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Marketing Test 1
Vocabulary and info for test 1
141
Marketing
Undergraduate 3
10/03/2009

Additional Marketing Flashcards

 


 

Cards

Term
What is marketing?
Definition

an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

A philosophy, an attitude, a perspective, or a management orientation that stresses ccustomer satisfaction. An organization function and a set of processes used to implement this phliosophy

Term
Employee satisfaction involves....
Definition
  • more investment
  • stockholder satisfaction
  • growth and profits
  • repeat business
  • higher quality
  • greater effort
Term

Exchange

 

Definition
People giving up something to receive something they would rather have
Term
The 5 conditions for exchange
Definition
  • at least two parties
  • something of value
  • communication and delivery
  • freedom to accept or reject
  • desire to deal with other power
Term
Exchange may not take place even
if conditions are met. T or F
Definition
True. Exchange may not take place even if conditions are met.
Term
In exchange, an agreement must be reached. T or F?
Definition
True. In exchange, an agreement must be reached.
Term
Does marketing occur even if exchange does take place?
Definition
Yes & No. Marketing occurs even if exchange DOES NOT take place.
Term
The four marketing management philosophies are....
Definition
  • Production
  • Sales
  • Market
  • Societal
Term
Sales focuses on...
Definition
aggresive sale techniques and belief that high sales result in high profits
Term

Production focuses on..

 

Definition
internal capabilities of the firm
Term
Market focuses on..
Definition
satisfying customer needs and wants while meeting objectives
Term
The societal focuses on...
Definition
satisfying customer needs and wants while enhancing individual and societal well-being
Term
Marketing Concept
Definition

 

The idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives.

Term
With the marketing concept you are....
Definition

 

  • Focusing on customer wants and needs to distinguish products from competitors’ offerings
  • Integrating all the organization’s activities to satisfy these wants
  • Achieving the organization’s long-term goals by satisfying customer wants and needs legally and responsibly
Term
Market orientation
Definition
a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product. Synonymous with the marketing concept.
Term
How to achieve a Market Orientation (4 ways)
Definition

 

uObtain information about customers, competitors, and markets
uExamine the information from a total business perspective
uDetermine how to deliver superior
customer value
uImplement actions to provide value
to customers
Term
Societal Marketing Orientation
Definition

 

An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s long-term best interests.

Term
The 5 categories used to compare market and sales orientations
Definition

 

§Organization’s focus
§Firm’s business
§Those to whom the product is directed
§Firm’s primary goal
§The tools used to achieve those goals
Term
Customer Value
Definition

 

The relationship between benefits and the sacrifice necessary to obtain those benefits.

Term
The 5 customer valure requirements are....
Definition

 

§Offer products that perform
§Earn trust
§Avoid unrealistic pricing
§Give the buyer facts
§Offer organization-wide commitment in
service and after-sales support
Term
Customer Satisfaction
Definition

 

The feeling that a product
met or exceeded the
customer’s expectations.

Term
Relationship Marketing
Definition
A strategy that focuses on
keeping and improving 
relationships
with current
customers
Term
The four ways to build relationships
Definition

with..... 

uCustomer-oriented personnel
uEmployee training programs
uEmpowered employees
uTeamwork
Term
Customer-Oriented Personnel
Definition
  • A way for companies to build customer relationships
  • Customers base a company on how the employees treat them
Term
Empowerment
Definition
  • A way for companies to build customer relationships

 

  • letting the employees solve customer issues instead of going straight to the manager

 

  • Gives customers the feeling that their concerns are being addressed and gives employees the feeling that their expertise matters
Term

Sales Orientation-- Organization Focus

Market Orientation--Organization Focus

Definition

Sales- inward

Market- outward

Term

Sales Orientation- Firms business

Vs.

Market Orientation --Firms business

Definition

Sales- sales goods and services

Market- satisfying wants and needs

Term

Sales orientation is for who?

Vs.

Market orientation is for who?

Definition

Sales- everybody

Market- specific groups of people

Term

Sales orientation primary profit goal?

Vs.

Market orientation primary profit goal?

Definition

Sales- to maximize sales goals

Market-customer satisfaction

Term

Sales orientation wants to achieve

 

Market orientation wants to achieve

 

Definition

Sales- promotion

Market orientation- to use all marketing activities

Term
Why study marketing?
Definition

 

uPlays an important role in society
uVital to business survival, profits
and growth
uOffers career opportunities
uAffects your life every day
Term
Strategic Planning
Definition
  • The managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities
  • The goal is long-term profitability and growth
Term
What is the organization's main activity and how will it reach its goals?
Definition
Through a marketing plan
Term
Marketing Plan
Definition
A written document that acts
as a guidebook of marketing activities for the marketing manager
Term
What are some items in the marketing plan?
Definition
  • product lines
  • distribution channels
  • marketing communications
  • pricing
Term
5 reasons to write a marketin plan?
Definition

 

§Provides a basis for comparison of actual
and expected performance
§Provides clearly stated activities to work
toward common goals
§Serves as a reference for the success of
future activities
§Provides an examination of the
marketing environment
§Allows entry into the marketplace with awareness
Term
Marketing Plan Elements
Definition
  • business mission statement
  • objectives
  • situation or SWOT analysis
  • Marketing strategy
  • Implementation evauluation control
Term
Importance of Strategic Marketing
Definition
  • Strategic planning
  • long-term profitability and growth
  • By writing a marketing plan
Term
The business mission answers the question...
Definition
What business we are in?
Term
The business mission focuses on..
Definition

the markets rather than the goods or services

 

Term
AMA Mission Statement
Definition
  • to always understand and satisfy the needs of marketers so as to provide them with products and services that will help them be better marketers

 

  • To empower marketers through information, education, relationships, and resources that will enrich their professional development and careers

 

  • To advance the thought, application, and ethical practice of marketing
Term
Characteristics of strategic business units (SBUs)
Definition

 

§A distinct mission and specific target market
§Control over its resources
§Its own competitors
§Plans independent of other SBUs
Term
Strategic Business Unit (SBU)
Definition
a subgroup of a single business or a collection of related businesses within the larger organization
Term
Marketing myopia
Definition
too narrow
Term
A business mission statement that is too broad has...
Definition
no direction
Term
A business statement that is just right is...
Definition
focused on the markets served and benefits customers seek
Term
Marketing objective
Definition

 

A statement of what is to be accomplished through marketing activities.

Term
Marketing Objectives are... (4)
Definition

 

§Realistic
§Measurable
§Time specific
§Consistent with and indicate the organization’s priorities
Term
Criteria for good marketing objectives
Definition
  • communicate good marketing management philosophy
  • provide management direction
  • motivate employees
  • force executives to think clearly
  • allow for better evaluation results
Term
The SWOT analysis
Definition

 

Identifying

internal strengths (S)
and weaknesses
(W)
and also examining
external opportunities
(O)

and threats
(T)

Term
S in SWOT
Definition
  • internal strenghts
  • things the company does well
Term
W in SWOT
Definition
  • Weaknesses
  • things the company does not do well
Term
O in SWOT
Definition
  • examining external opportunites
  • Conditions in the external environment that favor strengths
Term
T in SWOT
Definition
  • external threats
  • Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness
Term
Environmental Scanning
Definition
The 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
The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
Term
Types of Competitve Advantage
Definition
  • Cost
  • Product/Service differentiation
  • niche strategies
Term
Cost-Competitive Advantage
Definition
Being the low-cost competitor
in an industry while maintaining satisfactory profit margins
Term
How to become a cost competitive advantage company
Definition

 

§Obtain inexpensive raw materials
§Create efficient plant operations
§Design products for ease of manufacture
§Control overhead costs
§Avoid marginal customers
Term
Product/ Service Differentiation Competitive Advantage
Definition
The provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competition’s
Term
Examples of Product/Service Differentiation
Definition

§Brand names

§Strong dealer network
§Product reliability
§Image
§Service
Term
Niche Competitive Advantage
Definition
The advantage achieved when a firm seeks to target and effectively serve a small segment of the market
Term
Niche competitive advantage are used by....
Definition
Used by small companies with
limited resources
Term
The niche competative advantage....
Definition

 

§May be used in a limited geographic market
§Product line may be focused on a
specific product category
Term
Sources of Sustainable Competitive Advantage
Definition
  • Patents
  • Copy rights
  • locations
  • equipment
  • technology
  • customer service
  • promotion
Term
The four strategic alternatives
Definition
  • market penetration
  • market development
  • product development
  • diversification
Term
Market penetration
Definition
increase market share among existing customers
Term
Market development
Definition
attract new customers to existing products
Term
Product development
Definition
create new products for present markets
Term
Diversification
Definition
introduce new products into new markets
Term
 The Portfolio Matrix includes
Definition

Star

Cash Cow

Problem Child

Dog

Term
Star
Definition
in the portfolio matrix, a business unit that is a fast-growing market leader
Term
Cash Cow
Definition
in the portfolio matrix, a business unit that usually generates more cash than it needs to maintain its market share
Term
Problem Child
Definition
in the portfolio matrix, a business unit that shows rapid growth but poor profit margins
Term
Dogs
Definition
in the portfolio matrix, a business unit that has low growth potential and a small market share
Term
The four basic strateties in the portfolio matrix are..
Definition

to build

to hold

to harvest

to divest

Term
When is it appropriate to build?
Definition
if an organization has a SBU that it believes has the potention to be a star
Term
When is it appropriate to hold?
Definition
if an SBU is a very successful cash cow
Term
When is it appropriate to harvest?
Definition

appropriate for all SBUs except those classified as stars

  • the goal is to increase the short-term cash return without too much concern for the long-run impact
Term
When is it appropriate to divest?
Definition
when you have a SBU with low shares of growth; Problem children and dogs are most suitable
Term
Marketing Strategy
Definition
The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets
Term
Target Marketing Strategy
Definition

 

  • Segment the market based on groups with similar characteristics
  • Analyze the market based on attractiveness of market segments
  • Select one or more target markets
  • appeal to the entire market with one market mix
  • concentrate on one marketing segment
  • appeal to multiple markets with multiple marketing mixes
Term
Marketing Mix
Definition
A unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
Term
The Four Ps
Definition

Product

Place

Promotion

Price

Term
Product
Definition
  • One of the four Ps
  • the starting point of the four Ps
  • Includes: Package, Warranty, Service, Brand, Image
  • Can be tangible goods, ideas, services
Term
Place
Definition
  • One of the four Ps
  •  
    §Product availability where and when customers want them
    §All activities from raw materials to finished products
    §Ensure products arrive in usable condition at designated places when needed
Term
Promotion
Definition
  • One of the four Ps
  •  
    §Role is to bring about exchanges with target markets by:
    §Informing
    §Educating
    §Persuading
    Reminding
Term
Price
Definition
  • Four Ps
  • The most flexible and easiest to change
  • What a buyer must give up to obtain power
Term
How to follow up the marketing plan
Definition

 

§Implementation (Four Ps)
 
§Evaluation (Met objectives?)
§Control
§Marketing audit is…
Comprehensive
Systematic
Independent
Periodic
Term
Sustainability
Definition
The idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time
Term
Ethics
Definition

 

The moral principles or values that generally govern the conduct of an individual.

Term
Morals
Definition
The rules people develop as a result of cultural values and norms
Term
Preconventional Morality
Definition

 

Based on what will be punished or rewarded
Self-centered, calculating, selfish
More childlike
Term
Conventional Morality
Definition

 

Moves toward the expectations of society
Concerned over legality and the opinion of others
Term
Postconventional Morality
Definition

 

Concern about how they judge themselves
Concern if it is right in the long run
More mature
Term
Creating Ethical Guidelines....
Definition

 

§Helps identify acceptable business practices
§Helps control behavior internally
§Avoids confusion in decision making
§Facilitates discussion about right and wrong
Term
The three social factors that influence marketing
Definition

attitudes

values

lifestyle

Term
Social Factors Influence
Definition

Products purchased

Prices paid for products

Effectivness of promotions

How, where, and when people purchase

Term
Core American Values
Definition

Self-Sufficiency

Upward Mobility

Work Ethic

Conformity

Term
Component Lifestyles
Definition

The practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle.

Term
Generation Y
Definition

 

§Born between 1979 and 1994
§Population of 60 million
§Purchasing power of $200 billion annually
§Researchers have found Gen Yers to be:
Impatient
Family-oriented
Inquisitive
Opinionated
Diverse
Time managers
“Street Smart”
§Word of mouth marketing
is effective
Term
Generation X
Definition

 

§Born between 1965 and 1978
§Population of 40 million
§Savvy and cynical consumers
§Time is at a premium, and outsourcing is utilized
§Entering their money-making years
Term
Baby Boomers
Definition

 

§Born between 1946 and 1964
§Population of 77 million—
the largest demographic segment
§$1 trillion in spending power for people
aged 50 to 60
§Income will continue to grow as they keep working
§Four segments of baby boomers: 
Looking for balance”
“Confident and living well”
“At ease”
“Overwhelmed”
Term
Financial Power of Women
Definition

 

§Women bring in half of the household income.
§Women control 51.3 percent of the private
wealth in the U.S.
§Women control 80 percent of household spending.
§Women are now the primary buyers in male-dominated categories:
68% of new cars
66% of computers
66% of home improvements
53% of investments
51% of consumer electronics
Term
Purchasing Power
Definition
A comparison of the relative cost of a set standard of goods and services in different geographic areas
Term
Inflation
Definition
A measure of the decrease in the value of the money, expressed as the percentage reduction in value since the previous year
Term
Recession
Definition
A period of economic activity characterized by negative growth, which reduces demand for goods and services
Term
Recession Marketing Strategies
Definition

 

§Improve existing products and introduce new ones
§Maintain and expand customer services
§Emphasize top-of-the-line products
and promote product value
Term
Regulatory Agencies
Definition

Consumer Product Safety Commission- Protects consumer safety in
and around their homes

Fedral Trade Commission- Prevents unfair methods of

competition in commerce

Food & Drug AdministrationEnforces safety regulations for food and drug products

Term
Importance of global marketing to the U.S.
Definition

 

§U.S. exports a fifth of industrial production.
§One of every 10 jobs in U.S. is supported by exports.

§U.S. businesses export over $800 billion in goods.
§Exports account for 25 percent of U.S. economic growth .

U.S. is world’s leading exporter of farm products.

Term
The benefits of globalization
Definition

 

§Expands economic freedom
§Spurs competition
§Raises productivity and living standards
§Offers access to foreign capital, global export markets, and advanced technology
§Promotes higher labor and environmental standards
§Acts as a check on government power
Term
The four stages of business development
Definition
  1. companies operate in one country and sell into others
  2. set up foreign subsidiaries to handle sales
  3. operate an entire line of business in another country
  4. virtual operation
Term
Global Marketing Standardization
Definition
Production of uniform products that can be sold the same way all over the world
Term
Quota
Definition
limit on the amount of a product entering a country
Term
Shortages in Natural Resources creates
Definition

 

§International dependencies
§Shifts of wealth
§Inflation and recession
§Export opportunities if resources
are abundant
§Stimulus for military intervention
Term
The global marketing mix includes....
Definition

natural resources

culture

economic development

technological development

political structure

demography

Term
Why "go global"
Definition

 

§Earn additional profits
§Leverage a unique product or technological advantage
§Possess exclusive market information
§Saturated domestic markets
§Excess capacity
§Utilize “economies of scale”
Term
Risk levels for global entry
Definition

From least risk/ low return to high risk/high return

 

Export

Licensing

Contract Manufacturing

Joint Venture

Direct Investment

 

Term
Direct Investment
Definition
Active ownership of a foreign company/manufacturing facility
Term
The export agent...
Definition
acts like a manufacturer's agent for the exporter in the foreign market
Term
The export broker..
Definition
plays the traditional broker's role by bringing buyer and seller together
Term
Buyer for export
Definition
assumes all ownership risks and sells globally for its own account
Term
Dumping
Definition

 

1.Trying to increase an overseas market share

2.Temporarily distributing products to overseas markets to offset slack demand at home

3.Lowering unit costs by exploiting large-scale production

4.Attempting to maintain stable prices during periods of exchange rate fluctuations
Term
Countertrade
Definition
A form of trade in which all or part of the payment for goods or services is in the form of other goods or services
Term
Contract Manufacturing
Definition
Private-label manufacturing by a foreign country
Term
Consumer Decision-Making Process
Definition
  • need recognition
  • informative speech
  • evaluation of alternatives
  • purchase
  • post behavior
Term
Evoked Set
Definition
Group of brands, resulting from an information search,
from which a buyer can choose
Term
Cognitive Dissonance
Definition
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
Term
5 factors influencing Puchasing Decisions
Definition
  1. Level of consumer involvement
  2. Length of time to make decision
  3. Cost of good or service
  4. Degree of information search
  5. Number of alternatives considered
Term
Routine Response Behavior
Definition

 

§Little involvement in selection process
§Frequently purchased low cost goods
§May stick with one brand
§Buy first/evaluate later
§Quick decision
Term
Limited Decision Making
Definition

 

§Low levels of involvement
§Low to moderate cost goods
§Evaluation of a few alternative brands
§Short to moderate time to decide
Term
Extensive Decision Making
Definition

 

§High levels of involvement
§High cost goods
§Evaluation of many brands
§Long time to decide
§May experience cognitive dissonance
Term
Factors Determining the Level of Consumer Involvment
Definition
  • Previous experience
  • Interest
  • Percieved risk of negative consequences
  • situation
  • social visibility
Term
Subculture
Definition
A homogeneous group
of people who share elements of the overall culture as well as unique elements of their own group
Term

Reference groups

 

Direct Vs. Indirect

Definition

Direct- Primary, Secondary

 

Indirect- Aspirational, non-aspirational

Term

Opinion Leaders

 

Direct Vs. Indirect

Definition

Direct- people you know

 

Indirect- Celebrities

Term
Attitude
Definition
a learned tendency to respond consistently toward a given object
Term
Maslow's Hierarchy of Needs
Definition

Self-actualization

Esteem needs

Social needs

Safety needs

Physiological needs

Term
Selective Retention
Definition
Consumer remembers only that information that supports personal beliefs
Term
Selective Disortion
Definition

 

Consumer changes or distorts information that conflicts

with feelings or beliefs

Term
Selective Exposure
Definition

Consumer notices certain stimuli

and ignores others

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