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A&M Marketing 321 Dr. Litz 2010
fall 2010, foundations of marketing for may's business school
132
Marketing
Undergraduate 3
09/08/2010

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Term
marketing
Definition
process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
Term
customers
Definition
the purchasers of organizations' products; the focal point of all marketing activities
Term
marketing
Definition
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
Term
target market
Definition
a specific group of customers on whom an organization focuses its marketing efforts
Term
marketing mix
Definition
four marketing activities: product, pricing, distribution, and promotion: that a firm can control to meet the needs of customers within its target market
Term
product
Definition
a good, a service, or an idea
Term
exchanges
Definition
the provision or transfer of goods, services, or ideas in return for something of value
Term
four conditions that must exist for an exchange to take place
Definition
1) two or more individuals, groups, or organizations must participate, and each must possess something of value that the other party desires
2) the exchange should provide a benefit or satisfaction to both parties involved in the transaction
3) each party must have confidence in the promise of the "something of value" held by the other
4) parties to the exchange must meet expectations to build trust
Term
stakeholders
Definition
constituents who have a stake or claim in some aspect of a company's products, operations, markets, industry, and outcomes
Term
marketing environment
Definition
the competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
Term
marketing concept
Definition
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
Term
evolution of the marketing concept (phases in history)
Definition
production orientation, sales orientation, marketing orientation
Term
production orientation
Definition
2nd half of 19th century; industrial revolution; demand for manufactured goods was strong; mass production
Term
sales orientation
Definition
1920 to 1950s; view that sales were major means of increasing profits; personal selling, advertising, distribution
Term
marketing orientation
Definition
first determine what customers want then produce those products; early 1950s to now
Term
marketing orientation
Definition
organizationwide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization wide responsiveness to it
Term
marketing orientation
Definition
an organization wide commitment to researching and responding to customer needs
Term
relationship marketing
Definition
establishing long term, mutually satisfying buyer seller relationships
Term
customer relationship management (CRM)
Definition
using information about customers to create marketing strategies that develop and sustain desirable customer relationships
Term
value
Definition
a customer's subjective assessment of benefits relative to costs in determining the worth of a product
Term
marketing management
Definition
process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently
Term
effectiveness (important dimension of marketing management)
Definition
the degree to which an exchange helps to achieve an organization's objectives
Term
efficiency (important to marketing management)
Definition
minimizing the resources an organization must spend to achieve a specific level of desired exchanges
Term
importance of marketing in our global economy
Definition
marketing costs consume a sizable portion of buyers' dollars; marketing is used in nonprofit organizations; marketing is important to businesses; marketing fuels our global economy; enhances consumer awareness; connects ppl through technology; socially responsible marketing can promote the welfare of customers and stakeholders
Term
strategic planning
Definition
process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan
Term
marketing strategy
Definition
a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
Term
marketing plan
Definition
a written document that specifies the activities to be performed to implement and control an organization's marketing activities
Term
core competencies
Definition
things a firm does extremely well, which sometimes give it an advantage over its competition
Term
market opportunity
Definition
a combination of circumstances and timing that permits an organization to take action to reach a target market
Term
strategic windows
Definition
temporary periods of optimal fit between the key requirements of a market and a firm's capabilities
Term
competitive advantage
Definition
the result of a company's matching a core competency to opportunities in the market place
Term
SWOT analysis
Definition
a tool that marketers use to asses an organization's strengths, weaknesses, opportunities, and threats
Term
threats
Definition
conditions or barriers that may prevent the firm from reaching its objectives
Term
mission statement
Definition
a long term view of what the organization wants to become
Term
marketing objective
Definition
statement of what is to be accomplished through marketing activities
Term
corporate strategy
Definition
a strategy that determines the mans for using resources in the various functional areas to reach the organization's goals
Term
strategic business unity (SBU)
Definition
a division, product line, or other profit center within a parent company
Term
market
Definition
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
Term
market share
Definition
the percentage of a market that actually buys a specific product from a particular company
Term
market growth/market share matrix
Definition
a strategic planning tool based on the philosophy that a product's market growth rate and market share are important in determining marketing strategy
Term
BSG
Definition
boston consulting group
Term
divisions of BCG growth share matrix
Definition
star, question mark, cash cow, dog
Term
star
Definition
products with a dominant share of the market and good prospects for growth
Term
drawbacks of stars
Definition
use more cash than they generate to finance growth, add capacity, and increase market share
Term
ninendo's wii
Definition
example of a star
Term
star
Definition
high relative market share, high product market growth
Term
cash cow
Definition
dominant share of the market but low prospects for growth; generate more cash than required to maintain market share
Term
bounty paper towels
Definition
example of cash cow
Term
cash cow
Definition
high relative market share, low product market growth
Term
dogs
Definition
subordinate share of the market and low prospects for growth; found in established markets
Term
question marks, "problem children"
Definition
small share of a growing market and generally require a large amount of cash to build market share
Term
dog
Definition
low relative market share, low product market growth
Term
question mark
Definition
low relative market share, high product market growth
Term
sustainable competitive advantage
Definition
an advantage that the competition cannot copy
Term
marketing planning
Definition
the process of assessing opportunities and resources, determining objectives, defining strategies, and establishing guidelines for implementation and control of the marketing program
Term
marketing implementation:
Definition
the process of putting marketing strategies into action
Term
intended strategy
Definition
the strategy the company decides on during the planning phase
Term
realized strategy
Definition
the strategy that actually takes place
Term
external customers
Definition
individuals who patronize a busienss
Term
internal customers
Definition
a company's employees
Term
internal marketing
Definition
coordinating internal exchanges between the firm and its employees to achieve successful external exchanges between the firm and its customers
Term
total quality management
Definition
a philosophy that uniform commitment to quality in all areas of the organization will promote a culture that meets customers' perceptions of quality
Term
benchmarking
Definition
comparing the quality of the firm's goods, services, or processes with that of the best performing competitors
Term
empowerment
Definition
giving customer-contact employees authority and responsibility to make marketing decisions on their own
Term
centralized organization
Definition
a structure in which top management delegates little authority to level below it
Term
decentralized organization
Definition
a structure in which decision making authority is delegated as far down the chain of command as possible
Term
marketing control process
Definition
establishing performance standards and trying to match actual performance to those standards
Term
performance standard
Definition
an expected level of performance
Term
environmental scanning
Definition
the process of collecting information about forces in the marketing environment
Term
environmental analysis
Definition
the process of assessing and interpreting the information gathered thru environmental scanning
Term
competition
Definition
other firms that market products that are similar to or can be substituted for a firm's products in the same geographic area
Term
brand competitors
Definition
firms that market products with similar features and benefits to the same customers at similar prices
Term
product competitors
Definition
firms that compete in the same product class but market products with different features, benefits, and prices
Term
generic competitors
Definition
firms that provide very different products that solve the same problem or satisfy the same basic customer need
Term
total budget competitors
Definition
firms that compete for the limited financial resources of the same customers
Term
monopoly
Definition
a competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
Term
monopolistic competition
Definition
a competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product
Term
oligopoly
Definition
a competitive structure in which a few sellers control the supply of a large proportion of a product
Term
pure competition
Definition
a market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
Term
buying power
Definition
resources, such as money, goods, and services, than can be traded in an exchange
Term
disposable income
Definition
after tax income
Term
discretionary income
Definition
disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing and shelter
Term
willingness to spend
Definition
an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces
Term
busienss cycle
Definition
a pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery
Term
federal trade commission (FTC)
Definition
an agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling
Term
better business bureau
Definition
a local, nongovernmental regulatory agency, supported by local businesses, that helps settle problems between customers and specific business firms
Term
national advertising review board (narb)
Definition
A 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
Term
technology
Definition
the application of knowledge and tools to solve problems and perform tasks more efficiently
Term
technology assessment
Definition
managers try to foresee the effects of new products and processes on their firms' operation, on other business organizations, and on society in general
Term
sociocultural forces
Definition
the influences in a society and its culture(s) that change ppl's attitudes, beliefs, norms, customs, and lifestyle
Term
social responsibility
Definition
an organization's obligation to maximize its positive impact and minimize its negative impact on society
Term
marketing citizenship
Definition
the adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
Term
marketing ethics
Definition
principles and standards that define acceptable marketing conduct as determined by various stakeholders
Term
ethical issue
Definition
an identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
Term
two major categories of social responsibility issues
Definition
natural environment, consumerism
Term
cause related marketing
Definition
the practice of linking products to a particular social cause on an ongoing or short term basis
Term
strategic philanthropy
Definition
the synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits
Term
consumerism
Definition
organized efforts by individuals, groups, and organizations to protect consumers' rights
Term
codes of conduct
Definition
formalized rules and standards that describe what the company expects of its employees
Term
Kennedy's four basic rights in consumer bill of rights
Definition
right to safety, right to be informed, right to choose, right to be heard
Term
consumer market
Definition
purchasers and household members who intend to consumer or benefit from the purchased products and do not buy products to make profits
Term
business market
Definition
individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
Term
undifferentiated targeting strategy
Definition
a strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product
Term
homogeneous market
Definition
a market in which a large proportion of customers have similar needs for a product
Term
heterogeneous market
Definition
markets made up of individuals or organizations with diverse needs for products in a specific product class
Term
market segmentation
Definition
the process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs
Term
market segment
Definition
individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs
Term
concentrated targeting strategy
Definition
a strategy in which an organization targets a single market segment using one marketing mix
Term
differentiated targeting strategy
Definition
a strategy in which an organization targets two or more segments by developing a marketing mix for each
Term
segmentation variables
Definition
characteristics of individuals, groups, or organizations used to divide a market into segments
Term
market density
Definition
the number of potential customers within a unit of land area
Term
geodemographic segmentation
Definition
market segmentation that clusters ppl in zip code areas and smaller neighborhood units based on lifestyle and demographic information
Term
micromarketing
Definition
an approach to market segmentation in which organizations focus precise marketing efforts on very small geodemographic markets
Term
benefit segmentation
Definition
the division of a market according to benefits that customers want from the product
Term
market potential
Definition
the total amount of a product that customers will purchase within a specified period at a specific level of industry wide marketing activity
Term
company sales potential
Definition
the maximum percentage of market potential that an individual firm can expect to obtain for a specific product
Term
breakdown approach
Definition
measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it
Term
buildup approach
Definition
measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered
Term
sales forecast
Definition
the amount of a product a company expects to sell during a specific period at a specified level of marketing activities
Term
common forecasting techniques
Definition
executive judgment, surveys, time series analysis, regression analysis, market tests
Term
executive judgment
Definition
sales forecasting based on the intuition of one or more executives
Term
customer forecasting survey
Definition
a survey of customers regarding the types and quantities of products they intend to buy during a specific period
Term
sales force forecasting survey
Definition
a survey of a firm's sales force regarding anticipated sales in their territories for a specified period
Term
experts forecasting survey
Definition
sales forecasts prepared by experts such as economists, management consultants, advertising executives, college professors, or other persons outside the firm
Term
Delphi technique
Definition
a procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts
Term
time series analysis
Definition
a forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analyses; works well for products with STABLE demand
Term
trend analysis
Definition
an analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales
Term
cycle analysis
Definition
an analysis of sales figures for a period of three to five years to ascertain whether sales fluctuate in a consistent, periodic manner
Term
seasonal analysis
Definition
an analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales
Term
random factor analysis
Definition
an analysis attempting to attribute erratic sales variation to random, non recurrent events
Term
regression analysis
Definition
a method of predicting sales based on finding a relationship between past sales and one or more variables, such as population or income; however it is futile for forecasting sales of new products
Term
market test
Definition
making a product available to buyers in one or more test areas and measuring purchases and consumer responses
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