Marketing: Real People, Real Choices Exam 1

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.

need

the recognition of any difference between a consumer's actual state and some ideal or desired state.

utility

the usefulness or benefit that consumers receive from a product.

form utility

is the benefit marketing provides by transforming raw materials into finished products, as when a dress manufacturer combines silk, thread, and zippers to create a bridesmaids' gown

possession utility

is the benefit marketing provides by allowing the consumer to own, use, and enjoy the product. Ex: The bridal store provides access to a range of styles and colors that would not be available to a women outfitting a bridal party on her own

place utility

is the benefit marketing provides by making products available where customers want them. Ex: The most sophisticated evening gown sewn in New York's garment district is of little use to a bridesmaid in Kansas City if it isn't shipped to her in time.

value

the benefit a customer receives from buying a good or service.

world trade

the flow of goods and services among different countries-the value of all exports and imports of the world's nations

countertrade

a type of trade which goods are paid for with other items instead of with cash.

protectionism

a policy adopted by government to give domestic companies an advantage.

tariffs

taxes on imported goods

gross domestics product (GDP)

the total dollar value of goods and services produced by a nation within its borders in a year. It is the most common measure of economic health.

Gross National Product (GNP)

The value of all goods and services produced by a country's citizens or organizations, whether located within the country's borders or not.

discretionary income

the portion of income people have left over after paying for necessities such as housing, utilities, food, and clothing.

monopoly

a market situation in which one firm, the only supplier of a particular product, is able to control the price. quality, and supply of that product.

oligopoly

a market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers

monopolistic competition

a market structure in which many firms, each having slightly different products, offer unique consumer benefits.

federal trade commission act

enforces laws against deceptive advertising and product labeling regulations. Marketers must constantly keep abreast of changes in FTC regulations to avoid costly fines.

expropriation

when a domestic government seizes a foreign company's assets without any reimbursement.

strategic alliances

relationships developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in the target country.

marketing plan

a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy.

strategic planning

a managerial decision process that matches an organization's resources and capabilities to its market opportunities for the long-term and survival.

strategic business unit

Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors.

SWOT Analysis

An analysis of an organization's strengths and weaknesses and the opportunities and threats in its external environment.

BCG Growth-market share matrix

A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products.

Market Penetration Strategies

Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets.

Diversification Strategies

Growth strategies that emphasize both new products and new markets.

Marketing Information System

MIS- A process that first determines what information marketing managers need and then gathers, sorts, analyzes, stores, and distributes relevant and timely marketing information to system users.

secondary data

Data that have been collected for some purpose other than the problem at hand.

causal research

a technique that attempts to understand cause-and-effect relationships.

sampling

The process of selecting respondents for a study.

Big Data

a popular term to describe the exponential growth of data-both structured and unstructured- in massive amounts that are hard or impossible to process using traditional database technique

data mining

sophisticated analysis techniques to take advantage of the massive amount of transaction information now available.

marketing metrics

specific measures that help marketers watch the performance of their marketing campaigns, initiatives, and channels and, when appropriate, serve as a control mechanism

cost-per-order

the cost of gaining an order in terms of the marketing investment made to turn a website visitor into a customer who has chosen to make a transaction

customer relationship management

a systematic tracking of consumers' preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs

consumer behavior

The process involved when individuals or groups select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.

habitual decision making

unimportant decision making 153

extended problem solving

important decisions making 153

Heuristics

A mental rule of thumb that leads to a speedy decision by simplifying the process.

Motivation

An internal state that drives us to satisfy needs by activating goal-oriented behavior.

Lifestyle

The pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences.

Psychographics

The use of psychological, sociological, and anthropological factors to construct market segments.

Time Poverty

Consumers' belief that they are more pressed for time than ever before.

Subculture

A group within a society whose members share a distinctive set of beliefs, characteristics, or common experiences.

Perception

The process by which people select, organize, and interpret information from the outside world.

Business to business (B2B) markets

The group of customers that include manufacturers, wholesalers, retailers, and other organizations. -- (Also referred to as Organizational markets)

Inelastic Demand

Demand in which changes in price have little or no effect on the amount demanded.

Problem Recognition

The process that occurs whenever the consumer sees a significant difference between his current state of affairs and some desired or ideal state; this recognition initiates the decision-making process.

Gatekeeper

is the person who controls the flow of information to other members. ( the purchasing agent, who gathers information) .179

Information search

The process whereby a consumer searches for appropriate information to make a reasonable decision.

Extranet

A private, corporate computer network that links company departments, employees, and databases to suppliers and others outside the organization.

MERCOSUR

To eliminate trade barriers between members and create a common market. a trading block composed of Argentina, Brazil, Paraguay, Uruguay, and Venezuela, with associate members Bolivia, Chile, Colombia, Ecuador, and Peru; superceded in 2008 by the Union of South American Nations (Unasur or Unasul), by uniting with the Andean Community

North America Free Trade (NAFT)

A trade agreement between North America that reduce tariffs, eliminate trade barriers, create a common market, and increase trade/investment.