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| The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services that satisfy individual and organizational goals (AMA definition) |
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| the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. |
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| a collection of buyers grouped by needs, products, demographics, geographies and activities |
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| are markets defined by more than one grouping qualifier |
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| are markets or segments chosen as the primary source of business for an enterprise |
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| are Collections of Sellers Grouped by Common Solutions |
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| Requirements for survival, development and growth. Primary (application) and Secondary (social, emotional, psychological) |
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| motivating someone to satisfy a need by providing a stimulus to make the need felt. Process of converting needs to wants |
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| The quantifiable want and ability to pay within a specific market (groups of buyers |
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| SOLUTIONS TO NEEDS, WANTS, AND DEMANDS |
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Definition
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| Products & Offerings Provide |
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Definition
| Satisfaction through Value |
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| Benefits (functional & personal) less Costs (monetary & personal social, emotional, psychological) |
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| is the core concept of marketing, is the process of obtaining a desired product from someone by offering something in return. |
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| someone who seeks a response (attention, a purchase, a vote, a donation) from another party, called the prospect. |
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| Negative, Non existent, Latent, Declining, Irregular, Full, Overfull, and Unwholesome |
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| Consumers dislike the product and may even pay a price to avoid it. |
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| Consumers may be unaware or uninterested in the product. |
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| Consumers may share a strong need that cannot be satisfied by an existing product. |
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| Consumers begin to buy the product less frequently or not at all. |
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| Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis. |
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| Consumers are adequately buying all products put into the marketplace. |
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| More consumers would like to buy the product than can be satisfied. |
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| Consumers may be attracted to products that have undesirable social consequences. |
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| Four components of holistic marketing |
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Definition
| Relationship, Integrated, Internal, Social Responsibility Marketing |
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Term
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Definition
| the aim of building mutually satisfying long term relationships with key parties—customers, suppliers, distributors, and other marketing partners—in order to earn and retain their business. Relationship marketing builds strong economic, technical, and social ties among the parties. |
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Definition
| consists of the company and its supporting stakeholders (customers, employees, suppliers, distributors, retailers, ad agencies, university scientists, and others) with whom it has built mutually profitable business relationships. Increasingly, competition is not between companies but between marketing networks, with the prize going to the company that has built the better network. The operating principle is simple Build an effective network of relationships with key stakeholders, and profits will follow. |
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Definition
| defined as the set of marketing tools the firm uses to pursue its marketing objectives. Marketing mix decisions must be made for influencing the trade channels as well as the final consumers. McCarthy classified these tools into four broad groups, which he called |
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Definition
| product, price, place, and promotion. |
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Definition
| the SELLER’s view of the marketing tools available for influencing buyers. From a buyer's point of view, each marketing tool is designed to deliver a customer benefit. |
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| The marketer must try to understand the target market's |
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Definition
| Needs, Wants, and Demands |
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Definition
| the basic human requirements. People need food, air, water, clothing, and shelter to survive. People also have strong needs for recreation, education, and entertainment. |
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Definition
| they are directed to specific objects that might satisfy the need. |
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Definition
| wants for specific products backed by an ability to pay. |
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| Marketers do not create needs |
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Definition
| Needs preexist marketers. Marketers, along with other societal factors, influence wants. |
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Definition
| a set of benefits they offer to customers to satisfy their needs. |
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Term
| The intangible value proposition is made physical by |
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Definition
| an offering is made physical by the combination of products, services, information, and experiences. The intangible value proposition is made physical by |
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Definition
| is an offering from a known source. |
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Definition
| —that is, a strong, favorable, and unique brand image. |
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Definition
| reflects the perceived tangible and intangible benefits and costs to customers. Value can be seen as primarily a combination of quality, service, and price (qsp), called the "customer value triad." |
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Definition
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Definition
| price, although other factors can also play an important role. |
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| Marketing can be seen as the |
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Definition
| identification, creation, communication, delivery, and monitoring of customer value. |
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Definition
| a person's comparative judgments resulting from a product's perceived performance (or outcome) in relation to his or her expectations. |
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Definition
| Communication, Distribution, and Service |
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Term
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Definition
| deliver and receive messages from target buyers, and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet. |
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Definition
| display, sell, or deliver the physical product or service(s) to the buyer or user. They include distributors, wholesalers, retailers, and agents. |
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Definition
| to carry out transactions with potential buyers. Service channels include warehouses, transportation companies, banks, and insurance companies that facilitate transactions. Marketers clearly face a design problem in choosing the best mix of communication, distribution, and service channels for their offerings. |
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Definition
| describes a longer channel stretching from raw materials to components to final products that are carried to final buyers. The supply chain represents a value delivery system |
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Definition
| includes all the actual and potential rival offerings and substitutes that a buyer might consider. |
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Definition
| Competition represents only one force in the environment in which the marketer operates. The marketing environment consists of the task environment and the broad environment. |
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Definition
| includes the immediate actors involved in producing, distributing, and promoting the offering. The main actors are |
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Definition
| material suppliers and service suppliers such as marketing research agencies, advertising agencies, banking and insurance companies, transportation companies, and telecommunications companies. |
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| Included with distributors and dealers |
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Definition
| are agents, brokers, manufacturer representatives, and others who facilitate finding and selling to customers. |
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| The broad environment consists of six components |
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Definition
| demographic environment, economic environment, physical environment, technological environment, political legal environment, and social cultural environment. |
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Term
| The Marketing Planning Process |
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Definition
| analyzing marketing opportunities; selecting target markets; designing marketing strategies; developing marketing programs; and managing the marketing effort. |
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Term
| DEVELOPING MARKETING STRATEGIES AND PLANS |
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Definition
| to identify its potential long run opportunities given its market experience and core competencies. |
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| CAPTURING MARKETING INSIGHTS |
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Definition
| to understand what is happening inside and outside the company, it needs a reliable marketing information system to closely monitor its marketing environment. |
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| CONNECTING WITH CUSTOMERS |
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Definition
| to best create value for its chosen target markets and develop strong, profitable, long term relationships with customers |
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Term
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Definition
| it must understand the strengths and weaknesses of its brand with customers. |
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Term
| SHAPING THE MARKET OFFERINGS |
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Definition
| At the heart of the marketing program is the product—the firm's tangible offering to the market, which includes the product quality, design, features, and packaging |
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Term
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Definition
| it must also determine how to properly deliver the value embodied by these products and services to the target market. |
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Term
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Definition
| it must also adequately communicate the value embodied by its products and services to the target market. |
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Term
| Marketing communications activities |
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Definition
| are the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the brands they sell. |
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Term
| CREATING LONG TERM GROWTH |
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Definition
| Companies must also take a long term view of its products and brands and how its profits should be grown. Based on its product positioning, it must initiate new product development, testing, and launching. The strategy also will have to take into account changing global opportunities and challenges. |
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Term
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Definition
| a tool for identifying ways to create more customer value. |
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Term
| According to the Porter model, every firm is |
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Definition
| a synthesis of activities performed to design, produce, market, deliver, and support its product. |
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Term
| The value chain identifies nine strategically relevant activities |
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Definition
| (five primary activities and four support activities) that create value and cost in a specific business. |
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Term
| Primary activities cover the sequence of |
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Definition
| bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), servicing them (service). |
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Term
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Definition
| procurement, technology development, human resource management, and firm infrastructure—are handled in certain specialized departments, as well as elsewhere. Several departments, for example, may do procurement and hiring. The firm's infrastructure covers the costs of general management, planning, finance, accounting, legal, and government affairs. |
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Term
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Definition
| Examine its costs and performance in each value creating activity and to look for ways to improve it. Estimate its competitors' costs and performances as benchmarks against which to compare its own costs and performance and strive for "best of class" practices of the world's best companies. Success depends not only on how well each department performs its work, but also on how well the various departmental activities are coordinated to conduct core business processes, which include |
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Term
| The market sensing process |
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Definition
| All the activities involved in gathering market intelligence, disseminating it within the organization, and acting on the information. |
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Term
| The new offering realization process |
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Definition
| All the activities involved in researching, developing, and launching new high quality offerings quickly and within budget. |
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Term
| The customer acquisition process. |
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Definition
| All the activities involved in defining target markets and prospecting for new customers. |
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Term
| The customer relationship management process. |
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Definition
| All the activities involved in building deeper understanding, relationships, and offerings to individual customers. |
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Term
| The fulfillment management process. |
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Definition
| All the activities involved in receiving and approving orders, shipping the goods on time, and collecting payment. |
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Term
| A core competency has three characteristics |
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Definition
| (1) It is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits (2) It has applications in a wide variety of markets (3) It is difficult for competitors to imitate |
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Term
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Definition
| also accrues to companies that possess distinctive capabilities. Whereas core competencies tend to refer to areas of special technical and production expertise, distinctive capabilities tend to describe excellence in broader business processes. |
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Term
| The holistic marketing framework is designed to |
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Definition
| address three key management questions |
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Term
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Definition
| requires an understanding of the relationships and interactions among three spaces |
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Term
| (1) Customer’s cognitive space |
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Definition
| reflects existing and latent needs and includes dimensions such as the need for participation, stability, freedom, and change. |
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Term
| (2) Company’s competence space can be described in terms of |
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Definition
| breadth—broad versus focused scope of business; and depth—physical versus knowledge based capabilities. |
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Term
| (3) Collaborator’s resource space involves |
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Definition
| horizontal partnerships, where companies choose partners based on their ability to exploit related market opportunities, and vertical partnerships, where companies choose partners based on their ability to serve their value creation. |
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Term
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Definition
| How to craft new customer benefits, marketers must understand what the customer thinks about, wants, does, and worries about. Marketers must also observe who customers admire, who they interact with, and who influences them. |
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Term
| To exploit a value opportunity, the company needs value creation skills to |
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Definition
| Identify new customer benefits from the customer's view; Utilize core competencies from its business domain; Business realignment may be necessary to maximize core competencies. |
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Term
| Value Creation involves three steps |
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Definition
| (1) (re)defining the business concept (the "big idea"); (2) (re)shaping the business scope (the lines of business); (3) (re)positioning the company's brand identity (how customers should see the company). |
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Term
| In order to deliver value the company must become proficient at |
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Definition
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Term
| Customer relationship management |
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Definition
| allows the company to discover who its customers are, how they behave, and what they need or want. It also enables the company to respond appropriately, coherently, and quickly to different customer opportunities. |
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Term
| Internal resource management |
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Definition
| allows the company to respond effectively and integrate major business processes (e.g., order processing, general ledger, payroll, and production) within a single family of software modules. |
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Term
| Business partnership management |
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Definition
| allows the company to handle complex relationships with its trading partners to source, process, and deliver products. |
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Term
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Definition
| the central instrument for directing and coordinating the marketing effort. The marketing plan operates at two levels strategic and tactical. |
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Term
| The strategic marketing plan |
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Definition
| lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. |
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Term
| The tactical marketing plan |
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Definition
| specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service. |
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Term
| A business must be viewed as |
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Definition
| a customer satisfying process, not a goods producing process. |
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Term
| The purpose of identifying the company's strategic business units (SBUs) is to |
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Definition
| develop separate strategies and assign appropriate funding; it needs analytical tools to classify its businesses by profit potential. |
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Term
| An SBU has three characteristics |
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Definition
| 1.) It is a single business or collection of related businesses that can be planned separately from the rest of the company. 2.) It has its own set of competitors. 3.) It has a manager who is responsible for strategic planning and profit performance and ?who controls most of the factors affecting profit. ? |
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Term
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Definition
| The first option is to identify opportunities to achieve further growth within current businesses (intensive opportunities). |
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Term
| Product market expansion grid |
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Definition
| A useful framework for detecting new intensive growth opportunities |
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Term
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Definition
| The second is to identify opportunities to build or acquire businesses that are related to current businesses (integrative opportunities). |
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Definition
| The third is to identify opportunities to add attractive businesses that are unrelated to current businesses (diversification opportunities). |
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Term
| Contents of the Marketing Plan |
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Definition
| Executive summary and table of contents. Situation analysis. Marketing strategy. Financial projections. Implementation controls. |
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Term
| The General Electric Model CHARACTERISTICS |
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Definition
| 1. Assesses SBU opportunity based on current market share of quantifiable market sizes. 2. SBUs are rated in terms of business strengths relative to competitive position in markets of varying attractiveness. 3. Defines specific business strategies in accordance with SBUs’ competitive business strengths in markets of varying attractiveness |
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Term
| A marketing information system (MIS) consists of |
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Definition
| people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. |
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Term
| The Order to Payment Cycle |
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Definition
| 1. Sales representatives, dealers, and customers send orders to the firm. 2. The sales department prepares invoices and transmits copies to various departments. 3. Out of stock items are back ordered. 4.Shipped items are accompanied by shipping and billing documents that are sent to various departments. |
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Term
| Sales Information Systems |
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Definition
| 1. Marketing managers need timely and accurate reports on current sales. 2. This enables it to transmit nightly orders to suppliers for new shipments of replacement stock. 3. Wal Mart shares its sales data with its larger suppliers such as P&G and expects P&G to re supply Wal Mart stores in a timely manner. |
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Term
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Definition
| customer databases, product databases, salesperson databases. |
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Term
| The internal records system |
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Definition
| supplies results data, but the marketing intelligence system supplies happenings data. |
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Term
| A marketing intelligence system is |
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Definition
| a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. |
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Term
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Definition
| a direction or sequence of events that has some momentum and durability. Trends are more predictable and durable than fads. A trend reveals the shape of the future and provides many opportunities. |
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Term
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Definition
| unpredictable, short lived, and without social, economic, and political significance. |
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Term
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Definition
| described as "large social, economic, political and technological changes [that] are slow to form, and once in place, they influence us for some time— between seven and ten years, or longer." |
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Term
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Definition
| highly reliable for the short and intermediate run. There is little excuse for a company's being suddenly surprised by demographic developments. |
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Term
| The main demographic force that marketers monitor is |
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Definition
| population, because people make up markets. |
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Term
| Marketers are keenly interested in |
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Definition
| 1. size and growth rate of population in cities, regions, and nations; 2. age distribution and ethnic mix; 3. educational levels; 4. household patterns; 5. regional characteristics and movements. |
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Term
| The population in any society falls into five educational groups |
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Definition
| illiterates, high school dropouts, high school diplomas, college degrees, and professional degrees. |
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Term
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Definition
| an organized movement of citizens and government to strengthen the rights and powers of buyers in relation to sellers. |
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Term
| Consumerists have advocated and won the right to know |
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Definition
| the true interest cost of a loan, the true cost per standard unit of competing brands (unit pricing), the basic ingredients in a product, the nutritional quality of food, the freshness of products, and the true benefits of a product. |
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Term
| The Marketing Research System |
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Definition
| defined as the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. |
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Term
| Marketing research firms fall into three categories |
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Definition
| Syndicated service research firms, Custom marketing research firms, and Specialty line marketing research firms |
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Term
| Syndicated service research firms |
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Definition
| These firms gather consumer and trade information, which they sell for a fee. Examples Nielsen Media Research, SAMI/Burke. |
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Term
| Custom marketing research firms |
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Definition
| These firms are hired to carry out specific projects. They design the study and report the findings. |
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Term
| Specialty line marketing research firms |
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Definition
| These firms provide specialized research services. The best example is the field service firm, which sells field interviewing services to other firms. |
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Term
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Definition
| are data that were collected for another purpose and already exist somewhere. |
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Term
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Definition
| are data freshly gathered for a specific purpose or for a specific research project. |
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Term
| The 5 Research Approaches |
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Definition
| Observational, Focus Group, Survey, Behavioral, and Experimental |
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Term
| The 3 Research Instruments |
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Definition
| Questionnaires, Qualitative Measures, and Mechanical devices |
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Term
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Definition
| —observing people using products, shopping, going to hospitals, taking the train, using their cell phones. |
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Term
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Definition
| photographing people within a space, such as a hospital waiting room, over two or three days. |
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Term
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Definition
| keeping track of all the interactions a consumer has with a product, service, or space. |
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Term
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Definition
| asking consumers to keep visual diaries of their activities and impressions relating to a product. |
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Term
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Definition
| talking to people who really know—or know nothing—about a product or service and evaluating their experience using it. |
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Term
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Definition
| —interviewing a diverse group of people To explore ideas about sandals, IDEO gathered an artist, a bodybuilder, a podiatrist, and a shoe fetishist. |
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Term
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Definition
| are occasionally used in marketing research. For example, galvanometers can measure the interest or emotions aroused by exposure to a specific ad or picture. In recent years technology has advanced to such a degree that now devices like skin sensors, brain wave scanners, and full body scanners are being used to get consumer responses. |
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Term
| The SAMPLING PLAN calls for three decisions |
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Definition
| Sampling unit, Sample size, and Sampling procedure |
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Term
| Sampling unit Who is to be surveyed? |
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Definition
| The marketing researcher must define the target population that will be sampled. Once the sampling unit is determined, a sampling frame must be developed so that everyone in the target population has an equal or known chance of being sampled. |
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Term
| Sample size How many people should be surveyed? |
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Definition
| Large samples give more reliable results than small samples. However, it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. Samples of less than 1 percent of a population can often provide good reliability, with a credible sampling procedure. |
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Term
| Sampling procedure How should the respondents be chosen? |
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Definition
| To obtain a representative sample, a probability sample of the population should be drawn. Probability sampling allows the calculation of confidence limits for sampling error. |
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Term
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Definition
| Mail Questionnaire, Telephone Interview, Personal Interview, and Online Interview |
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Term
| Step 3 The data collection phase of marketing research is generally the |
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Definition
| most expensive and the most prone to error. |
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Term
| Customer performance scorecard |
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Definition
| records how well the company is doing year after year on such customer based measures. Norms should be set for each measure, and management should take action when results get out of bounds. |
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Term
| Stakeholder performance scorecard |
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Definition
| tracks the satisfaction of various constituencies who have a critical interest in and impact on the company's performance employees, suppliers, banks, distributors, retailers, and stockholders. Again, norms should be set for each group and management should take action. |
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Term
| Market share can be measured in three ways |
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Definition
| Overall, Served, and Relative Market Share |
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Term
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Definition
| is the company's sales expressed as a percentage of total market sales. |
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Term
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Definition
| is its sales expressed as a percentage of the total sales to its served market. |
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Term
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Definition
| over 100 percent indicates a market leader. A relative market share of exactly 100 percent means that the company is tied for the lead. A rise in relative market share means a company is gaining on its leading competitor. |
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Term
| 90 different types of demand estimates; |
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Definition
| 6 different product levels X 5 different space levels X 3 different time levels. |
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Term
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Definition
| the set of consumers who profess a sufficient level of interest in a market offer. |
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Term
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Definition
| the set of consumers who have interest, income, and access to a particular offer. For some market offers, the company or government may restrict sales to certain groups. |
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Term
| The qualified available market |
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Definition
| the set of eligible consumers who have interest, income, access, and qualifications for the particular market offer. |
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Term
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Definition
| the part of the qualified available market the company decides to pursue. The company might decide to concentrate its marketing and distribution effort on the East Coast. The company will end up selling to a certain number of buyers in its target market. |
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Term
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Definition
| the set of consumers who are buying the company's product. |
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Term
| MARKET DEMAND for a product |
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Definition
| is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. |
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Term
| The overall marketing sensitivity of demand |
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Definition
| The distance between the market minimum and the market potential |
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Term
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Definition
| such as the market for racquetball playing, is very much affected in its total size by the level of industry marketing expenditures.. |
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Term
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Definition
| —for example, the market for opera—is not much affected by the level of marketing expenditures; the distance between Ql and QZ is relatively small. Organizations selling in a nonexpansible market must accept the market's size (the level of primary demand for the product class) and direct their efforts to winning a larger market share for their product (the level of selective demand for the company's product). |
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Term
| The market penetration index. |
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Definition
| the current level of market demand to the potential demand level. |
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Term
| A low market penetration index indicates |
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Definition
| substantial growth potential for all the firms. |
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Term
| A high market penetration index suggests that there will be |
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Definition
| increased costs in attracting the few remaining prospects. |
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Term
| In general, the price competition increases and margins fall when |
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Definition
| the market penetration index is already high. |
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Term
| The company's share penetration index |
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Definition
| A company should also compare its current market share to its potential market share. |
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Term
| A low share penetration index indicates that the company can |
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Definition
| greatly expand its share. |
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Term
| low share penetration index could be due to |
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Definition
| low brand awareness, low brand availability, benefit deficiencies, too high a price. |
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Term
| The market demand function |
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Definition
| is not a picture of market demand over time. Rather, the curve shows alternative current forecasts of market demand associated with alternative possible levels of industry marketing effort in the current period. |
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Term
| The company sales forecast |
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Definition
| is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment. |
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Term
| The product penetration percentage |
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Definition
| is the percentage of ownership or use of a product or service in a population. |
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Term
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Definition
| is the company's estimated share of market demand at alternative levels of company marketing effort in a given time period. |
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Term
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Definition
| is the sales goal set for a product line, company division, or sales representative. It is primarily a managerial device for defining and stimulating sales effort. |
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Term
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Definition
| is a conservative estimate of the expected volume of sales and is used primarily for making current purchasing, production, and cash flow decisions. |
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Term
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Definition
| is the sales limit approached by company demand as company marketing effort increases relative to that of competitors. |
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Term
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Definition
| is the maximum amount of sales that might be available to all the firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions. |
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Term
| 2 major methods of assessing area market potential are available |
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Definition
| the market buildup method, which is used primarily by business marketers, and the multiple factor index method, which is used primarily by consumer marketers. |
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Term
| Brand development index (BDI) |
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Definition
| the index of brand sales to category sales. |
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Term
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Definition
| Occasionally, companies will invite a group of experts to prepare a forecast. The experts exchange views and produce a group estimate {group discussion method); |
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Term
| Pooling of individual estimates |
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Definition
| experts supply their estimates individually, and an analyst combines them into a single estimate |
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Term
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Definition
| consists of breaking down past time series into four components (trend, cycle, seasonal, and erratic) and projecting these components into the future. |
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Term
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Definition
| consists of projecting the next period's sales by combining an average of past sales and the most recent sales, giving more weight to the latter. |
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Term
| Statistical demand analysis |
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Definition
| consists of measuring the impact level of each of a set of causal factors (e.g., income, marketing expenditures, price) on the sales level. |
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Term
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Definition
| consists of building sets of equations that describe a system, and proceeding to fit the parameters statistically. |
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