UF MAR3023 Exam 1

Exchange

Trade of things of value between buyer and seller so that each is better off after the trade.

Marketing

Activity of creating, communicating, delivering and exchanging offerings that benefit the organization, its stakeholders, and society at large.

Environmental Forces

Uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

Market

People with the ability and desire to buy a specific offering.

Marketing Mix

Factors that the marketing manager can control, such as price, product, promotion, and place, that can be used to solve a marketing problem.

Target Market

Specific group(s) of potential consumers toward which an organization directs its marketing program.

Customer Value

Unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and before/after-sale service at specific price.

Marketing Program

Plan that integrates the marketing mix to provide goods, services, or ideas to prospective buyers.

Relationship Marketing

Links organization to its individual customers, employees, suppliers and other partners for mutual long-term benefits.

Customer Relationship Management (CRM)

Process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

Market Orientation

Organization that focuses its efforts on:

1. Continuously collecting information about customer's needs

2. Sharing this info across all departments

3. Using info to create customer value

(Organization wide)

Marketing Concept

Idea that organization should strive to satisfy needs of customers while trying to achieve the organization's goals.

Customer Experience

Internal response that customers have to all aspects of an organization and its offering.

Societal Marketing Concept

View that organizations should satisfy the needs of consumers in a way that provides for society's well-being.

Organizational Buyers

Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for own use or resale.

Ultimate Consumers

People who use goods and services purchased for a household (AKA consumers, buyers, customers)

Utility

Benefits or customer value received by users of the product

Environment Scanning

Process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

Demographics

Describing population according to selected characteristics such as age, gender, ethnicity, income, and occupation

Social Forces

Demographic characteristics of the population and its values.

Baby Boomers

Generation born between 1946 & 1964

Generation X

15% of population; born between 1965 & 1976. Also called "the baby bust".

Blended Family

Family formed by merging two preciously separated units into a single household.

Generation Y

72 million Americans; born between 1977 & 1994. Also called echo-boom or the baby boomlet.

Multicultural Marketing

Combinations of marketing mix that reflect the unique attitudes, ancestry, communication preferences and lifestyles of different races.

Culture

Set values, ideals, attitudes that are learned and shared among the members of a group.

Value Consciousness

Concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior.

Economy

Income, expenditures, and resources that affect the cost of running a business and a household.

Disposable Income

Money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.

Gross Income

Amount of money made in one year by a person, household or family unit. Census Bureau calls it "money income".

Discretionary Income

Money that remains after paying for taxes and necessities.

Technology

Inventions & innovations from applied science or engineering research.

Competition

Alternative firms that could provide a product to satisfy a specific market's needs.

Electronic Commerce

Any activity that uses a form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services.

Marketspace

Innovation- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings.

Barriers to Entry

Business practices or conditions that make it difficult for new firms to enter the market.

Regulation

Restrictions state/federal laws place on business with regard to conduct of its activities.

Consumerism

Grassroots movement started in the 1960s to increase the influence, power and rights of consumers in dealing with institutions.

Self-regulation

Alternative to government control where an industry attempts to police itself.

Consumer Behavior

Actions people take to purchase and use products and services, including the mental and social processes that come before and after these actions.

Purchase Decision Process

Five stages a buyer passes through in making choices about which products/services to buy. 1) Problem recognition 2) Information Search 3) Alternative Evaluation 4) Purchase Decision 5) Post-purchase behavior.

Consideration Set

Group of brands that consumers would consider acceptable from among all the brands in product class of which he or she is aware.

Evaluative Criteria

Factors representing the objective attributes of a brand and the subjective ones a customer uses to compare different products and brands.

Cognitive Dissonance

Feeling of post-purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.

Involvement

Personal, social, economic significance of the purchase to the consumer.

Situational influences

Five aspects of the purchase situation that impact the consumer's purchases decision process. 1) Purchase Task 2) Social Surroundings 3) Physical Surroundings 4) Temporal Effects 5) Antecedent States

Motivation

Force that stimulates behavior to satisfy a need.

Personality

Person's consistent behaviors or responses to recurring situations.

Self-concept

The way people see themselves and the way they believe other people see them.

Perception

Process by which individual selects, organizes, and interprets information to create a meaningful picture of the world.

Perceived Risk

Anxiety felt because the consumer cannot anticipate the outcome of a purchase but believes that there may be negative consequences.

Subliminal Perception

Seeing/hearing messages without being aware of them.

Brand Loyalty

Favorable attitude toward/consistent purchase of a single brand over time.

Learning

Behaviors that result from repeated experience and reasoning.

Attitude

Learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.

Beliefs

Consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.

Lifestyle

Mode of living, identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.

Opinion Leaders

Individuals who exert direct or indirect social influence over others.

Word of Mouth

Influencing people during conversations

Consumer Socialization

Process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers.

Family Life Cycle

Distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.

Reference Groups

People to whom an individual looks as a basis for self-apprasial or as a source of personal standards.

Social class

Relatively permanent, homogenous divisions in a society into which people sharing similar values, interests, and behavior can be grouped.

Subcultures

Subgroups within the larger or national culture with unique values, ideas, attitudes.

Business Marketing

Marketing of goods/services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others.

Organizational Buyers

Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their won use or for resale.

North American Industry Classification System (NAICS)

Provides common industry definitions for Canada, Mexico, United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA)

Derived Demand

Demand for industrial products and services is drives by or derived from demand for consumer products and services.

ISO 9000

Standards for registration and certification of a manufacturer's quality management and assurance system based on an on-site audit of practices and procedures developed by the International Standards Organization (ISO)

Organizational Buying Criteria

Objective attributes of the supplier's products and services and the capabilities of the supplier itself.

Supplier Development

Deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers.

Reciprocity

Industrial buying practice in which two organizations agree to purchase each other's products and services.

Supply Partnership

When a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of increasing the value of products and services delivered to the ultimate consumer.

Buying center

Group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to the purchase decision.

Buy classes

Consists of three types of organizational buying situations: straight re-buy, new buy, and modified re-buy.

Organizational buying behavior

Decision making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.

Make-buy decisions

An evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself.

Value analysis

Systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs.

Bidder's List

List of firms believed to be qualified to supply a given item.

E-Marketplace

Online trading communities that bring together buyers and supplier organizations to make possible the real tim exchange of information, money, products, and services. (Also called B2B exchange or e-hubs)

Reverse Auction

In an e-marketplace, it is an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.

Traditional Auction

In an e-marketplace, it is an online auction in which a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other.

Decision

Conscious choice from among two or more options

Marketing Research

Process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending auctions.

Measures of Success

Criteria or standards used in evaluating proposed solutions to the problem.

Constraints

In a decision, the restrictions placed on potential solutions to a problem

Data

Facts/figures related to the problem that are divided into two main parts: primary and secondary data.

Primary Data

Facts/figures that are newly collected for the project

Secondary Data

Facts/figures that have already been recorded before the project at hand.

Observation Data

Facts/figures obtained by watching, either mechanically or in person, how people actually behave.

Questionnaire Data

Facts/figures obtained by asking people about their attitudes, awareness, intentions, and behaviors

Data Mining

Extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patters and marketing actions.

Information technology

Involves operating computer networks that can store and process data

Sales Forecast

Total sales of a product that a firm expects to sell during a specified time period under specified environment conditions and its own marketing efforts. (AKA company forecast)

Marketing Segmentation

Involves aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action.

Market Segments

Relatively homogenous groups of prospective buyers that result from the market segmentation process.

Product differentiation

Marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products.

Usage Rate

Quantity consumed or patronage (store visits) during a specific period. AKA Frequency marketing

80/20 Rule

Concept that suggests 80% of a firm's sales are obtained from 20% of its customers

Market-Product Grid

Framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization