Marketing exam 2

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

marketing ethics

Principles and standards that define acceptable marketing conduct as determined by various stakeholders

cause-related marketing

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

strategic philanthropy

The synergistic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefit

sustainability

The potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies

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

organizational (corporate) culture

A set of values, beliefs, goals, norms, and rituals that members of an organization share

codes of conduct

Formalized rules and standards that describe what the company expects of its employee

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 set of circumstance

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 survey

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 self-administered questionnaire displayed on a computer monito

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 information system (MIS)

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

database

A collection of information arranged for easy access and retrieval

single-source data

Information provided by a single marketing research firm

big data

Massive data files that can be obtained from both structured and unstructured database

marketing analytics

The use of tools and methods to measure and interpret the effectiveness of a firm’s marketing activities

marketing decision support system (MDSS)

Customized computer software that aids marketing managers in decision making

consumer market

Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit

business market

Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations

undifferentiated targeting strategy

A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product

homogeneous market

A market in which a large proportion of customers have similar needs for a product

heterogeneous market

A market made up of individuals or organizations with diverse needs for products in a specific product class

market segmentation

The process of dividing a total market into groups consisting of people or organizations with relatively similar product needs in order to design a marketing mix that matches those needs

market segment

Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs

concentrated targeting strategy

A market segmentation strategy in which an organization targets a single market segment using one marketing mix

differentiated targeting strategy

A strategy in which an organization targets two or more segments by developing a marketing mix for each segment

segmentation variables

Characteristics of individuals, groups, or organizations used to divide a market into segment

market density

The number of potential customers within a unit of land area

geodemographic segmentation

A way of segmenting the market that clusters people by zip codes or neighborhood units based on lifestyle and demographic

micromarketing

A way of segmenting a market that focuses precise marketing efforts on very small geographic markets, such as communities or neighborhoods

benefit segmentation

 The division of a market according to benefits that consumers want from the product

market potential

The total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity 

company sales potential

The maximum percentage of a market that an individual firm within an industry can expect to obtain for a specific product

breakdown approach

Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it

buildup approach

Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considere

sales forecast 

The amount of a product a company expects to sell during a specific period at a specified level of marketing activity

executive judgment

A sales forecasting method based on the intuition of one or more executives

customer forecasting survey

A survey of customers regarding the types and quantities of products they intend to buy during a specific period

sales force forecasting survey

A survey of a firm's sales force regarding anticipated sales in their territories for a specified period

expert forecasting survey

Sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors

Delphi technique

A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecast

time series analysis

A forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analyses

trend analysis

An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sale

cycle analysis

An analysis of sales figures for a three- to fiveyear period to ascertain whether sales fluctuate in a consistent, periodic manner

seasonal analysis

 An analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sale

random factor analysis

An analysis attempting to attribute erratic sales variations to random, nonrecurring events

regression analysis

A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or per capita income

market test

Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts

buying behavior

The decision processes and actions of people involved in buying and using products

consumer buying behavior

The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes

consumer buying decision process

A five-stage purchase decision process that includes problem recognition, information search, evaluation of alternatives, purchase, and post purchase evaluation

internal search

An information search in which buyers search their memories for information about products that might solve their problem

external search

An information search in which buyers seek information from sources other than their memories

consideration set

A group of brands within a product category that a buyer views as alternatives for possible purchase

evaluative criteria

Objective and subjective product characteristics that are important to a buyer

cognitive dissonance

A buyer’s doubts shortly after a purchase about whether the decision was the right on

routinized response behavior

A consumer decision-making process used when buying frequently purchased, low-cost items that require very little search-and-decision effort

limited decision making

A consumer decision-making process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category

extended decision making

A consumer decision-making process employed when purchasing unfamiliar, expensive, or infrequently bought products

impulse buying

An unplanned buying behavior, involving no conscious planning, resulting from a powerful urge to buy something immediately

level of involvement

An individual’s degree of interest in a product and the importance of the product for that person

situational influences

Influences that result from circumstances, time, and location that affect the consumer buying decision process

psychological influences

Factors that in part determine people’s general behavior, thus influencing their behavior as consumers

perception

The process of selecting, organizing, and interpreting information inputs to produce meaning

information inputs

Sensations received through sight, taste, hearing, smell, and touch

selective exposure

The process by which some inputs are selected to reach awareness and others are not

selective distortion

An individual’s changing or twisting of information that is inconsistent with personal feelings or beliefs

selective retention

Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do no

motivation

Maslow’s hierarchy of needs

The five levels of needs that humans seek to satisfy, from most to least important

learning

Changes in an individual’s thought processes and behavior caused by information and experience