Marketing Exam 1

What’s needed for marketing to occur

Two or more parties with unsatisfied needs, A desire and ability to have their needs satisfied, A way for parties to communicate, Something to exchange.

Market

People with both the desire and the ability to buy a specific offering.

Target market

One or more specific groups of potential consumers toward which an organization directs its marketing program.

Controllable Marketing Mix Factors

Product, Price, Promotion, Place

Marketing mix

The controllable factors that can be used by the marketing manager to solve a marketing problem.

Environmental forces

The uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.

Customer value

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

Relationship marketing

Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.

Marketing program

A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

Market segments

The relatively homogeneous groups of prospective buyers who have common needs and will respond similarly to a marketing action.

Market orientation

An organization who focuses its efforts on continuously collecting information about customers’ needs, sharing this information across departments, and using it to create customer value.

Customer relationship management (CRM)

The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace and become advocates after their purchase.

Societal marketing concept

The view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.

Ultimate consumers

The people who use the products and services purchased for a household.

Organizational buyers

Those manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale.

Utility

The benefits or customer value received by users of the product.

Environmental scanning

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

Production era

Goods were comparatively scarce and buyers were willing to accept virtually any goods that were available and make do with them.

Sales era

Manufactures found they could produce more goods than buyers could consume. Competition grew. Firms hired more salespeople to find new buyers.

Marketing concept

The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization’s goals.

Customer relationship era

Firms seek to satisfy high expectations of customers. New tech increases value for consumers and enhances customer relationships.

Baby boomers

Includes the generation of 76 million children born between 1946 and 1964. Respond to their interests in health, fitness, retirement housing, financial planning, and appearance. “Sandwich generation”.

Generation X

Includes the 55 million people born between 1965 and 1980. Self-reliant, supportive of racial and ethnic diversity, and better educated. Not prone to extravagance and are likely to pursue lifestyles that blend caution. “Baby bust”

Generation Y

Includes the 62 million Americans born between 1981 and 1996. Interested in personal experiences and are very adept at managing their lives to create work-life balance. Strong-willed and optimistic.

Generation Z

The post-millennial generation, which includes consumers born between 1997 and 2010. Hardworking, financially responsible, and independent who embrace diversity.

Gross income

The total amount of money made in one year by a person, household, or family unit.

Disposable income

The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.

Discretionary income

The money that remains after paying for taxes and necessities.

Electronic commerce

The activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services.

Internet of Things (IoT)

The network of products embedded with connectivity-enabled electronics.

Big data

Extremely large data sets that require massive data storage warehouses and sophisticated data analysis to identify patterns, trends, and associations for decision-making in marketing.

Marketing analytics

The study of data to evaluate the performance of marketing activities in numerical terms

Factors that affect ethical marketing behavior

Societal culture and norms, Business culture and industry practices, Ethics of competition, Corporate culture and expectations.

Consumer Bill of Rights

Codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.

Economic espionage

The clandestine collection of trade secrets or proprietary information about a company’s competitors.

Moral idealism

A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.

Utilitarianism

A personal moral philosophy that focuses on “the greatest good for the greatest number” by assessing the costs and benefits of the consequences of ethical behavior.

Social responsibility

The idea that organizations are part of a larger society and are accountable to that society for their actions.

Triple bottom line

The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

Sustainable marketing

The effort to meet today’s (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs.

Green marketing

Marketing efforts to produce, promote, and reclaim environmentally sensitive products.

Cause marketing

Occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

Social audit

A systematic assessment of a firm’s objectives, strategies, and performance in terms of social responsibility.

Sustainable Development Reward

Benefit from favorable word of mouth among consumers and typically outperform less responsible companies in terms of financial performance.

Unethical consumer behavior

A belief that a consumer can get away with the act and it is worth doing and the rationalization that the act is justified.

Greenwashing

The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice.

Purchase decision process

The five stages a buyer passes through in making choices about which products and services to buy; includes (1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior.

Problem recognition

Perceiving a difference between a person’s ideal and actual situations big enough to trigger a decision.

Internal search

Scan your memory for previous experiences with products or brands.

External search

Past knowledge is insufficient; looking for information past your memory.

Alternative evaluation

Clarifies information gathered by suggesting criteria to use for the purchase, yielding brand names that might meet the criteria, developing consumer value perceptions.

Purchase decision

Post evaluation of alternatives. Must decide from whom to buy and when to buy.

Postpurchase behavior

Consumer comparing product with personal expectations.

Involvement

The personal, social, and economic significance of the purchase to the consumer.

Situational influences on purchase decisions

The nature of the purchase task, Social surroundings, Physical surroundings, Temporal effects, Antecedent states.

Consumer touchpoints

A marketer’s product, service, or brand points of contact with a consumer from start to finish in the purchase decision process.

Consumer journey map

A visual representation of all the touchpoints a consumer comes into contact with before, during, and after a purchase.

Maslow hierarchy of needs

Physiological needs, Safety needs, Social needs, Personal needs, Self-actualization needs.

Perceived risk

The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.

Approaches to changing consumer attitudes

Changing beliefs about the extent to which a brand has certain attributes, Changing the perceived importance of attributes, Adding new attributes to the product.

Opinion leaders

Individuals who exert direct or indirect social influence over others.

Reference groups

People to whom an individual looks as a basis for self-appraisal or as a source of personal standards.

Brand community

A specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use.

Family life cycle

The distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.

Family decision-making roles

Information gatherer, Influencer, Decision maker, Purchaser, User.

Hispanic buying patterns

Quality and brand conscious. Prefer buying American-made products, influenced by family and peers, consider company and brand advertising and heavy users of social media.

Black buying patterns

Spend more on boys’ clothing, rental goods, phones, and audio equipment. Price conscious, more likely to patronage companies, embrace high-quality brands who have clear social mission and likely to tell friends and family about products.

Asian buying patterns

Brand loyal and cost conscious.

Business-to-business marketing

The marketing of products and services to companies, governments, or nonprofit organizations for use in the creation of products and services that they can produce and market to others.

Organizational buyers

Those manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale.

North American Industry Classification System (NAICS)

Provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the United States–Mexico–Canada Agreement (USMCA).

Derived demand

The demand for industrial products and services that is driven by, or derived from, the demand for consumer products and services.

Reciprocity

An industrial buying practice in which two organizations agree to purchase each other’s products and services.

Buying center

The group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.

Roles in buying center

Users, Influencers, Buyers, Deciders, Gatekeepers.

Users

The people in the organization who actually use the product or service, such as an administrative assistant who will use a new word processor.

Influencers

Affect the buying decision, usually by helping define the specifications for what is bought.

Buyers

Have formal authority and responsibility to select the supplier and negotiate the terms of the contract.

Deciders

Have the formal or informal power to select or approve the supplier that receives the contract.

Gatekeepers

control the flow of information in the buying center.

Buy classes

Consist of three types of organizational buying situations: straight rebuy, new buy, and modified rebuy.

New buy

The organization is a first-time buyer of the product or service. Higher potential risks.

Straight rebuy

The buyer or purchasing manager reorders an existing product or service from the list of acceptable suppliers.

Modified rebuy

The users, influencers, or deciders in the buying center want to change the product specifications, price, delivery schedule, or supplier.

Traditional auction

An online auction in which a seller puts up an item for sale and would-be buyers are invited to bid in competition with each other.

Reverse auction

An online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.

Five-step marketing research approach

Define the problem, Develop the research plan, Collect relevant info, Develop findings, Take marketing actions.

Exploratory research

Provides ideas about a vague problem or question.

Descriptive research

Involves trying to find the frequency with which something occurs or the extent of a relationship between two factors.

Causal research

Determine the extent to which the change in one factor changes another one.

Primary data

Facts and figures that are newly collected for the project.

Secondary data

Facts and figures that have already been recorded prior to the project at hand.

Secondary internal data

Offer the most easily accessible marketing info.

Marketing input data

The effort expended to make sales.

Marketing outcome data

The results of the marketing efforts.

Secondary external data

Published data from outside the organization. Helps identify trends of consumers.

Secondary data advantages

Time saving, Low cost.

Secondary data disadvantages

Possibly out of date, Might not match with researcher’s project.

Observational data

Facts and figures obtained by watching how people actually behave, using mechanical, personal, or neuromarketing data collection methods.