Marketing Midterm Cheat Sheet

Customer lifetime value (CLV)

The measurement that predicts a customer's economic contribution over their lifetime based on relationship marketing efforts.

Customer relationship management (CRM)

Using customer information to develop marketing strategies that build and maintain customer relationships.

Customers

The individuals who purchase products from organizations and are the focus of marketing activities.

Exchanges

The transfer of goods, services, or ideas in exchange for something of value.

Green marketing

A strategic process that involves building long-term relationships with customers while supporting and enhancing the natural environment.

Marketing

The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate exchange relationships with customers and stakeholders.

Marketing concept

The philosophy that organizations should satisfy customer needs through coordinated activities to achieve their goals.

Marketing environment

The external forces that influence the marketing mix, including competition, economic, political, legal, technological, and sociocultural factors.

Marketing mix

The controllable elements of marketing, including product, distribution, promotion, and pricing, used to meet customer needs.

Market orientation

An organization-wide commitment to understanding and responding to customer needs.

Product

A good, service, or idea offered by an organization.

Relationship marketing

Establishing long-term, mutually satisfying relationships with buyers.

Stakeholders

Individuals or groups with a vested interest in a company's products, operations, or outcomes.

Target market

A specific group of customers that an organization focuses its marketing efforts on.

Value

A customer's subjective assessment of benefits relative to costs in determining the worth of a product.

Centralized organization

A structure where top-level managers retain most decision-making authority.

Competitive advantage

The result of matching a company's core competency to market opportunities.

Core competencies

Activities a company excels at, giving it an advantage over competitors.

Corporate strategy

A plan for utilizing resources across functional areas to achieve organizational goals.

Decentralized organization

A structure where decision-making authority is delegated to lower levels.

First-mover advantage

The advantage gained by being the first to offer a new product in the market.

Late-mover advantage

The advantage gained by entering the market after competitors have established themselves.

Market growth/market share matrix

A tool for determining marketing strategies based on market growth rate and market share.

Market opportunity

Circumstances and timing that allow an organization to reach a specific target market.

Market share

The percentage of a market that buys a specific product from a particular company.

Market

A group of individuals or organizations with needs for a specific product and the ability to purchase it.

Marketing cost analysis

Analyzing costs associated with specific marketing efforts.

Marketing implementation

Putting marketing strategies into action.

Marketing objective

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

Marketing plan

A written document outlining activities to implement and evaluate marketing strategies.

Marketing strategy

A plan for identifying and analyzing a target market and developing a marketing mix to meet its needs.

Mission statement

An organization's long-term vision of what it wants to become.

Performance standard

An expected level of performance used to compare actual performance.

Sales analysis

Analyzing sales figures to evaluate a firm's performance.

Strategic business unit (SBU)

A division or product line within a company that operates as a profit center.

Strategic marketing management

Planning, implementing, and evaluating marketing activities and strategies efficiently and effectively.

Strategic performance evaluation

Establishing performance standards, measuring actual performance, and modifying marketing strategies if needed.

Strategic planning

The process of establishing an organizational mission, goals, and strategies.

Strategic windows

Temporary periods of optimal fit between market requirements and a company's capabilities.

Sustainable competitive advantage

An advantage that competitors cannot easily replicate.

SWOT analysis

Assessing an organization's strengths, weaknesses, opportunities, and threats.

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Better Business Bureau (BBB)

Nongovernmental agencies that help settle disputes between customers and businesses.

Brand competitors

Companies that market products with similar features and benefits to the same customers at similar prices.

Business cycle

Economic fluctuations characterized by prosperity, recession, depression, and recovery.

Buying power

The resources, such as money, goods, and services, that enable individuals to make purchases.

Competition

Other organizations marketing similar or substitute products in the same geographic area.

Consumerism

Organized efforts to protect consumer rights.

Depression

A stage of the business cycle with high unemployment, low wages, and minimal disposable income.

Discretionary income

Income available for spending and saving after purchasing basic necessities.

Disposable income

After-tax income available for spending and saving.

Environmental analysis

Assessing and interpreting information about the marketing environment.

Environmental scanning

Collecting information about forces in the marketing environment.

Federal Trade Commission (FTC)

An agency that regulates business practices and curbs false advertising and deceptive packaging.

Generic competitors

Companies that provide different products that solve the same problem or satisfy the same need.

Income

Money received through various sources for a given period.

Monopolistic competition

A market structure where firms differentiate their products to compete.

Monopoly

A market structure where one organization is the sole source of supply for a product.

National Advertising Review Board (NARB)

A self-regulatory unit that considers challenges to advertisements.

Oligopoly

A market structure with a few sellers controlling a large proportion of the product supply.

Product competitors

Companies competing in the same product class with different features, benefits, and prices.

Prosperity

A stage of the business cycle with low unemployment, high total income, and high buying power.

Pure competition

A market structure with many sellers, none strong enough to influence price or supply.

Recession

A stage of the business cycle with rising unemployment and declining buying power.

Recovery

A stage of the business cycle moving from recession or depression toward prosperity.

Sociocultural forces

Influences on attitudes, beliefs, norms, customs, and lifestyles in society.

Technology

The application of knowledge and tools to solve problems and perform tasks more efficiently.

Total budget competitors

Companies competing for the limited financial resources of the same customers.

Wealth

The accumulation of past income, natural resources, and financial resources.

Willingness to spend

The inclination to buy influenced by expected satisfaction, ability to buy, and psychological and social forces.

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Cause-related marketing

Linking products to social causes on an ongoing or short-term basis.

Codes of conduct

Formalized rules and standards for employee behavior.

Ethical issue

A problem requiring evaluation of right or wrong actions.

Marketing citizenship

Fulfilling economic, legal, ethical, and philanthropic responsibilities.

Marketing ethics

Principles and standards defining acceptable marketing conduct.

Organizational culture

Shared values, beliefs, goals, norms, and rituals within a company.

Social responsibility

An organization's obligation to maximize positive impact and minimize negative

Random sampling

A form of probability sampling in which all units in a population have an equal chance of appearing in the sample, and the various events that can occur have an equal or known chance of taking place.

Reliability

A condition that exists when a research technique produces almost identical results in repeated trials.

Research design

An overall plan for obtaining the information needed to address a research problem or issue.

Sample

A limited number of units chosen to represent the characteristics of a total population.

Sampling

A type of sampling in which every element in the population being studied has a known chance of being selected for study.

Secondary data

Data compiled both inside and outside the organization for some purpose other than the current investigation.

Single-source data

Information provided by a single marketing research firm.

Statistical interpretation

Analysis of what is typical and what deviates from the average.

Stratified sampling

A type of probability sampling in which the population is divided into groups with a common attribute, and a random sample is chosen within each group.

Validity

A condition that exists when a research method measures what it is supposed to measure.

Benefit segmentation

The division of a market according to benefits that consumers want from the product.

Breakdown approach

Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it.

Buildup approach

Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered.

Business market

Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations.

Company sales potential

The maximum percentage of a market that an individual firm within an industry can expect to obtain for a specific product.

Concentrated targeting strategy

A market segmentation strategy in which an organization targets a single market segment using one marketing mix.

Consumer market

Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit.

Customer forecasting survey

A survey of customers regarding the types and quantities of products they intend to buy during a specific period.

Cycle analysis

An analysis of sales figures for a three- to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner.

Delphi technique

A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts.

Differentiated targeting strategy

A strategy in which an organization targets two or more segments by developing a marketing mix for each segment.