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Definition
| The trade of things of value between the buyer and the seller so that each is better off as a result. |
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| A measure of how products and services supplied by a company meet or surpass customer expectation. |
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| A structured planning method that assesses both the internal environment with regard to a businesses Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats. |
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| The four P's, Product, Price, Place, and Promotion. The controllable set of activities that a firm uses to respond to the wants of its target markets. |
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| A group of customers towards which a business has decided to aim its marketing efforts and ultimately its merchandise. |
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| Step 1- Identify issues, Step 2- Gather information and identify stakeholders, Step 3-Brainstorm and evaluate alternatives, Step 4- Choose a course of action. |
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| An ethical theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. |
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| The external marketing environment |
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Definition
| Six relatively uncontrollable factors outside the firm which influence its decision making. Culture, Demographics, Social issues/trends, Technological advances, Economic situation, and Political/Regulatory environment. |
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Definition
| A set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society. |
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| Information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education. |
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Definition
| Include price sensitivity, health and wellness concerns, greener consumers, a time-poor society, and privacy concerns. |
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| Macroenvironmental factor that has greatly contributed to the improvement of the value of both products and services in the past few decades. |
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Definition
| Macroeconomic factor that affects the way consumers buy merchandise and spend money, both in a marketer's home country and abroad. |
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| Political/Regulatory Environment |
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Definition
| Comprises political parties, government organizations, and legislation and laws. |
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Term
| The Consumer Decision Making Process |
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Definition
| Represents the steps that consumers go through before, during, and after making purchases. Those steps include Need Recognition, Information Search, Alternative Evaluation, Purchase, and Post Purchase. |
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Definition
| The beginning of the consumer decision process. It occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state. |
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Definition
| The second step of the consumer decision process, after a consumer recognizes a need, is to search for information about the various options that exist to satisfy that need. |
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Definition
| The third step of the consumer decision process. The process of sifting through the choices available and evaluating the alternatives. |
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| The fourth step of the consumer decision process. After evaluating the alternatives, customers are ready to buy. |
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| The final step of the consumer decision process. There a three postpurchase outcomes, customer satisfaction (+), postpurchase dissonance (-), and customer loyalty (+). |
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| Pertain to the performance of a product or service. |
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Definition
| Pertain to the personal gratification consumers associate with a product or service. |
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| Internal search for information |
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Definition
| The buyer examines his own memory and knowledge about the product or service, gathered through past experiences. |
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| External search for information |
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Definition
| The buyer seeks information outside his personal knowledge base to help make the buying decision. |
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| Factors influencing the consumer decision process |
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Definition
| Psychological factors, Situational factors, Social factors, and the Marketing mix. |
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Definition
| a person's principles or standards of behavior; one's judgment of what is important in life. |
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| The customer's family, reference group, and culture. |
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| A person's motives, attitudes, perception, learning, and lifestyle. |
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| A need or want that is strong enough to cause the person to seek satisfaction. |
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Definition
| A person's enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea. |
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Definition
| The process by which we select, organize, and interpret information to form a meaningful picture of the world. |
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Definition
| A change in a person's thought process or behavior that arises from experience and takes place throughout the consumer decision process. |
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Definition
| The way consumers spend their time and money to live. |
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Definition
| The group of people typically responsible for the buying decisions in large organizations. There are six different buying roles within a typical buying center, they consist of an initiator, influencer, decider, buyer, user, and gatekeeper. |
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Definition
| The person who first suggests buying the particular product or service. |
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Definition
| The person whose views influence other members of the buying center in making the final decision. |
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Definition
| The person who ultimately determines any part of or the entire buying decision- whether to buy, what to buy, how to buy, or where to buy. |
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Definition
| The person who handles the paperwork of the actual purchase. |
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Definition
| The person who consumes or uses the product or service. |
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Definition
| The person who controls information or access, or both, to decision makers and influencers. |
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Definition
| Involve sales and purchases of goods and services to various businesses, governments, and market intermediaries to facilitate the finished product which is generally then re-sold to an end user. |
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Definition
| Involves the purchase and sale of goods and services to consumers for their own use rather than for resale. |
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Definition
| A marketing strategy a firm can use when a product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups. |
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Definition
| a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and priorities, and then designing and implementing strategies to target them. |
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Definition
| Organizes customers into groups on the basis of where they live. |
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Definition
| Groups consumers into easily measured objective characteristics such as age, gender, income, and education. |
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Term
| Psychographic Segmentation |
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Definition
| One form of segmenting that delves into how consumers actually describe themselves. Components of psychographics are Self-values, Self-concept, and Lifestyles. |
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| Geodemographic Segmentation |
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Definition
| The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics. |
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Definition
| The grouping of consumers on the basis of the benefits the derive from products or services. |
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Definition
| Divides customers into groups based on how they use the product or service. |
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| Criteria for Successful Market Segmentation |
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Definition
| For successful market segmentation a market must be Identifiable, Substantial, Reachable, Responsive, and Profitable. |
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Definition
| Firms must be able to identify who is within their market to be able to design products or services to meet their needs. |
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Definition
| Once potential target markets are identified, it needs to measure their size. If the market is too small it wont generate sufficient profits. |
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Definition
| The best product or service cannot have any impact, no matter how identifiable or substantial the market is, if that market cannot be reached through persuasive communications and product distribution. |
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Definition
| For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's offering. |
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Definition
| The market must have potential profitability, both current and future. Key factors in this analysis are market growth, market competitiveness, and market access. |
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Definition
| A group of customers towards which a business has decided to aim its marketing efforts and ultimately its merchandise. |
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Term
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Definition
| Include Undifferentiated Targeting Strategy, Differentiating Targeting Strategy, Concentrated Targeting Strategy, and Micromarketing. |
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Term
| Undifferentiated Targeting Strategy |
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Definition
| A marketing strategy a firm can use when a product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups. |
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| Differentiated Targeting Strategy |
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Definition
| A firm targets several market segments with a different offering for each. |
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| Concentrated Targeting Strategy |
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Definition
| Strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs. |
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Definition
| An extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs. |
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Definition
| A process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. |
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| Steps in the Research Process |
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Definition
| Defining the objectives and research needs, Designing the research, Data collection process, Analyzing data and developing insights, and Action plan and implementation. |
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Definition
| Data collected to address specific research needs. |
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Definition
| Pieces of information that have already been collected from other sources and usually are readily available. |
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Term
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Definition
| In-depth interview (trained researchers ask questions, listen to and record answers, and then pose additional questions to clarify or expand on a particular issue) and Focus group interviews (a small group of people come together for an intensive discussion about a particular topic, with the conversation guided by a moderator). |
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Definition
| A systematic means of collecting information from people using a questionnaire. |
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Definition
| Questionnaire (a form that features a set of questions designed to gather information from respondents), Unstructured questions (Open ended questions that allow respondents to answer in their own words), and Structured questions (closed-ended questions for which specific answers are provided for respondents to evaluate. |
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Definition
| Products and services used by people for their personal use. |
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| Specialty Products/Services |
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Definition
| Products or services toward which the customer shows a strong preference and for which he will expend considerable effort to search for the best supplier. |
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| Shopping Products/Services |
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Definition
| Those for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances. |
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| Convenience Products/Services |
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Definition
| Those for which the consumer is not willing to spend any effort to evaluate prior to purchase. |
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| Unsought Products/Services |
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Definition
| Products or services consumers either do not normally think of buying or do not know about. |
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Definition
| The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. |
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Definition
| Also known as National Brands, are owned and managed by the manufacturer. |
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| Also called Store Brands, House Brands, or Own Brands, are products developed by retailers. |
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Definition
| A branding strategy that offers consumers a private label of comparable or superior quality to a manufacturer brand. |
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Definition
| No-frills products offered at a low price without any branding information. |
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Definition
| Mimic a manufacturer's brand in appearance but generally with lower quality and prices. |
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Definition
| Developed by national brand vendor and retailer and sold only by that retailer. |
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Definition
| The process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters. |
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Definition
| Defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning. |
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Definition
| Stage of the product life cycle when innovators start buying the product. |
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Definition
| Stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product category. |
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Definition
| Stage in the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them. |
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Definition
| Stage of the product life cycle when sales decline and the product eventually exits the market. |
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Definition
| Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed. |
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Term
| Four Main Characteristics of Services |
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Definition
| Services are Intangible, Inseparable, Variable, and Perishable. |
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Definition
| A characteristic of a service; it cannot be touched, tasted, or seen like a pure product can. |
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Definition
| A characteristic or a service; it is produced and consumed at the same time; that is, service and consumption are inseparable. |
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Definition
| A characteristic of a service; its quality may vary because it is provided by humans. |
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Definition
| A characteristic of a service; it cannot be stored for use in the future. |
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Definition
| Technique used to examine the relationships among cost, price, revenue, and profit over different levels of production and sales to determine the break-even point. |
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| Price Elasticity of Demand |
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Definition
| Measures how changes in a price affect the quantity of the product demanded. |
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Term
| Market Penetration Strategy |
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Definition
| Firms using a Market Penetration Strategy set the initial price low for the introduction of the new product or service. Their objective is to build sales, market share, and profits quickly. |
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Term
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Definition
| A strategy of selling a new product or service at a high price that innovators and early adopters are willing to pay in order to obtain it; after the high-price market segment becomes saturated and sales begin to slow down, the firm generally lowers the price to capture (or skim) the next most price sensitive segment. |
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Definition
| The sequence of processes involved in the production and distribution of a product. |
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Definition
| The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. |
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Definition
| A person or company that makes goods for sale. |
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Definition
| An intermediary entity in the distribution channel that buys in bulk and sells to resellers rather than to consumers. |
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Definition
| Purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. |
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Term
| Vertical Channel Conflict |
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Definition
| Members of the same marketing channel, for example, manufacturers, wholesalers, and retailers, are in disagreement or discord. |
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Term
| Horizontal Channel Conflict |
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Definition
| Members at the same level of a marketing channel, for example, two competing retailers or two competing manufacturers, are in disagreement or discord. Such as when they are in a price war. |
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Definition
| A loose coalition of several independently owned and operated supply chain members- a manufacturer, a wholesaler, a retailer- all attempting to satisfy there own objectives and maximize their own profits, often at the expense of other members. |
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| Vertical Marketing System |
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Definition
| Members act as a unified system; there are three types: Administrated, Contractual, and Corporate. |
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Definition
| The set of business activities that add value to products and services sold to consumers for their personal or family use. |
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Definition
| A licensed salesperson who represents one or more health insurance companies and presents their products to consumers. |
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Definition
| An agent who buys or sells for a principal on a commission basis without having title to the property. |
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Definition
| A strategy designed to get products into as many outlets as possible. |
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Definition
| A strategy in which only selected retailers can sell a manufacturer's brand. |
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Definition
| A strategy that lies between the intensive and exclusive distribution strategies; uses a few selected customers in a territory. |
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Definition
| Five aspects include Advertising, Personal selling, Sales promotion, Public relations, and Direct marketing. |
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Definition
| A paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future. |
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Definition
| The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. |
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Definition
| Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays. |
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Definition
| The organizational function that manages the firms communications to achieve a variety of objectives. |
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Definition
| Sales and promotional techniques that deliver promotional materials individually to potential customers. |
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Definition
| The study of how individuals and entities relay information through mass media to large segments of the population at the same time. |
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| Interpersonal Communication |
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Definition
| The exchange of information between two or more people. |
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Term
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Definition
| Involves taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase. |
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Definition
| Involves motivating customers to seek out your brand in an active process. |
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Term
| Integrated Marketing Communications (IMC) |
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Definition
| Represents the Promotion dimension of the four P's; encompasses a variety of communication disciplines in combination to provide clarity, consistency, and maximum communicative impact. |
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Definition
| Includes TV, Radio, Magazines, Newspapers, Internet, Outdoors, and Direct Mail. |
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| The Personal Selling Process |
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Definition
| Generate and qualify leads, preapproach, sales presentation and overcoming reservations, closing the sale, and follow-up. |
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Term
| Generate and Qualify Leads |
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Definition
| Find potential customers and assess their potential as a buyer. |
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Definition
| The salesperson conducts additional research and develops plans for meeting the customer. |
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| Sales Presentation and Overcoming Reservations |
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Definition
| A person to person meeting with the potential customer and handle and questions he might have about the product. |
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Definition
| Obtaining a commitment from the customer to make a purchase. |
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Definition
| Checking with the customer after the sale to make sure everything went smoothly. Good time to build a relationship with the customer. |
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