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Basic Marketing test 1
Basic marketing
183
Marketing
Undergraduate 1
10/10/2013

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Term
Marketing Penetration
Definition
Increasing existing sales in existing markets
Term
Product Development
Definition
Develop new products for existing markets
Term
Diversification
Definition
New products for new markets. (Most Risky)
Term
Health consciousness
Definition
Ex. Focus on healthy eating. Trend towards consumers making healthy decisions.
Term
Demographics
Definition
Race, gender, generation
Term
Component lifestyles
Definition
the practice of choosing goods and services that meet diverse needs and interests, rather than conforming to a single traditional lifestyle.
Term
Social media
Definition
Group of internet based apps that allow the creation and exchange of user generated content.
Term
Inflation
Definition
A measure of the decrease in the value of money.
Term
Purchasing power
Definition
Comparison of income versus the relative cost ofa standard set of goods and services in different geographic areas.
Term
Applied research
Definition
Used to create something that serves a purpose.
Term
Innovation
Definition
Change in something that already exists.
Term
FDA (food and drug administration)
Definition
focuses on enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products.
Term
Federal trade commission
Definition
against unfair methods of competition in commerece.
Term
Marketing is not a battle of products but a
Definition
Battle of perceptions
Term
If you can't be first in a category
Definition
Set up a new category to be first in.
Term
Its better to be first than it is to be
Definition
better
Term
Its better to be first in the mind
Definition
than first in the marketplace.
Term
The most powerful concept in marketing is
Definition
owning a word in the prospect's/customers mind.
Term
Positioning
Definition
The art and science of fitting the product or service to one or more segments of the market in such a way as to set it meaningfully apart from the competition.
Term
Market segmentation
Definition
dividing a market into a distinct group.
Term
Engles Law
Definition

1. As a family income increases, the percentage of income spent on food decreases.

2. as a familys income increases, the percentage of income spent on housing, household operations, and clothing remains constant.

3. as a familys income increases the percentage of income spent on other items increases.

Term
Psychographic segmentation
Definition
Dividing the market based on how people conduct their lives. Is very effective. based on personality, motives, lifestyles.
Term
Benefit segmentation
Definition
Benefits consumers seek. Expensive, if target market is everywhere. Ex. toothpaste will have to make ads on every type of channel, because everyone needs it.
Term
Undifferentiated marketing or mass marketing
Definition
all customers are treated the same way. Little diviersity in needs and wants. Has cost savings. Disadvantage: competitors may identify segments and exploit them.
Term
Differentiated marketing
Definition
Divide market into segments, and foucs on a single segment. Disadvantage is high marketing costs.
Term
Concentrated marketing Or Niche Marketing
Definition
Divide market into segments and focus on a single segment. Disadvantage - diversity.
Term
Marketing research
Definition
Process of collecting, analyzing and interpreting data in order to improve marketing effectiveness.
Term
Research process
Definition

1) Define the problem

2) Plan research design

3) Select data collection method

4) Design the sample

5) collect the data

6) analyze and interpret the data

7) prepare the report

Term
Data
Definition
Facts and figures pertinent to the problem.
Term
Secondary data
Definition
Facts and figures that are already recorded prior to the project. Less expensive, requires less time. But may not be relevant.
Term
INternal data
Definition
Data inside the firm. Ex. financial statements, customer letters, etc.
Term
External data
Definition
Outside the firm. Ex. U.S. census bureau.
Term
Primary data
Definition
Newly collected for the project. Up to Date, but expensive. Relvant, but time consuming.
Term
Exploratory research
Definition
Find new ideas from customers.
Term
Descriptive research
Definition
Examines the relationship between two variables.
Term
Causal research
Definition
Examines cause and effect relationships in variables
Term
Mail, internet, and fax surveys
Definition
Least expensive , assuming adequate return rate. Must be short and simple. No opportunity for bias. anonymous.
Term
Telephone surveys
Definition
Expensive. Interviewer can ask elaborate questions. Opportunity for bias. some anonymitity.
Term
Personal interview surveys
Definition
Most expensive. Interview can ask complex questions and show visuals. Significant opportunity for bias. Little anonymity.
Term
Leading question
Definition
Consumers is led to a certain statement.
Term
ambigous question
Definition
Subjective words in it. Ex. Do you eat at fast food restaurants regurlerly? regular is subjective, it could be once a month, or twice a year, or everyday.
Term
Probability sampling
Definition
Each member of the population has a known chance of being included.
Term
Simple random sample
Definition
Each member of the pop. has a known and equal chance of being included.
Term
Stratified sample
Definition
Divide population into segments and select a probability sample from each segment.
Term
Non probability sample
Definition
Personal judgement is used in selecting respondents.
Term
Single source data
Definition
INformation that is integrated from large consumer panesl that participate in ongoing research.
Term
Coding
Definition
Putting the data ina machine readable format
Term
Editing
Definition
removing erroneous data
Term
Tabulating
Definition
Counting the number of cases in each category.
Term
analyzing
Definition
mathematically summarizing the data
Term
Interpretation
Definition
Drawing conclusions form the data
Term
Internal search
Definition
Information stored in your memory.
Term
Routine problem solving
Definition
Buying the same product over again.
Term
External search
Definition
advertising, sales promotion, opinion leaders, WOM - word of mouth,. Getting a new product at the moment.
Term
Limit problem solving
Definition
Using both internal and external information
Term
Ego Needs
Definition
Self esteem, status, need to stand out of the group,
Term
Self actualization
Definition
Self fulfillment, personal accomplishment. Doing things because you want do do them. Perosnal fulfillment.
Term
Motivation
Definition
An inner drive to satisfy a need, easy to influence.
Term
Perception
Definition
How we interpret information
Term
Learning
Definition
a change in behavior caused by experience
Term
Attitude
Definition
a lasting evaluation of a person object/idea
Term
Personality
Definition
Psychological characteristics that influence the way a person responds to situations, hard to influence.
Term
Resources
Definition
Money, education, intelligence.
Term
Believers
Definition
Most likely to try and fit an a group.
Term
Experiencers
Definition
want to try new things
Term
Selective perception
Definition
we look at some things, but not others.
Term
Selective exposure
Definition
Notices certain stimuli and not others.
Term
Selective distortion
Definition
Once a consumer believes something it is difficult to change. Distorts information that conflicts with his or her feelings.
Term
Selective retention
Definition
Consumer only remembers the things that support his or her beliefs.
Term
Family influence - Individual
Definition
When one family member makes all the decisions for a certain category.
Term
Family influence - Autonomic
Definition
Individual decision that are shared.
Term
Family influence - Sincratic
Definition
Jointly made decisions by two or more people.
Term
Upper class
Definition
Millionaires, money is unimportant in their purchases, value good taste. Focus on what they like, things that will support their image.
Term
Upper middle class
Definition
Money is less important, buy things to make themselves look better.
Term
Middle class
Definition
White collar, tries to emulate the upper, really want to prove themselves.
Term
Lower middle class
Definition
Blue collar, not status oriented. Do what they want do. Most brand loyal. Enjoy a stable situation.
Term
Upper lower class
Definition
Working poor, not confident in themselves, rely on advertising more than any group.
Term
Lower lower class
Definition
Unstable job, or unemployed. Switch jobs often. Group that is most likely to overpay. Live in inner city. Will shop where public transportation is. Main reason they overpay, is that they cant drive to somewhere that is cheaper.
Term
Referance group influence - membership
Definition
Group you actually belong to.
Term
Referance group influence - aspirational group
Definition
Group you want to strive to be a part of
Term
Referance group influence - disasociateive groups
Definition
Groups you don't want to be associated with.
Term
Opinion leader
Definition
Someone in the group that influences others in the group.
Term
Problem recognition
Definition
Seeing the ideal state over the actual state.
Term
Marketer induced problem recognition
Definition
Ex. filter meter on filtered water.
Term
Out of stock condition
Definition
The most common type of problem recognitoin.
Term
Evoked set
Definition
Particular group of alternatives a consumer considers when making a buying decision.
Term
Cognitive dissonance
Definition
Psychological Tension or doubt about the rightness of a decision.
Term
Consumer product
Definition
Personal use products
Term
Organizational Products
Definition
Resale, operation, or to manufacture other products.
Term
Organizational behavior
Definition
Prefur to buy from manufacturers. Possess a comparative expertise. Focus on relationships rather than single transactions.
Term
Straight rebuy
Definition
When an organizational purchase involves a routine purchase from the same supplier.
Term
New task buying
Definition
Extensive search for information, requires a lot of time, a lot of suppliers, lots of information, multiple influences.
Term
Modified rebuy
Definition
Routine purchase is changed in some way.
Term
Inspection buying
Definition
Examination of each item. usually for expensive items.
Term
Sampling buying
Definition
Examination of some items.
Term
Description buying
Definition
Oral or written, usually for standard items.
Term
Contracting buying
Definition
Negotiation terms of a purchase contract (price, specs, timing.)
Term
Competitive bidding
Definition
Involves a buyer inviting bids from potential suppliers for products that meet certain specifications.
Term
Buying center
Definition
People involved in the buying decision
Term
Users
Definition
Actually use the products under consideration
Term
Gate keepers
Definition
Control the flow of information to other buying center members
Term
Influencers
Definition
Affect the purchase decision by supplying advice or information.
Term
Decider
Definition
makes the actual purchase decision.
Term
Buyers
Definition
choose suppliers and negotiate purchase terms
Term
Derived demand
Definition
Based off the corresponding demand for consumer products
Term
Price inelasticity
Definition
Demand does not fluctuate widely with price
Term
Fluctuating demand
Definition
Demand for organizational products varies widely.
Term
Joint demand
Definition
Demand varies jointly when two or more goods are made to create a product.
Term
Marketing
Definition
Is a phlosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction. Second, marketing is an organizational function and a set of processes used to implement this philosophy. It is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings of that have value for customers, clients, partners, and society at large.
Term
exchange
Definition
people giving up something in order to receive something they would rather have.
Term
Production orentation
Definition
Philosophy that focuses on the internal capabilitiles of the firm rather than on the desires and needs of the marketplace. Fails in that it does not determine whether it meets the needs of the marketplace.
Term
Sales orentation
Definition
People buy more goods and services if aggressive sales techniques are used, and that high sales result in high profts. Fails to see the needs of the marketplace. Finds sales through intensive promotional activities.
Term
Market orientation
Definition
The social and economic justification of an organization's existence .  A sale depends on a customers decision to purchase a product.
Term
Social marketing orentation
Definition
The idea that an organization exists to preserve or enhance individuals and societys long term best interests.
Term
Cusotmer value
Definition
Relationship between benefits and the sacrifice necessary to obtain those benefits.
Term
Customer satisfaction
Definition
Customers evaluation of a good or service in terms of whether that good or service has met their needs and expectations.
Term
Relationship marketing
Definition
Strategy that focses on keeping and improving relationships with current customers.
Term
Marketing is important because
Definition
It contributes to a company's growth, profits, and survival. It helps makes products more easily available. Part of everyday life.
Term
Strategic planning
Definition
the managerial process of creating an dmaintaining a fit between the organizations objectives and resources and the evolving market opportunities.
Term
Market penetration
Definition
increase market share among existing customers. 
Term
Market Development 
Definition
attracting new customers to existing products
Term
Diversification
Definition
Introducing new products to new markets
Term
Portfolio matrix 
Definition

§  a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.

Term
Boston Consulting group model
Definition
Create a portfolio matrix, then build, hold, harvest (increase the short-term cash return without too much concern for the long-run impact), divest ( get rid of SBUS(strategic business units, subgroup in a business) with low shares of low growth markets)
Term
General electric model
Definition
Complex, focused on market attractiveness and company strength.
Term
Marketing plan
Definition
document that acts as a guidebook of marketing activities for the marketing manager.
Term
Planning
Definition
process of anticipating future events and determining strategies to achieve organizational objectives in the future.
Term
Mission statement 
Definition

o   a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and analysis of existing and anticipated environmental conditions.

Term

·        SWOT analysis

Definition

o   S – internal strengths

o   W – weaknesses

o   O – opportunities

 

o   T – threats

Term
Environmental Scanning 
Definition

o   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.

Term
Competitive advantage 
Definition

·        set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition.

Term
Experiences curves 
Definition

o   costs decline at a predictable rate, as experience with a product increases.

Term
Marketing mix 
Definition

·        unique blend of product, place (distribution), promotion, and pricing strategies (four ps) designed to produce mutually satisfying exchanges with a target market.

Term
Implementation
Definition

·        process that turns a marketing plan into action assignments and ensures that these assignments and ensures that assignments are executed in a way that accomplishes the plan’s objectives.

Term
Evaluation 
Definition
gauging the extent to which marketing objectives have been achieved.
Term
Control 
Definition
mechanisms for evaluating marketing results.
Term
Target market 
Definition

o   – a group of people or organization for which an organization designs, implements, and maintains, a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges.

Term
Environmental scanning 
Definition
gathering the environmental data to identify future market opportunities and threats.
Term
Social change
Definition
most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans.
Term

§  Us. Values

Definition

·        Self-suffciency

·        Upward mobility – success can be granted by anyone

·        Work ethic – hard work, dedication to family, and frugality were moral and right.

 

·        Conformity – no one should expect to be treated differently from anyone else.

Term
Component styles 
Definition
lifestyle of choosing products that meet their diverse needs, rather than confirming to the norm.
Term
Demography
Definition
study of people’s vital statistics, such as age, race and ethnicity, and location.
Term

·        Too effectively market to teens

Definition

o   Make the product modern and convenient

 

o   Engage through promotion that gets them involved. Ex. Interactive contests. Voting challenges.

Term

§  Generation y – people born between 1979 and 1994. Millennial generation

Definition

·        Prefer spending time with their babies rather than go out.

·        Feel their opinions are needed and welcomed.

·        Diverse

·        Good time managers

·        Quick shoppers – buy from general stores like walmart.

·        Want to make a difference

·        Multitaksers – like to be in the know.

 

·        Brand besotted – love to be involved with their favorite brands.

Term

§  Baby boomers – people born between 1946 and 1964

Definition

·        Go on vacation a lot, postpone retirement. 80% of personal wealth in the U.S.

Term
Purchasing power 
Definition
measure of comparing income to the relative cost of  a standard set of goods and series in different geographic areas. Also refered to as the cost of living.
Term
Basic research 
Definition
pure research, attempts to expand knowledge, and is not based on specifics.
Term
Consumerp product safety commission (CPSC
Definition

§  – federal agency established to protect the health and safety of consmers in and around their homes

Term
Food and drug administration (FDA) 
Definition

§  federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded or hazardous food and drug policies.

Term
Federal trade commission (FTC
Definition

§  – federal agency empowered to prevent persons of corporations from using unfair methods of competition in commerce.

Term
Global marketing
Definition
Marketing that targets markets throughout the world.
Term
Global vision 
Definition

o   recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors it all markets.

Term
Multinational corporation 
Definition

o   company that heavily engaged in international trade, beyond exporting and importing.

Term
Culture
Definition
common set of values shared by its citizens that determines what is socially acceptable. It underlies the family, education, religion, and social class systems. 
Term
Mercosur
Definition
– largest latin aamerican trade agreement
Term
Uruguay round 
Definition
 an agreement to dramatically lower trade barriers worldwide; created the world trade organization. 
Term
Tariff
Definition
tax levied on goods entering a country
Term
Quota
Definition

§  a limit on the amount of a specific product that can enter a country.

Term
Boycott 
Definition
– exclusion of all products from certain countries or companies.
Term
Exchange control 
Definition

§  law compelling a company earning foeign exchange from it exports to sell it toa control agency.

Term
Market grouping 
Definition

§  – when several countries work together to form a common trade area.

Term
Trade agreement 
Definition
an agreement to stimulate international trade
Term
North American free trade agreement (NAFTA) 
Definition
created the worlds largest free trade zone.
Term
World bank 
Definition
offers low interest interest loans to developing naitons
Term
European union 
Definition
– free trade zone. Largest economy in the world.
Term
Group of 20 (G20
Definition
Key countries discuss key issues in the global economy
Term
Export broker 
Definition

o   an intermediary who plays the traditional broker’s role by bringing buyers and seller together.

Term
Export agent 
Definition

o   an intermediary who acts like a manufacturers agent for the exporter; the export agent lives in the foreign market.

Term
Licensing
Definition

o   the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.

Term
Joint venture 
Definition
when a domestic firm buys parts of a foreign company or joins with a foreign company to create a new entity.
Term
Direct foreign investment 
Definition
active ownership of a foreign company or of overseas manufacturing or marketing facilities.
Term
Consumer behavior 
Definition
processes a consumer uses to make a purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use.
Term
Consumer decision-making process 
Definition
Starts with need recognition, then information search, evaluation of alternatives, and then a purchase.
Term
Business to business electronic commerce (BtoB or B2B
Definition

o   The use of the internet to facilitate the exchange of goods, services, and information between organizations.

Term
Stickiness
Definition

o   a measure of a websites effectiveness; calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit.

Term
Disintermediation
Definition
the elimination of intermediaries such as wholesales or distributers from a marketing channel.
Term
Relationship marketing 
Definition
is a strategy that entails seeking and establishing ongoing partnerships with customers.
Term
Trust
Definition
exists when one party has confidence in an exchange partner’s reliability and integrity. 
Term
Producers 
Definition
profit oriented, manufacturing, construction etc.
Term
The north American industry classification system  (NAICS) 
Definition

o   a detailed numbering system developed by the united states, Canada, and mexico to classify north American business establishments by their main production processes.

 

§  Gives each sector a code, and subsector, then industry group, then industry, then industry subdivision. 

Term

o   Segmentation is important because

Definition

§  Helps marketers define customer needs and wants.

§  All markets include people with different needs and wants.

 

§  Helps decision makers to more accurately define marketing objectives and better allocate resources.

Term
Positioning
Definition
developing a specific marketing mix to influence potential customers overall perception of a brand, product line or organization in general.
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