Term
| 4 P's of the Marketing Mix |
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Definition
Product
Place (Distribution)
Promotion
Pricing |
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Term
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Definition
| Marketing mix starts with this; includes not only the physical unit but also its package, warranty, after-sale service, brand name, company image, value, and many other factors; can be goods or services; we buy things for what they mean to us |
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Definition
| Involves all the business activities concerned with storing and transporting raw materials or finished products. |
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Term
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Definition
| Advertising, public relations, sales promotion, and personal selling; role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading, and reminding them of the benefits of an organization or a product |
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Term
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Definition
| What a buyer must give up to obtain a product; most flexible for 4 P's because it changes often; price multiplied by the number of units sold equals total revenue |
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Definition
| A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges. |
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Term
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Definition
| Identifies the market segment or segments on which to focus |
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Term
| Determinants of a Civil Society |
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Definition
Ethics
Laws
Formal and Informal Groups
Self Regulation
The Media
An Active Civil Society |
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Definition
| The moral principles or values that generally govern the conduct of an individual or a group |
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Definition
| People should adhere to their obligations and duties when analyzing an ethical dilemma. This means that a person will follow his or her obligations to another individual or society because upholding one's duty is what is considered ethically correct. |
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Term
| Utilitarian Ethical Theory |
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Definition
| Founded on the ability to predict the consequences of an action. To a utilitarian, the choice that yields the greatest benefit to the most people is the choice that is ethically correct; uses a point system |
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Definition
| Compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes |
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Definition
| Believe in time-and-place ethics, that is, ethical truths depend on the individuals and groups holding them; If you are a parent and your child is starving, stealing a loaf of bread is ethically correct; beliefs center on the pressure of the moment and whether the pressure justifies the action taken |
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Definition
| A character trait valued as being good; individuals solve ethical dilemmas when they develop and nurture a set of virtues |
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Definition
| The rules people develop as a result of cultural values and norms; a foundation of ethical behavior |
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Term
| Factors That Influence Buying Decisions |
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Definition
Culture
Social
Individual
Psychological |
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Term
| Cultural Purchase Decisions |
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Definition
Broadest and deepest influence; Culture is the essential character of a society that distinguishes it from other societal groups; The most defining element of a culture is its values;
Subculture and Social Class |
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Term
| Social Purchase Decisions |
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Definition
| Reference Groups, Opinion Leaders, Family |
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Term
| Individual Purchase Decisions |
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Definition
| Gender, Age and Family Life Cycle Stage, Personality, Self-Concept, and Lifestyle |
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Term
| Psychological Purchase Decisions |
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Definition
| Perception, Motivation, Learning, Beliefs and Attitudes |
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Term
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Definition
| A homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group. Within subcultures, people's attitudes, values, and purchase decisions are even more similar than they are within the broader culture |
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Term
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Definition
| A group of people who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms; |
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Term
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Definition
| All the formal and informal groups that influence the buying behavior of an individual |
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Term
| Primary Membership Groups |
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Definition
| All groups with which people interact regularly in an informal, often face-to-face manner, such as family, friends, and coworkers. |
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Term
| Secondary Membership Groups |
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Definition
| Include clubs, professional groups, Internet communities, and religious groups. Associate with less consistently and often more formally. |
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Term
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Definition
| Face to face membership; primary and secondary membership groups |
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Term
| Indirect Reference Groups |
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Definition
| Nonmembership; Aspirational and nonaspirational membership groups |
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Term
| Aspirational Membership Groups |
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Definition
| Group someone would like to join |
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Term
| Nonaspirational Membership Groups (Dissociative Groups) |
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Definition
| Group that someone wants to avoid being identified with |
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Term
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Definition
| Values and attitudes deemed acceptable by the group |
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Definition
| People who influence others such as celebrities |
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Definition
| The most important social institution for many consumers, strongly influencing values, attitudes, self-concept—and buying behavior; responsible for the socialization process |
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Definition
| The passing down of cultural values and norms to children |
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Definition
| A broad concept that can be thought of as a way of organizing and grouping how an individual typically reacts to situations |
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Definition
| How consumers perceive themselves. Includes attitudes, perceptions, beliefs, and self-evaluations. |
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Definition
| A mode of living, as identified by a person's activities, interests, and opinions. |
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Term
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Definition
| Process by which we select, organize, and interpret these stimuli into a meaningful and coherent picture |
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Term
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Definition
| Driving forces that cause a person to take action to satisfy specific needs |
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Term
| Maslow's Hierarchy of Needs |
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Definition
| Ascending order: physiological, safety, social, esteem, and self-actualization |
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Term
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Definition
| The process that creates changes in behavior through experience and practice |
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Term
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Definition
| An organized pattern of knowledge that an individual holds as true about his or her world |
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Term
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Definition
| A learned tendency to respond consistently toward a given object, such as a brand |
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Term
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Definition
| The value of company and brand names |
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Term
| Why is brand equity important? |
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Definition
| A brand that has high awareness, perceived quality, and brand loyalty among customers has high brand equity. It helps with product identification. |
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Term
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Definition
| A business structure of interdependent organizations that are involved in the process of making a product or service available for use or consumption by end customers or business users; facilitate the physical movement of goods; Represents place in the marketing mix |
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Term
| Why are intermediaries needed? |
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Definition
| They negotiate with one another, facilitate the change of ownership between buyers and sellers, and physically move products from the manufacturer to the final consumer |
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Term
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Definition
| A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. |
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Term
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Definition
| The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. |
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Term
| Differentiation Marketing |
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Definition
| Dividing the market up into different target markets for its target marketing |
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Term
| Undifferentiated Marketing |
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Definition
| Viewing the market as one big market with no individual segments |
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Term
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Definition
| The place a product, brand, or group of products occupies in consumers' minds relative to competing offerings |
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Term
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Definition
| Developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general. |
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Term
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Definition
| A pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion. |
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Term
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Definition
| A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market. |
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Term
| Status Quo (Competitive Pricing) |
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Definition
| A pricing objective that maintains existing prices or meets the competition's prices. |
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Term
| Reasons New Products Fail |
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Definition
Product does not offer any discernible benefit compared to existing products.
A poor match between product features and customer desires.
Overestimation of market size
Incorrect positioning
A price too high or too low,
Inadequate distribution,
Poor promotion,
An inferior product compared to those of competitors. |
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Term
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Definition
| Introductory, Growth, Maturity, Decline |
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Term
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Definition
| The full-scale launch of a new product into the marketplace. |
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Term
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Definition
| The second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies might start acquiring small pioneering firms, and profits are healthy. Distribution is a major key here. Profits peak and decline as competition intensifies. |
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Term
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Definition
| The third stage of the product life cycle during which sales increase at a decreasing rate. Longest stage (appliances are mostly in this now). Marginal competitors start dropping out of the market. Heavy consumer promotion begins. |
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Term
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Definition
| The fourth stage of the product life cycle, characterized by a long-run drop in sales. The rate of decline is governed by how rapidly consumer tastes change or substitute products are adopted. |
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Term
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Definition
| Age, gender, income, ethnic background, and family life cycle. |
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Term
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Definition
| Segmenting markets by region of a country or the world, market size, market density, or climate |
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Term
| Psychographic Segmentation |
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Definition
| Market segmentation on the basis of personality, motives, lifestyles, and geodemographics. |
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Term
| Geodemographic Segmentation |
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Definition
| Segmenting potential customers into neighborhood lifestyle categories. Combines demographic, geographic and lifestyles. |
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Term
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Definition
| The process of grouping customers into market segments according to the benefits they seek from the product. |
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Term
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Definition
| Dividing a market by the amount of product bought or consumed. |
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Term
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Definition
| Principle holding that 20 percent of all customers generate 80 percent of the demand. |
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Term
| Criteria For a Successful Market Segmentation |
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Definition
| Substantiality, Identifiability and Measurability, Accessibility, Responsiveness |
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Term
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Definition
| A segment must be large enough to warrant developing and maintaining a special marketing mix. |
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Term
| Identifiability and Measurability |
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Definition
| Segments must be identifiable and their size measurable. You have to be able to measure and identify the people in a certain market. |
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Term
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Definition
| The firm must be able to reach members of targeted segments with customized marketing mixes. |
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Term
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Definition
| You can segment a market anyway as long as its logical, unless the whole market responds to the same product equally. |
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Term
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Definition
| The price charged to customers multiplied by the number of units sold. |
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Term
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Definition
| The amount you need to sell for cost to equal revenue |
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Term
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Definition
| A cost that varies with changes in the level of output. |
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Term
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Definition
| A cost that does not change as output is increased or decreased. |
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Term
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Definition
| The cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for. |
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Term
| What is the role of promotion in the marketing mix? |
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Definition
| To inform, persuade, and remind potential buyers of a product in order to influence their opinion or elicit a response through advertising, public relations, personal selling, sales promotion and social media. |
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Term
| Elements of the promotional mix |
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Definition
Advertising
Public Relations
Personal Selling
Sales Promotion
Social Media |
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Term
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Definition
| Any form of impersonal (one-way) paid communication in which the sponsor or company is identified |
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Term
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Definition
| The marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance |
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Term
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Definition
| A purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other. |
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Term
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Definition
| All marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer purchasing and dealer effectiveness. |
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Term
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Definition
| Promotion tools used to facilitate conversations among people online. |
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Term
| Integrated Marketing Communications |
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Definition
| Marketing communications from each promotional mix element (personal selling, advertising, sales promotion, social media, and public relations) should be integrated—the message reaching the consumer should be the same regardless of whether it is from an advertisement, a salesperson in the field, a magazine article, a Facebook fan page, or a coupon in a newspaper insert; The careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer. |
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Term
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Definition
| A marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise; Manufacture promotes to wholesaler |
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Term
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Definition
| A marketing strategy that stimulates consumer demand to obtain product distribution; manufacture promotes to consumer |
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