Marketing Terms and Concepts: Definition and Explanation, Quizzes of Marketing

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The Definition of

Marketing

The activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large TERM 2

Exchange (Marketing)

DEFINITION 2 The provision or transfer of goods, services, or ideas in return for something of value.-People giving up something to receive something they would rather have TERM 3

The Societal Marketing Concept

DEFINITION 3 The idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and societies long term best interests TERM 4

Marketing Concept

DEFINITION 4 The idea that the social and economic justification for an organizations existence is the satisfaction of customer wants and needs while meeting organizational objectives TERM 5

Marketing Strategy

DEFINITION 5 electing and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

Target Market

A defined group most likely to buy a firm's product. TERM 7

Marketing Mix

DEFINITION 7 Blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market TERM 8

Marketing

Environment

DEFINITION 8 The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix.-Social-Demographic- Cultural-Economic TERM 9

Competitive Advantage

DEFINITION 9 Set of unique features of a company and it's products that are perceived by the target market as significant and superior to the competition.Types of Competitive Advnantage Cost Product/Service differentiation Niche Strategies TERM 10

Boston Consulting Group Growth Matrix

(Portfolio Matrix)

DEFINITION 10 Allocating resources among products or strategic business units on the basis of relative market share and market growth rate-Star- Business unit that is a fast growing market leader.-Cash Cows-A business unit that generates more cash than it needs to maintain it's market share.-Dogs-low growth potential and a small market share.-Problem Child-shows rapid growth but poor profit margins.

Ansoff Opportunity Matrix

Opportunity Matrix Market Penetration New market, current products Product Development New market, new products Market Development Current market, current products Diversification Current market, new products TERM 12

Personal Moral Philosophy

DEFINITION 12 -Moral Idealism considers certain individual rights or duties as usual -Utilitarianism focuses on "the greatest good for the greatest number of" asses the cost and benefits of the consequences of ethical behavior. TERM 13

Global Marketing

DEFINITION 13 Global Marketing Marketing that targets markets throughout the world Having a global vision means: Recognizing and reaction to international marketing opportunities Using effective marketing strategies TERM 14

Multinational Firms

DEFINITION 14 Global Marketing Standardization Production of uniform products that can be sold the same way all over the world Companies operate in one country and sell to others Set up foreign subsidiaries to handle sales Operate an entire line of business in another country Virtual operation TERM 15

Environmental Factors

DEFINITION 15 Culture Economic and Technical Development Political Structure Tariff A tax levied on goods entering a country Quota Limit on the amount of a product entering a country Boycott Exclusion of products from a country Trade Agreement An agreement to stimulate international trade Demographics Natural Resources

Competitive Advantage of Nations

Factor conditions= Nations position in factors of production Skilled labor, Specialized to an industrys needs to competeDemand conditions= Nature of home market demand Nations gain Competitive Advantage when home market is demanding, pressures companies to innovate faster and achieve sophistication, related and supporting industries, Presence in the economy of internationally competitive suppliers, provide cost-effective inputs, lose working suppliers and buyers can exchange info to upgrade innovationsFirm strategy, structure, and rivalry Company organization and organization of competition Competitiveness arises from convergence of management practice Strong rivals provide basis for creation and persistence in innovation TERM 17

Entry Strategies

DEFINITION 17 Exporting Sell domestically produced products to buyers in other countriesLicensing Legal process allowing use of manufacturingContract manufacturing Private-label manufacturing by a foreign companyJoint Venture Domestic firm buys a foreign companyDirect Investment Active ownership of a foreign company TERM 18

Consumer Decision Making

DEFINITION 18 Process a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; includes factors that influence purchase decisions and the product use 1.) Need recognition 2.) Information Search 3.) Alternative Evaluation 4.)Purchase Decision 5.) Post- Purchase behavior TERM 19

Types of Decision Making

DEFINITION 19 Routine Limited Extensive TERM 20

Consumer Markets vs. Business-to-Business

Markets

DEFINITION 20 Business vs. Consumer Marketing Derived Demand Demand for business products results from demand for consumer products Inelastic Demand A change in price will not significantly affect the demand for product

Influences on Consumer Buying Decisions

Cultural Influences Culture A 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 Pervasive, functional, learned, and dynamic Value Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct Subculture A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group Social Class A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms Implications+ Indicates which medium to use for advertising+ Helps determine the best distribution for products Social Influences Reference Group A group in society that influences an individuals purchasing behavior They serve as info sources and influence perceptions They affect an individuals aspiration levels Their norms either constrain or stimulate each other Opinion Leaders An individual who influences the opinion of others Family Members Initiators Influencers Decision makers Purchasers Consumers Psychological Influences Personality A way of organizing and grouping how an individual typically reacts to a situation Extraversion, emotional stability, agreeableness, conscientiousness, dependable, prudent, conformity, achievement oriented Motive A driving force that causes a person to take action to satisfy specific needs TERM 22

Market Segmentation

DEFINITION 22 Market segmentation- linking market needs to an organizations marketing program Identify market needs benefits in terms of: Product features Expense Quality Savings in time & convenience Process of segmenting & targeting markets Execute marketing program TERM 23

Marketing

Research

DEFINITION 23 Marketing research The process of planning, collecting, and analyzing data relevant to a marketing decision Three Roles: Descriptive Gathering and presenting factual statements Diagnostic Explaining data Predictive What if? TERM 24

Decision Support System

DEFINITION 24 Computerized info for managers to use when making decisions TERM 25

Steps in Research

Process

DEFINITION 25 Step 1: Identify and formulate the problemStep 2: Plan the research design and gathering primary dataStep 3: Specify the sampling proceduresStep 4: Collect the dataStep 5: Analyze the dataStep 6: Prepare and present the reportStep 7: Follow-up

Products

Everything a person receives in an exchange TERM 27

Classification of Consumer

Goods

DEFINITION 27 A product bought to satisfy an individuals personal needs TERM 28

Classification of B-B

Goods

DEFINITION 28 A product used to manufacture other goods or services, to facilitate an organizations operations, or to resell to other consumers TERM 29

Product Mix

DEFINITION 29 All products that an organization sells TERM 30

Product Item

DEFINITION 30 A specific version of a product that can be designated as a distinct offering among an organizations products

Product Line

A group of products that are closely related product items because they: Satisfy a class of needs Are used together Sold to the same customer group Distributed though the same type of outlets Fall within a given price range TERM 32

Product Life Cycle

DEFINITION 32 A concept that provides a way to trace the stages of a products acceptance, from its introduction (birth) to its decline (death).-4 stages Introduction Growth Maturity Decline TERM 33

Categorizing New Products

DEFINITION 33 New-to-the-World New Product Lines Product line additions Improvements or Revisions Repositioned Products Lower-Priced Product TERM 34

Stages in Product Life Cycle (PLC)

DEFINITION 34 A concept that provides a way to trace the stages of a products acceptance, from its introduction to its decline1.) Introduction Marketing Objective= Gain awareness Competition= Few Product= One Price= Skim-high or Penetrate-low Promotion= Educate Distribution= Limited 2.) Growth Marketing Objective= Differentiation Competition= More Product= Multiple versions Price= Gain, share, deal Promotion= Differentiation Distribution= More outlets 3.) Maturity Marketing Objective= Brand loyalty Competition= Many Product= Full Product Line Price= Market share, profit Promotion= Remind oriented Distribution= Most outlets 4.) Decline Marketing Objective= Harvest or deletion Competition= Reduced Product= Best sellers Price= Stay profitable Promotion= Minimal Distribution=Fewer outlets TERM 35

Stages in New Product Development Process

DEFINITION 35 Idea Generation Idea Screening Business Analysis Development Test Marketing Commercialization New Product Concept Test