examines ethical rules and principles within a commercial context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce
Marketing Ethics
refers to those ethical problems that are specific to the domain of marketing
Ethical Climate
the set of values within a marketing firm, or in the marketing division of any firm, that guide decision making and behavior
Corporate Social Responsibility
refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operating and the concerns of its stakeholders
Know all 11 Scenarios!
Know all 11 Scenarios!
Macroenvironmental Factors
aspects of the external environment that affect a company’s business, such as the culture, demography, social issues, technological advances, economic situation, and political/regulatory environment
Demographics
information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education
Generational Cohort
a group of people of the same generation – typically have similar purchase behaviors because they have shared experiences and are in the same stage of life
Senior
America’s fast-growing generational cohort; people aged 55 to 64 years
Baby Boomers
generational cohort of people born after World War II, Between 1946 and 1964
Generation X (Gen X)
Generational cohort of people born between 1965 and 1976
Generation Y (Gen Y)
generational cohort of people born between 1977 and 1995; biggest cohort since the original postwar baby boom
Millennials
consumers born between 1977 and 2000 and the children of the Baby boomers
Inflation
refers to the persistent increase in the prices of goods and services
Foreign Currency Fluctuations
changes in the value of a country’s currency relative to the currency of another country; can influence consumer spending
Interest Rates
these represent the cost of borrowing money
Psychological Needs
pertains to the personal gratification consumer associate with a product or service
Decision Heuristics
metal shortcuts that help consumers narrow down choices; example include price, brand, and product presentation
Postpurchase Cognitive Dissonance
the psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers’ remorse
Maslow’s Hierarchy of Needs
a paradigm for classifying people’s motives. It argues that when lower-level, more basic needs (physiological and safety) are fulfilled, people turn to satisfying their higher-level human needs (social and personal); Exhibit 5.5
perception
the process by which people select, organize, and interpret information to form a meaningful picture of the word
Learning
refers to a change in a person’s thought process or behavior that arise from experience and takes place throughout the consumer decision process
Lifestyle
a component of psychographics: refers to the way a person lives his or her life to achieve goals
Reference Group
one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behavior
Extended Problem Solving
a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk
Limited Problem Solving
occurs during a purchase decision that calls for, at most, a moderate amount of effort and time
Impulse Buying
a buying decision made by customers on the spot when they see the merchandise
Derived Demand
the linkage between consumers’ demand for a company’s output and its purchase of necessary inputs to manufacture or assemble that particular output
Request for Proposals (RFP)
a process through which buying organizations invite alternative suppliers to bid on supplying their required components
Organizational Culture
reflects the set of values, traditions, and customs that guide a firm’s employees’ behavior
New Buying
in a B2B setting, a purchase of a good or service for the first time; the buying decision is likely to be quite involved because the buyer or the buying organization does not have any experience with the item
Modified Rebuy
Refers to when the buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, options, or so forth
Straight Rebuy
refers to when the buyer or buying organization simply buys additional units of products that have previously been purchased
Globalization
refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders
Offshoring (Globalization of production)
refers to manufactures’ procurement of goods and services from around the globe to take advantage of national differences in the cost and quality of various factors of production
General Agreement of Tariffs and Trade (GATT)
organization established to lower trade barriers, such as high tariffs on imported goods and restrictions on the number and types of imported products that inhibited the free flow of goods across borders
World Bank Group
a development bank that provides loans, policy advice, technical assistance, and knowledge-sharing services to low- and middle-income countries in an attempt to reduce poverty in the developing world
Gross Domestic Product (GDP)
defined as the market value of the goods and services produced by a country in a year; the most widely used standardize measure of output
Gross National Income (GNI)
consists of GDP plus the net income earned from investments abroad (minus any payments made to nonresidents who contribute to the domestic economy)
Purchase Power Party (PPP)
a theory that states if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency
Infrastructure
the basic facilities, services, and installations needed for a community or society to function, such as transportation and communications systems, water and power lines, and public institutions like schools, post offices, and prisons
Tariffs
a tax levied on a good imported into a country; also called duty
Dumping
the practice of selling a good in a foreign market at a price that is lower than its domestic price or below its cost
Quota
designates the maximum quantity of a product that may be brought into a country during a specified time period
Exporting
producing goods in one country and selling them in another
Joint Venture
formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared
Geography Segmentation
the grouping of consumers on the basis of where they live
Demographic Segmentation
the grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education
Psychographics
used in segmentation; delves into how consumers describe themselves; allows people to describe themselves using those characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine those choices
self-value
goals for life, not just the goals one wants to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life
Self-concept
the image a person has of him- or herself; a component of psychographic
Lifestyles
a component of psychographics; refers to the a person lives his or her to achieve goals
VALS
a psychographic tool develop by SRI Consulting Business Intelligence; classifies consumers into eight segments: innovators, thinkers, believers, achievers, striver, experiencers, makers, or survivors.
Undifferentiated targeting Strategy
a marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups
Differentiated Targeting Strategy
a strategy through which a firm targets several market segments with a different offering for each
Concentrated Targeting Strategy
a marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market’s needs
micromarketing
an extreme form of segmentation that tailor a product or service to suit an individual customer’s wants or needs; also one-to-one marketing
Perceptual Map
displays, in two or more dimensions, the position of products or brands in the consumer’s mind
Marketing Research
a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas
Secondary Data
pieces of information that have already been collected from other sources and usually are readily available
Primary Data
data collected to address specific research needs
External Secondary Data
data collected from sources outside of the firm
Syndicated Data
data available for a fee from commercial research firms such as Information Resources Inc. (IRI). National Purchase Dairy Panel, and ACNelsen
Internal Secondary Data
Data collected from a firm’s own data taken from their day-to-day operations
Data Mining
the use of a variety of statistical analysis tools to uncover preciously unknown patterns in the data stored in databases or relationships among variables
Survey
a systematic means of collecting information from people that generally uses a questionnaire
Sample
a group of customers who represent the customers of interest in research study