Marketing 3000

All the terms

marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

customer value

The perceived benefits, both monetary and nonmonetary, that customers receive from a product, compared with the cost associated with obtaining the product

supply chain

A set of multiple companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer

logistics

The part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer

production orientation

A firm focus (pre-1920s) on efficient processes and production in order to create quality products and reduce unit costs, believing quality products would simply sell themselves

sales orientation

An approach (1920s-WWII) using personal selling and advertising to persuade consumers to buy new products and more of existing products

marketing concept

The idea that a firm's long-term success must include a companywide effort to satisfy customer needs

relationship marketing

A strategy that focuses on attracting, maintaining, and enhancing customer relationships

exchange

When a buyer and seller trade things of value, so that each is better off as a result

needs

States of felt deprivation; consumers feel deprivation when they lack something essential like food, clothing, shelter, transportation, or safety

wants

The form that human needs take as they are shaped by personality, culture, and buying situation

marketing mix

The four Ps (product, price, place, promotion) that represents everything a firm can do to influence demand for its good, service, or idea

product

A specific combination of goods, services, or ideas that a firm offers to consumers

price

The amount of something-money, time, or effort-that a buyer exchanges with a seller to obtain a product

place (distribution)

The activities a firm undertakes to make its product available to potential consumers

promotion

All the activities that communicate the value of a product and persuade customers to buy it, including advertising, sales promotion, personal selling, and public relations

social media

Internet-based applications that enable users to create their own content and share it with others who access the sites

global marketing

A marketing strategy that consciously addresses customers, markets, and competition throughout the world

brand

The name, term, symbol, design, or any combination of these that identifies and differentiates a firm's products

AI marketing

Combines AI technologies with customer and brand experience data to provide precise insights into consumer behavior and market trends

marketing analytics

The practice of measuring, managing, and analyzing market performance

ethics

Moral standards expected by a society

CHAPTER 2 strategic planning

The process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives

strategic plan

A plan that typically includes an organization's plans for key functional areas, such as marketing, human resources, finance, and risk management

mission statement

A concise affirmation of the firm's long-term purpose that describes the markets in which the firm will compete and the goods or services it will provide

marketing plan

An action-oriented document that guides the firm's marketing strategy, consistent with the overall strategic plan and grounded in the firm's mission statement

situation analysis

A systematic collection of data to identify market trends, conditions, and competitive forces

SWOT analysis

An evaluation of a firm's strengths, weaknesses, opportunities, and threats

strengths (in SWOT analysis)

Internal capabilities that help the company achieve its objectives

weaknesses (in SWOT analysis)

Internal limitations that may prevent or disrupt the firm's ability to meet its stated objectives

opportunities (in SWOT analysis)

External factors that the firm may be able to capitalize on to meet its stated objectives

threats (in SWOT analysis)

Current or potential external factors that may challenge the firm's short- and long-term performance

financial projections

Bottom-line numerical estimates of the organization's profitability, including sales forecast, expense forecast, and break-even analysis

strategy

The set of actions taken to accomplish organizational objectives

market segmentation

The process of dividing a large market into smaller groups

market segments

The groups of consumers who have shared characteristics and similar product needs

target market

The group of customers toward which an organization directs its marketing efforts

positioning

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market

market penetration

Selling more of existing goods and services to existing customers

product development

Creating new goods and services for existing markets

market development

Selling existing goods and services to new customers

diversification

Offering new goods and services to attract new customers

competitive advantage

When customers perceive that a product has more value than other products in its category

exporting

Selling domestically produced products to foreign markets; typically the least risky option for entering international markets

licensing

A legal process in which one firm pays to use or distribute another firm's resources

franchising

A contractual arrangement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and share of profits

joint venture

A domestic firm partners with a foreign company to create a new entity, sharing equity and risk

direct ownership

A domestic firm actively manages a foreign company or overseas facilities; the riskiest strategy for entering an international market

marketing analytics

The practice of measuring, managing, and analyzing marketing performance

return on marketing investment (ROMI)

A measure of the firm's effectiveness in using resources allocated to its marketing effort; (Sales x Gross margin%) minus Marketing expenditures, divided by Marketing expenditures

revenue analysis

Measures and evaluates revenue from specific products or regions to pinpoint what is working and what is not

market share analysis

Indicates market share, the percentage of the total market sales captured by a brand, product, or firm

profitability analysis

Measures how much profit the firm generates, including customer acquisition and customer profitability

CHAPTER 3 marketing environment

The outside factors and forces that affect a company's ability to meet its marketing goals (political, economic, demographic, sociocultural, technological, legal)

direct competition

Products that perform the same function compete against one another (also called category or brand competition)

substitute products

Goods and services that perform very similar functions and can be used in place of one another

indirect competition

When products provide alternative solutions to the same market

environmental scanning

Monitoring developments outside the firm's control to detect and respond to threats and opportunities

gross domestic product (GDP)

The market value of all officially recognized final goods and services produced within a country in a given period

recession

Occurs when overall GDP declines for two or more consecutive quarters

inflation

An increase in the general level of prices of products in an economy over a period of time

purchasing power

The amount of goods and services that can be purchased for a specific amount of money

consumer confidence

Measures how optimistic consumers are about the overall state of the economy and their own personal finances

demographics

The characteristics of human populations that can be used to identify consumer markets

Baby Boomers

The generation of children born between 1946 and 1964

Millennials

The generation of children born between 1981 and the late twentieth century, also known as Generation Y

disposable income

The amount of spending money available to households after paying taxes

sociocultural

The combination of social and cultural factors that affect individual development

Federal Trade Commission (FTC)

The consumer protection agency for the United States; enforces laws against unfair or deceptive acts

currency exchange rate

The price of one country's currency in terms of another country's currency

North American Free Trade Agreement (NAFTA)

Established a free-trade zone among the United States, Canada, and Mexico

United States-Mexico-Canada Agreement (USMCA)

The 2018 successor agreement to NAFTA

tariffs

Taxes on imports and exports between countries

Dominican Republic-Central America Free Trade Agreement (DR-CAFTA)

A free-trade agreement among the US, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic

European Union (EU)

An economic, political, and monetary union of 27 European nations, formed to create a single European market

World Trade Organization (WTO)

Regulates trade among participating countries and helps importers and exporters conduct business

International Monetary Fund (IMF)

Works to foster international monetary cooperation, secure financial stability, and facilitate international trade

consumer ethnocentrism

A belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services

CHAPTER 4 consumer behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs

business-to-consumer (B2C) marketing

Selling goods and services to end-user customers

business-to-business (B2B) marketing

Selling goods and services between businesses rather than to end-user consumers

routine decision making

Consumer decisions made out of habit, without much deliberation or comparison

limited problem solving

Occurs when consumers have established criteria for evaluating a product category but lack familiarity with suppliers, options, or prices

extended problem solving

Decisions requiring significant thought and effort, such as buying a new automobile

problem recognition

Occurs when consumers identify a gap between their current status and a desired end state

internal information search

Consumers draw from prior searches or past experience with the same brand or product class

external information search

Consumers seek information beyond their personal knowledge and experience

evoked set

The shortened list of brands a consumer narrows down to after gathering information (also called consideration set)

search marketing

A form of digital marketing that promotes websites by increasing their visibility on search engines

evaluative criteria

The product attributes consumers consider most important when evaluating alternatives

attribute-based choice

Consumers select a product by comparing brands on an attribute-by-attribute basis; relies heavily on System 2 processing

affective choice

Consumers make a decision based on their feelings about owning the product; relies on System 1 processing

attitude-based choice

A selection process that involves use of general attitudes and summary impressions

unplanned purchases

Purchases made in a retail outlet that are different from those the consumer planned prior to entering the store

impulse purchases

Occur when a consumer sees and purchases an item in-store as the result of a sudden powerful urge

reminder purchases

Occur due to retailer's prompts to consumers while they are in the store

mobile payment

Payment services performed via a mobile device, operated under financial regulation (also called digital wallets)

cognitive dissonance

The angst people experience when new information contradicts their beliefs or assumptions (buyer's remorse)

culture

The broad set of knowledge, beliefs, laws, morals, customs, and any other capabilities or habits acquired by humans as members of society

norms

Formal or informal societal rules that specify or prohibit certain behaviors in specific situations