Marketing Exam 1

marketing

the process by which companies engaged customers, build strong customer relationships, and create customer value in order to capture value from customers in return

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

market

the set of actual and potential buyers of a product or service

marketing management

the art and science of choosing target markets and building profitable relationships with them

value proposition

the set of benefits or values it promises to deliver to consumers to satisfy their needs

customer satisfaction

the extent to which a product’s perceived performance matches a buyer’s expectations

microenvironment

consists of the actors close to the company that affect its liability to engage and serve its customers– the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

macroenvironment

consists of the larger societal forces that affect the microenvironment– demographic, economic, natural, technological, political, and cultural forces

marketing intermediaries

firms that help the company to promote, sell, and distribute its goods to final buyers

resellers

distribution channel firms that help the company find customers or make sales to them. These include wholesalers and retailers that buy and resell merchandise

physical distribution firms

help the company stock and move goods from their points of origin to their destinations

marketing services agencies

the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets

financial intermediaries

includes banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods

public

any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives

financial publics

this group influences the company’s ability to obtain funds. Banks, investment analysts, and stockholders are the major financial publics

media publics

this group carries news, features, editorial opinions, and other content

government publics

management must take government developments into account. marketers must often consult the company’s lawyers on issues of product safety, truth in advertising, and other matters

citizen-action publics

a company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. its public relations department can help it stay in touch with consumer and citizen groups

internal publics

this group includes workers, managers, volunteers, and the board of directors. large companies use newsletters and other means to inform and motivate their internal. when employees feel good about the companies they work for, this positive attitude spills over to the external publics

general public

a company needs to be concerned about the general pubic’s attitude toward its products and activities. The public’s image of the company affects its buying behavior

local publics

this group includes local community residents and organizations. large companies usually work to become responsible members of the local communities in which they operate

consumer markets

consist of individuals and households that buy goods and services for personal consumption

business markets

buy goods and services for further processing or use in their production processes

reseller markets

buy goods and services to resell at a profit

government markets

consist of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them

international markets

consist of these buyers in other countries, including consumers, producers, resellers, and governments

demography

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

economic environment

consists of economic factors that affect consumer purchasing power and spending patterns

natural environment

involves the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities

technological environment

forces that create new technologies, creating new product and market opportunities

political environment

consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society

cultural environment

consists of institutions and other forces that affect a society’s basis values, perceptions, preferences, and behaviors

standardized global marketing

a global marketing strategy that basically uses the same marketing strategy and mix in all of the company’s international markets

adapted global marketing

a global marketing approach that adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return

straight product extension

marketing a product in a foreign market without making any changes to the product

product adaptation

adapting a product to meet local conditions, or wants

product invention

creating new products or services for foreign markets

dual adaptation

adapting product and adapting communications

strategic planning

the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities

mission statement

a statement of the organization’s purpose– what it wants to accomplish in the larger environment

growth share matrix

a portfolio-planning method that evaluates a company’s SBUs (strategic business units) in terms of market growth rate and relative market share

stars

high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows

cash cows

low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment

question marks

low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be plowed out

dogs

low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash

product/market expansion grid

a portfolio-planning tool identifying company growth opportunities through market penetration, market development, product development, or diversification

market penetration

company growth by increasing sales of current products to current market segments without changing the product

market development

company growth by identifying and developing new market segments for current company products

product development

company growth by offering modified or new products to current market segments

diversification

company growth through starting up or acquiring businesses outside the company’s current products and markets

value chain

the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products

value delivery network

a network composed of the company, suppliers, distributors, and ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value

marketing strategy

Understanding the Customer, Market, and Competitive Environment, Developing and Delivering the Value Proposition, and Assessing Performance

market segmentation

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

market segment

a group of consumers who respond in a similar way to a given set of marketing efforts

market targeting

evaluating each market segment’s attractiveness and selecting one of more segments to serve

positioning

arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers

differentiation

actually differentiating the market offering to create superior customer value

marketing mix

the set of tactical marketing tools– product, price, place, and promotion– that the firm blends to produce the response it wants in the target market

product

the goods and services combination the company offers to the target market

price

the amount of money customers must pay to obtain the product

place

includes company activities that make the product available to target customers

promotion

refers to activities that communicate the merits of the product and persuade target customers to buy it

acceptability

the extent to which the product exceeds customer expectations

affordabilty

the extent to which customers are willing and able to pay the product’s price

accessibility

the extent to which customers can readily acquire the product

awareness

the extent to which customers are informed about the product’s features, persuaded to try it, and reminded to repurchase

SWOT analysis

an overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T)

marketing implementation

turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

marketing control

measuring and evaluating the results of marketing strategies and plans and taking corrective active to ensure that the objectives are achieved

strategic control

involves looking at whether the company’s basis strategies are well matches to its opportunities. marketing strategies and programs can quickly become outdated, and each company should periodically reassess its overall approach to the marketplace

marketing return on investment (marketing ROI)

the net return from a marketing investment divided by the costs of the marketing investment

big data

the huge and complex data sets generated by today’s sophisticated information generation, collection, storage, and analysis technologies

customer insights

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

marketing research

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

just-in-time research

today’s fast and agile decision making often calls for fast and agile marketing information and research

exploratory research

to gather preliminary information that will help define the problem and suggest hypotheses

descriptive research

to describe things, such as the market potential for a product of the demographics and attitudes of consumers who buy the product

causal research

to test hypotheses and cause-and-effect relationships

secondary data

consist of information that already exists somewhere, having been collected for another purpose

primary data

consist of information collected for the specific purpose at hand

observational research

involves gathering primary data by observing relevant people, actions, and situations

ethnographic research

involves sending observers to watch and interact with consumers in their “natural environments”

survey research

gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior

experimental research

gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factorings, and checking for differences in group responses

focus group interviewing

personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. the interviewer “focuses” the group discussion on important issues

online marketing research

collecting primary data through internet and mobile surveys, online focus groups, consumer tracking, experiments, and online panels and brand communities

online focus groups

gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior

culture

the set of basic values, perceptions, wants and behaviors learned by a member of society from family and other important institutions

subculture

a group of people with shared value systems based on common life experiences and situations

social class

relatively permanent and ordered in a society whose members share similar values, interests, and behaviors

reference group

a group that serves as direct or indirect point of comparison or reference in forming a person’s attitudes or behavior

opinion leader

a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others

word-of-mouth influence

the impact of the personal works and recommendations of trusted friends, family, associates, and other consumers on buying behavior

lifestyle

a person’s pattern of living as expressed in his or her psychographics

personality

the unique psychological characteristics that distinguish a person or group

motive (drive)

a need that is sufficiently pressing to direct the person to seek satisfaction of the need

perception

the process by which people select, organize, and interpret information to form a meaningful picture of the world

selective attention

the tendency for people to screen out most of the information to which they exposed– means that marketers must work especially hard to attract the consumer’s attention