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Marketing Exam 1
Flashcards for students at Augustana (SD) in Jaciel's marketing class
85
Marketing
Undergraduate 2
02/22/2012

Additional Marketing Flashcards

 


 

Cards

Term
Marketing
Definition

A social & managerial process by which individuals and groups obtain what they need and want through creating and excahnging products and value with others

 

The blending of science & art to create, build and sustain good relationships with customers, suppliers, and distributors

Term
Market Offereings
Definition
Combination of products, services, information, or experiences offered to the market
Term
Needs
Definition

States of felt deprivation

 

Ex: "I'm thirsty..."

Term
Wants
Definition

The form taken by human needs as they are shaped by culture and individual personality.

 

Ex: "I'm thirsty... for Diet Coke"

Term
Demands
Definition

Human wants backed up by buying power.

 

Ex: "I have enough cash to pay for Diet Coke"

Term
Relationship Marketing
Definition
The process of creating, maintaining and enhancing strong, value-laden relationships with customers and other stakeholders.
Term
Demand Management
Definition

Finding and increasing demand, also changing or reducing demand, such as demarketing

 

Ex: high requirements to get in at Augie to keep number of students down

Term
Demarketing
Definition
Temporarily or permanently reducing the number of cutomers or shifting their demand
Term
Value Proposition
Definition

The set of benefits or values a company promises to deliver to consumers to satisfy their needs.

 

Ex: Augie proposition- good education, graduate on time, dorm life

Term
Production Concept
Definition

Consumers favor products that are available and high affordable and that management should therefore focus on improving produciton and distribution efficiency.

 

Ex: Fuggs, Walmart, Dell

Term
Product Concept
Definition

Consumers will favor products that offer the most quality, performance, and freatures and the organization should therefore devote its energy to making continuous product improvements.

 

Ex: Uggs, Apple, Mercedes Benz, Rolex

Term
Selling Concept
Definition

Consumers will not buy enough of the organization's product unless the organization undertakes a large-scale selling and promotion effort

 

Ex: Insurance, pencils, milk

Term
Marketing Concept
Definition

Achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. Customer driven companies.

 

Ex: Dell & McDonalds

Term
Societal Concept
Definition

Organization should determine the needs, wants and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer's and society's well-being.

 

Ex: Johnson & Johnson

Term
Market Segmentation
Definition
Divide the market into segments of customers
Term
Target Marketing
Definition
Select the appropriate segment to cultivate
Term
Marketing Myopia
Definition
Companies lose sight of underlying customer needs because they are so in love with their service or product
Term
Customer Lifetime Value
Definition

Stream of purchases each customer makes over a lifetime of patronage

 

Ex: Nike --> provide what I need at a reasonable price

Term
Share of Customer
Definition

The portion of a customer's purchasing that a company gets in its product categories

 

Ex: Hyvee--> provide goods & services you need so you stay there vs. Walmart or Target

Term
Customer Equity
Definition
Total combined customer lifetime value of all the comapny's current and potential customers
Term
Partnership Relationship Marketing
Definition

Partners inside the firm: employees are customer focused, team coordinates efforts toward customers.

Partners outside the firm: supply chain management, strategic alliances (Augie w/ Sanford) 

Term
Annual Plan
Definition
Short-term marketing plan which encompasses current situations, objectives and strategies
Term
Long-range Plan
Definition
Describes which factors and forces will affect the organization during the next several years
Term
Strategic Planning
Definition
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
Term
Strategic Planning Steps
Definition

1. Define the "Company Mission"

2. Setting company objectives

3. Designing the Business Portfolio

Term
Mission Statement
Definition

States the company's puprose and should focus on the market, rather than the product

 

Should be realistic, specific, and motivating.  Build on vision of the founder or CEO

Term
Marketing Analysis
Definition
Sizing up the company's situation in order to plan, implement and control market offerings
Term
Selecting Target Markets
Definition
Matching strengths and weaknesses as identified in segmentation analysis to particular target markets
Term
Implementation
Definition
Launching the plan with realistic logistical support and expectations
Term
Marketing Controls
Definition
Measuring, assessing and evaluating the performance of the plan
Term
Stars
Definition
  • High growth & share
  • Profit potential
  • May need heavy investment to grow
Ex: Biology Major, Deadwood, Sturgis, Sioux Falls
Term
Cash Cows
Definition
  • Low growth, high share
  • Established, successful SBU's
  • Produce cash
Ex: Business Major, Nursing Major, Mt. Rushmore, Hunting, Badlands
Term
Question Marks
Definition
  • High growth, low share
  • Build into Starts/phase out
  • Require cash to hold market share
Ex: Sports Management, Wall Drug
Term
Dogs
Definition
  • Low growth & low share
  • Low profit potential
 
Ex: Theater Major, State Fair, Corn Palace
Term
Market Penetration
Definition
  • Existing products & market
  • Least risky
Ex: Toothpaste
Term
Market Development
Definition
  • Existing product
  • New Market
Ex: College w/ online degree
Term
Product Development
Definition
  • New products
  • Existing Markets
Ex: Candy, snacks, gum market
Term
Diversification
Definition
  • New products
  • New Markets
Term
Boston Consulting Group
Definition

Developed the SBU's

aka the Stars, Cash Cows, Question Marks, Dogs

Term

The Company

(Microenvironment)

Definition

Marketers must work in harmony w/ other company departments to create customer value and relationships

 

Ex: Walmart's markerters can't promise low prices unless its operations department can deliver low costs

Term

Suppliers 

(Micro)

Definition

Marketers must involve suppliers in creating and delivering customer value.

 

Supplier problems can seriously affect marketing

Term
Marketing Intermediaries
Definition

Firms that help the company to promote, sell, and distribute its goods to final buyers

 

Ex: Lexus can't create a high-quality experience unless its suppliers provide quality parts and its dealers provide high sales and service quality.

Term

Competitors

(Micro)

 

Definition
Must gain strategic advantage by positioning their offerings strongly against competitors' offereings in the minds of consumers
Term

Publics

(Micro)

Definition
Any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives
Term

Customers

(Micro)

Definition

*Most important factor in a company's microenvironment*

 

 

Term
Consumer Market
Definition
Individual's that buy goods & services for personal consumption
Term
Business Markets
Definition
Buy goods and services for further processing or for use in their production process
Term
Reseller Market
Definition
Buy goods & services to resell at a profit
Term
Government Market
Definition
Made up of gov't agencies that buy goods and services to produce public services or transfer the goods to others who need them
Term
International Market
Definition
Consists of these buyers in other countries, including consumers, producers, resellers, and governments
Term
Financial Publics
Definition

Group that influences the company's ability to obtain funds.

 

Ex: Banks, investment houses, and stockholders

Term
Media Publics
Definition

Carries news, features, and editorial opinion.

 

Ex: newspaper, magazines, radio, television

Term

Gov't Publics

 

Definition
Marketers often consult the company's lawyers on issues of product safety, truth, and other matters
Term
Citizen-action Publics
Definition
Marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others.  Public relations department can help deal with these groups.
Term
Local Publics
Definition
Includes neighborhood residents, community organizations. Large companies usually appoint a community relations officer to deal with the community
Term
General Public
Definition
Public's image of the company affects its buying
Term
Internal Publics
Definition
This includes workers, managers, volunteers, and the board of directors.  Company's use newsletters to inform and motivate their internal publics
Term

Demographics

(Macro)

Definition
Changing demographics means changes in markets. Which in turn requires changes in marketing strategies
Term
Baby Boomers
Definition

Born between 1946-1964

78 Million

Wealthiest generation

Hold 3/4 of nation's financial assets

Term
Gen X
Definition

Born between 1965-1976

49 million

Best educated generation

Increased parental divorce rates

First latchkey kids

Term
Gen Y
Definition

Born between 1977-2000

83 million

$733 billion in purchasing power

Term
Geographic Population Shifts
Definition
Americans are mobile. Trends include movement to sunbelt states, rural to urban shifts, urban to suburb shifts.
Term

Economic

(Macro)

Definition
Include income and spending matters
Term

Natural

(Macro)

Definition
Indexes pollution concerns, energy costs, governmental intervention and raw materials
Term

Technological

(Macro)

Definition
Changes are fast paced, unlimited opportunities, increased regulation and high R&D
Term

Political 

(Macro)

Definition
Regulations by gov't, social engineering.  Business uses lobbying effots to obtain legislation favorable to their interests
Term

Cultural

(Macro)

Definition

Values and subculture memberships that affect decisions.

 

Marketers are interested in how people's values affect their views of nature, universe, organizations, others and themselves

Term
Core Values
Definition
Relatively enduring and must be considered by marketers positioning products
Term
Secondary Values
Definition
Change over time and change more often than core values and may provide positioning opporutunities
Term

Subcultures

(Macro)

Definition

Consist of homogenous ethnic or lifestyle groups within the larger culture

 

Ex: drink choices

Term

Responding to the Market Environment

(Macro)

Definition

Take an aggressive action to influence publics and forces to the extent possible

 

Term

Marketing Information System

(MIS)

Definition
Consists of people and procedures for prosessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights
Term
Internal Databases
Definition
Electronic collections of consumer and market inforamtion obtained from data sources within the company network
Term
Competitive Market Intelligence
Definition
Systematic collection and analysis of publicly available informatino about soumers, competitors, and developments in the marketplace
Term
Marketing Research
Definition
Systematic design, collection, analysis, and reporting of data relevant to specific marketing situation facing an organization
Term
Exploratory Research
Definition
To gather preliminary information that will help define the problem and suggest hypotheses
Term
Descriptive Research
Definition
To describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the produce
Term
Casual Research
Definition
To test the hypotheses about cause-and-effect relationships
Term
Secondary Data
Definition
Consists of information that already exists somewhere, having been collected for another purpose
Term
Primary Data
Definition
Consists of information collected for specific purpose at hand
Term
Observational Research
Definition
Involves gathering primary data by observing relevant people, actions, and situations
Term
Survey Research
Definition

The most widely used method for primary data collection

Approach best suited for gathering descriptive information

Term
Experimental Research
Definition
Best suited for gathering causal information
Term
Customer Relationship Management
Definition
To manage detailed information about individual customers and carefully manage customer touch points in order to maximize customer loyalty
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