Term
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Definition
| process of creating, distributing, promoting and pricing goods |
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Term
| Essence of marketing with Customers |
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Definition
| Develop satisfying exchanges where both customer and marketer benefits (Customer are focal point) |
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Definition
| specific group of customers |
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Definition
Price
Product
Promotion
Place (distribution) |
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Definition
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Term
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Definition
Make products available in the QUANTITIES desired.
Manage transport and storage
keep costs low |
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Term
| How has internet affected distribution? |
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Definition
| Increased distribution and at a faster pace |
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Term
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Definition
Educate customers on product
urge people to take a stance on issue
Sustain interest in products |
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Term
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Definition
| MOST FLEXIBLE, can lead to price competition, very important, does good equal price? |
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Term
| Are marketing variables viewed as controllable? |
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Definition
| yes because they can be modified by marketing manager |
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Term
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Definition
| transfer of goods, services, or ideas in return for something of value |
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Term
| Four conditions of exchange |
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Definition
-Two/more participate, each possess value
-benefit or satisfaction for both parties
-Each party is communication/confidence
-Must meet expectations |
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Term
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Definition
| Have a claim in companies products, must form good relationships with them |
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Term
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Definition
| Competition, economics, Legal and regulatory, technology, socio-cultural forces. AFFECT marketing mix |
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Term
| Forces of Marketing environment.. |
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Definition
| Affect marketers ability to facilitate exchanges. |
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Term
| What affects marketers ability to facilitate exchanges? (3) |
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Definition
-Customers lifestyle affected and need for certain products
-How marketing manger performs certain marketing activities
-Affect decisions/actions by influencing buyers reaction to companies |
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Term
| Changes in Marketing environments.. |
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Definition
| Produce uncertainty but can create opportunities |
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Term
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Definition
products satisfy customers needs and desires, allows business to achieve goals
-management philosophy
-Consider long-term society |
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Term
| Marketing concept begins/ends with.. |
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Definition
| CUSTOMERS and their level of satisfaction |
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Term
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Definition
| 1800's: B/c of industrial revolution, technology allowed for consumer demand to increase |
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Term
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Definition
| 1920's: viewed sales as major means to increase profits |
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Term
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Definition
| 1950's: Realize must produce what customers want to make profit, create buyer-seller relationships, current/future needs of customers |
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Term
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Definition
| developed by management to discover customers real needs. expensive/time-consuming |
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Term
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Definition
More Market
More Market Share
More Margin to reduce cost of business
acquire new customers Enhance profitability of existing customer Extend duration of relationships |
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Term
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Definition
| long-term, mutually beneficial arrangements, deepens customer trust in company, mutually dependent |
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Term
| Customer-centric marketing |
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Definition
| Focus solely on customers individual needs and concerns. "sense and respond" |
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Term
| Customer relationship management |
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Definition
uses info about customers to develop/build long-term relationships.
-Customer loyalty=more profit
-indentify most valuable customer |
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Term
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Definition
Benefits relative to cost
(Customer value =customer benefits-customer costs)
-promotion used to enhance perceptions of value |
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Term
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Definition
| planning, organizing, implementing, and controlling marketing activities to facilitate EFFECTIVE AND EFFICIENT exchanges |
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Term
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Definition
| assessing opportunities/resources, find objectives, and DEVELOP marketing strategy/implementation and control |
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Term
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Definition
| successful with good coordination and communication to direct marketing activities |
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Term
| Marketing CONTROL performance |
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Definition
| establish performance standards, then compare actual performance with established performance, REDUCE DIFFERENCE |
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Term
| How much of buyers dollars go to cost of markeing? |
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Definition
| -1/2 of buyers dollars go to cost of marketing |
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Term
| Importance of marketing in global economy |
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Definition
| nonprofit/government agencies, businesses/economy, fuels economy, enhance customer awareness, technology, promote welfare, career aspects |
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Term
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Definition
| Improves quality of life for customers, stops unethical marketing practices with regulations/laws |
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Term
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Definition
| 25% of civilian workers perform marketing activities |
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Term
| Functions of marketing (8) |
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Definition
| Buy, sell, transport, storage, sorting, financing, risk taking, market research |
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Term
| "Planning" market strategies |
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Definition
| Determine how to use resources and capabilities to achieve objectives and satisfy customers |
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Term
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Definition
| establish organizational mission and goals, corporate strategy, market strategy/plan/objectives |
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Term
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Definition
| organizations "Strengths" "Weaknesses" identify "Opportunities" and "Threats" within marketing environment |
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Term
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Definition
| Identify/analyze target market and develop marketing mix to satisfy the customers, ACHIEVE MARKETING OBJECTIVE |
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Term
| Strategic planning process |
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Definition
-analyze market environment
-Asses available resources and capabilities/how much they'll change
-Analyze market environment(opportunity)
-gain competitive advantage
-SWOT analysis |
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Term
| Resources of firm (4) that help it sell |
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Definition
| Goodwill Reputation Brand Names Core Competencies |
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Term
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Definition
| Things a firm does EXTREMELY well, gives advantage |
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Term
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Definition
| Combination of circumstances and timing allowing organization to reach target market |
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Term
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Definition
| Temporary periods with optimum fit between requirements and capabilities of a firm |
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Term
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Definition
| Matches core competency to opportunities in marketplace |
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Term
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Definition
Strengths (Advantages)
Weaknesses (limitation)
Both should be examined from customers perspective |
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Term
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Definition
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Term
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Definition
| Barriers that prevent organizations from reaching goal |
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Term
| Mission statement & depends on... |
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Definition
| long-term vision/goal. -who are our customers? -What is our core competency? |
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Term
| Marketing objectives should be (4) |
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Definition
Clear/simple terms
Written to be measured
Time frame for accomplishment
Consistent with business/corporate strategy |
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Term
| Strategic planning begins where and ends where? |
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Definition
| Begins at corporate level, then business and market level |
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Term
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Definition
| How resources used, competitive advantages, overall coordination, used by all organizations |
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Term
| Strategic Business Unit (SBU) |
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Definition
| product line/profit center within parent company |
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Term
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Definition
| group of individuals with ability, willingness, and authority to purchase products |
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Term
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Definition
| Percent of a market a company has |
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Term
| Market growth/Share matrix |
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Definition
| products market growth rate and share determine market strategy |
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Term
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Definition
| Dominant share of market and good prospects IPAD |
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Term
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Definition
| Dominant share of market, no growth prospects MINIVAN/BRAND NAME PAPER TOWELS |
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Term
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Definition
| small share of market and low prospects of growth HOME PHONE |
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Term
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Definition
| problem children, small share of market/cost lots of money MERCEDES |
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Term
| Strategy (in marketing area) designed around 2 components |
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Definition
Selection of target market
Creation of a marketing mix that will satisfy the needs of the chosen target market |
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Term
| What is the most important part of strategic planning process? |
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Definition
| Selecting target market, if chosen incorrectly whole strategy ruined |
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Term
| Creating marketing mix depends on (3) |
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Definition
-understandings of the target market
-Consistent with business/corporate strategies
-decisions flexible to alter in response to market |
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Term
| Sustainable Competitive Advantage |
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Definition
| advantage/strategy that can't be copied by the competition |
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Term
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Definition
| systematic process of assessing marketing opportunities/resources, determine marketing strategies and guidelines |
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Term
| Market Plan Needs to be (4) |
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Definition
| Clear, well-written, not time-consuming, contain responsibilities/goals |
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Term
| Marketing Implementation/ (Intended/realized) |
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Definition
Process of putting marketing strategies into action.
-Intended: Decided during planning phase
-Realized: strategy that actually takes place |
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Term
| Customer Relationship Management |
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Definition
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Term
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Definition
| assessing the worth of individual customers/estimate lifetime value to organization |
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Term
| External marketing customers |
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Definition
| individuals who patronize the business (real customers) |
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Term
| Internal marketing customers |
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Definition
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Term
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Definition
| Management philosophy that coordinates internal exchanges between organization and employees to be successful |
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Term
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Definition
| always strive to make improvements, promote culture to meet customers quality |
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Term
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Definition
| measure/evaluate organization based by comparing yourself to the best |
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Term
| Continuous quality improvement |
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Definition
| Quality is free while not having quality is very expensive |
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Term
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Definition
| pushing power down as far as possible, don't have to seek approval from manager |
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Term
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Definition
| top level management delegate very little authority to lower levels |
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Term
| Decentralized organizations |
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Definition
| delegate authority as far down as possible, able to make own decisions (more effective) |
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Term
| Best approach to organizing marketing unit depends on (2) |
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Definition
Number/diversity of product
Characteristics/needs of customer |
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Term
| Four ways to organize marketing unit |
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Definition
-function
-product
-region
-customer |
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Term
| Formal Marketing control performance |
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Definition
| establish performance standards, evaluate actual performance with established standards, REDUCE difference between actual and desired |
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Term
| How to reduce discrepancy in market |
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Definition
1. improve actual performance
2. reduce/change performance standard
3. both 1 and 2 |
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Term
| Problems in controlling market activities (4) |
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Definition
-unpredictable environmental change
-Time lag between market activity/results
-can't determine precise cost of activity
-Hard to find exact performance standards |
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Term
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Definition
| external forces directly/indirectly influence companies inputs and outputs |
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Term
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Definition
| process of collecting information/data, gives edge with current trends |
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Term
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Definition
| assessing and interpreting information gathered, helps identify threats and opportunities |
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Term
| Two views of environmental forces |
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Definition
passive: uncontrollable, have to react to
Proactive: forces can be shaped by economic, political or promotional skills |
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Term
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Definition
| A company that produces the same good in the same place |
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Term
| Four types of competitors |
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Definition
-Brand
-Product
-Generic
-Total budget |
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Term
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Definition
sells products with similar features/benefits at similar price.
-Most important, buyers see different products of business as direct substitutes |
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Term
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Definition
| Same product class but products have different features, benefits, price |
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Term
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Definition
| different products that solve same problem or satisfy same basic needs |
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Term
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Definition
| compete for limited financial resources of the same customer |
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Term
| Four types of competitive structures |
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Definition
-Monopoly
-oligopoly
-monopolistic
-pure |
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Term
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Definition
| One supplier and no substitutes, cable/electricity |
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Term
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Definition
| Few sellers control supply of large proportion of product, auto industry |
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Term
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Definition
| many potential competitors attempt to develop strategy to differentiate its products (Jeans) MOST USA BUSINESSES |
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Term
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Definition
| Large number of sellers, no one influence price or supply, DOESNT EXIST ex maybe agriculture |
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Term
| Economic forces influence market how? |
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Definition
| Influence both marketers and customers decisions and activities |
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Term
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Definition
changes in economy affect supply/demand, buying power, ect
-Prosperity, recession, depression, recovery |
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Term
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Definition
| Low unemployment, high total income, increase buying power |
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Term
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Definition
| Unemployment rises and buying power declines, promotion efforts emphasize value/utility |
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Term
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Definition
| unemployment VERY HIGH, wages VERY LOW, lack of confidence, customers dont buy anything |
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Term
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Definition
| Moves out of depression/recession, remain flexible as buying power increases |
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Term
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Definition
| depends on economic conditions/size of resources, allows people to purchase |
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Term
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Definition
| After tax income, used for spending/saving (necessities) |
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Term
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Definition
| Disposable income available for spending after necessities purchased. (t.v. cars) |
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Term
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Definition
| spend future income now, increases current buying power at expense of future spending |
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Term
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Definition
| past income, natural resources, and financial resources |
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Term
| Willingness to spend affected by (4) |
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Definition
-buying power
-products price/value
-satisfaction received
-Expectation of future job/income/price |
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Term
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Definition
| political, legal, regulatory forces are closely related. Maintain good relationship with elected officials |
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Term
| Legal/regulatory laws (5) |
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Definition
Pro-competitive
Consumer protection
Regulatory agencies
Self regulatory forces |
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Term
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Definition
| laws designed to preserve competition |
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Term
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Definition
| Deal with customer safety, hazardous material, info disclosure, marketing practices |
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Term
| Compliance with laws and regulation how? |
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Definition
| provide incentives, begin when marketers develop programs that unknowingly overstep legal boundaries; enforce personal responsibility |
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Term
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Definition
| Federal Trade Commission-stop false advertising, packaging and labeling and stop misleading prices. FEDERAL, still liable even if don't know law |
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Term
| Self Regulatory Forces (2) |
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Definition
Better Business Bureau (BBB) supported by local businesses and settle problems, publicize complaints
National Advertising Review Board: file complaints with FTC |
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Term
| Positive/negatives of Self Regulatory programs |
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Definition
POS: Cheaper, realistic guidelines
NEG: not mandatory, lack authority and less strict |
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Term
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Definition
| application of knowledge and tools to solve problems and perform tasks more efficiently |
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Term
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Definition
| satisfies physiological needs of people with faster communication at the price of privacy |
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Term
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Definition
| determine when technology is changing, try to foresee effects of new products |
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Term
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Definition
| influences in society and its culture which bring about change in attitude, beliefs, norms, customs, lifestyle |
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Term
| Demographic Characteristics |
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Definition
| Age, Gender, occupation, race, income, education |
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Term
| 4 sociocultural factors affecting USA |
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Definition
1. More old consumers
2. Single people on the rise
3. Another baby boom make more diverse
4. Immigration |
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Term
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Definition
| changes in value have dramatically influenced peoples needs/desires of products |
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Term
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Definition
| Children's opinion, health/nutrition, green marketing (no harm environment) |
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Term
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Definition
| Organized efforts by individuals, group, organizations seeking to protect consumers rights |
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Term
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Definition
| business's obligation to maximize positive impact and minimize negative impacts on society. MOST IMPORTANT |
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Term
| What happens when stakeholders are ignored? |
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Definition
| Destroys customers trust and prompts government regulation |
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Term
| Positives of social responsibility |
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Definition
| Good publicity, boosts sales, greater employee commitment and performance |
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Term
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Definition
| economic, legal, ethical, philanthropic, social responsibilities stakeholders expect of them |
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Term
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Definition
| everyone has this, create jobs, compete fair, contribute goods and services |
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Term
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Definition
| principles and ethics which define what is right and wrong in markets |
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Term
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Definition
| use organizations core competencies and resources to address key stakeholders interests and achieve social benefits |
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Term
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Definition
| Potential for long-term well-being of natural environment |
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Term
| *** Four ways to protect an preserve environment: |
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Definition
1. Eliminate concept of waste
2. reinvent concept of a product
3. Make prices reflect true cost
4. Make environmentalism profitable (recycle) |
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Term
| **** Four basic consumer rights by JFK |
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Definition
1. SAFETY: products safe for intended use
2. Be INFORMED of risks and side effects
3. Able to CHOOSE lowest price/best service
4. BE HEARD: person to hear complaints |
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Term
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Definition
| Make contributions to community with money, projects, improve quality of life |
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Term
| What happens when market is unethical? |
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Definition
| When deviate from standards loose trust and business, lawsuits form |
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Term
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Definition
| identifiable problem requires company to make choices evaluated as right/wrong/ethical/unethical |
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Term
| Product-related ethical issue |
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Definition
| Fail to inform customers about existing conditions or changes in product quality |
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Term
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Definition
| False/misleading advertising and manipulative sales and promotion tactics |
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Term
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Definition
| Price fixing and failure to disclose full price of purchase, especially during natural disasters |
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Term
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Definition
| Manipulating products availability for exploitation, relations between producer and middlemen |
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Term
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Definition
Individuals base decisions on own values
HOWEVER research establish's organizations values have more influence on marketing decisions than persons value |
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Term
| Organizational ethics for employees based on?? |
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Definition
| strength of personal value, opportunity for unethical behavior and exposure to others who behave unethically |
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Term
| Corporate/Organizational culture |
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Definition
| set of values, beliefs, and norms members of organization share, gives meaning and suggest rules to behave |
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Term
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Definition
| Sets ethical tone for entire organization |
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Term
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Definition
| person is more likely to behave unethically if they are exposed to unethical behavior |
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Term
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Definition
| If marketer takes advantage of opportunity to act unethically and is rewarded, will repeat action |
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Term
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Definition
| Conditions that limit barriers or provide rewards. |
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Term
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Definition
| organization rid unethical people to enforce standards |
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Term
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Definition
| formalized rules and standards that describe the organizations employee expectations, reduce unethical behavior |
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Term
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Definition
| high ranking person in organization overseeing legal and common standards. Create/Distribute code |
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Term
| What nurtures ethical codes? |
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Definition
| Open communication and coaching, punish those that don't follow them. Best way to prevent litigation are ethical codes |
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Term
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Definition
| individual/group decisions about what is right and wrong in a particular situation |
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Term
| Social responsibility via ethical standards |
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Definition
| total effect of marketing decisions on society, if issue can withstand open discussion, usually ethical solution |
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Term
| Businesses performance with good ethics |
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Definition
| receive positive payoffs and increased long-term value when responsible activities performed. |
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