mk midterm

business-to-business (B2B) marketing

The process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and retailers.

business-to-consumer (B2C) marketing

The process in which businesses sell to consumers.

consumer-to-consumer (C2C) marketing

The process in which consumers sell to other consumers.

customer relationship management (CRM)

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers.

exchange

The trade of things of value between the buyer and the seller so that each is better off as a result.

four Ps

Product, Price, Place, Promotion

goods

items that can be physically touched

ideas

Intellectual concepts—thoughts, opinions, and philosophies.

marketing

An organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

marketing channel management

Also called supply chain management; refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers.

marketing mix (four Ps)

Product, price, place, and promotion—the controllable set of activities that a firm uses to respond to the wants of its target markets.

marketing plan

A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.

relational orientation

A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship.

service

Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

supply chain management

A set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize systemwide costs while satisfying the service levels their customers require. Also called marketing channel management.

value

reflects the relationship of benefits to costs or what the consumer gets for what he/ she gives

value cocreation

Customers act as collaborators with a manufacturer or retailer to create the product or service.

control phase

The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.

customer excellence

Involves a focus on retaining loyal customers and excellent customer service.

diversification strategy

A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.

implementation phase

The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see also segmentation, targeting, and positioning) and (2) implement the marketing mix using the four Ps.

integrated marketing communications (IMC)

Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media—in combination to provide clarity, consistency, and maximum communicative impact.

locational excellence

A method of achieving excellence by having a strong physical location and/or Internet presence.

market development strategy

A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.

market growth rate

The annual rate of growth of the specific market in which the product competes.

market penetration strategy

A growth strategy that employs the existing marketing mix and focuses on the firm's efforts on existing customers.

market positioning

The process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

market segment

a group of consumers who respond similarly to a firms marketing efforts

market segmentation

The process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or services geared especially for them.

market share

Percentage of a market accounted for by a specific entity.

marketing plan

A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.

marketing strategy

A firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage.

metric

A measuring system that quantifies a trend, dynamic, or characteristic.

mission statement

A broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives?

operational excellence

Involves a firm's focus on efficient operations, excellent supply chain management, and strong relationships with its suppliers.

planning phase

The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.

product development strategy

A growth strategy that offers a new product or service to a firm's current target market.

product excellence

Involves a focus on achieving high-quality products; effective branding and positioning is key.

product line

Group of associated items, such as those that consumers use together or think of as part of a group of similar products.

related diversification

A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.

relative market share

A measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry.

segmentation, targeting, and positioning (STP)

Firms use these processes to identify and evaluate opportunities for increasing sales and profits.

situation analysis

Second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats.

strategic business unit (SBU)

A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.

sustainable competitive advantage

something the firm can persistently do better than its competitors

SWOT analysis

A method of conducting a situation analysis within a marketing plan in which both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats are examined.

target marketing (or targeting)

the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market

unrelated diversification

A growth strategy whereby a new business lacks any common elements with the present business.

active analytics tools

Artificial intelligence algorithms that are used to analyze input gathered by the Internet of Things (IoT).

big data

Data sets that are too large and complex to analyze with conventional data management and data mining software.

churn

The number of consumers who stop using a product or service, divided by the average number of consumers of that product or service.

customer lifetime value (CLV)

The expected financial contribution from a particular customer to the firm's profits over the course of their entire relationship.

data

raw numbers or facts

data mining

Statistical tools used to uncover previously unknown patterns or relationships among variables stored in the big data databases.

data warehouse

A large computer file containing data including sales transactions, customer relationship management (CRM) systems, websites, social media, blogs, locational devices, wearables, and so forth.

descriptive analytics tools

Methods that help firms organize, tabulate, and depict their available data, usually in easy-to-understand reports, tables, and charts.

experiment/ experimental research

A type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variable.

facial recognition software

Software that can automatically identify or verify individuals from video or digital images.

focus group interview

A research technique in which a small group of persons (usually 8 to 12) comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry.

in-depth interview

An exploratory research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue.

information

organized, analyzed, interpreted data that offer value to marketers

marketing analytics

Techniques that use advanced technologies and models to gather data so that marketers can improve their decision making, optimize their returns, and make appropriate customer-related decisions.

marketing research

A set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas.

neuromarketing

The process of examining consumers' brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies

observation

An exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny.

panel data

contain information collected from a group of consumers

predictive analytics tools

Methods that rely on historically available data to forecast the future.

prescriptive analytics tools

Analyses that use simulations, which ask a series of what if-type questions, and optimization techniques, which find the most effective or best result, to help firms better understand what they should do.

primary data

data collected to address specific research needs

qualitative research

Informal research methods, including observation, following social media sites, in-depth interviews, and focus groups.

quantitative research

Structured responses that can be statistically tested to confirm insights and hypotheses generated via qualitative research or secondary data.

questionnaire

A form that features a set of questions designed to gather information from respondents and thereby accomplish the researchers' objectives; questions can be either unstructured or structured.

sample

a group of customers who represent the customers of interest i n a research study

scanner data

A type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at checkout counters.

secondary data

pieces of information that have already been collected from other sources and usually are readily available

structured questions

Closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate.

survey

A systematic means of collecting information from people that generally uses a questionnaire.

syndicated data

Data available for a fee from commercial research firms such as Information Resources Inc. (IRI), NDP Group, and Nielsen.

unstructured questions

open-ended questions that allow respondents to answer in their own words

value of big data

An important evaluative criteria for big data. The more valuable the data are to users, the better they are.

variety of big data

An inherent quality of big data that infers that big data contain both numeric and textual data and are obtained from different media formats.

velocity of big data

An inherent quality of big data that infers that data are collected and can be analyzed and accessed quickly.

veracity of big data

An inherent aspect of big data that infers that big data users must evaluate the accuracy and reliability of the collected data.

volume of big data

An inherent quality of big data that infers that big data contain a large amount of data.

behavioral segmentation

A segmentation method that divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty.

benefit segmentation

The grouping of consumers on the basis of the benefits they derive from products or services.

concentrated targeting strategy

A marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs.

demographic segmentation

The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.

differentiated targeting strategy

a strategy through which a firm targets several market segments with a different offering for each

geodemographic segmentation

The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics.

geographic segmentation

the grouping of consumers on the basis of where they live

ideal point

The position at which a particular market segment's ideal product would lie on a perceptual map.

lifestyle

the way a person lives his/her life to achieve goals

loyalty segmentation

Strategy of investing in loyalty initiatives to retain the firm's most profitable customers.

market basket analysis

A mathematical modeling technique that utilizes millions of customer purchases, often referred to as big data (discussed in Chapter 10), to determine an association between a group of items that customers purchase at the same time and place into their actual or virtual market basket. This analysis enables the firm to classify customers into behaviorally oriented market segments.

mass marketing

A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups.

micromarketing

An extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs; also called one-to-one marketing.

occasion segmentation

A type of behavioral segmentation based on when a product or service is purchased or consumed.

one-to-one marketing

An extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs; also called one-to-one marketing.

perceptual map

Displays, in two or more dimensions, the position of products or brands in the consumer's mind.