Marketing Chapter 1-5

marketing mix

marketing mix

Four marketing variables—product, pricing,

distribution, and promotion—that a firm controls

to meet the needs of customers within its target

market

Customer relationship management (CRM)

Using information about customers to create

marketing strategies that develop and sustain

desirable customer relationships

green marketing

A strategic process involving stakeholder

assessment to create meaningful, long-term

relationships with customers while maintaining,

supporting, and enhancing the natural

environment

relationship marketing

Establishing long-term, mutually satisfying buyer–seller relationships

value

A customer’s subjective assessment of benefits relative to costs in determining the worth of a product

market orientation

An organizationwide commitment to researching and responding to customer needs

product

A good, a service, or an idea

Stakeholders

Constituents who have a “stake,” or claim, in some aspect of a company’s products, operations, markets, industry, and outcomes

exchanges

The provision or transfer of goods, services, or ideas in return for something of value

marketing

The process of creating, pricing, distributing, and promoting goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

customers

The purchasers of organizations’ products; the focal point of all marketing activities

target market

A specific group of customers on whom an organization focuses its marketing efforts

marketing environment

The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix

marketing concept

A managerial philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals

Strategic marketing management

The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently

strategic business unit (SBU)

A division, product line, or other profit center within the parent company

Marketing implementation

The process of putting marketing strategies into

action

strategic windows

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

SWOT analysis

Assessment of an organization’s strengths, weaknesses, opportunities, and threats

market opportunity

A combination of circumstances and timing that permits an organization to take action to reach a particular target market

market share

The percentage of a market that actually buys a specific product from a particular company

market

A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products

first-mover advantage

The ability of a company to achieve long-term competitive advantages by being the first to offer an innovative product in the marketplace

strategic planning

The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan

late-mover advantage

The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a product in a marketplace

Corporate strategy

A strategy that determines the means for utilizing resources in the various functional areas to reach the organization’s goals

Corporate strategy

A strategy that determines the means for utilizing resources in the various functional areas to reach the organization’s goals

market growth/market share matrix

A helpful business tool, based on the philosophy that a product’s market growth rate and its market share are important considerations in determining its marketing strategy

competitive advantage

The result of a company matching a core competency to opportunities it has discovered in the marketplace

marketing strategy

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market

marketing objective

A statement of what is to be accomplished through marketing activities

centralized organization

structure in which toplevel managers delegate little authority to lower levels

core competencies

Things a company does extremely well, which sometimes give it an advantage over its competition

sustainable competitive advantage

An advantage that the competition cannot copy

mission statemet

A long-term view, or vision, of what the organization wants to become

Sales analysis

Analysis of sales figures to evaluate a firm’s performance

marketing plan

A written document that specifies the activities to be performed to implement and control the organization’s marketing strategies

decentralized organization

A structure in which decision-making authority is delegated as far down the chain of command as possible

Strategic performance evaluation

Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed

performance standard

An expected level of performance against which actual performance can be compared

Marketing cost analysis

Analysis of costs to determine which are associated with specific marketing efforts

Environmental scanning

The process of collecting information about forces in the marketing environment

Environmental analysis

The process of assessing and interpreting information gathered through environmental scanning

Total budget competitors

Firms that compete for the limited financial resources of the same customers

discretionary income

Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter

buying power

Resources—such as money, goods, and services—that can be traded in an exchange

Monopolistic competition

A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product

monopoly

A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply

Brand competitors

Firms that market products with similar features and benefits to the same customers at similar prices

Pure competition

A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply

Generic competitors

Firms that provide very different products that solve the same problem or satisfy the same basic customer need

competition

Other firms that market products that are similar to or can be substituted for a firm’s products in the same geographic area

Product competitors

Firms that compete in the same product class but market products with different features, benefits, and prices

business cycle

A pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery

Better Business Bureau

A local, nongovernmental regulatory agency, supported by local businesses, that helps settle problems between customers and specific business firms

oligopoly

A competitive structure in which a few sellers control the supply of a large proportion of a product

National Advertising Review Board (NARB)

A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement

willingness to spend

An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces

Technology

The application of knowledge and tools to solve problems and perform tasks more efficiently

Technology

The application of knowledge and tools to solve problems and perform tasks more efficiently

disposable income

After-tax income

Federal Trade Commission (FTC)

An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling

Sociocultural forces

The influences in a society and its culture(s) that change people’s attitudes, beliefs, norms, customs, and lifestyles

social responsibility

An organization’s obligation to maximize its positive impact and minimize its negative impact on society

ethical issue

An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical

cause-related marketing

The practice of linking products to a particular social cause on an ongoing or short-term basis

marketing citizenship

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders

Consumerism

Organized efforts by individuals, groups, and organizations to protect consumers’ rights

codes of conduct

Formalized rules and standards that describe what a company expects of its employees

strategic philanthropy approach

The synergistic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefits

Marketing research

The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

Marketing research

The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

exploratory research

Research conducted to gather more information about a problem or to make a tentative hypothesis more specific

focus group

An interview that is often conducted informally, without a structured questionnaire, in small groups of 8 to 12 people, to observe interaction when members are exposed to an idea or a concept

Conclusive research

Research designed to verify insights through objective procedures and to help marketers in making decisions

customer advisory boards

Small groups of actual customers who serve as sounding boards for new-product ideas and offer insights into their feelings and attitudes toward a firm’s products and other elements of its marketing strategy

descriptive research

Research conducted to clarify the characteristics of certain phenomena to solve a particular problem

Experimental research

Research that allows marketers to make causal inferences about relationships

hypothesis

An informed guess or assumption about a certain problem or set of circumstances

reliability

A condition that exists when a research technique produces almost identical results in repeated trials

research design

An overall plan for obtaining the information needed to address a research problem or issue

validity

A condition that exists when a research method measures what it is supposed to measure

Primary data

Data observed and recorded or collected directly from respondents

Secondary data

Data compiled both inside and outside the organization for some purpose other than the current investigation

population

All the elements, units, or individuals of interest to researchers for a specific study

sample

A limited number of units chosen to represent the characteristics of a total population

probability sampling

A type of sampling in which every element in the population being studied has a known chance of being selected for study

Sampling

The process of selecting representative units from a total population

random sampling

A form of probability sampling in which all units in a population have an equal chance of appearing in the sample, and the various events that can occur have an equal or known chance of taking place

stratified sampling

A type of probability sampling in which the population is divided into groups with a common attribute and a random sample is chosen within each group

stratified sampling

A type of probability sampling in which the population is divided into groups with a common attribute and a random sample is chosen within each group

nonprobability sampling

A sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen

quota sampling

A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group

mail survey

A research method in which respondents answer a questionnaire sent through the mail

personal interview survey

A research method in which participants respond to survey questions face-to-face

telephone depth interview

An interview that combines the traditional focus group’s ability to probe with the confidentiality provided by telephone surveys

telephone survey

A research method in which respondents’ answers to a questionnaire are recorded by an interviewer on the phone

in-home (door-to-door) interview

A personal interview that takes place in the respondent’s home

Shopping mall intercept interviews

A research method that involves interviewing a percentage of individuals passing by “intercept” points in a mall

on-site computer interview

A variation of the shopping mall intercept interview in which respondents complete a self-administered questionnaire displayed on a computer monitor