Marketing Exam One!!!

Marketing

is 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.

One major goal of marketing is to

exchange

exchange

people giving up something in order to receive something else they would rather have

Conditions of Exchange

1. There must be at least two parties

2. Each party has something that might be of value to the other party

3. Each party is capable of communication and delivery.

4. Each party is free to accept or reject the exchange offer.

5.Each party believes it is appropriate or desirable to deal with the other party.

production orientation

A philosophy that focuses on the internal capabilities of the firm rather that on the desires and needs of the marketplace

Sales orientation

The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits

Marketing Concept

The idea that the social and economic justification for an organizations existence is the satisfaction of customer wants and needs while meeting organizational objectives.

Marketing Orientation

A philosophy that assumes a sale does not depend on an aggressive sales force but rather on a customers decision to purchase a product.

customer value

the relationship between benefits and the sacrifice necessary to obtain those benefits

customer satisfaction

customers' evaluation of a good or service in terms of whether it has met their needs and expectations

Relationship Marketing

A strategy that focuses on keeping and improving relationships with current customers

empowerment

delegation of authority to solve customers' problems quickly—usually by the first person the customer notifies regarding a problem

Team Work

collaborative efforts of people to accomplish common objectives

Customer Relationship Management

A company wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups

Big Data

The discovery, interpretation, and communication of meaningful patterns in data

On demand marketing

Delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumers decision and buying progress

Strategic Business Unit (SBU)

A subgroup of a single business or collection of related businesses within the larger organization

market penetration

a marketing strategy that tries to increase market share among existing customers

market development

a marketing strategy that entails attracting new customers to existing products

product development

a marketing strategy that entails the creation of new products for present markets

Diversification

a strategy of increasing sales by introducing new products into new markets

portfolio matrix

a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate

Star

in the portfolio matrix, a business unit that is a fast-growing market leader

Cash Cow

in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share

problem child (question mark)

in the portfolio matrix, a business unit that shows rapid growth but poor profit margins

dog

in the portfolio matrix, a business unit that has low growth potential and a small market share

planning

the process of anticipating future events and determining strategies to achieve organizational objectives in the future

marketing planning

designing activities relating to marketing objectives and the changing marketing environment

mission statement

a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions

marketing myopia

defining a business in terms of goods and services rather than in terms of the benefits customers seek

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

Enviormental Scanning

collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan

competitive advantage

a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

cost competitive advantage

being the low-cost competitor in an industry while maintaining satisfactory profit margins

Experience curves

curves that show costs declining at a predictable rate as experience with a product increases

product/service differentiation competitive advantage

the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition

niche competitive advantage

the advantage achieved when a firm seeks to target and effectively serve a small segment of the market

sustainable competitive advantage

an advantage that cannot be copied by the competition

marketing strategy

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

market opportunity analysis (MOA)

the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

marketing mix (four Ps)

a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

implementation

the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives

evaluation

gauging the extent to which the marketing objectives have been achieved during the specified time period

control

provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

marketing audit

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization

Social Control

any means used to maintain behavioral norms and regulate conflict

behavioral norms

standards of proper or acceptable behavior. Several modes of social control are important to marketing

ethics

the moral principles or values that generally govern the conduct of an individual or a group

deontological theory

ethical theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma

utilitarian ethical theory

ethical theory that is founded on the ability to predict the consequences of an action

casuist ethical theory

ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes

moral relativism

a theory of time-and-place ethics; that is, the belief that ethical truths depend on the individuals and groups holding them

virtue

a character trait valued as being good

moral

the rules people develop as a result of cultural values and norms

code of ethics

a guideline to help marketing managers and other employees make better decisions

Foreign Corrupt Practices Act (FCPA)

a law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries

corporate social responsibility (CSR)

a business's concern for society's welfare

stakeholder theory

ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation

pyramid of corporate social responsibility

a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that a firm's economic performance supports the entire structure

sustainability

the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time

green marketing

the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment

green washing

Adding a minimal number of green product attributes in order to promote it as green

cause-related marketing

the cooperative marketing efforts between a for-profit firm and a nonprofit organization

target market

a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

component lifestyles

the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle

Demography

the study of people's vital statistics, such as age, race and ethnicity, and location

Generation Z

people born between 1997 and 2012

Millennials

people born between 1981 and 1996

Generation X

people born between 1965 and 1980

baby boomers

people born between 1946 and 1964

purchasing power

a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas

inflation

A general and progressive increase in prices

recession

a period of economic activity characterized by negative growth, which reduces demand for goods and services

basic research

pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon

applied research

research that attempts to develop new or improved products

Consumer Product Safety Commission (CPSC)

a federal agency established to protect the health and safety of consumers in and around their homes

Food and Drug Administration (FDA)

a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products

Federal Trade Commission (FTC)

a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce

global marketing

marketing that targets markets throughout the world

global vision

recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets

absolute advantage

when a country can produce a product or service at a lower cost than any other country or when it is the only country that can provide the product or service

principle of comparative advantage

each country should specialize in the products or services that it can produce most readily and cheaply and trade those products or services for goods and services that foreign countries can produce most readily and cheaply

free trade

policy of permitting individuals and businesses in a country to buy and sell in other countries without restrictions

protectionism

where a nation protects its home industries from foreign competitors by establishing artificial barriers, such as tariffs and quotas

gross domestic product

the total market value of all final goods and services produced in a country for a given time period

outsourcing

sending U.S. jobs abroad

inshoring

returning production jobs to the United States

multinational corporation

a company that is heavily engaged in international trade, beyond exporting and importing

capital intensive

using more capital than labor in the production process

global marketing standardization

production of uniform products that can be sold the same way all over the world

multi domestic strategy

when multinational firms enable individual subsidiaries to compete independently in domestic markets

balance of trade

the difference between a country's total exports and total imports

balance of payments

the difference between the flow of money into and out of a country

mercosur

The largest latin american trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay

World Trade Organization (WTO)

a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)

Uruguay Round

a trade agreement to dramatically lower trade barriers worldwide; created the World Trade Organization

foreign direct investment

Investment made by a foreign company in the economy of another country.

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

a trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States

European Union (EU)

(syn Common Market) an economic association established in 1957 by a number of Western European countries to promote free trade among its members

World Bank

A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation. Its formal name is the International Bank for Reconstruction and Development.