Midterm Marketing

Marketing Management

the leading and managing of the facets of marketing to improve individual, unit, and organizational performance

Value

a ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits

exchange

the giving up of something of value for something desired

marketing concept

business philosophy that emphasizes an organization wide customer orientation with the objective of achieving long- run profits

marketing mix (4ps)

product, price, place, promotion- the fundamental elements that comprise the marketer’s tool kit that can be developed in unique combinations to set the product or brand apart from the competition

differentiation orientation

what clearly distinguishes your product from those of competitors in the minds of customers

Marketing (Big M)

The dimension of marketing that focuses on external forces that affect the organization and serves as the driver of business strategy

marketing (little m)

the dimension of marketing that focuses on the functional or operational level of he organization

Return on market investment (ROMI)

what impact an investment n marketing has on a firm’s success, especially financially

corporate social responsibility (CSR)

a firms behaviors and strategies that are undertaken in order to have a positive impact on the world

global experience learning curve

the process by which an understanding of marketing beyond home markets develops over time as a company gains more international business

foreign marketing

occurs when a firm develops local distribution and service representation outside its home market, either through local intermediaries or its own marketing and sales force

international marketing

implies that the firm in marketing outside their home market and also manufactures outside that market

global marketing

implies that the firm realizes that all world markets are, in reality, a single market with many different segments

exporting

the most common method for entering foreign markets, it offers firms the ability to penetrate foreign markets with minimal investment and very little risk

distributors

represents the company and often many others in foreign markets

licensing

when a firm offers other manufactures the right to use its brand in exchange for a set fee or percentage of sales

franchising

a contractual agreement in which a firm provides a contracted company in a foreign market with a bundle of products, systems, services, and management expertise in return for local market knowledge, financial consideration and local management experience

strategic alliances

a market entry strategy designed to spread the risk of foreign investment among its partners. Examples of strategic alliances would be international joint ventures or direct foreign investment

joint venture

a partnership of two or more participating companies that differs from other strategic alliances in that (1) management duties are shared and a management structure is defined; (2) other corporations or legal entities, not individuals, formed the venture; and (3) every partner holds an equity position

direct foreign investment

a strategic alliance with long term implications in which a company moves manufacturing or operations into a foreign market

decision- making authority

an issue that arises when companies grow internationally and lines of authority become longer and more complicated, resulting in difficulty in defining decision-making protocols

country- of- origin effect

the influence of the country of manufacture, assembly, or design on a customer’s positive or negative perception of a product

transfer pricing

the cost companies charge internally to move products between subsidiaries or divisions

dumping

a global pricing issue that refers to the practice of charging less than their actual costs or less than the product’s price in the firm’s home markets

marketing ethics

a societal and professional standard of right and fair practices that are expected of marketing managers in their oversight of strategy formulation, implementation and control

triple bottom line (TBL)

a metric for evaluating not only the financial results of the company but the broader social equity, economic and environmental considerations as well.

benefit

the advantageous outcome from the advantage found in a product feature

utility

the want satisfying power of a good or service. there are four types of utility: form, time, place and ownership

customer value proposition (CVP)

a strategic tool facilitating communication of an organization’s ability to share resources and offer a superior value package to targeted customers

customer satisfaction

the level of liking an individual harbors for an offering

customer loyalty

a customer’s commitment to a company and its products and brands for the long run

customer retention

low propensity among a firm’s customer base to consider switching to other providers

value chain

the synthesis of activities within a firm involved in designing, producing, marketing, delivering, and supporting its products and services

marketing planning

the ongoing process of developing and implementing market- driven strategies for an organization

marketing plan

the resulting document that records the marketing planning process in a useful framework

market-driven strategic planning

the process at the corporate or strategic business unit (SBU) level of a firm that acts to marshal the various resource and functional areas toward a central purpose around the customer

strategic business unit (SBU)

a relatively autonomous division or organizational unit of a large company that operates independently but within the corporate umbrella, exercising control over most of the factors affecting its long- term performance

corporate level strategic plan

an umbrella plan for the overall direction of the corporation developed above the strategic business unit level

BCG Matrix

a popular approach for in-firm portfolio analysis that categorizes business units level of contribution to the overall firm based on two factors: market growth rate and competitive position

functional- level plans

plans for each business function that makes up one of the firm’s strategic business units. These include core business functions within each sbu such as operations, marketing, and finances, as well as other pertinent operational areas.

mission statement

the verbal articulation of an organization’s purpose, or reason for existence

goals

general statements of what the firm wishes to accomplish in support of the mission and vision

objectives

specific, measurable, and potentially attainable milestones necessary for a firm to achieve its goals

strategy

a comprehensive plan stating how the organization will achieve its mission and objectives

core competencies

the activities a firm can do exceedingly well

sustainable competitive advantage

the resulting advantage a firm has when it invest in distinctive competencies

SWOT analysis

a convenient framework used to summarize key findings from a firm’s situational analysis into a matrix of strengths, weaknesses, opportunities, and threats

marketing control

the process of measuring marketing results and adjusting the firm’s marketing plan as needed

market research

the methodical identification, collection, analysis, and distribution of data related to discovering and then solving marketing problems or opportunities and enhancing good decision making

marketing information system (MIS)

a continuing process of identifying, collecting, analyzing, accumulating, and dispensing critical information to marketing decision makers

marketing intelligence

the collecting, analyzing and storing of data from the macro environment on a continuous basis

demographics

the characteristics of human populations and population segments, especially when used to identify consumer markets

persona

a fictional holistic profile created by marketing of their actual current and desired customers

microeconomics

the study of individual economic activity

macroeconomics

the study of economic activity in terms of broad measures of output and input as well as the interaction among various sectors of an entire economy

research problem

the definition of what info is needed to help management in a particular situation

primary data

data collected specifically for a particular research question

secondary data

data collected for some other purpose than the problem currently being considered

qualitative research

less structured research not meant to be used for statistical analysis that can employ methods such as survey and interviews to collect data

quantitative research

research used to develop a measured understanding using statistical analysis to assess and quantify the results

focus group

a qualitative research method that consists of meeting of 6 to 10 people that is moderated by professional who carefully moves the conversation through a defined agenda in an unstructured open format

surveys

a quantitative research method the employs structured questionaries given to a sample group of individuals representing the population of interest and intended to solicit specific responses to explicit questions

sample

a subgroup of the population selected for participation in research

customer relationship management (CRM)

a comprehensive business model for increasing revenues and profits by focusing on customers

customer lifetime value (CLV)

the total value (including revenue earned) generated for a firm through building a life long relationship with a customer

big data

the ever increasing quantity and complexity of data that is continuously being produced by various technological sources. characterized by four components : volume, velocity, variety, veracity

structured data

data that is generated in such a way that a logical organization is imposed on it during its generation, thus enabling it to be more readily analyzable for knowledge creation

unstructured data

data this is generated in such a way that it does not possess a specific organizational structure that renders it readily analyzable for knowledge creation

marketing analytics

the practice of measuring, managing, and analyzing marketing performance to maximize marketing effectiveness and optimize return on marketing investment (ROMI)

descriptive analytics

summary analytics of raw data, typically in a visual format, as a first step before considering more complex and costly analyses

diagnostic analytics

data utilized to explore the relationships between different marketing relevant factors that influence the organization’s performance either directly or indirectly

predictive analytics

data utilized to make predictions about future marketing outcomes of interest

marketing dashboard

a comprehensive system of metrics and information uniquely relevant to the role of the marketing manager in a particular organization. Dashboards provide managers with up to the minute info necessary to run their operation

demographics

the characteristics of human population segments, especially when used to identify customer markets

lifestyle

an individual’s perspective on life that manifests itself in activities, interests and opinions

motivation

the stimulating power that induces and then directs an individual’s behavior

perception

a system to select, organize, and interpret info to create a useful, informative picture of the world

selective awareness

a psychological tool an individual uses to help focus on what is relevant and eliminate what is not relevant

selective distortion

the process in which an individual can misunderstand info or make it fit existing beliefs

selective retention

the process of placing in one’s memory only those stimuli that support existing beliefs and attitudes a product or brand

personality

an individual’s set of unique personal qualities that produce distinctive responses across similar situations

culture

a system of values, beliefs, and moral shared by a particular group of people that permeates over time

language

an established system of ideas and phonetics shared by members of a particular culture that serves as their primary communication tool

cultural values

principles shared by a society that assert positive ideals

subculture

a group within a culture that shares similar cultural artifacts created by differences in ethnicity, religion, race, or geography

reference groups

a group of individuals whose beliefs, attitudes and behavior influence the beliefs, attitudes and behaviors of an individual

post-purchase dissonance

a feeling of doubt or anxiety following a recent purchase, generally associated with high-involvement, large purchases

B2B markets

markets in which a firm’s customers are other firms, characterized by few but large customers, personal relationships, complex buying processes, less price-sensitive demand

derived demand

demand that originates from the demand for consumer products in business- to business marketing

inelastic demand

when changes in demand are not significantly affected by changes in price

buying decision

decisions made throughout the purchase decision process that vary widely and are based on factors such as nature of the purchase, number of people involved in the decision, understanding of the product being purchased, and time frame for the decision

request for proposal

the document distributed to potential vendors that outlines an organization’s product or service needs. it serves as a starting point from which vendors put together their product solution

market segmentation

dividing a market into meaningful smaller markets or submarkets based on common characteristics

target marketing

evaluating market segments and making a decision about which among them shows the most promise for development

positioning

the communication of sources of value to customers so they can easily make the connection between their needs and wants and what the product has to offer

positioning strategy

tactical execution of positioning approach, which relies on the communication of one or more sources of value to customers in such a way that the customer can easily make the connection between his or her needs and wants and what the product has to offer

geographic segmentation

dividing consumer groups based on physical location

demographic segmentation

dividing consumer groups based on a variety of readily measurable descriptive factors about the group

VALS tm

a proprietary psychographic instrument developed by strategic business insights that divides US adults into groups based on their primary motivation and resources. the acronym vals was create from values and lifestyles