BUSI 406- Marketing Key Terms (Midterm 1)
Flashcards for Lesson 1
Marketing: An organizational function and a set of processes for creating, communicating, and delivering value to customers and managing customer relationships to benefit the organization and its stakeholders.
4 P’s: Place, Product, Price, Promotion. These work to meet the consumer’s needs.
Customer Satisfaction: The result of providing goods and services that exceed customer expectations, leading to loyalty and positive word-of-mouth.
Innovation: The process of creating new or improved products to meet customer needs and stay competitive.
Pure Subsistence Economy: An economy where each family produces everything it consumes, and marketing is not involved.
Macro-Marketing: A social process that directs an economy’s flow of goods and services from producers to consumers, effectively matching supply and demand.
Universal Functions of Marketing: Buying, selling, transporting, storing, standardization and grading, financing, risk-taking, and market information.
Buying Function: The process of acquiring goods or services to meet customer needs.
Selling Function: The process of persuading customers to purchase goods or services.
Transporting Function: The movement of goods from producers to consumers.
Storing Function: Holding goods until they are needed by customers.
Standardization and Grading: Sorting products by quality and size to ensure consistency.
Financing: Providing the funds necessary to carry out marketing activities.
Risk-Taking: Accepting the possibility of loss in marketing activities.
Market Information Function: Gathering and analyzing data to make informed marketing decisions.
Intermediary: Someone who specializes in trade rather than production.
Collaborators: Firms that facilitate or provide one or more marketing functions other than buying (e.g., advertising agencies, marketing research firms).
Economic System: The structure and processes through which a society produces and distributes goods and services.
Command Economy: An economy where government officials decide what and how much is produced, distributed, and consumed.
Market-Directed Economy: An economy where individual decisions of producers and consumers make macro-level decisions for the whole economy.
Simple-Trade Era: When families traded or sold their surplus output to local distributors.
Production Era: When a company focuses on the production of a few specific products.
Sales Era: When a company emphasizes selling due to increased competition.
Marketing Department Era: When all marketing activities are brought under the control of one department to improve short-run policy planning.
Marketing Company Era: When marketing people develop long-range plans, and the whole company effort is guided by the marketing concept.
Marketing Concept: An organization aims all efforts at satisfying its customers at a profit.
Production Orientation: A focus on the product first, rather than the consumer.
Marketing Orientation: A focus on the consumer first, ensuring their needs and wants are met.
Marketing Metrics: Measures used to evaluate the performance of marketing activities.
Triple Bottom Line (TBL): A measure of long-term success focusing on economic, social, and environmental outcomes.
Purpose Orientation: An organization’s reason for being that extends beyond profit.
Customer Value: The difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits (CV = Benefits - Costs).
Micro-Macro Dilemma: What is good for some firms and consumers may not be good for society as a whole.
Social Responsibility: The obligation of businesses to act in ways that benefit society.
Marketing Ethics: The moral principles and standards that guide marketing practices.
Flashcards for Chapter 2
Marketing Management Process: The process of planning marketing activities, directing the implementation of the plans, and controlling the plans.
Strategic (Management) Planning: The managerial process of developing and maintaining a match between an organization’s resources and its market opportunities.
Marketing Strategy: Specifies a target market and a related marketing mix. It is a big picture of what a firm will do in some markets.
Target Market: A fairly homogeneous group of customers to whom a company wishes to appeal.
Marketing Mix: The controllable variables (4 P’s: Product, Place, Promotion, Price) the company puts together to satisfy the target group.
Target Marketing: Tailoring a marketing mix to fit the specific needs of a target customer group.
Mass Marketing: Aiming at everyone with the same marketing mix, often associated with a product orientation.
Channel of Distribution: Firms that help the flow of products from the producer to the final user.
Personal Selling: Direct communication with potential customers to persuade them to buy.
Customer Service: Activities that support customers before, during, and after a purchase, key to building repeat business.
Mass Selling: Advertising aimed at a large audience rather than individual customers.
Advertising: Paid, non-personal communication through mass media to promote products or services.
Publicity: Unpaid advertising, often through media coverage or word-of-mouth.
Sales Promotion: Activities other than advertising that stimulate interest, such as coupons, contests, events, and samples.
Marketing Plan: A written statement of a marketing strategy and the time-related details for carrying out the strategy.
Implementation: Putting marketing plans into operation.
Operational Decisions: Short-run decisions to help implement marketing strategies.
Marketing Analytics: The practice of measuring, managing, and analyzing marketing performance to maximize efficiency and effectiveness.
Marketing Program: A blend of all the firm’s marketing plans.
Customer Lifetime Value (CLV): The total profits a single customer contributes to the firm over the length of the relationship.
Retention Rate: The percentage of customers retained compared to the total number of customers.
Acquisition Cost: The expense required to acquire each new customer.
Customer Equity: The expected earnings stream (profitability) of a firm’s current and prospective customers over some period of time.
Breakthrough Opportunities: Opportunities that help innovators develop hard-to-copy marketing strategies that will be profitable for a very long time.
Competitive Advantage: A firm has a marketing mix that the target market sees as better than a competitor’s mix.
S.W.O.T. Analysis: Identifies and lists a firm’s strengths, weaknesses, opportunities, and threats.
Differentiation: The marketing mix is distinct from what is available from a competitor.
Market Penetration: Trying to increase sales of a firm’s present products in its present markets.
Market Development: Trying to increase sales by selling present products in new markets.
Product Development: Offering new or improved products for present markets.
Diversification: Moving into totally different lines of business, often the riskiest strategy.
Flashcards for Chapter 3
Mission Statement: Sets out the organization’s basic purpose for being and helps set the objectives for the firm.
Purpose Statement: An aspirational statement that delivers benefits to a range of stakeholders, motivates action, and aligns with the triple-bottom-line (TBL) framework.
Economies of Scale: As a company produces more products, the cost of each unit goes down.
Competitive Environment: Affects the number and types of competitors a marketing manager faces and how they may behave.
Sustainable Competitive Advantage: A marketing mix that customers see as better than a competitor’s mix and cannot be quickly or easily copied.
Competitor Analysis: An organized approach for evaluating the strengths and weaknesses of a current or potential competitor’s marketing strategies.
Competitive Rivals: A firm’s closest competitors.
Market Share: The portion of total sales in a product category accounted for by a brand.
Economic Environment: Macroeconomic factors (e.g., national income, economic growth, inflation) that affect patterns of consumer and business spending.
Technology: The application of science to convert an economy’s resources into output.
Artificial Intelligence (AI): The simulation of human intelligence in machines that are programmed to think and learn.
Intelligent Agent: A device that observes an environment and acts to achieve a goal.
Machine Learning: A computer algorithm where a software application becomes more accurate in predicting outcomes without explicit programming.
Metaverse: A virtual reality space where users can interact with a computer-generated environment and other users.
Nationalism: A political ideology that emphasizes the interests of a particular nation, often affecting trade and macro-marketing systems.
Free Trade: Agreements between countries to not restrict imports and exports.
Cultural and Social Environment: Affects how and why people live and behave, influencing customer buying behavior.
Sustainability: Becoming a bigger selling point for consumers, focusing on environmental and social responsibility.
Gross Domestic Product (GDP): The total market value of all goods and services provided in a country’s economy in a year by both residents and non-residents.
Gross National Income (GNI): Similar to GDP but excludes income earned by foreigners who own resources in that nation. It is a more useful figure to determine the income level of people in a country.
Senior Citizens: Older adults, typically over the age of 65, who represent a significant demographic in marketing.
Baby Boomers: The generation born between 1946 and 1964, known for their significant economic impact.
Generation X (Gen X): The generation born between 1965 and 1980, often characterized as independent and resourceful.
Generation Y (Gen Y): Also known as Millennials, born between 1981 and 1996, known for their tech-savviness and preference for experiences over material goods.
Generation Z (Gen Z): The generation born between 1997 and 2012, known for driving companies to authentically embrace a purpose orientation.
Generation Alpha: The generation born after 2012, the first to be fully born in the 21st century.
Black Swan Event: An unpredictable event that has severe consequences, often disrupting markets and economies.
Flashcards for Chapter 4
Market: A group of potential customers with similar needs who are willing to exchange something of value to satisfy those needs.
Generic Market: A market with broadly similar needs and sellers offering diverse solutions.
Product-Market: A market with very similar needs and sellers offering close substitutes.
Market Segmentation: A two-step process of naming broad product markets and segmenting these broad product-markets to select target markets and develop marketing mixes.
Segmenting: An aggregating process clustering people with similar needs into a market segment.
Market Segment: A homogeneous group of customers who respond to a marketing mix similarly.
Single Target Market Approach: Segmenting the market and picking one homogeneous section as the firm’s target market.
Multiple Target Market Approach: Segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix.
Combined Target Market Approach: Combining two or more submarkets into one larger target market as a basis for one strategy.
Combiners: Firms that try to increase the size of their target markets by combining two or more segments.
Segmenters: Firms that aim at one or more homogeneous segments and try to develop a different marketing mix for each segment.
Clustering Techniques: Finding similar patterns within a set of data using computer algorithms.
Customer Relationship Management (CRM): The seller fine-tunes the marketing effort with information from a detailed customer database.
Dynamic Behavioral Segmentation: The use of real-time data to continuously update a customer’s placement in the market segment.
Positioning: How customers think about proposed or present brands in a market.
Positioning Statement: A concise statement that identifies the firm’s desired target market, product type, primary benefit, and the main reasons a buyer should believe the firm's claims.