Marketing: the core Exam (Chapters 1-5)

marketing
The activity for creating , communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large.
exchange
the trade of things of value between buyer and seller so that each is better off after the trade.
market
people with both the desire and ability to buy a specific offering
target market
one of more specific groups of potential customers towards which marketing is directed.
product
good, service, or idea to satisfy needs
price
exchange for product
promotion
means of communication between between buyer and seller
place
means of getting product to consumer
marketing mix
controllable factors (4 P)
Environmental forces
uncontrollable, social, economic, tech, competitive, and regulatory.
customer vale
the unique combo of benefits received by target buyers (quality, convenience, price, etc.
relationship marketing
links organizations to individuals, employees, suppliers, and other partners for mutual long-term benefit.
marketing program
a plan that integrates the marketing mix to provide a good, service, or idea.
marketing concepts
idea that an organization should strive to satisfy needs while trying to achieve the organizations goals.
marketing orientation
collecting info about needs, sharing info across departments, using info to create customer value
customer relationship management (CRM)
process of identifying buyers, understanding them, and developing relationships with them.
societal marketing concept
view that an organization should discover and satisfy needs in a way that also provides for society’s well being.
utility
benefits customer value received by users of the product
form utility
production, pick and choose features
place utility
having available where needed
time utility
when needed, available
possession utility
easy to purchase (take various forms of money, call other branches)
stakeholders
shareholders, employees, suppliers, customers
demographic shifts
urbanization, more female graduates.
organization
legal entity that consists of people who share a common mission
industry
organizations that develop similar offerings
business
a clear, broad, underlying industry or market sector of an organization’s offerings.
market share
ratio of sales revenue of the firm to the total sales revenue of all firms in the industry including the firm itself.
marketing dashboard
the visual computer display of the essential information related to achieving a marketing objective.
marketing metric
each variable in a marketing dashboard. A measure of the trend.
competencies
an organization’s special capabilities
business portfolio analysis
technique used to quantify performance measures and growth to analyze a firm’s strategic business units as though they were a collection of separate investments.
diversification analysis
a technique that helps a firm search for growth opportunities from among current and new markets and products.
market penetration
more sales or higher prices
market development
new markets, same product
product development
new products, same market
diversification
new product, new market
strategic marketing process
allocate market mix resources to reach target markets.
SWOT analysis
Strength, Weakness, external Opportunities, and Threats
Market segmentation
involves aggregating prospective buyers into groups or segments
marketing strategy
means by which a marketing goal is to be achieved
cross-functional teams
collaboration of representatives from different departments
Goals or Objectives
(SMART) Specific, Measurable, Attainable, Relevant, Time-based
social forces
demographic characteristics of the poplation and its values
baby boomers
1946-1964, wealthiest, self-reliant, 26%
generation X
1965-1976, diverse, adaptable, 15%
Generation Y
1977-1994, value teamwork, 26%
Millenials
1995+ , 20%
metropolitan statistical area
urbanized area of 50,000 +
micropolitan statistical area
10,000-50,000
metropolitan divisions
within a city of 2.5 mill +
culture
set of values, ideas, and attitudes
inflationary economy
cost to produce and buy escalates as prices increase
inflation
period of price increases
recession
time of slow economic activity
gross income
total income
disposable income
after taxes, for necessities
discretionary income
money after paying for taxes and necessities
marketspace
an info and communication based electronic exchange environment mostly occupied by computer and telecommunications.
intranet
internet-based network withing boundaries of an organization
extranet
internet-based technologies that permit communication between a company and its suppliers, distributors, and partners
pure competition
many sellers, same product (Agriculture)
monopolistic competition
many sellers, substitutable products (Coffee, tea)
oligopoly
few companies control majority of sales (cellphones)
pure monopoly
1 firm sells product (utilities)
Sherman Antitrust Act (1890)
act against monopolies
Clayton Act (1914)
Act that forbids acts that lessen competition (makes exclusive dealing illegal)
Robinson- Patman Act (1936)
Act against price discrimination
consumerism
a grassroots movement in 1960s to influence the power and rights of consumers
tying arrangement
buyer must buy one product in line with another
ethics
moral principles and values that govern action
caveat emptor
let the buyer beware
consumer bill of rights (1962 JFK)
right to (be): safe, informed, choose, heard
moral idealism
a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.
social audit
a systematic assessment of a firm’s objectives strategies, and performance in terms of social responsibility
consumer behavior
actions a person takes in purchasing and using products and services.
purchase decision process
1. problem recognition 2. info search 3. alternative evaluation 4. purchase decision 5. post purchase behavior.
involvement
the personal, social, and economic significance of the purchase to the consumer.
motivation
energizing force that stimulates behavior to satisfy needs.
selective perception
a filtering of exposure, comprehension, and retention (post purchase)
selective comprehension
interpreting info so that it is consistent with your attitudes and beliefs.
selective retention
consumers do not remember all info they see, read, or hear, even minutes after exposure
beliefs
a consumer’s subjective perception of how something performs
psychographics
analysis of consumer lifestyles.
selective exposure
pay attention to messges consistent with beliefs