Term
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Definition
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Term
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Definition
| Product, Price, Promotion, Place |
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Definition
| actual goods and services used to satisfy consumers |
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Definition
depends on:
1)competition
2)customer price sensibility |
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Definition
| all aspects of persuasive comm. between buyer and seller |
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Definition
| getting the RIGHT products, to the RIGHT places, at the RIGHT time |
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Term
| 9 Steps a firm should do to create an idea/invention |
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Definition
1. Analyze needs
2. Predict wants
3. Estimate demand
4. Predict when
5. Determine WHERE
6. estimate PRICE
7. decide PROMOTION
8. estimate COMPETITION
9. provide SERVICE (post-purchase) |
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Term
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Definition
Production=actually making the goods of performing services
Marketing=larger process that provides need direction for production and helps make sure that the right goods and services are produced and find ways to the consumers |
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Definition
the extent to which a firm fulfills a customer's needs, desires, and expectation
production+marketing=customer satisfaction |
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| Why marketing is important to you: |
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Definition
1. affects every consumer
2. offers many jobs
3. plays major part in economic development...especially with innovation |
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Definition
-the development and spread of new ideas, goods, and services
-helps create competition which drives DOWN prices |
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Definition
a social process
-looks at the whole production-distribution system |
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Definition
| set of specific activities performed by organization |
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Definition
| performance of activities that seeks to accomplish an organization's objectives by anticipating customer or client needs and directing and flow of need-satisfying goods and services from producer to customer/client |
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Definition
social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society
-looks at how marketing affects society and visa-versa |
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Definition
when each family unit produces everything it consumes
-no need for marketing here |
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Definition
| as a company produces larger number of products, the cost of each product goes down |
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Term
| Discrepancies of scale & of assortment |
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Definition
| Economies of scale are created, but most consumers only want to buyt a small quantity and still want a wide variety of different goods and services |
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Term
| 8 Universal functions of Marketing |
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Definition
1. Buying
2. Selling
3.Transporting
4. Storing
5. Standardization and Grading
6. Financing
7. Risk Taking
8. Market information |
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Term
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Definition
someones who specializes in trade rather than production
-ex: Tom Thumb or Home Depot |
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Term
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Definition
firms that facilitate or provide one or more of the marekting functions other than buying or selling
-ex:marketing research firm, advertising firms |
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Definition
| the way an economy organizes to use scarce resources to product goods and services and distribute them for consumption by various people and groups in society |
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Definition
1. Command-oriented
2. Market-directed |
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Term
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Definition
govt. offcials decide what and how much is to be produced and distributed by whom, when and to whom and why.
-called "planned economies"
-ex: North Korea, Soviet Russia, Cuba |
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Term
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Definition
individual decisions of the many producers and consumers make the macro-level decisions for the whole company
-price is the measure of society's value on a product/service
-enjoy great freedom of choice |
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Term
| Marketing's 5 major stages |
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Definition
1. Simple Trade
2. Production Era
3. Sales Era
4. Marketing department era
5. marketing company era |
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Term
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Definition
| time when families traded or sold their "surplus" output to local distributors |
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Term
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Definition
time when a company focuses on production of a few specific products
-Industrial Rev. to 1920s |
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Definition
time when a company emphasizes selling because of increased competition
-1930 to 1950 |
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Term
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Definition
time when marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's services
-1950 to 1960s |
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Term
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Definition
| time when, in addition to short-run marketing planning, marketing people develop long-range plans (5 years or more) and the whole company effort is guided by the marketing concept |
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Definition
1. customer satisfaction
2. TOTAL company effort
3. aimed at PROFIT
-applies to nonprofits organizations too! |
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| Marketing orientation compared to production orientation |
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Definition
| instead of just trying to get customers to buy what the firm produces, a market-oriented firm tries to offer customers what they need |
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Term
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Definition
| difference between the benefits a CUSTOMER sees from a market offering and the costs of obtaining those benefits |
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Term
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Definition
producers and consumers making free choices that cause conflicts and difficulties
-what is "good" for some firms and consumers may not be good for society as a whole
....ex: NYC "get your fill" water-solution
....Walmart makes its stores "kid-friendy" |
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Definition
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Term
| 3 parts of the Marketing Management Process |
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Definition
1. PLANNING marketing activities
2. Directing IMPLEMENTATION of the plans
3. CONTROLLING these plans |
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Term
| Strategic (management) planning |
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Definition
managerial process pf developing and maintaining a match between an organization's resources and its market oppurtunities
-a top-management job |
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Term
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Definition
specifies a TARGET MARKET and a related MARKETING MIX
-the big picture of what a firm will do in some market |
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Term
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Definition
| a fairly homogeneous group of customers to whom a company wishes to appeal |
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Definition
the controllable variables the company put together to satisfy this target group
-the 4 p's |
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Term
| Target (rifle) vs. Mass (shotgun) Marketing |
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Definition
target=some marketing mix is tailored to fit some specific target customers
mass=typical production-oriented approach, vaguely aims at everyone with the same mix |
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Term
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Definition
series of firms that participate in the flow of products from producer to final user or consumer
ex: manufacturers to wholesalers to customers |
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Definition
1. Personal selling
2.mass selling
3. Sales promotion |
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Term
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Definition
| DIRECT SPOKEN communication between sellers and potential customers |
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Term
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Definition
communicating with LARGE NUMBERS of customers at the same time
...ex: adverstising (paid) and publicity (free) |
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Definition
| refers to those promotion activities that stimulate interest,trial, or purchase of a product/service |
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Term
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Definition
written statement of a marketing strategy and the time-related details for carrying out the strategy:
1.what marketing mix will be offered and to who
2.what company costs will be needed and at what rate
3.what results are expected and when |
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Definition
| short-run decisions to help implement strategies |
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Term
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Definition
| blends all of the firms marketing plans into 1 big plan marketing strategy+control procedures+other plans=marketing program |
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Definition
| expected earnings stream of a firm's current and prospective customers over some period of time |
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Term
| Breakthrough opportunities |
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Definition
| opportunities that help innovators develop hard-to-copy marketing strategies that wild be very profitable for a long time |
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Term
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Definition
| a firm has a marketing mix that the target market sees as better than a competitor's mix |
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Term
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Definition
the MM is distinct from and better than what is available from a competitor
--emphasizes the difference so target customers will think of the company as being in a unique position to meet their needs |
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Term
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Definition
identifies a firm's
1.Strengths
2. Weaknesses
3. Opportunities
4. Threats |
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Term
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Definition
1. Market penetration
2. Market development
3. Product development
4. Diversification |
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Term
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Definition
1. Market penetration
2. Market development
3. Product development
4. Diversification |
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Term
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Definition
| trying to increase sales of firm's present products in its present markets....mostly through a more aggressive MM |
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Term
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Definition
| trying to increase sales by selling present products in NEW markets |
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Term
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Definition
| moving into totally different lines of business, maybe by totally unfamiliar products,markets or even levels in the system |
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Definition
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Term
| 2 parts of the Marketing Environment |
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Definition
1. Direct=customers, company (objectives and resources) , competitors (current and prospective)
External=1.Economic, 2. Technological, 3. Political/legal
4. Cultural/social |
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Term
| 3 Basic objectives provide guidelines for a firm's own objectives |
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Definition
1. socially and economically useful function
2.Develop an organization to carry on business
3.Earn profit to survive |
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Term
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Definition
sets out the organization's basic purpose for being
-focuses on a few key and unified goals, rather than embracing everything |
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Term
| Company resources may limit search of opportunities |
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Definition
1. lack of financial strength-barrier of entry
2. Large firms have low price, low flexibility, but smaller firms have higher prices but with greater flexibility
3. Marketing strengths-problem with patents or already established relations with wholesaler/retailer |
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Term
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Definition
| affects the number and types of competitors the marketing manager must face and how they must behave |
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Term
| 4 types of market situations |
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Definition
1. Pure competition-similar products
2.Oligopoly-similar products, few firms
3. Monopolistic competition- customers can see at least a few firms with different MM's but each competitor is still in search of "controlling" its market
4. Monopoly-one firm has complete control of an industry |
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Term
| Competitor analysis, 4 parts |
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Definition
1. Analysis
2.Rivals
3.Competitive Barriers
4. Competitive Advantage
**Attitude determines altitude, go above the clouds*** |
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Term
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Definition
3 forces:
1. Global Economy
2. Rapid Change
3. Interest Rates
can and does change quickly
-affected by INTEREST RATES & INFLATION & $$ EXCHANGE RATES
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Term
| Technological Environment |
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Definition
technology=application of science to convert an economy's resources to output; affects opportunities for new products and services
ex: Google did not exist 10 years ago! |
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Term
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Definition
examples of characteristics:
1.Nationalism-emphasis on a country's interests before all else; "Buy American"
2.Regional Economic Groupings (Euro and NAFTA)
***Instability=non-movement*** |
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Term
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Definition
-enforces rules and laws that set standards and enforce legal power
-ex: anti-monopoly laws
-prosecution is very SERIOUS!
Buyer Beware...to now...Seller Beware |
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| Cultural/Social Environment...2 major changes |
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Definition
1. Role of woman, especially in the work-place
2.Changes come slowly...minorities beginning to be majority |
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Term
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Definition
| It all goes back to ZERO! |
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Term
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Definition
Both:
-quantitative=sales, profits, ROI,...
-qualitative=type of business, strengths and weaknesses in a certain market, trends to build on |
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Term
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Definition
| idea that it's more important to meet present needs without compromising the ability of future generations to meet their own needs |
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Definition
| matches growth along axises of industry attractiveness and business strength |
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Term
| SBU (strategic business unit) |
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Definition
an organizational unit (WITHIN A LARGER COMPANY) that focuses on some product-markets and is treated as a separate profit center
ex: General Electric or Texas Instruments |
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Definition
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Term
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Definition
a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and services
two types:1. Generic and 2. Product |
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Term
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Definition
market with broadly similar needs, and sellers offering various, DIVERSE, ways of satisfying those needs
3 parts: Customer needs, Customer types, and Geographic Area |
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Term
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Definition
-market with SIMILAR needs and sellers offering various CLOSE SUBSTITUTES of satisfying those needs
-4 Parts:
1.Product Type=product/service
2.Customer needs=met by the product
3.Customer type=identifies "groups" using the product/services
4.Geographic Area=where is the market located |
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Term
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Definition
1.Naming broad product-markets (mostly through dissaggreagating all needs of a market)
2. Segmenting markets and selecting suitable MM's |
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Term
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Definition
| a relatively homogeneous group of customers who will respond to a MM in a similar way |
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Term
| "good" market segment characteristics: |
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Definition
1.homogenous within
2.heterogeneous between diff. segments
3. Substantial..big enough for profits
4. Operational |
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Term
| 3 Market-Oriented strategies in a product-market |
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Definition
1.Single Target
2. Multiple Target Approach
3. Combined Target approach
--try to increase size of their target markets by combing 2 or more segments |
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Term
| 3 types of Segmenting Dimensions |
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Definition
Behavioral
Geographic
Demographic |
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Term
| Qualifying vs. Determining Dimensions |
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Definition
Qualifying=those relevant to including a customer type in a product-market
Determining=those that actually affect the customer's purchase of a specific product of brand in a product-market |
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Term
| 7-Step Approach to Segmenting Product-Markets |
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Definition
1.Select the broad product-market
2. Identify potential customer needs (brainstorm)
3. Form homogeneous markets
4. Identify the Determining dimensions
5.Give names (nick-names) to the product-markets
6.Evaluate product-market segments and their behavior
7. Estimate size of each product-market segment |
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Term
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Definition
| technique used to find similar patterns within sets of data by grouping customers based on similar segmenting dimensions |
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Term
| CRM (customer relationship management) |
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Definition
| the seller fine-tunes the marketing effort with info from DATABASES |
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Term
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Definition
differentiating the MM of the 4 ps in order to meet customers needs better than the competition and build competitive advantage
-ex: kinds of soap (Dove, Lava, Dial...)
-can be PHYSICAL changes or IMAGE changes |
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Term
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Definition
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Term
| 3 important questions about any potential market: |
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Definition
1.What are its relevant segmenting dimensions? ( demographic, psychographic, and behavior)
2. How big is it?
3. Where is it? |
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Term
| Marketers Search in 3 Areas for Growing Markets: |
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Definition
1.Other countries
2.In their Current population
3.In Population trends
---ex:less-developed countries account for 99% of annual population growth on Earth |
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Term
| GDP (Gross Domestic Product) |
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Definition
total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country
-includes foreign income |
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Term
| GNI (Gross National Income) |
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Definition
similar to GDP, but doesn't include income earned by foreigners who happen to own resources in that nation
-Low GNI is a SINGAL for marketers to begin targeting these consumers in order to create brand loyalty and increase it as consumer incomes grow |
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Term
| 3 Issues Related to Development |
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Definition
1. Literacy and Marketing problems...for hugely-different or 3rd-world countries
2. Identifying real needs for 3rd-world consumers...hard for rich CEO's
3.Increased segmenting may by required |
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| Real needs for 3rd-world consumers |
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Definition
| Computers, Cars, cell-phones, medical supplies, and food |
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Term
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Definition
-population is still growing but rate of growth has decreased
-BABYBOOM is over
-Graying of America (average age is increasing...older America) |
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Term
| Trends in US households and Families |
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Definition
-more married with no children
-more divorces
-more single adults
-more marriages taking places later in life
-NO MORE TRADITIONAL FAMILY!!! |
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Term
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Definition
-move from RURAL to URBAN to SUBURBS
-increased average income ( 1960=$35,000 and 2010=$58,000) |
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Term
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Definition
-top 20% control over 50% of incomes
-bottom 20% accounts for only 4% |
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Term
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Definition
| income that is adjusted to take out the effects of inflation on purchasing power |
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Term
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Definition
-money left over after taxes
-used to cover basic, necessary expenditures |
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Definition
-what is left of disposable income after paying for necessities
-purchase of "luxuries" |
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Term
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Definition
-Singles and young couples are more accepting to new ideas/brands
-Teens need MORE, so parents reallocate expenditures to cover these expenses
-empty nesters have more discretionary money
-senior citizens have more income/money now than ever |
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Term
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Definition
| people whose children are grown and who are now able to spend their money in other ways |
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Term
| Ethnic Dimensions of US Market |
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Definition
1. increased MULTICULTURAL consumers
2.Incorrect STEREOTYPES
3. increase in number of ethic groups
4. growth in HISPANIC sector
5. growth in ASIAN INCOMES
6. increase in BUYING POWER
7.Whites will be minority by 2050 |
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