Marketing Fundamentals: Key Concepts and Strategies in Business

Marketing

Process of exploring, developing, and delivering value to satisfy the needs of a target market

Customers

The purchasers of organizations' products and the focal point of all marketing activities

Target Market

Specific group of customers on whom an organization focuses its marketing efforts

Marketing Mix

Firm controls to meet needs of customers within target market

Price, Place, Product, Promotion

People, Process, Physical Evidence

Product

A good, service, or idea

Value

Customer's subjective assessment of benefits relative to costs in determining the worth of a product

Exchanges

Provision or transfer of goods, services, or ideas in return for something of value

Stakeholders

Constituents who have a "stake" or claim in

products, operations, markets, industry, and outcomes

Marketing Environment

Presentation 7 topics that surround the customer and affect the marketing mix

Marketing Concept

Managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals

Market Orientation

Organization-wide commitment to researching and responding to customer needs

Customer Relationship Management

Using information about customers to create marketing strategies that develop and sustain rewarding customer relationships

Relationship Marketing

Establishing long-term, mutually satisfying buyer-seller relationships

Green Marketing

Stakeholder assessment to create meaningful, long-term relationships with customers while maintaining, supporting, and enhancing the natural environment

Certified B Corporation

Designation give to for profit companies that have achieved private certifications regarding their social and environmental performance/causes

Strategic Marketing Management

Process of planning, implementing, and evaluating the performance of marketing activities both effectively and efficiently

Strategic Planning

Defines a company's vision for the future and identifies its organizational objectives

Mission Statement

Concise explanation of an organization's reasons for being

Corporate Strategy

Long-term plan designed to help the firm gain a competitive advantage in the marketplace while creating customer value

Strategic Business Unit (SBU)

A division, product line, or other profit center within a parent company

Market

A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products

Market Share

Percentage of a market that actually buys a specific product from a particular company

Market Growth/Share Matrix

Helpful business tool, philosophy that market growth rate + share are important considerations in determining its marketing strategy

Core Competencies

Activities that differentiate an organization from its competition and that create a company's competitive advantage in the marketplace

Market Opportunity

A combination of circumstances and timing that permits an organization to take action to reach a particular target market

Strategic Windows

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

Competitive Advantage

The result of a company matching a core competency to opportunities it has discovered in the marketplace

SWOT Analysis

Assessment of an organization's strengths, weaknesses, opportunities, and threats

First-Mover Advantage

The ability of a company to achieve long-term competitive advantages by being the first to offer an innovative product in the marketplace

Late-Mover Advantage

The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace

Marketing Objective

Statement of what is to be accomplish through marketing activities

Marketing Strategy

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market

Sustainable Competitive Advantage

An advantage that the competition cannot copy

Marketing Implementation

The process of putting marketing strategies into action

Centralized Organization

A structure in which top-level managers delegate little authority to lower levels

Decentralized Organization

A structure in which decision-making authority is delegated as far down the chain of command as possible

Strategic Performance Evaluation

Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy if needed

Performance Standard

An expected level of performance against which actual performance can be compared

Sales Analysis

Analysis of sales figures to evaluate a firm's performance

Marketing Cost Analysis

Analysis of costs to determine which are associated with specific marketing efforts

Marketing Plan

A written document that specifies the activities to be performed to implement and control the organization's marketing strategies

Environmental Scanning

The process of collecting information about forces in the marketing environment

Environmental Analysis

The process of assessing and interpreting information gathered through environmental scanning

Competition

Other firms that market products that are similar to or can be substituted for a firm's products in the same geographic area

Product + Brand Competitors

Firms compete in same product class but market it differently

Products similar features/benefits to same consumer at similar prices

Generic Competitors

Firms that provide very different products that solve the same problem or satisfy the same basic customer need

Total Budget Competitors

Firms that compete for the limited financial resources of the same customers

Buying Power

The amount of resources, such as money + goods + services that are available to make purchases

Disposable Income

After-tax income

Discretionary income

Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter

Willingness to Spend

An inclination to buy because of expected satisfaction from a product, influenced by buying power and numerous psychological and social influences

Business Cycle

A pattern of economic fluctuation that has four stages: expansion, recession, depression, and recovery

Federal Trade Commission (FTC)

An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling

Better Business Bureau (BBB)

Nongovernmental regulatory agency

National Advertising Review Board (NARB)

Self-regulatory unit of BBB that considers challenges to issues raised by the National Advertising Division about an advertisement

Technology

Application of knowledge and tools to solve problems and perform tasks more efficiently

Sociocultural Forces

The influences in a society and culture that change people's attitudes, beliefs, norms, customs, and lifestyles

Social Responsibility

An organization's obligation to maximize its positive impact and minimize its negative impact on society

Marketing Citizenship

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders

Ethical Issue

A situation that occurs as a result of a moral conflict that must be addressed

Cause-related Marketing

The practice of linking products to a particular social cause on an ongoing or short-term basis

Strategic Philanthropy Approach

the synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits

Consumerism

Organized efforts by individuals, groups, and organizations to protect consumers' rights

Code of Conduct

Formalized rules and standards that describe what a company expects of its employees

Marketing Research

Process of developing, collecting, analyzing, and reporting insights that may be used to solve a specific marketing problem

Exploratory Research

Unstructured, informal research that is undertaken to gain background information about the general nature of the research problem

Social Listening

Monitoring social media for conversations and trends related to your brand

Customer Advisory Boards

Small groups of actual customers who serve as sounding boards for new product ideas and offer insights into their feelings and attitudes toward a firm's products and other elements of its marketing strategy

Focus Group

Small group of 8 - 12 peple who are brought together to participate in open discussion for research purposes

Conclusive Research

Research designed to verify insights through objective procedure and to help marketers in making decisions

Descriptive Research

Research conducted to clarify the characteristics of certain phenomena to solve a particular problem

Experimental Research

Research that allows marketers to make casual inferences about relationships between variables

Research Design

The research blueprints that specifies the methods that will be used to collect and analyze information needed for the study

Hypothesis

An informed guess or assumption about a certain problem or a certain set of circumstances

Reliability

A condition that exists when a research technique produces almost identical results in repeated trials

Validity

Condition that exists when a research method measures what it is supposed to measure

Population

Entire group under investigation as defined by research objectives

Sample

Subset of population

Sampling

Process of selecting representative units from a total population

Sample Unit

The basic level of investigation

Probability Sampling

A type of sampling in which every element in the population being studied has a known chance of being selected for study

Random Sampling

Probability which all units in a population have an equal chance of appearing in the sample and various events have equal chance of taking place

Stratified Sampling

Probability which population is separated into different subgroups and then samples are drawn from each of the subgroups

Nonprobability Sampling

No way to calculate the likelihood that a specific element of the population being studied will be chosen

Quota Sampling

Researches rely on relevant characteristics to define the makeup of the sample

Sampling Error

Error in survey that occurs because a sample is being used

Mail Survey

Research method in which respondents answer a questionnaire sent through the mail

Telephone Survey

Research method in which respondents answers to a questionnaire are recorded by an interviewer on the phone

Telephone Depth Interview

Interview that combines the traditional focus group's ability to probe with the confidentiality provided by telephone surveys.

Personal Interview Survey

A research method in which participants respond to survey questions face-to-face

In-Home (Door-door) Interview

A personal interview that takes place in the respondent's home

Shopping Center Intercept Interview

A research method that involves interviewing a percentage of individuals passing by "intercept" points in a shopping center

On-site Computer Interview

A variation of the shopping center intercept interview in which respondents complete a self-administered questionnaire displayed on a computer monitor

Digital Survey

A research method in which respondents answer a questionnaire via email or on a website

Crowdsourcing

Combines the words crowd and outsourcing and calls for taking tasks usually performed by a marketer or researcher and outsourcing them to a crowd, or potential market, through an open call

Statistical Interpretation

analysis of what is typical and what deviates from the average

Marketing Analytics

The use of databases, big data, and measurement methods enabled by technology to interpret the effectiveness of a firm's marketing functions

Marketing Decision Support System (MDSS)

Customized computer software that aids marketing managers in decision making

Marketing Information Systems (MIS)

Framework for managing and structuring information gathered regularly from sources inside and outside an organization

Consumer Market

A group of customers who buy products and services for their own personal use or for sharing with others, rather than for business or commercial purposes