CHAPTER 1: Overview of Marketing

1. Customer lifetime value (CLV): A key measurement that forecasts a customer’s lifetime economic contribution based on continued relationship marketing efforts
2. Customer relationship management (CRM): Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
3. Customers: The purchasers of organizations’ products; the focal point of all marketing activities
4. Exchanges: The provision or transfer of goods, services, or ideas in return for something of value
5. Green marketing: A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
6. Marketing: The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
7. 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
8. Marketing environment: The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
9. Marketing mix: Four marketing activities—product, distribution, promotion, and pricing—that a firm can control to meet the needs of customers within its target market
10. Market orientation: An organization-wide commitment to researching and responding to customer needs
11. Product: A good, a service, or an idea
12. Relationship marketing: Establishing long-term, mutually satisfying buyer-seller relationships
13. Stakeholders: Constituents who have a “stake,” or claim, in some aspect of a company’s products, operations, markets, industry, and outcomes
14. Target market: A specific group of customers on whom an organization focuses its marketing efforts
15. Value: A customer’s subjective assessment of benefits relative to costs in determining the worth of a product

CHAPTER 2: Planning, Implementing, and Evaluating Marketing Strategies

1. Centralized organization: A structure in which top-level managers delegate little authority to lower levels
2. Competitive advantage: The result of a company matching a core competency to opportunities it has discovered in the marketplace
3. Core competencies: Things a company does extremely well, which sometimes give it an advantage over its competition
4. Corporate strategy: A strategy that determines the means for utilizing resources in the various functional areas to reach the organization’s goals
5. Decentralized organization: A structure in which decision-making authority is delegated as far down the chain of command as possible
6. First-mover advantage: The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace
7. Late-mover advantage: The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace
8. 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
9. Market opportunity: A combination of circumstances and timing that permits an organization to take action to reach a particular target market
10. Market share: The percentage of a market that actually buys a specific product from a particular company
11. 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
12. Marketing cost analysis: Analysis of costs to determine which are associated with specific marketing efforts
13. Marketing implementation: The process of putting marketing strategies into action
14. Marketing objective: A statement of what is to be accomplished through marketing activities
15. Marketing plan: A written document that specifies the activities to be performed to implement and evaluate the organization’s marketing strategies
16. 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
17. Mission statement: A long-term view, or vision, of what the organization wants to become
18. Performance standard: An expected level of performance against which actual performance can be compared
19. Sales analysis: Analysis of sales figures to evaluate a firm’s performance
20. Strategic business unit (SBU): A division, product line, or other profit center within the parent company
21. Strategic marketing management: The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
22. Strategic performance evaluation: Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed
23. Strategic planning: The process of establishing an organizational mission and formulating goals, a corporate strategy, marketing objectives, and a marketing strategy
24. 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
25. Sustainable competitive advantage: An advantage that the competition cannot copy
26. SWOT analysis: Assessment of an organization’s strengths, weaknesses, opportunities, and threats

CHAPTER 3: Marketing Environment

1. Better Business Bureau (BBB): A system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms
2. Brand competitors: Firms that market products with similar features and benefits to the same customers at similar prices
3. Business cycle: A pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery
4. Buying power: The size of the resources, such as money, goods, and services that can be traded in an exchange, that enable the individual to make purchases
5. Competition: Other organizations that market products that are similar to or can be substituted for a marketer’s products in the same geographic area
6. Consumerism: Organized efforts by individuals, groups, and organizations to protect consumers’ rights
7. Depression: A stage of the business cycle during which unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy
8. Discretionary income: Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter

Disposable income: After-tax income

1. Environmental analysis: The process of assessing and interpreting the information gathered through environmental scanning
2. Environmental scanning: The process of collecting information about forces in the marketing environment
3. Federal Trade Commission (FTC): An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling
4. Generic competitors: Firms that provide very different products that solve the same problem or satisfy the same basic customer need
5. Income: For an individual, the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period
6. Monopolistic competition: A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product
7. Monopoly: A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
8. 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
9. Oligopoly: A competitive structure in which a few sellers control the supply of a large proportion of a product
10. Product competitors: Firms that compete in the same product class but market products with different features, benefits, and prices
11. Prosperity: A stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power (provided the inflation rate stays low)
12. Pure competition: A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
13. Recession: A stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending
14. Recovery: A stage of the business cycle during which the economy moves from recession or depression toward prosperity
15. Sociocultural forces: The influences in a society and its culture(s) that change people’s attitudes, beliefs, norms, customs, and lifestyles
16. Technology: The application of knowledge and tools to solve problems and perform tasks more efficiently
17. Total budget competitors: Firms that compete for the limited financial resources of the same customers
18. Wealth: The accumulation of past income, natural resources, and financial resources
19. 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

CHAPTER 4: Social Responsibility and Ethics in Marketing

1. Cause-related marketing: The practice of linking products to a particular social cause on an ongoing or short-term basis
2. Codes of conduct: Formalized rules and standards that describe what the company expects of its employees
3. 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
4. Marketing citizenship: The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
5. Marketing ethics: Principles and standards that define acceptable marketing conduct as determined by various stakeholders
6. Organizational (corporate) culture: A set of values, beliefs, goals, norms, and rituals that members of an organization share
7. Social responsibility: An organization’s obligation to maximize its positive impact and minimize its negative impact on society
8. Strategic philanthropy: The synergistic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefits
9. Sustainability: The potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies

CHAPTER 5: Marketing Research and Information Systems

1. Big data: Massive data files that can be obtained from both structured and unstructured databases
2. Conclusive research: Research designed to verify insights through objective procedures and to help marketers in making decisions
3. Crowdsourcing: Combines the words crowd and outsourcing and calls for taking tasks usually performed by a marketer or researcher and outsourcing them to a crowd, or potential market, through an open call
4. 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
5. Database: A collection of information arranged for easy access and retrieval
6. Descriptive research: Research conducted to clarify the characteristics of certain phenomena to solve a particular problem
7. Experimental research: Research that allows marketers to make causal inferences about relationships between variables
8. Exploratory research: Research conducted to gather more information about a problem or to make a tentative hypothesis more specific
9. Focus group: A small group of 8 to 12 people who are brought together to participate in an interview that is often conducted informally, without a structured questionnaire, to observe interaction when members are exposed to an idea or a concept
10. Hypothesis: An informed guess or assumption about a certain problem or a set of circumstances
11. Marketing analytics: The use of tools and methods to measure and interpret the effectiveness of a firm’s marketing activities
12. Marketing decision support system (MDSS): Customized computer software that aids marketing managers in decision making
13. Marketing information system (MIS): A framework for managing and structuring information gathered regularly from sources inside and outside the organization
14. Marketing research: The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
15. 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
16. Population: All the elements, units, or individuals of interest to researchers for a specific study
17. Primary data: Data observed and recorded or collected directly from respondents
18. Probability sampling: A type of sampling in which every element in the population being studied has a known chance of being selected for study
19. Quota sampling: A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group
20. 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
21. Reliability: A condition that exists when a research technique produces almost identical results in repeated trials
22. Research design: An overall plan for obtaining the information needed to address a research problem or issue
23. Sample: A limited number of units chosen to represent the characteristics of a total population
24. Sampling: A type of sampling in which every element in the population being studied has a known chance of being selected for study
25. Secondary data: Data compiled both inside and outside the organization for some purpose other than the current investigation
26. Single-source data: Information provided by a single marketing research firm
27. Statistical interpretation: Analysis of what is typical and what deviates from the average
28. 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
29. Validity: A condition that exists when a research method measures what it is supposed to measure

CHAPTER 6: Target Markets

1. Benefit segmentation: The division of a market according to benefits that consumers want from the product
2. Breakdown approach: Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it
3. Buildup approach: Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered
4. Business market: Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
5. Company sales potential: The maximum percentage of a market that an individual firm within an industry can expect to obtain for a specific product
6. Concentrated targeting strategy: A market segmentation strategy in which an organization targets a single market segment using one marketing mix
7. Consumer market: Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit
8. Customer forecasting survey: A survey of customers regarding the types and quantities of products they intend to buy during a specific period
9. Cycle analysis: An analysis of sales figures for a three- to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner
10. Delphi technique: A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts
11. Differentiated targeting strategy: A strategy in which an organization targets two or more segments by developing a marketing mix for each segment

efforts

1. Executive judgment: A sales forecasting method based on the intuition of one or more executives
2. Expert forecasting survey: Sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors
3. Geodemographic segmentation: A way of segmenting the market that clusters people by zip codes or neighborhood units based on lifestyle and demographic information
4. Heterogeneous market: A market made up of individuals or organizations with diverse needs for products in a specific product class
5. Homogeneous market: A market in which a large proportion of customers have similar needs for a product
6. Market density: The number of potential customers within a unit of land area
7. Market potential: The total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity
8. Market segment: Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs
9. Market segmentation: The process of dividing a total market into groups consisting of people or organizations with relatively similar product needs in order to design a marketing mix that matches those needs
10. Market test: Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing
11. Micromarketing: A way of segmenting a market that focuses precise marketing efforts on very small geographic markets, such as communities or neighborhoods
12. Random factor analysis: An analysis attempting to attribute erratic sales variations to random, nonrecurring events
13. Regression analysis: A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or per capita income
14. Sales force forecasting survey: A survey of a firm’s sales force regarding anticipated sales in their territories for a specified period
15. Sales forecast: The amount of a product a company expects to sell during a specific period at a specified level of marketing activity
16. Seasonal analysis: An analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales
17. Segmentation variables: Characteristics of individuals, groups, or organizations used to divide a market into segments
18. Time series analysis: A forecasting method that uses historical sales data to discover patterns in the firm’s sales over time and generally involves trend, cycle, seasonal, and random factor analyses
19. Trend analysis: An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales
20. Undifferentiated targeting strategy: A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product

CHAPTER 7: Consumer Buying Behavior

1. Attitude scale: A means of measuring consumer attitudes by gauging the intensity of individuals’ reactions to adjectives, phrases, or sentences about an object
2. Attitude: An individual’s enduring evaluation of feelings about, and behavioral tendencies toward, an object or idea
3. Buying behavior: The decision processes and actions of people involved in buying and using products
4. Cognitive dissonance: A buyer’s doubts shortly after a purchase about whether the decision was the right one
5. Consideration set: A group of brands within a product category that a buyer views as alternatives for possible purchase
6. Consumer buying behavior: The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes
7. Consumer buying decision process: A five-stage purchase decision process that includes problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation
8. Consumer misbehavior: Behavior that violates generally accepted norms of a particular society
9. Consumer socialization: The process through which a person acquires the knowledge and skills to function as a consumer
10. Culture: The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generations
11. Evaluative criteria: Objective and subjective product characteristics that are important to a buyer
12. Extended decision making: A consumer decision-making process employed when purchasing unfamiliar, expensive, or infrequently bought products
13. External search: An information search in which buyers seek information from sources other than their memories
14. Impulse buying: An unplanned buying behavior, involving no conscious planning, resulting from a powerful urge to buy something immediately
15. Information inputs: Sensations received through sight, taste, hearing, smell, and touch
16. Internal search: An information search in which buyers search their memories for information about products that might solve their problem
17. Learning: Changes in an individual’s thought processes and behavior caused by information and experience
18. Level of involvement: An individual’s degree of interest in a product and the importance of the product for that person
19. Lifestyle: An individual’s pattern of living expressed through activities, interests, and opinions
20. Limited decision making: A consumer decision-making process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category
21. Maslow’s hierarchy of needs: The five levels of needs that humans seek to satisfy, from most to least important
22. Motivation: The inner driving forces or reasons behind an individual’s actions and behaviors
23. Opinion leader: A member of an informal group who provides information about a specific topic to other group members
24. Perception: The process of selecting, organizing, and interpreting information inputs to produce meaning
25. Personality: A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations
26. Psychological influences: Factors that in part determine people’s general behavior, thus influencing their behavior as consumers
27. Reference group: A group that a person identifies with so strongly that he or she adopts the values, attitudes, and behavior of group members
28. Roles: Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding people
29. Routinized response behavior: A consumer decision-making process used when buying frequently purchased, low-cost items that require very little search-and-decision effort
30. Selective distortion: An individual’s changing or twisting of information that is inconsistent with personal feelings or beliefs
31. Selective exposure: The process by which some inputs are selected to reach awareness and others are not
32. Selective retention: Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not
33. Self-concept: A perception or view of oneself
34. Situational influences: Influences that result from circumstances, time, and location that affect the consumer buying decision process
35. Social class: An open group of individuals with similar social rank
36. Social influences: The forces other people exert on one’s buying behavior
37. Subculture: A group of individuals whose characteristics, values, and behavioral patterns are similar within the group and different from those of people in the surrounding culture

CHAPTER 8: Business Markets Buying Behavior

1. B2B e-commerce sites: Online marketplaces where business buyers and sellers from around the world can exchange information, goods, services, ideas, and payments
2. Business (organizational) buying behavior: The purchase behavior of producers, government units, institutions, and resellers
3. Buying center: The people within an organization who make business purchase decisions
4. Derived demand: Demand for business products that stems from demand for consumer products
5. Government markets: Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies
6. Inelastic demand: Demand that is not significantly altered by a price increase or decrease
7. Institutional markets: Organizations with charitable, educational, community, or other nonbusiness goals
8. Joint demand: Demand involving the use of two or more items in combination to produce a product
9. Modified rebuy purchase: A new-task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified
10. Multiple sourcing: An organization’s decision to use several suppliers
11. New-task purchase: An organization’s initial purchase of an item to be used to perform a new job or solve a new problem
12. North American Industry Classification System (NAICS): An industry classification system that generates comparable statistics among the United States, Canada, and Mexico
13. Producer markets: Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations
14. Product specifications: Written statements describing a product’s necessary characteristics, standards of quality, and other information essential to identifying the best supplier for the needed product
15. Reciprocity: An arrangement unique to business marketing in which two organizations agree to buy from each other
16. Reseller markets: Intermediaries that buy finished goods and resell them for a profit
17. Sole sourcing: An organization’s decision to use only one supplier
18. Straight rebuy purchase: A routine purchase by a business buyer of the same products under approximately the same terms of sale
19. Value analysis: An evaluation of each component of a potential purchase
20. Vendor analysis: A formal, systematic evaluation of current and potential vendors