Business Essentials Thirteenth Edition - Chapter 11: Marketing Processes and Consumer Behavior

A comprehensive set of vocabulary flashcards covering marketing fundamentals, environmental influences, the marketing mix, research methods, and consumer behavior as presented in Chapter 11.

Marketing

An organizational function and a set of processes for creating, communicating, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders.

Value

The relative comparison of a product’s benefits versus its costs.

Utility

The ability of a product to satisfy a human want or need, specifically in the forms of Form, Time, Place, and Possession.

Consumer Goods

Physical products purchased by consumers for personal use.

Industrial Goods

Physical products purchased by companies to produce other products.

Services

Products having nonphysical features, such as information, expertise, or an activity that can be purchased.

Relationship Marketing

A marketing strategy that emphasizes building lasting relationships with customers and suppliers.

Customer Relationship Management (CRM)

Organized methods that a firm uses to build better information connections with clients, so that stronger company-client relationships are developed.

Data Warehousing

The collection, storage, and retrieval of data in electronic files.

External Marketing Environment

The outside forces that influence marketing, including Political-Legal, Sociocultural, Technological, Economic, and Competitive environments.

Political-Legal Environment

The relationship between business and government, usually in the form of government regulation of business.

Sociocultural Environment

The customs, mores, values, and demographic characteristics of the society in which an organization functions.

Technological Environment

All the ways by which firms create value for their constituents.

Economic Environment

Relevant conditions that exist in the economic system in which a company operates.

Competitive Environment

The competitive system in which businesses compete.

Substitute Product

A product that is dissimilar from those of competitors, but that can fulfill the same need.

Brand Competition

Competitive marketing that appeals to consumer perceptions of benefits of products offered by particular companies.

International Competition

Competitive marketing of domestic products against foreign products.

Marketing Mix

The combination of product, pricing, promotion, and place (distribution) strategies used to market products, often referred to as the $4$ Ps.

Marketing Plan

A detailed strategy for focusing marketing efforts on consumers’ needs and wants.

Marketing Objectives

The things marketing intends to accomplish in its marketing plan.

Marketing Manager

The manager who plans and implements the marketing activities that result in the transfer of products from producer to consumer.

Product

A good, service, or idea that is marketed to fill consumers’ needs and wants.

Product Differentiation

The creation of a product feature or product image that differs enough from existing products to attract customers.

Pricing

The process of determining the best price at which to sell a product.

Place (Distribution)

The part of the marketing mix concerned with getting products from producers to consumers.

Promotion

The aspect of the marketing mix concerned with the most effective techniques for communicating information about products.

Advertising

Any form of paid non-personal communication used by an identified sponsor to persuade or inform potential buyers about a product.

Personal Selling

Person-to-person sales.

Sales Promotion

Direct inducements such as premiums, coupons, and package inserts to tempt consumers to buy products.

Public Relations

Communication efforts directed at building goodwill and favorable attitudes in the minds of the public toward the organization and its products.

Integrated Marketing Strategy

A strategy that blends together the $4$ Ps of marketing to ensure their compatibility with one another and with the company’s non-marketing activities.

Target Market

A group of people who have similar wants and needs and can be expected to show interest in the same products.

Market Segmentation

The process of dividing a market into categories of customer types, or segments.

Product Positioning

The process of fixing, adapting, and communicating the nature of a product.

Geographic Variables

Geographic units that may be considered in developing a segmentation strategy.

Demographic Variables

The characteristics of populations, such as age, income, and gender, that may be considered in developing a segmentation strategy.

Geo-Demographic Variables

A combination of geographic and demographic traits used in developing a segmentation strategy.

Psychographic Variables

Consumer characteristics, such as lifestyles, opinions, interests, and attitudes, used in developing a segmentation strategy.

Behavioral Variables

Behavioral patterns displayed by groups of consumers that are used in developing a segmentation strategy.

Marketing Research

The study of what customers need and want and how best to meet those needs and wants.

Secondary Data

Data that are already available from previous research.

Primary Data

New data that are collected from newly performed research.

Observation

A research method that obtains data by watching and recording consumer behavior.

Survey

A research method of collecting consumer data using questionnaires, telephone calls, and face-to-face interviews.

Focus Group

A research method using a group of people from a larger population who are asked their attitudes, opinions, and beliefs about a product in an open discussion.

Experimentation

A research method using a sample of potential consumers to obtain reactions to test versions of new products or variations of existing products.

Consumer Behavior

The study of the decision process by which people buy and consume products.

Psychological Influences

Includes an individual’s motivations, perceptions, ability to learn, and attitudes used to study buying behavior.

Personal Influences

Includes lifestyle, personality, and economic status that marketers use to study buying behavior.

Social Influences

Includes family, opinion leaders, and reference groups like friends or coworkers.

Cultural Influences

Includes culture, subculture, and social class influences on buying behavior.

Brand Loyalty

A pattern of regular consumer purchasing based on satisfaction with a product’s performance.

Evoked Set (or Consideration Set)

A group of products consumers will consider buying as a result of an information search.

Rational Motives

Reasons for purchasing a product that are based on a logical evaluation of product attributes.

Emotional Motives

Reasons for purchasing a product that are based on nonobjective factors.

Services Companies Market

Firms engaged in the business of providing services to the purchasing public.

Industrial Market

An organizational market consisting of firms that buy goods that are either converted into products or used during production.

Reseller Market

An organizational market consisting of intermediaries that buy and resell finished goods.

Institutional Market

An organizational market consisting of nongovernmental buyers of goods and services such as hospitals, churches, and museums.

Social Networking

A network of communications that flow among people and organizations interacting through an online platform.

Social Networking Media

Websites or access channels, such as Facebook, Twitter, LinkedIn, and YouTube, for consumer interaction.

Viral Marketing

A type of marketing that relies on the Internet to spread information like a virus from person to person.

Corporate Blogs

Comments and opinions published on the Web by or for an organization to promote its activities.