Term
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Definition
-process by which companies create value for customers
-build strong customer relationships to capture value from customers in
return |
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Term
| Understanding the Market Place (three things) |
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Definition
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Definition
States of deprivation
Physical—food, clothing, warmth, safety
Social—belonging and affection
Individual—knowledge and self-expression |
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Definition
| Form that human needs take as they are shaped by culture and individual personality |
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Definition
| Human wants backed by buying power |
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Term
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Definition
| combination of products, services, information, or experiences offered to a market to satisfy a need or want |
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Definition
| focusing only on existing wants and losing sight of underlying consumer needs |
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Definition
| Control value and satisfaction levels |
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Definition
Set the right level of expectations
-Not too high or low |
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Definition
| act of obtaining a desired object from someone by offering something in return |
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Definition
| set of actual and potential buyers of a product or service |
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Definition
| art and science of choosing target markets and building profitable relationships with them |
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Definition
| dividing the markets into segments of customers |
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Definition
| refers to which segments to go after |
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Definition
| marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it |
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Definition
| the set of benefits or values a company promises to deliver to customers to satisfy their needs |
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Term
| Marketing Management Orientations |
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Definition
| Production Concept, Product Concept, Selling Concept, Marketing Concept, Societal Concept |
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Term
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Definition
| the idea that consumers will favor products that are available or highly affordable |
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Definition
| the idea that consumers will favor products that offer the most quality, performance, and features. Organizations should therefore devote its energy to making continuous product improvements. |
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Definition
| the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort |
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Definition
| the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do |
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Definition
| is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests |
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Term
| 4ps of Marketing - the marketing mix |
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Definition
| Price, Product, Promotion, Place |
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Term
| Integrated marketing program |
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Definition
| comprehensive plan that communicates and delivers the intended value to chosen customers. |
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Term
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Definition
| Customer Relations Management |
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Term
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Definition
| overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction |
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Definition
| The difference between total customer value and total customer cost |
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Definition
| The extent to which a product’s perceived performance matches a buyer’s expectations |
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Term
| Partner relationship management |
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Definition
| involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers |
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Term
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Definition
| the portion of the customer’s purchasing that a company gets in its product categories |
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Term
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Definition
| the total combined customer lifetime values of all of the company’s customers |
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Term
| The New Marketing Landscape |
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Definition
Digital age
Rapid globalization
Ethics and social responsibility
Not-for-profit marketing |
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Definition
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Definition
| the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities |
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Definition
| the collection of businesses and products that make up the company |
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Term
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Definition
| major activity in strategic planning whereby management evaluates the products and businesses that make up the company |
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Term
| Strategic business unit (SBU) |
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Definition
| a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses |
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Term
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Definition
Strategies and Weaknesses (Internal)
Opportunities and threats (external) |
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Term
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Definition
| growth strategy increasing sales to current market segments without changing the product |
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Term
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Definition
| a growth strategy that identifies and develops new market segments for current products |
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Term
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Definition
| a growth strategy that offers new or modified products to existing market segments |
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Term
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Definition
| a growth strategy for starting up or acquiring businesses outside the company’s current products and markets |
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Definition
| the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy |
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Definition
| a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products |
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Term
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Definition
| made up of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve performance of the entire system |
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Term
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Definition
| Help the company promote, sell and distribute its products to final budget |
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Term
| Type of market intermediaries |
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Definition
-Resellers
-Physical Distribution Firms
-Marketing Servicing Agencies
-Financial Intermediaries |
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Term
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Definition
| is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer |
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Term
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Definition
| the set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market |
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Term
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Definition
| the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives |
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Term
CHAPTER 3
Return on marketing investment |
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Definition
| marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities. |
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Term
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Definition
| Any group that has an actual or potential interest or impact on an organization ability to achieve its objects |
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Term
| The marketing environment |
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Definition
| includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers |
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Term
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Definition
| consists of the actors close to the company that affect its ability to serve its customers -- the company, suppliers, marketing intermediaries, customer markets, competitors, and publics |
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Term
| Types of Marketing Intermediaries |
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Definition
-Resellers
-Physical distribution firms
-Marketing services agencies
-Financial intermediaries |
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Term
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Definition
| Firms must gain strategic advantage by positioning their offerings against competitors’ offerings |
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Term
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Definition
| is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics |
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Term
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Definition
| include age, family structure, geographic population shifts, educational characteristics, and population diversity |
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Term
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Definition
people born between 1946 and 1964
Most affluent Americans |
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Term
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Definition
includes people born between 1965 and 1976
High parental divorce rates
Cautious economic outlook
Less materialistic
Family comes first
Lag behind on retirement savings |
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Term
| Millennials (gen Y or echo boomers) |
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Definition
include those born between 1977 and 2000
Comfortable with technology
Includes:
Tweens (ages 8–12)
Teens (13–19)
Young adults (20’s) |
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Term
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Definition
| is important in segmenting people by lifestyle of life state instead of age |
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Term
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Definition
| consists of factors that affect consumer purchasing power and spending patterns |
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Term
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Definition
| involves ways to offer financially cautious buyers greater value—the right combination of quality and service at a fair price |
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Term
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Definition
The percentage spent on food declines
The percentage spent on housing remains constant
The percentage spent on savings increases |
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Term
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Definition
| involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities |
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Term
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Definition
| consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society |
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Term
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Definition
| consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors |
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Term
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Definition
| persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government |
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Term
| Secondary beliefs and values |
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Definition
| are more open to change and include people’s views of themselves, others, organizations, society, nature, and the universe |
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Term
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Definition
Uncontrollable
Proactive
Reactive |
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Term
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Definition
| React and adapt to forces in the environment |
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Term
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Definition
| Aggressive actions to affect forces in the environment |
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Term
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Definition
| Watching and reacting to forces in the environment |
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Term
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Definition
| Marketing Information systems |
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Term
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Definition
Marketing information system (MIS) consists of people and procedures for:
Assessing the information needs
Developing needed information
Helping decision makers use the information for customer |
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Term
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Definition
| information to the company’s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies |
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Term
| Marketers obtain information from |
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Definition
Internal data
Marketing Intelligence
Marketing Research |
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Term
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Definition
| are electronic collections of consumer and market information obtained from data sources within the company network |
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Term
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Definition
| is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace |
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Term
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Definition
| is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization |
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Term
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Definition
Exploratory research
Descriptive research
Causal research |
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Term
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Definition
| consist of information that already exists somewhere, having been collected for another purpose |
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Term
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Definition
| consist of information gathered for the special research plan |
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Term
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Definition
| involves gathering primary data by observing relevant people, actions, and situations |
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Term
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Definition
| involves sending trained observers to watch and interact with consumers in their natural environment |
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Term
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Definition
is the most widely used method and is best for descriptive information—knowledge, attitudes, preferences, and buying behavior
Flexible
People can be unable or unwilling to answer
Gives misleading or pleasing answers
Privacy concerns |
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Term
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Definition
Experimental research is best for gathering causal information—
cause-and-effect relationships |
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Term
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Definition
is a segment of the population selected for marketing research to represent the population as a whole
Who is to be surveyed?
How many people should be surveyed?
How should the people be chosen? |
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Term
| Closed-end questions vs Open |
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Definition
include all possible answers, and subjects make choices among them
Provide answers that are easier to interpret and tabulate vs Open = allow respondents to answer in their own words
Useful in exploratory research |
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Term
| Customer Relationship Management |
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Definition
| CRM = consists of sophisticated software and analytical tools that integrate customer information from all sources, analyze it in depth, and apply the results to build stronger customer relationships |
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Term
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Definition
| involves entering information into databases and making it available in a time-useable manner |
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Term
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Definition
| Characteristics effecting Consumer Behavior |
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Term
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Definition
| learned values, perceptions, wants, and behavior from family and other important institutions |
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Term
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Definition
groups of people within a culture with shared value systems based on common life experiences and situations
Hispanic
African American
Asian
Mature consumers |
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Term
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Definition
are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors
Measured by a combination of occupation, income, education, wealth, and other variables |
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Term
| Groups and Social Networks |
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Definition
| Membership, Aspirational and Reference Groups |
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Term
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Definition
| Groups with direct influence and to which a person belongs |
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Term
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Definition
| Groups an individual wishes to belong to |
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Term
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Definition
| Groups that form a comparison or reference in forming attitudes or behavior |
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Term
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Definition
| Family is the most important consumer-buying organization in society |
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Term
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Definition
Youth—younger than 18
Getting started—18-35
Builders—35-50
Accumulators—50–60
Preservers—over 60 |
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Term
| Occupation Trends (personal) |
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Definition
| affects the goods and services bought by consumers |
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Term
| Economic trend (personal) |
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Definition
| Personal income, savings, interest rates |
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Term
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Definition
| is a person’s pattern of living as expressed in his or her psychographics |
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Term
| Measures a consumer’s AIOs |
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Definition
| (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment |
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Term
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Definition
| is a need that is sufficiently pressing to direct the person to seek satisfaction |
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Term
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Definition
| refers to qualitative research designed to probe consumers’ hidden, subconscious motivations |
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Term
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Definition
| is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes |
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Term
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Definition
Selective attention
Selective distortion
Selective retention |
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Term
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Definition
| is the tendency for people to screen out most of the information to which they are exposed |
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Term
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Definition
| is the tendency for people to interpret information in a way that will support what they already believe |
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Term
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Definition
| is the tendency to remember good points made about a brand they favor and forget good points about competing brands |
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Term
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Definition
| is the change in an individual’s behavior arising from experience |
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Term
| People Learn through the reoccurrence of: |
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Definition
| Drives, Stimuli, Cues, reinforcements, responses |
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Term
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Definition
descriptive thought that a person has about something based on:
Knowledge
Opinion
Faith |
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Term
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Definition
| describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea |
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Term
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Definition
Occurs when the buyer recognizes a problem or need triggered by:
Internal stimuli
External stimuli |
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Term
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Definition
| complex, habitual, dissonance, variety-seeking |
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Term
| Evaluation of Alternatives |
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Definition
| How the consumer processes information to arrive at brand choices |
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Term
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Definition
| The act by the consumer to buy the most preferred brand |
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Definition
The satisfaction or dissatisfaction that the consumer feels about the purchase
Relationship between:
Consumer’s expectations
Product’s perceived performance |
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Term
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Definition
| is the discomfort caused by a postpurchase conflict |
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Term
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Definition
| is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value |
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Term
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Definition
| is the mental process an individual goes through from first learning about an innovation to final regular use. |
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Term
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Definition
| Awareness, Interest, evaluation, Trial, Adoption |
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Term
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Definition
| Business Markets - buying behavior |
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Term
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Definition
| refers to the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others. Also included are retailing and wholesaling firms that acquire goods to resell or rent to others for profit. |
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Term
| Market Structure and Demand |
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Definition
Fewer and larger buyers
Geographic concentration
Derived demand
Inelastic demand
Fluctuating demand
Buyer and seller dependency |
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Term
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Definition
| is the systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials that they will use in making their own products or resell |
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Term
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Definition
| is a routine purchase decision such as reorder without any modification |
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Term
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Definition
| is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers |
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Term
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Definition
| is a purchase decision that requires thorough research such as a new product |
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Term
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Definition
| involves the purchase of a packaged solution from a single seller |
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Term
| Two-step process of selling: |
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Definition
Interlocking products
System of production, inventory control, distribution, and other services to meet the buyer’s need for a smooth-running operation |
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Term
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Definition
| all of the individuals and units that participate in the business decision-making process(users, influencers, buyers, deciders, gatekeepers) |
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Term
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Definition
| are those that will use the product or service |
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Term
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Definition
| help define specifications and provide information for evaluating alternatives |
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Term
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Definition
| have formal authority to select the supplier and arrange terms of purchase |
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Term
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Definition
| have formal or informal power to select and approve final suppliers |
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Term
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Definition
| control the flow of information |
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Definition
| Need for new product or production equipment |
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Term
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Definition
| Idea from a trade show or advertising |
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Term
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Definition
| Problem recognition occurs when someone in the company recognizes a problem or need |
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Definition
| description describes the characteristics and quantity of the needed item |
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Term
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Definition
| describes the technical criteria |
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Term
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Definition
| is an approach to cost reduction where components are studied to determine if they can be redesigned, standardized, or made with less costly methods of production |
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Term
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Definition
| involves compiling a list of qualified suppliers |
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Term
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Definition
| is the process of requesting proposals from qualified suppliers |
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Term
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Definition
| is the process when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions |
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Term
| Order-routine specifications |
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Definition
| is the final order with the chosen supplier and lists all of the specifications and terms of the purchase |
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Term
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Definition
| involves a critique of supplier performance to the purchase terms |
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Term
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Definition
consist of hospitals, nursing homes, and prisons that provide goods and services to people in their care
Characteristics
Low budgets
“Captive” audience |
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Term
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Definition
tend to favor domestic suppliers and require suppliers to submit bids and normally award to the lowest bidder
Carefully monitored
Affected by similar environmental factors
Good credit
Non-economic factors
Minority suppliers
Depressed suppliers
Small businesses |
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