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| Actually making goods or performing services |
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| The extent to which a firm fulfills a customer's needs, desires and expectations |
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| The development and spread of new ideas, goods and services. Creates competition, which gives more choices and drives down prices. |
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The performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to consumer/client.
..Doesn't occur unless two or more parties are willing to exchange something for something else. |
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| When each family unit produces everything it consumes, there is no need to exchange goods and services and no marketing is involve. (standard of living is typically relatively low) |
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| A social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society. Includes looking at how marketing affects society and vice-versa. |
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| Challenges of Macro Marketing |
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| Spatial separation, separation in time, separation of information and values and separation of ownership |
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| Means looking for and evaluating goods and services |
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| Involves promoting the product. Includes the use of personal selling, advertising, customer service and other direct and mass selling methods. Most visible function of marketing. |
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| The movement of goods from one place to another. |
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| Involves holding goods until customers need them. |
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| Standardization and grading |
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| Involve sorting products according to size and quality. This makes buying and selling easier because it reduces the need for inspection and sampling. |
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| Provides the necessary cash and credit to produce, transport, store, promote, sell, and buy products. |
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| Involves bearing the uncertainties that are part of the process. |
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| Market Information Function |
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Definition
| Involves the collection, analysis and distribution of all the information needed to plan, carry out and control marketing activities. |
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| Someone who specializes in trade rather than production - plays a role in the exchange system. |
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| Firms that facilitate or provide one or more of the marketing functions other than buying or selling. Include advertising agencies, marketing research firms, independent product-testing laboratories, internet service providers, public warehouses, transporting firms, communications companies and financial institutions (including banks.) |
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| Refers to exchanges between individuals or organizations - and activities that facilitate these exchanges - based on applications of information technology. |
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| The way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in that society. |
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| Government officials decide what and how much is to be produced and distributed by whom, when, to whom and why. These decisions are usually part of an overall government plan, so command economies are also called "planned economies". |
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| The individual decisions of the many producers and consumers make the macro-level decisions for the whole economy. People decide what is to be produced and by whom - through their dollar "values". |
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Term
Five Stages of Marketing Evolution
1. SIMPLE TRADE ERA |
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| A time when families traded or sold their "surplus" output to local distributors. These specialists resold the goods to other consumers or other distributors |
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Term
Five Stages of Marketing Evolution
2. PRODUCTION ERA |
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Definition
A time when a company focuses on production of a few specific products - perhaps because few of these products are available in the market.
"If we can make it, it will sell" way of thinking. |
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Term
Five Stages of Marketing Evolution
3. SALES ERA |
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Definition
| A time when company emphasizes selling because of increased competition. |
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Five Stages of Marketing Evolution
4. MARKETING DEPARTMENT ERA |
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Definition
| A time when all marketing activities are bought under the control of one department to improve short-run policy planning and to try to integrate the firm's activities. |
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Term
Five Stages of Marketing Evolution
5. MARKETING COMPANY ERA |
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Definition
| A time when, in addition to short-run marketing planning, marketing people develop long-range plans -- sometimes five or more years ahead -- and the whole company effort is guided by the marketing concept. |
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| Means that an organization aims ALL of its efforts and satisfying its customers - at a profit. |
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| Making whatever products are easy to produce and THEN trying to sell them. They think of customers existing to buy the firm's output rather than of firms existing to serve customers and - more broadly - the needs of society. |
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Definition
| Means trying to carry out the marketing concept. Instead of just trying to get customers to buy what the firm has produced, a marketing-oriented firm tries to offer customers what they need. |
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Definition
| The difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits. |
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| Producers and consumers making free choices can cause conflicts and difficulties. What is "good" for some firms and consumers may not be good for society as a whole. |
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| A firm's obligation to improve its positive effects on society and reduce its negative effects. |
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| The moral standards that guide marketing decisions and actions. |
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| Strategic (management) Planning |
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Definition
| The job of planning strategies to guide a whole company. The managerial process of developing and maintaining a match between an organization's resources and its market opportunities. |
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Definition
| Means finding attractive opportunities and developing profitable marketing strategies. Specifies a target market and a related marketing mix. It is a big picture of what a firm will do in some market. |
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| A fairly homogeneous (similar) group of customers to whom a company wishes to appeal. |
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| The controllable variables the company puts together to satisfy this target group. Product, price, promotion, place. |
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Definition
| Says that a marketing mix is tailored to fit some specific target customers. "Rifle" |
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Definition
| The typical production-oriented approach. Vaguely aims at "everyone" with the same marketing mix. Assumes that everyone is the same - and it considers everyone to be a potential customer. "Shotgun" |
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Definition
| Concerned with developing the right product. Can be a good or service. (Or an organization like a political party). |
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Term
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Definition
| Available where it can be bought by the customer. Includes transporting the good/service. CHANNEL OF DISTRIBUTION - is any series of firms (or individuals) that participate in the flow of product from producer to final user/consumer. |
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Definition
Telling customers yours is the "right" product.
-PERSONAL SELLING: involves direct spoken communication between sellers and potential customers.
-CUSTOMER SERVICE: a personal communication between a seller and a customer who wants the seller to resolve a problem with the purchase. IS often a key to building repeat success.
-MASS SELLING - communicating with large numbers of customers at the same time.
-ADVERTISING: main form of mass selling. Any PAID for of non-personal presentation of ideas, goods or services by an identified sponsor.
-PUBLICITY: an UNPAID for of non-personal presentation of ideas, goods or services - is another important form of mass selling.
-SALES PROMOTION: refers to those promotion activities - other than advertising, publicity and personal selling - that stimulate interest, trial or purchase by final customers or others in the channel. Can involve cupouns, point-of-purchase materials, samples, signs, contests, events, catalogs, novelties and circulars. |
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Definition
| A written statement of a marketing strategy AND the time-related details for carrying out the strategy. Should spell out what marketing mix will be used, to whom, and for how long. What company resources will be needed, at what rate. And what results are expected. And some sort of control procedure. |
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Definition
| Putting marketing plans into operation. |
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| Short-run decisions to help implement strategies. |
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| Blends all of the firm's marketing plans into one "big" plan. |
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| The expected earnings stream (profitability) of a firm's current and prospective customers over some period of time. |
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| Breakthrough Opportunities |
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Definition
| Opportunities that help innovators develop hard to copy marketing strategies that will be very profitable for a long time. |
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Definition
| Means that a firm has a marketing mix that the target market sees as better than a competitor's mix. |
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| Means that the marketing mix is distinct from and better than what is available from a competitor. |
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Definition
| A useful aid for identifying relevant screening criteria and for zeroing in on a feasible strategy. Identifies and lists the firm's strengths and weaknesses and it's opportunities and threats. (Strengths, Weaknesses, Opportunities, Threats) |
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Definition
| Means trying to increase sales of a firm's present products in its present markets - probably through a more aggressive marketing mix. |
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| Means trying to increase sales by selling products in new markets. |
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| Means offering new or improved products for present markets |
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Definition
| Means moving into totally different lines of business - perhaps entirely unfamiliar products, markets or even levels in the production-marketing system. |
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Definition
| To avoid managers holding unspoken and conflicting objectives, when they aren't clear from the start. Sets out the organization's basic purpose of being. |
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Definition
| Affects the number and types of competitors the marketing manager must face and how they may behave. |
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| Four Kinds of Competitive Situations |
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Definition
1. Pure competition
2. Oligopoly
3. Monopolistic Competition
4. Monopoly |
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Definition
| An organized approach for evaluating the strengths and weaknesses of current or potential competitors'marketing strategies. |
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| Firms that will be the closest competitors. |
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| The conditions that may make it difficult, or even impossible, for a firm to compete in a market. |
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Definition
| Refers to macro-economic factors, including national income, economic growth, and inflation, that affect patterns of consumer and business spending. |
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| The application of science to convert an economy's resources to output. Affects marketing in two basic ways: opportunities for new products and for new processes (ways of doing things). |
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| A system for linking computers around the world. |
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Definition
| An emphasis on a country's interests before everything else, when strong, affect how macro-marketing systems work. |
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| North American Free Trade Agreement (NAFTA) |
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Definition
| Lays out a plan to reshape the rules of trade among the US, Canada and Mexico |
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| Cultural and Social Environment |
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Definition
| Affects how and why people live and behave as they do - which affects customer buying behavior and eventually the economic, political and legal environments. |
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Definition
| The idea that it's important to meet present needs without compromising the ability of future generations to meet their own needs. |
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| Strategic business Unit (SBU) |
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Definition
| An organized unit (within a larger company) that focuses on some product-markets and is treated as a separate profit center. |
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Term
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Definition
| Treats alternative products, divisions or strategic business units as though they were stock investments, to be bought and sold using fictional criteria. |
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Definition
| A group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services - that is, ways of satisfying those needs. |
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| A market with broadly similar needs - and sellers offering various, often diverse, ways of satisfying those needs. |
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| A market with very similar needs and sellers offering various close substitute ways of satisfying those needs. |
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Definition
A two step process of
1. Naming broad product-markets and develop suitable marketing mixes.
2. Segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes. |
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Definition
| An aggregating process - clustering people with similar needs into a "market segment". |
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Definition
| A (relatively) homogeneous group of customers who will respond to a marketing mix in a similar way. |
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| Single Target Market Approach |
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Definition
| Segmenting the market and picking one of the homogeneous segments as the firm's target market. |
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| Multiple Target Market Approach |
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Definition
| Segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix. |
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| Combined Target Market Approach |
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Definition
| Combining two or more sub-markets into one larger target market as a basis for one strategy. |
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Definition
| They try to increase the size of their target markets by combining two or more segments. |
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Definition
| They aim at one or more homogeneous segments and try to develop a different marketing mix for each segment. |
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Definition
| Those relevant to including a customer type in a product-market. |
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Definition
| Those that actually affect the customer's purchase of a specific product or brand in a product-market. |
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Term
| A Best Practice Approach to Segmenting Product-Markets |
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Definition
1. Select the broad product-market
2. Identify potential customers' needs
3. Form homogeneous sub-markets - narrow product markets
4. Identify the determining dimensions
5. Name (nickname) the possible product-markets
6. Evaluate why product-market segments behave as they do
7. Make a rough estimate of the size of each product-market segment |
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Definition
| These try to find similar patterns within sets of data. |
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| Customer Relationship Management (CRM) |
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Definition
| The seller fine-tunes the marketing effort with information from a detailed customer database. |
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Definition
| Refers to how customers think about proposed or present brands in a market. |
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| Gross Domestic Product (GDP) |
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Definition
| The total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country. |
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Definition
| The number of babies born per 1,000 people - has fluctuated greatly in the last 65 years. |
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| People born between 1946 and 1964. |
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| Refers to the generation born immediately following the baby boom - from 1965 to 1977. |
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| Sometimes called Millenials, refers to those born from 1978 to 1994. "From the echo boom." |
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| Metropolitan Statistical Area (MSA) |
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| An integrated economic and social unit with a large population nucleus. |
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Definition
| Income that is adjusted to take out the effects of inflation on purchasing power. |
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| What is left after taxes. |
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| What is left of disposable income after paying for necessities. |
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| People whose children are grown and who are now able to spend their money in other ways. Between 50 and 64. |
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| People over 65. More prosperous than ever before. |
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