Marketing Management Key Terms

Vocabulary flashcards about marketing management.

Marketing Management

The art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.

Needs

States of felt deprivation.

Wants

The form human needs take as they are shaped by culture and individual personality.

Demands

Human wants that are backed by buying power.

Market Offerings

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

Marketing Myopia

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.

Segmentation

To identify and profile distinct groups of buyers who might prefer or require varying product and service mixes by examining demographic, psychographic, and behavioral differences among buyers.

Target Markets

The marketer decides which segments present the greatest opportunities.

Positioning

Develops a market offering that it positions in the minds of the target buyers as delivering some central benefit(s).

The Production Concept

A company orientation towards the marketplace, emphasizing efficient production and wide distribution.

The Product Concept

A company orientation towards the marketplace, focusing on continuous product improvements.

The Marketing Concept

A company orientation towards the marketplace that prioritizes identifying the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

The Societal Marketing Concept

A company orientation towards the marketplace that considers the long-term welfare of consumers and society.

Internal Marketing

Internally aligning departments and employees to deliver a unified brand message and customer experience

Socially Responsible Marketing

Addressing ethical, environmental, legal, and community concerns in marketing activities.

Integrated Marketing

Coordinating marketing activities across all departments and communications channels to deliver a consistent brand message.

Relationship Marketing

Building strong, profitable connections with customers, partners, and community members.

Marketing Mix

The set of marketing tools a firm uses to implement its marketing strategy, typically categorized as product, price, place, and promotion.

Customer Value

Defined as perceived benefits minus perceived sacrifice

Customer Satisfaction

Occurs when perceived performance matches or exceeds expectations.

The Value Chain

A tool for identifying ways to create more customer value by examining primary and support activities.

Market-Sensing Process

A process focused on gathering and interpreting market information to identify new opportunities.

New-Offering Realization Process

A process related to researching, developing, and launching new offerings.

Customer Acquisition Process

A process dedicated to attracting and winning new customers.

Customer Relationship Management Process

A process related to building deeper understanding, relationships, and offerings to individual customers.

Fulfillment Management Process

The process involved in receiving and approving orders, shipping goods on time, and collecting payment.

Core Competency

A skill or area of expertise that gives a company a competitive advantage and contributes to customer perceived value.

Marketing Plan

The central instrument for directing and coordinating the marketing effort.

Mission

A statement of an organization's purpose and direction.

Vision

A future-oriented declaration of an organization's purpose.

Market Penetration

A strategy for growth that focuses on increasing sales of existing products in existing markets.

Market Development

A strategy for growth that involves introducing existing products into new markets.

Product Development

A strategy for growth that focuses on developing new products for existing markets.

Diversification

A strategy for growth that involves entering new markets with new products.

SWOT Analysis

A strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture

The Marketing Environment

Includes the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.

Microenvironment

Consists of the actors close to the company that affect its ability to serve its customers—suppliers, distributors, competitors, and customers.

Macroenvironment

Consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and socio-cultural forces.

Demographics

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

Economic Environment

Factors that affect consumer purchasing power and spending patterns.

Sociocultural Environment

Forces that shape a society's basic values, perceptions, preferences, and behaviors.

Ecological and Physical Environment

Concerns about pollution, resource depletion, and environmental sustainability.

Political-Legal Environment

Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.

Technological Environment

New technologies create new markets and opportunities.

Marketing Research

The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Customer Insights

Fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships.

Syndicated-Service Research Firms

Firms that gather consumer and trade information, which they sell for a fee.

Custom Marketing Research Firms

Firms that are hired to carry out specific research projects, designing the study and reporting the findings.

Specialty-Line Marketing Research Firms

Firms that provide specialized research services, such as field interviewing.

Primary Data

Data freshly gathered for a specific purpose or for a specific research project.

Secondary Data

Data that were collected for another purpose and already exist somewhere.

Observational Research

A research approach involving observing relevant people, actions, and situations.

Ethnographic Research

A research approach that involves sending trained observers to watch and interact with consumers in their natural environments.

Survey Research

A research approach that involves gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.

Experimental Research

A research approach that involves selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.

Market Segmentation

Dividing a market into smaller segments with common needs, characteristics, or behaviors.

Geographic Segmentation

Dividing the market into different geographical units such as nations, regions, states, counties, cities, or neighborhoods.

Demographic Segmentation

Dividing the market based on variables such as age, gender, income, occupation, education, religion, ethnicity, and generation.

Psychographic Segmentation

Dividing a market into different segments based on social class, lifestyle, or personality characteristics.

Behavioral Segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Undifferentiated Marketing

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Differentiated Marketing

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Concentrated Marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.

Customized Marketing

Tailoring products and marketing programs to the needs and preferences of individual customers.

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Points of Difference (PODs)

Attributes/benefits that consumers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competitive brand

Points of Parity (POPs)

Attribute/benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands

Services

Any act or performance one party can offer to another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.

Intangibility

The service cannot be seen, tasted, felt, heard, or smelled before purchase.

Perishability

Services cannot be stored for later sale or use.

Variability

Quality of services may vary greatly, depending on who provides them and when, where, and how.

Inseparability

Services are produced and consumed at the same time and cannot be separated from their providers.

Extended Marketing Mix (7Ps)

Product, Price, Place, Promotion, People, Processes, and Physical Evidence.

Roles in the Consumer Buyer Decision-Making Process

A buyer, user, influencer, decider.

Positioning

The act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market

Business Market

Consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented or supplied to others.

Product Classifications

Convenience Products, Shopping Products, Specialty Products, Unsought Products.

Product Life Cycle (PLC)

Introduction, Growth, Maturity, Decline.

Brand

A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or a group of sellers and to differentiate them from those of competitors.

Price

Operates as a major determinant of buyer choice.

Price Elasticity of Demand

Price elasticity of demand is when a change in price leads to a change in quantity sold.

Incentives

Mostly short-term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade

Marketing Communications

The means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell.

The Promotion Mix

The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.

Social Networks

Means for consumers to share text, images, audio, and video information with each other and with companies, and vice versa.

Influencer Marketing

Product placement or endorsement on social media networks through an influencer.

Integrated Marketing Communications

A consistent and cohesive process of integrating all marketing communications practices to the relevant audience creating a cohesive message to clients about a service, a product or a brand.

Horizontal integration

coordinating all relevant marketing actions—including packaging, pricing, sales promotions, and distribution—with the communication campaign to achieve maximum customer impact

Vertical integration

Aligning the communication objectives with the higher-level goals that guide the company’s overarching marketing strategy.

Internal integration

Sharing the relevant information from different departments—including product development, market research, sales, and customer service—with the communication team to create an effective and cost-efficient campaign.

External integration

Co-ordinates a company’s communication activities with those of the external collaborators—including advertising, social media, and public relations agencies; event organisers; and campaign co-sponsors.

Coverage

The proportion of the audience reached by each communication option employed, as well as the amount of overlap among those options.

Contribution

The inherent ability of a marketing communication to elicit the desired response from consumers, and to exert communication effects on them, in the absence of exposure to any other communication option.

Commonality

The extent to which common associations are reinforced across communication options—that is, the extent to which different communication options share the same meaning.

Complementarity

Communication options are often more effective when used in tandem..

Direct to Consumer

Channels that delivers value directly to its consumers.

Customer Relationship Management (CRM)

The process of carefully managing detailed information about individual customers and all customer touch points to maximize loyalty

Triple Bottom Line

People (social component), Planet (sustainability component), Profit (monetary component)