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| the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. |
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-a desired outcome of marketing
-people giving up something to receive something they would rather have |
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Definition
1. There must be at least two parties
2. Each party has something that might be of value to the other party
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the exchange offer.
5. Each party believes it is appropriate or desirable to deal with the other party. |
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a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
-problem is that this does not consider needs/wants of the marketplace |
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based on the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
-problem with this is a lack of understanding of the needs and wants of the marketplace |
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| a simple and intuitively appealing philosophy that articulates a market orientation. It states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives. |
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| involves obtaining information about customers, competitors, and markets; examining the information from a total business perspective; determining how to deliver superior customer value; and implementing actions to provide value to customers |
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| societal marketing orientation |
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Definition
| an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests |
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Definition
the relationship between benefits and the sacrifice necessary to obtain those benefits
- Customers value goods and services that are of the quality they expect and that are sold at prices they are willing to pay |
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| Marketers that are interested in customer value should: |
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Definition
1. offer products that perform
2. earn trust
3. avoid unrealistic pricing
4. give the buyer facts
5. offer organization-wide commitment in service and after-sales support |
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Definition
a strategy that focuses on keeping and improving relationships with current customers
- most successful relationship marketing strategies depend on customer-oriented personnel, effective training programs, employees with authority to make decisions and solve problems, and teamwork. |
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| giving employees more authority to solve customer problems on the spot |
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| entails collaborative efforts of people to accomplish common objectives |
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| 4 Basic marketing mix decisions |
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Definition
- product
- place (or distribution)
- promotion
- pricing |
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Definition
the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.
-- strategic decisions affect an organization's long-run course, its allocation of resources, and ultimately its financial success |
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| the process of anticipating future events and determining strategies to achieve organizational objectives in the future |
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| involves designing activities relating to marketing objectives and the changing marketing environment |
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Definition
a written document that acts as a guidebook of marketing activities for the marketing manager
-- elements include defining the business mission and objectives, performing a situational analysis, delineating a target market, and establishing components of the marketing mix. |
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Definition
the foundation of any marketing plan; answers the question, "What business are we in?"
-- should focus on the market or markets the organization is attempting to serve rather than on the good or service offered |
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Definition
-business mission statements that are stated too narrowly suffer from this
- defining a business in terms of goods and services rather than in terms of the benefits customers seek |
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Term
| strategic business unit (SBU) |
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Definition
a subgroup of a single business or collection of related businesses within the larger organization
-- A properly defined SBU should have a distinct mission and specific target market, control over its resources, its own competitors, and plans independent of the other SBUs in the organization |
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Definition
a statement of what is to be accomplished through marketing activities
- they should be realistic, measurable, and time specific |
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| a situation analysis in which the firm identifies its internal strengths (S) and weaknesses (W) and also examine external opportunities (O) and threats (T) |
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Definition
the collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
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| the 6 macroenvironmental forces |
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Definition
1. social
2. demographic
3. economic
4. technological
5. political/legal
6. competitive |
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Definition
a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
-- 3 types: cost, product/service differntiation, and niche |
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Term
| cost competitive advantage |
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Definition
| being the low-cost competitior in an industry while maintaining satisfactory profit margins |
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| tell us that costs decline at a predictable rate as experience with a product increases (part of cost competitive advantage) |
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| product/service differentiation competitive advantage |
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Definition
exists when a firm provides something unique that is valuable to buyers beyond simply offering a low price
- i.e. brand names (Lexus), product reliability, image, service |
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| niche competitive advantage |
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Definition
| seeks to target and effectively serve a single segment of the market |
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| sustainable competitive advantage |
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Definition
one that cannot be copied by the competition
- i.e. Rolex, Nordstrom, Cirque de Soleil |
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| trying to increase market share among existing customers |
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| attracting new customers to existing products |
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| entails the creation of new products for present markets |
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| a strategy of increasing sales by introducing new products into new markets |
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Definition
classifies each SBU by its present or forecast growth and market share
-- the mesaure of market share is the ratio between the company's share and the share of the largest competitor |
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--a fast-growing market leader
-- star SBUs have large profits but need lots of cash to finance growth |
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Definition
| an SBU that generates more cash than it needs to maintain its market share. The product has a dominant share in a low-growth market |
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| problem child/question mark |
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Definition
| shows rapid growth but poor profit margins. It has a low market share in a high-growth industry |
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Definition
| haw low growth potential and a small market share |
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Definition
| involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will product mutually satisfying exhanges with target markets. |
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| market opportunity analysis (MOA) |
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Definition
the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments
-- target markets can be selected by appealing to the entire market with one marketing mix, concentrating on one segment, or appealing to multiple market segments using multiple marketing mixes. |
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Definition
| a unique blend of product, place (distribution), promotion, and pricing straegies (often referred to as the four Ps) designed to produce mutually satisfying exchanges with a target market |
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Definition
| the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives |
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| entails gauging the extent to which marketing objectives have been achieved during the specified time period |
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| provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines |
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| a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization |
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| corporate social responsibility |
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Definition
| a business's concern for society's welfare |
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Definition
| socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to building profits and help the world at the same time |
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| pyramid of corporate social responsibility |
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Definition
| a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure |
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| refers to the moral principles or values that generally govern the conduct of an individual or a group |
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| the rules people develop as a result of cultural values and norms |
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| the most basic level, is childlike. It is calculating, self-centered, and even selfish, based on what will be immediately punished or rewarded |
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| Loyalty and obedience to the organization (or society) become paraount. A marketing decision maker would be concerned only with whether the proposed action is legal and how it will be viewed by others |
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Term
| postconventional morality |
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Definition
| respresents the morality of the mature adult. At this level, people are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run. |
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| a guideline to help marketing managers and other employees make better decisions |
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| a defined group that managers feel is most likely to buy a firm's product |
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| when a company implements strategies that attempt to shape the external environment within which it operates |
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| the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle |
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| the study of people's vital statistics, such as their age, race and ethnicity, and location |
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people that were born between 1979 and 1994
they are: impatient, family-oriented, inquisitive, opinionated, diverse, good time managers, street smart, and connected |
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people born between 1969 and 1978
-- latchkey children
-- spending is quite diffuse: food, housing, transportation -- time is at a premium |
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--the largest demographic segment
-- people born between 1946 and 1964 |
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Definition
| occurs when all major ethnic groups in an area -- such as a city, county, or census tract -- are roughly equally represented |
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| 3 economic factors that are important to marketers |
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Definition
-consumers' incomes
-inflation
- recession |
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Definition
| measured by comparing income to the relative cost of a set standard of goods and services in different geographic areas, usually referred to as the cost of living |
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| a measure of the decrease in the value of money, generally expressed as the percentage reduction in value since the previous year, which is the rate of inflation |
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| a period of economic activity characterized by negative growth, which reduces demand for goods and services |
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| (or pure research) attempts to expand the frontiers of knowledge but is not aimed at a specific pragmatic problem. |
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| attempts to develop new or improved products |
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| RSS (Really Simple Syndication) |
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Definition
| enables automated, seamless delivery of updated news content or marketing messages to blog sites or mobile phones |
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| Food and Drug Administration (FDA) |
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Definition
| charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products |
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| Consumer Product Safety Commission (CPSC) |
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| to protect the health and safety of consumers in and around their homes |
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| Federal Trade Commission (FTC) |
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| a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce |
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| marketing that targets markets throughout the world |
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Definition
| not only to recognize and react to international marketing opportunities but also to remain competitive at home |
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| multinational corporation |
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| a company that is heavily engaged in international trade, beyond exporting and importing |
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Definition
| requiring a greater expenditure for equipment than for labor |
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| global marketing standardization |
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| production of uniform products that can be sold the same way all over the world |
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| the largest Latin American trade agreement; includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru and Uruguay |
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| an agreement to dramatically lower trade barriers worldwide; created the World Trade Organization |
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| World Trade Organization (WTO) |
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Definition
| a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT) |
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| General Agreement on Tariffs and Trade (GATT) |
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Definition
| a trade agreement that contained loopholes that enabled countries to avoid trade-barrier reduction agreements |
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| North American Free Trade Agreement (NAFTA) |
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| an agreement between Canada, the United States, and Mexico that created the world's largest free trade zone |
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| which now encompasses most of Europe |
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| offers low interest loans, advice, and information to developing nations |
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| selling domestically produced products to buyers in another country |
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| an intermediary in the gloabl market that assumes all ownership risks and sells globally for its own account |
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| an intermediary who plays the traditional broker's role by bringing buyer and seller together |
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| an intermediary who acts like a manufacturer's agent for the exporter. The export agent lives in the foreign market |
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| the legal process whereby a licensor agrees to let another firm use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge |
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| private-label manufacturing by a foreign company |
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| when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity |
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| direct foreign investment |
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Definition
| active ownership of a foreign company or of overseas manufacturing or marketing facilities |
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| prices of different currencies move up and down based on the demand for and the supply of each currency |
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| the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter |
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| all or part of the payment for goods or services is in the form of other goods or services |
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| describes how consumers make purchase decisions and how they use and dispose of the purchased good or services |
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| consumer decision-making process |
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Definition
1. need recognition
2. information search
3. evaluation of alternatives
4. purchase
5. postpurchase behavior |
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Definition
| occurs when consumers are faced with an imbalance between actual and desired states |
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Definition
any unit of input affecting one or more of the 5 senses
-internal: things you experience, i.e. thirst
-external: outside source i.e. someone's recommendation of a restaurant |
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Definition
| exists when someone has an unfulfilled need and has determined that a particular good or service will satisfy it |
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| internal information search |
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Definition
| the person recalls information stored in the memory |
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| external information search |
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| seeks information in the outside environment |
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| nonmarketing-controlled information source |
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Definition
| a product information source that is not associated with advertising or promotion |
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| marketing-controlled information source |
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Definition
| a product information source that originates with marketers promoting the product |
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| evoked set (consideration set) |
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Definition
| a group of brands, resulting from an information search, from which a buyer can choose |
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Definition
| inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions |
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Definition
| the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior |
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| routine response behavior |
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Definition
| the type of decison making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time |
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| extensive decision making |
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Definition
| the most complex type of consumer decision making, used when buying an unfamiliar expensive product or an infrequently bought item; requires use of several criteria for evaluating option and much time for seeking information |
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Definition
| the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next |
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Definition
| the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct |
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Definition
| a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group |
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Definition
| a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselve both formally and informally, and who share behavioral norms |
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Definition
| a group in society that influences an individual's purchasing behavior |
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| an individual who influences the opinions of others |
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| how cultural values and norms are passed down to children |
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| a way of organizing and grouping the consistencies of an individual's reactions to situations |
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| how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations |
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| the way an individual would like to be |
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| how an individual actually perceives himself or herself |
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| a mode of living is identified by a person's activities, interests, and opinions |
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| the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture |
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| the process whereby a consumer notices certain stimuli and ignores others |
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Definition
| a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs |
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| a process whereby a consumer remembers only that information that supports his or her personal beliefs |
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Definition
| a driving force that causes a person to take action to satisfy specific needs |
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| Maslow's hierarchy of needs |
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Definition
| a method of classifying human needs and motivations into 5 categories in ascending order of importance: physiciological (hunger), safety, social, esteem, and actualization |
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Definition
| a process that creates changes in behavior immediate or expected, through experience and practice |
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| an organized pattern of knowledge that an individual holds as true about his or her world |
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| a learned tendency to respond consistently toward a given object |
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