MKTG 3161 Midterm Review

Marketing

The process for creating, communicating, and delivering value to customers

Utility

The power of a good or service to satisfy the wants of customers

Target Market

The segment of consumers most likely to purchase a particular item

Marketing Mix

Product, price, distribution, and promotion

Product

Refers to a good, service, or idea

Price Strategy

The method of setting profitable and justifiable prices

Distribution

Decision involving modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels

Promotion

Broadly defined as communication to a firm's buyers about their products

Production Orientation

Manufacturers stressed production of quality products and then looked for people to purchase them

Sales Orientation

A belief that creative advertising and personal selling will persuade consumers to buy

Seller's Market

Where there are more buyers for fewer products

Buyer's Market

When there are more products than people willing to buy them

Consumer Orientation

Where the focus is on satisfying the needs and wants of consumers rather than simply producing and selling products

Marketing Concept

Companywide consumer orientation with the objective of achieving long-term success

Transaction-Based Marketing

Traditional view of marketing as a simple exchange process

Relationship Marketing

Refers to the development, growth, and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit

Mobile Marketing

Marketing messages sent to wireless devices, such as phones and tablets

Social Marketing

The use of online social media as a communications channel for marketing messages

Product Marketing

Involves efforts designed to communicate the benefits of a good or service

Person Marketing

Efforts designed to cultivate the attention and preference of a target market toward a person

Place Marketing

Efforts designed to attract visitors to a particular area; improve consumer images of a city, state, or nation; and/or attract new business

Cause Marketing

Identification and marketing of a social issue, cause, or idea to selected target markets

Event Marketing

Marketing of sporting, cultural, and charitable activities to selected target markets

Organization Marketing

Marketing efforts of mutual-benefit organizations, service organizations, and government organizations that seek to influence others to accept their goals, receive their services, or contribute to them in some way

Planning

The overall process of anticipating conditions and determining the best way to achieve organizational objectives

Marketing Planning

The process devoted specifically to achieving marketing objectives

Strategic Planning

The process of determining an organization's long-term primary objectives and adopting courses of action that will achieve these objectives

Tactical Planning

Defines how activities specified in the strategic plan will be implemented

Operational Planning

Where managers develop specific programs to meet goals in their area of responsibility

Marketing Plan

A written plan that outlines the strategic marketing goals of an organization

Mission

Essential purpose that differentiates one company from others

Porter's Five Forces

Five competitive forces that influence planning strategies

SWOT Analysis

An important strategic planning tool that helps managers analyze the internal and external environment to asses strengths, weaknesses, opportunities, and threats

Strategic Business Units (SBUs)

Key business units within diversified firms

Boston Consulting Group (BCG) Matrix

A portfolio analysis framework that enables managers to plot the relative position of each business unit, brand, or product on the basis of industry growth rate and relative market share

Competitive Environment

Where marketers of directly competitive products and marketers of substitute products compete for consumer purchases

Competitive Strategy

An effective strategy for dealing with the competitive environment

Political-Legal Environment

The component of the marketing environment consisting of laws and regulations to maintain competitive conditions and protect consumer rights

Antitrust

Laws help maintain a competitive business environment by preventing the concentration of industry power in the hands of a small number of competitors

Economic Environment

Consists of factors that influence consumer buying power and marketing strategies

Gross Domestic Product (GDP)

The sum of all goods and services produced by a nation in a year

Inflation

Rising prices caused by some combination of excess demand and the increasing cost of raw materials, labor, and/or other factors of production

Unemployment

The proportion of people in the economy who are actively seeking work but do not have jobs

Discretionary Income

The amount of money people have to spend after buying necessities such as food, clothing, and housing

Technological Environment

The application of knowledge based on discoveries in science, inventions, and innovations

Social-Cultural Environment

The relationship between marketing, society, and culture

Consumerism

A social force within the environment that aids and protects the consumer by exerting legal, moral, and economic pressures on business and government

Marketing Ethics

The marketer's standards of conduct and values

Social Responsibility

Accepting an obligation to give equal weight to profits, consumer satisfaction, and social well-being in evaluating a firm's performance

E-Business

Using the internet to provide services to customers and communicate with employees and business partners

E-Commerce

The buying and selling of products online

Digital Marketing

The process of marketing goods and services over the internet by utilizing digial tools

Interactive Marketing

Delivering more relevant marketing messages to customers based on event triggers

Business-To-Business (B2B)

Transactions that happen between organizations

Extranets

Secure networks used for e-business and accessible through the firm's website by external customers, suppliers, or other authorized users

Intranets

Secure internal networks that help companies share information among employees, no matter the number or location

Private Exchange

A secure website where a company and its suppliers share all types of data, from product design though order delivery

Business-To-Consumer (B2C)

Business conducted directly between a business and a consumer

Encryption

The process of encoding data for security purposes

Phishing

A high-tech scam that uses email or pop-up messages that claim to be from familiar businesses or even government agencies

Channel Conflicts

Conflicts between producers, wholesalers, and retailers

User Experience (UX)

The overall experience customers have when visiting a website

Revenue Maximization

Website strategies designed to increase the size of each customer transaction and encourage repeat visits by the customer

Unique Visitors

The number of individuals who visit a website

Engagement

How much time users spend on the site and which pages they visit

Conversion Rate

The percentage of visitors to a website who make a purchase (# of purchases/# of visitors to a site)

Click-Through-Rate

The percentage of users who click on an ad (ad clicks/ad impressions)

Conversion Cost

The total cost of each sale (cost-per-click/conversion rate)

Social Media

Different forms of online communication through which users can create communities to exchange information, ideas, messages, and other content

Social Media Platforms

The home base for an online community

Social Networking Sites

Websites or apps that provide virtual communities for people to share daily activities, send messages, post opinions, increase their online circle of friends, and more

Book Marking Sites

Gives users a place to save, organize, and manage links to websites and other resources on the internet

Blogs

Sites that regularily post articles and other content

Social Media Marketing (SMM)

Developing a conversation with current and potential customers on social media platforms

Influencers

People who affect the buying decision by supplying information to guide the evaluation of alternatives, or by establishing buying specifications

Content Marketing

Creating and distributing relevant and targeted material to attract and engage an audience, with the goal of driving them to a desired action

Consumer Behavior

The process through which the ultimate buyer or household consumer makes purchase decisions

Social Factors

External influences, such as culture, social class, refrence groups, family and opinion leaders

Psychological Factors

Factors internal to the individual

Situational Factors

External factors related to the particular circumstances under which a purchase is made

Evoked Set

The collection of alternatives a consumer considers when making a decision

Congitive Dissonance

Imbalance among knowledge, beliefs, and attitudes that occurs after an action or decision, such as a purchase

Involvement

The degree of interest an individual has in the product, as well as how important that product is to them

Routinized Response Behavior

Behavior that occurs for low-involvement products that consumers purchase on a frequent basis

Limited Problem Solving

Behavior that occurs for purchases that consumers make less frequently and when their knowledge or experience is limited

Extended Problem Solving

The most complex decision style and occurs for high-involvement products where financial and/or social risk is high

Culture

The values, beliefs, preferences, and tastes handed down from one generation to the next

Subcultures

Groups with their own distinct modes of behavior

Social Class

Based upon an individual's occupation, education, income, wealth, and possessions

Reference Groups

People or institutions whose opinions are valued and to whom a person looks for guidance in his or her own behaviors, values, and conduct

Opinion Leaders

Trendsetters who purchase new products before others in a group, and then influence others in their purchases

Need

An imbalance between the consumer's actual and desired states

Motives

Inner states that direct a person toward the goal of satisfying a need

Perception

The meaning a person attributes to incoming stimuli gathered through the 5 senses- sight, hearing, touch, taste, and smell

Attitudes

A person's enduring favorable or unfavorable evaluations, emotions, or tendencies toward some object or idea

Learning

Immediate or expected changes in consumer behavior as a result of experience

Self-Concept

A person's view of themself

Real Self

Objective view of the total person

Self-Image

An individual's view of themselves

Looking-Glass Self

An individual's view of how other people percieve them