Marketing Unit Test Vocab - College Business

Marketing

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

Four eras of Marketing

1. Production Era

2. Selling Era

3. Marketing Concept Era

4. Customer Relationship Era

Marketing concept

Philosophy based on customer orientation, service orientation, and profit orientation. 

Customer relationship management (CRM)

Learning as much as possible about customers and doing everything you can to satisfy or exceed their expectations.

Marketing Mix

Price, Product, Place, and Promotion

Product

 Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers.

Brand Name

Differentiates one seller’s goods and services from those of competitors.

Price

The amount of money something costs depending on factors such as competitors’ prices, production cost, distribution costs, and promotion.

Promotion

All the techniques sellers use to inform people about and motivate them to buy their products or services.

Marketing Research

The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.

Primary Data

Data that you gather yourself. Typically, more expensive.

Secondary Data

Information that has already been compiled by others and published in journals and books or made available online. Typically, cheap and easily accessible.

Environmental scanning

The process of identifying factors that can affect marketing success.

Consumer market

All the individuals or households that want goods and services for personal consumption or use.

Business-to-business (B2B) market

All the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.

Market Segmentation

Dividing the total market into groups whose members have similar characteristics.

Target Marketing

 Marketing directed toward those groups an organization decides it can serve profitably.

Geographic segmentation

 Dividing the market by cities, counties, states, or regions.

Demographic segmentation

Dividing the market by age, income, and education level.

Psychographic segmentation

Dividing the market using the group’s values, attitudes, and interests.

Benefit segmentation

Dividing the market by determining which benefits of the product to talk about.

Niche Marketing

 Finding small but profitable market segments and designing or finding products for them.

One-to-one marketing

Developing a unique mix of goods and services for each individual consumer.

Mass Marketing

Developing products and promotions to please large groups of people.

Relationship marketing

Keeping individual customers over time by offering them products that exactly meet their requirements.

Total product offer (TPO)

Everything that consumers evaluate when deciding whether to buy something.

Product Line

 A group of products that are physically similar or intended for a similar market.

Product Mix

The combination of product lines offered by a manufacturer.

Shopping goods and services

Those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers.

Specialty goods and services

Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them.

Unsought goods and services

Products that consumers are unaware of, haven’t necessarily thought of buying, or find that they need to solve an unexpected problem.

Industrial goods

Products used in the production of other products; sometimes called B2B goods.

Brand

A name, symbol, or design that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.

Trademark

A brand that has exclusive legal protection for both its brand name and its design.

Commercialization

Promoting a product to distributors and retailers to get wide distribution and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers.

Product Life Cycle

A theoretical model of what happens to sales and profits for a product class over time.

4 states of Product Life Cycle

Introduction, Growth, Maturity, and Decline

Target costing

Designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Competition-based pricing -

A pricing strategy based on what all the other competitors are doing.

Price leadership

The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow.

Break-even analysis

The process used to determine profitability at various levels of sales.

Break-even point

When revenues equal cost.

Total fixed costs -

All the expenses that remain the same no matter how many products are made or sold.

Variable costs

Costs that change according to the level of production.

Skimming price strategy -

Strategy in which a new product is priced high to make optimum profit while there’s little competition.

Penetration strategy

Strategy in which a product is priced low to attract many customers and discourage competition.

Everyday low pricing (EDLP)

Setting prices lower than competitors and then not having any special sales.

High–low pricing strategy

Setting prices that are higher than EDLP stores but having many special sales where the prices are lower than competitors.

Psychological pricing

Pricing goods and services at price points that make the product appear less expensive than it is.

Marketing intermediaries -

Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C).

Channel of distribution

A whole set of marketing intermediaries that join together to transport and store goods in their path from producers to consumers.

Agents and brokers

Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods.

Wholesaler

A marketing intermediary that sells to other organizations.

Retailer

An organization that sells to ultimate consumers.

Utility

The want-satisfying ability, or value, that organizations add to goods and services when the products are made more useful or accessible to consumers than they were before.

Form Utility

Changing raw materials into useful products for consumers.

Time utility

Adding value to products by making them available when they’re needed.

Place utility

Adding value to products by having them where people want them.

Possession utility

Doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service.

Information utility

Adding value to products by opening two-way flows of information between marketing participants.

Service utility

Adding value by providing fast, friendly service during and after the sale and by teaching customers how to best use products over time.

Intensive distribution

Puts products into as many retail outlets as possible.

Selective distribution

Sends products only to a preferred group of retailers in an area.

Exclusive distribution

Sends products to only one retail outlet in a given geographic area.

Direct selling

Selling to consumers in their homes or where they work.

Direct marketing

Any activity that directly links manufacturers or intermediaries with the ultimate consumer.

Corporate distribution system

A distribution system in which all of the organizations in a channel of distribution are owned by one firm.

Contractual distribution system

 A distribution system in which members are bound to cooperate through contractual agreements.

Administered distribution system

A distribution system in which producers manage all of the marketing functions at the retail level.

Supply chain

The sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers.

Supply-chain management

The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary; and recycling materials when appropriate.

Logistics

The marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Promotion mix

The combination of promotional tools an organization uses.

Integrated marketing communication (IMC)

A technique that combines the promotional tools into one comprehensive and unified promotional strategy.

Advertising

Paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message.

Product placement

Putting products into TV shows and movies where they will be seen.

Interactive promotion

Promotion process that allows marketers to go beyond a monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships.

Personal Selling

The face-to-face presentation and promotion of goods and services.

Public relations (PR)

The management function that evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and information to earn public understanding and acceptance.

Publicity

Any information about an individual, product, or organization that’s distributed to the public through the media and that’s not paid for or controlled by the seller.

Sales Promotion

The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.

Word-of-mouth promotion

People tell others about products they have purchased.

Viral marketing

Paying customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions for directing friends to specific websites.

Pull strategy

Heavy advertising and sales promotion efforts are directed toward consumers so that they’ll request the products from retailers.

Push strategy

The producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise.