MKTG 14: Principles of Marketing Review

Vocabulary practice flashcards covering fundamental concepts, theories, frameworks, and legislation across Chapters 1, 2, 3, 4, 6, and 10 of MKTG 14.

Corporate Social Responsibility (CSR)

A business’s concern for society’s welfare.

Stakeholder Theory

An ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation.

Pyramid of Corporate Social Responsibility

A model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that a firm’s economic performance supports the entire structure.

Sustainability

The idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time.

Green Marketing

The development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment.

Greenwashing

Adding a minimal number of green product attributes to promote a product as green.

Cause-Related Marketing

The cooperative marketing efforts between a for-profit firm and a nonprofit organization, wherein the for-profit firm hopes to generate extra sales and the nonprofit firm hopes to receive money, goods, and/or services.

Brand

A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.

Brand Name

That part of a brand that can be spoken, including letters, words, and numbers.

Brand Mark

The elements of a brand that cannot be spoken.

Brand Equity

The value of a company or brand name.

Global Brand

A brand that obtains at least one-third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data.

Brand Loyalty

Consistent preference for one brand over all others.

Manufacturers’ Brand

The brand name of a manufacturer.

Private Brand

A brand name owned by a wholesaler or a retailer.

Captive Brand

A brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation.

Co-Branding

Placing two or more brand names on a product or its package.

Trademark

The exclusive right to use a brand or part of a brand.

Generic Product Name

Identifies a product by class or type and cannot be trademarked.

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.

Exchange

People giving up something in order to receive something else they would rather have.

Production Orientation

A philosophy that focuses on the firm’s internal capabilities rather than on the desires and needs of the marketplace.

Sales Orientation

The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.

Marketing Concept

The idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives.

Market Orientation

A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; it is synonymous with the marketing concept.

Societal Marketing Orientation

The idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests.

Customer Value

The relationship between benefits and the sacrifice necessary to obtain those benefits.

Customer Satisfaction

Customers’ evaluation of a good or service in terms of whether it has met their needs and expectations.

Relationship Marketing

A strategy that focuses on keeping and improving relationships with current customers.

Empowerment

Delegation of authority to solve customers’ problems quickly—usually by the first person the customer notifies regarding a problem.

Teamwork

Collaborative efforts of people to accomplish common objectives.

Customer Relationship Management (CRM)

A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.

Big Data

The discovery, interpretation, and communication of meaningful patterns in data.

On-Demand Marketing

Delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process.

Consumer Behavior

Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use.

Perceived Value

The value a consumer expects to obtain from a purchase.

Consumer Decision-Making Process

A five-step process consumers use when buying goods or services: need recognition, information search, evaluation of alternatives, purchase, and postpurchase behavior.

Need Recognition

Result of an imbalance between actual and desired states.

Want

Recognition of an unfulfilled need and a product that will satisfy it.

Stimulus

Any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing.

Internal Information Search

The process of recalling information stored in the memory.

External Information Search

The process of seeking information in the outside environment.

Evoked Set (Consideration Set)

A group of brands resulting from an information search from which a buyer can choose.

Nudge

A small intervention that can change a person’s behavior.

Cognitive Dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

Culture

The set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

Subculture

A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group.

Social Class

A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms.

Reference Group

All of the formal and informal groups in society that influence an individual’s purchasing behavior.

Primary Membership Group

A reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers.

Secondary Membership Group

A reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group.

Aspirational Reference Group

A group that someone would like to join.

Nonaspirational Reference Group

A group with which an individual does not want to associate.

Norm

A value or attitude deemed acceptable by a group.

Opinion Leader

An individual who influences the opinions of others.

Personality

A way of organizing and grouping the consistencies of an individual’s reactions to situations.

Self-Concept

How consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations.

Perception

The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.

Selective Exposure

A process whereby a consumer notices certain stimuli and ignores others.

Selective Distortion

A process whereby a consumer changes or distorts information that conflicts with their feelings or beliefs.

Selective Retention

A process whereby a consumer remembers only that information that supports their personal beliefs.

Motive

A driving force that causes a person to take action to satisfy specific needs.

Maslow’s Hierarchy of Needs

A method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization.

Learning

A process that creates changes in behavior, immediate or expected, through experience and practice.

Social Control

Any means used to maintain behavioral norms and regulate conflict.

Behavioral Norms

Standards of proper or acceptable behavior.

Ethics

The moral principles or values that generally govern the conduct of an individual or a group.

Morals

The rules people develop as a result of cultural values and norms.

Code of Ethics

A guideline to help marketing managers and other employees make better decisions.

Target Market

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.

Environmental Scanning

The continual collection and evaluation of environmental information to identify market opportunities and threats.

Demography

The study of people’s vital statistics, such as age, race, gender, and location.

Purchasing Power

A comparison of income versus the relative cost of a standard set of goods and services in different geographic areas.

Inflation

A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.

Recession

A period of economic activity characterized by negative growth, which reduces demand for goods and services, precisely defined as occurring when gross domestic product (GDP) falls for two consecutive quarters.

Basic Research

Pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon.

Applied Research

Research that attempts to develop new or improved products.

Consumer Product Safety Commission (CPSC)

A federal agency established to protect the health and safety of consumers in and around their homes.

Food and Drug Administration (FDA)

A federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products.

Federal Trade Commission (FTC)

A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce.

Environmentalism

A concern about, and action aimed at, protecting the environment.

Sherman Antitrust Act of 1890

Federal legislation that makes trusts and conspiracies in restraint of trade illegal, and makes monopolies and attempts to monopolize illegal.

Clayton Act of 1914

Federal legislation that outlaws discrimination in prices to different buyers, prohibits tying contracts, and makes illegal the combining of two or more competing corporations by pooling ownership of stock.

Robinson-Patman Act of 1936

Federal legislation that prohibits charging different prices to different buyers of merchandise of like grade and quantity, and requires sellers to make any supplementary services or allowances available to all purchasers on a proportionately equal basis.

Strategic Planning

The managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.

Strategic Business Unit (SBU)

A subgroup of a single business or collection of related businesses within the larger organization.

Market Penetration

A marketing strategy that tries to increase market share among existing customers.

Market Development

A marketing strategy that entails attracting new customers to existing products.

Product Development

A marketing strategy that entails the creation of new products for present markets.

Diversification

A strategy of increasing sales by introducing new products into new markets.

Marketing Planning

Designing activities relating to marketing objectives and the changing marketing environment.

Marketing Plan

A written document that acts as a guidebook of marketing activities for the marketing manager.

Mission Statement

A statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.

Marketing Myopia

Defining a business in terms of goods and services rather than in terms of the benefits customers seek.

SWOT Analysis

Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T).

Competitive Advantage

A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition.

Cost Competitive Advantage

Being the low-cost competitor in an industry while maintaining satisfactory profit margins.

Experience Curves

Curves that show costs declining at a predictable rate as experience with a product increases.

Product/Service Differentiation Competitive Advantage

The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.

Niche Competitive Advantage

The advantage achieved when a firm seeks to target and effectively serve a small segment of the market.