CSUF MKTG 351 Exam 1 Kim

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

exchange

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

production orientation

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

sales orientation

the ideas 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 organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives

market orientation

a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept

societal marketing orientation

the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests

customer satisfaction

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

customer value

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

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

sales orientation

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

customer relationship management (CRM)

a companywide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups

on-demand marketing

on-demand marketing delivers relevant experiences throughout the consumer's decision and buying process that integrated across both physical and virtual enviornemtns

strategic planning

the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities

strategic business unit (SBU)

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

Ansoff's Opportunity matrix

matches products and markets

market penetration (Ansoff's Opportunity matrix)

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

market development (Ansoff's Opportunity matrix)

a marketing strategy that entails attracting new customers to existing products

product development (Ansoff's Opportunity matrix)

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

diversification (Ansoff's Opportunity matrix)

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 (portfolio matrix)

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

cash cow (portfolio matrix)

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

problem child (question mark) (portfolio matrix)

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

dog (portfolio matrix)

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

Build (portfolio matrix)

If firm has item that has to potential a star then firm will decide to give up short term profits and use it financial resources to achieve this goal ( Ex. Apple postponed iPad for work on iPhone)

Hold (portfolio matrix)

if SBU is very successful cash cow, a key goal would surely be to hold or preserve market share so that the org can take advantage of the very positive cash cow

Harvest (portfolio matrix)

to increase the short term cash return without too much concern for the long run impact

Divest (portfolio matrix)

getting rid of SBUs with low shares of low growth markets is often appropriate

marketing plan

a written document that acts as a guidebook of marketing activities for the marketing manager

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)

environmental 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

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

experience curves

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

marketing objective

a statement of what is to be accomplished through marketing activities

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

marketing mix

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

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

Millennials (Generation Y)

people born between 1979 and 1994

Generation X

people born between 1965 and 1978

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 measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year

recession

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

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

Consumer privacy (WIKI)

laws and regulations seek to protect any individual from loss of privacy due to failures or limitations of corporate customer privacy measures.

consumer decision-making process

a five-step process used by consumers when buying goods or services

need recognition

result of an imbalance between actual and desired states

want

recognition of an unfulfilled need and a product that will satisfy it

stimulus

any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing

internal information search

the process of recalling past information stored in the memory

external information search

the process of seeking information in the outside environment

nonmarketing-controlled information source

a product information source that is not associated with advertising or promotion

marketing-controlled information source

a product information source that originates with marketers promoting the product

evoked set (consideration set)

a group of brands, resulting from an information search, from which a buyer can choose

cognitive dissonance

inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

involvement

the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer

routine response behavior

the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time

limited decision making

the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category

extensive decision making

the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information

Showrooming

the practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item.

culture

the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next

value

the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct

subculture

a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group

social class

a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms

reference group

all of the formal and informal groups in society that influence an individual's purchasing behavior

primary membership group

a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers

secondary membership group

a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group

aspirational reference group

a group that someone would like to join

norm

a value or attitude deemed acceptable by a group

nonaspirational reference group

a group with which an individual does not want to associate

opinion leader

an individual who influences the opinions of others

perception

the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture

selective exposure

the process whereby a consumer notices certain stimuli and ignores others

selective distortion

a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs

selective retention

a process whereby a consumer remembers only that information that supports his or her personal beliefs

Maslow's hierarchy of needs

a method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization

convenience product

a relatively inexpensive item that merits little shopping effort

shopping product

a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores

specialty product

a particular item for which consumers search extensively and are very reluctant to accept substitutes

unsought product

a product unknown to the potential buyer or a known product that the buyer does not actively seek

product mix width

the number of product lines an organization offers

product line

a group of closely related product items

product mix

all products that an organization sells

product line depth

the number of product items in a product line

product modification

changing one or more of a product's characteristics

planned obsolescence

the practice of modifying products so those that have already been sold become obsolete before they actually need replacement