mkrg exam 1

Marketing

The process of creating, pricing, distributing, and promoting goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

Marketing Mix

Four marketing variables—product, price, distribution, and promotion— that a firm controls to meet the needs of customers within its target market

customers

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

target market

A specific group of customers on whom an organization focuses its marketing efforts

product

A good, a service, or an idea

value

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

exchanges

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

stakeholders

Constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes

marketing environment

The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix

Marketing Concept

A 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

An organization wide commitment to researching and responding to customer needs

customer relationship management (CRM)

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

relationship marketing

Establishing long-term, mutually satisfying buyer-seller relationships

green marketing

A strategic process involving stakeholder assessment to create meaningful, long-term relationships with customers while maintaining, supporting, and enhancing the natural environment

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

brand competitors

Firms that market products with similar features and benefits to the same customers at similar prices

product competitors

Firms that compete in the same product class but market products with different features, benefits, and 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

monopoly

A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply

oligopoly

A competitive structure in which a few sellers control the supply of a large proportion of a product

monopolistic competition

A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product

pure competition

A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply

buying power

Resources—such as money, goods, and services—that can be traded in an exchange

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 the ability to buy and numerous psychological and social forces

business cycle

A pattern of economic fluctuations that has four stages: prosperity, 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)

A local, nongovernmental regulatory agency, supported by local businesses, that helps settle problems between customers and specific business firms

National Advertising Review Board (NARB)

A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement

technology

The application of knowledge and tools to solve problems and perform tasks more efficiently

sociocultural forces

The influences in a society and its culture(s) 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

An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical

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

codes of conduct

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

marketing research

The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

exploratory research

Research conducted to gather more information about a problem or to make a tentative hypothesis more specific

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

A small group of 8 to 12 people who are brought together to participate in an interview that is often conducted informally, without a structured questionnaire, to observe interaction when members are exposed to an idea or a concept

conclusive research

Research designed to verify insights through objective procedures 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 causal inferences about relationships between variables

research design

An overall plan for obtaining the information needed to address a research problem or issue

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

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

primary data

Data observed and recorded or collected directly from respondents

secondary data

Data compiled both inside and outside the organization for some purpose other than the current investigation

population

All the elements, units, or individuals of interest to researchers for a specific study

sample

A limited number of units chosen to represent the characteristics of a total population

sampling

The process of selecting representative units from a total population

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

A form of probability sampling in which all units in a population have an equal chance of appearing in the sample, and the various events that can occur have an equal or known chance of taking place

stratified sampling

A type of probability sampling in which the population is divided into groups with a common attribute, and a random sample is chosen within each group

nonprobability sampling

A sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen

quota sampling

A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group

mail survey

A research method in which respondents answer a questionnaire sent through the mail

telephone survey

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

telephone depth interview

An 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-to-door) interview

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

shopping mall intercept interview

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

on-site computer interview

A variation of the shopping mall intercept interview in which respondents complete a selfadministered questionnaire displayed on a computer monitor

online 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

big data

Involves massive structured and unstructured data sources that can be used by marketers to discover unique insights and make strategic decisions

data silo

A file of fixed data that is in one department isolated from the rest of the organization

database

A collection of information arranged for easy access and retrieval

single-source data

Information provided by a single marketing research firm

marketing decision support system (MDSS)

Customized computer software that aids marketing managers in decision making

marketing information system (MIS)

A framework for managing and structuring information gathered regularly from sources inside and outside the organization