Marketing Exam 1 Study Guide

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.

Production orientation

A philosophy focusing on the firm's internal capabilities rather than on the desires and needs of the marketplace.

Sales orientation

The belief that aggressive sales techniques will lead to higher sales and consequently higher profits.

Marketing concept

The idea that organizations exist to satisfy customer wants and needs while also meeting organizational objectives.

Market orientation

A philosophy that assumes sales depend on a customer's decision to purchase, synonymous with the marketing concept.

Societal marketing orientation

The idea that organizations exist to satisfy customer wants and needs while also enhancing society's long-term interests.

Exchange

The process where people give up something to receive something else, requiring at least two parties and several other conditions.

Competitive advantage

A set of features perceived by the target market as significant and superior to the competition.

Customer satisfaction

Customers' evaluation of a product in terms of whether it meets their needs and expectations.

Relationship marketing

A strategy focusing on keeping and improving relationships with current customers.

Customer relationship management (CRM)

A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction.

Big data

The discovery and communication of meaningful patterns in data.

On-demand marketing

Delivering relevant experiences across physical and virtual environments throughout the consumer's decision and buying process.

Strategic planning

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

SWOT analysis

A strategic planning technique used to identify the Strengths, Weaknesses, Opportunities, and Threats of a business.

Marketing mix (four Ps)

A unique blend of strategies designed for producing mutually satisfying exchanges with a target market.

Corporate social responsibility (CSR)

A business's concern for society's welfare.

Diversity

The variety of different ethnicities, genders, ages, abilities, and backgrounds within a given group.

Sustainability

The concept that socially responsible companies will outperform their peers by addressing social issues and recognizing opportunities.

Environmental scanning

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

Competitive advantage

The unique edge a company has over its competitors, which can be based on cost, differentiation, or niche strategies.

Price competitive advantage

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

Niche competitive advantage

The advantage achieved by targeting and effectively serving a specific segment of the market.

Sustainable competitive advantage

An advantage that cannot be copied by the competition.

Planning

The process of anticipating future events and determining strategies to achieve organizational objectives in the future.

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.

Marketing objective

a statement of what is to be accomplished through marketing activities.

Marketing mix

a unique blend of strategies designed to produce mutually satisfying exchanges with a target market.

What are the four Ps of the marketing mix?

Product, Place, Pricing, Promotion

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

Deontological theory

ethical theory stating that people should adhere to their obligations and duties when analyzing an ethical dilemma. ex: following the law, keeping a promise

Utilitarian ethical theory

ethical theory that is founded on the ability to predict the consequences of an action. greatest benefit = best choice

Casuist ethical theory

ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes. Emphasizes case-by-case

Moral relativism

a theory of time-and-place ethics; that is, the belief that ethical truths depend on the individuals and groups holding them.

Virtue

a character trait valued as being good

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.

Foreign Corrupt Practices Act (FCPA)

a law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries.

Corporate social responsibility (CSR)

a business’s concern for society’s welfare.

Stakeholder theory

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.

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 stats, such as age, race, ethnicity and location.

Pop culture

The products and forms of expression and identity that are frequently encountered or widely accepted, commonly liked, or approved, and characteristic of a particular society at a given time.

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.

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.

Preservation, restoration, and improvement of the natural environment and earth-based elements or processes, such as the climate.

Empowerment

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

Exchange

people giving up something to receive something else they would rather have BACK

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

Portfolio matrix

a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate

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

Experience curves

Curves that show costs declining at a predictable rate a 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

Marketing objective

A statement of what is to be accomplished through marketing activities

Marketing strategy

The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

Market opportunity analysis (MOA)

The description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

Implementation

The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives

Evaluation

Gauging the extent to which the marketing objectives have been achieved during the specified time period

Control

Provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

Marketing audit

A thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization