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109 Cards in this Set
- Front
- Back
Marketing |
Facilitating exchange between business and its customers. |
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Five Core Marketplace Concepts |
1. Understand market and customer needs, wants. 2. Design customer-driven marketing strategy. 3. Construct integrated marketing program that delivers superior value. 4. Build profitable relationships and create customer delight. 5. Capture value from customers to create profit and customer equity. |
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Needs |
States of felt deprivation |
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Wants |
Needs that are shaped by culture and individual personality. |
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Demands |
Human wants backed by buying power. |
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Value Proposition |
Set of benefits and values business promises to deliver to consumers to satisfy their needs. |
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Five Marketing Management Orientations |
1. Production Concept 2. Product Concept 3. Selling Concept 4. Marketing Concept 5. Societal Marketing Concept |
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Production Concept |
Idea that customers favor products that are available and highly affordable; therefore, organization should focus on improving production and distribution efficiency. |
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Product Concept |
Idea that consumers will favor products that offer the most quality, performance, and features; therefore, organization should devote its energy to making continuous product improvements. |
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Selling Concept |
Idea that consumers will not buy enough of a product unless firm undertakes a large-scale selling and promotion effort. |
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Marketing Concept |
Philosophy in which achieving organizational goals depends on knowing needs and wants of target markets and delivering the desired satisfactions better than competitors do. |
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Societal Marketing Concept |
Idea that a company's marketing decisions should consider consumers' wants, company's requirements, consumers' long-run interests, and society's long-run interests. |
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Customer-Perceived Value |
Customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. |
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Customer Satisfaction |
Extent to which a product's perceived performance matches a buyer's expectations. |
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Major Trends and Forces That Are Changing the Marketing Landscape Today |
1. Changing Economic Environment. 2. The Digital Age (the Internet). 3. The Growth of Not-For-Profit Marketing. 4. Rapid Globalization. 5. Sustainable Marketing (the call for more social responsibility). |
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Strategic Planning |
Process of developing and maintaining strategic fit between the organization's goals and capabilities and its changing marketing opportunities. |
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Four Steps of Strategic Planning |
1. Define the company mission. 2. Set company objectives and goals. 3. Design business portfolio. 4. Planning marketing and other functional strategies. |
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What is an SBU? |
Strategic Business Units. Key businesses that make up the company. Can be a company division, a product line within that division, or a single product or brand. |
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Four Product/Market Expansion Strategies (aka Growth Strategies) |
1. Market Penetration. 2. Market Development. 3. Product Development. 4. Diversification. |
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Market Penetration |
An attempt to sell more of the current product to the current customer segment. (U.S. Turkey Producers). |
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Market Development |
To take the current product, and introduce it into new markets. (Color printers to consumer market). |
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Product Development |
Offer new products to current customers. (Kellogg's Rice Krispy's to Rice Krispy Treats). |
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Diversification |
Offer new products to new markets. |
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Customer-Driven Marketing Strategy |
1. Market Segmentation. 2. Market Targeting. 3. Positioning. 4. Differentiation. |
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Market Segmentation |
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, who might require separate products or marketing programs. |
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Market Targeting |
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter. |
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Positioning |
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing brands in the minds of target consumers. |
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Differentiation |
Actually differentiating the market offering to create superior customer value. |
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What is a Marketing Mix |
The set of tactical marketing tools--product, place, price, promotion--that the firm blends to produce the response it wants in the target market. |
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The Four P's |
1. Product. 2. Place. 3. Price. 4. Promotion. |
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The Four C's |
1. Customer Solution. 2. Customer Cost. 3. Convenience. 4. Communication. |
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What is a SWOT analysis |
S: Strengths - Internal capabilities that may help a company reach its objectives.
W: Weaknesses - Internal limitations that may interfere with a company's ability to achieve its objectives.
O: Opportunities - External factors that the company may be able to exploit to its advantage.
T: Threats - Current and emerging external factors that may challenge the company's performance. |
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What is Marketing ROI? |
Return on [marketing] investment. The net return from a marketing investment divided by the costs of the marketing investment. |
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Marketing Environment |
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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Microenvironment |
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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6 Major Actors within the Microenvironment |
1. Company 2. Suppliers 3. Marketing Intermediaries 4. Competitors 5. Publics 6. Customers |
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5 Types of Customer Markets |
1. Consumer Market 2. Business Market 3. Reseller Market 4. Government Market 5. International Market |
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Macroenvironment |
The larger societal forces that affect the microenvironment--demographics, economic, natural, technological, political, and cultural forces. |
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6 Major Forces of the Macroenvironment |
1. Demographic 2. Economic 3. Natural 4. Technological 5. Political 6. Cultural |
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The Major Generational Groups |
1. Baby Boomers 2. Generation X 3. Millennials (Generation Y) |
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Baby Boomers |
The 78 million people born during the years following WWII. (1946 to 1964). |
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Generation X |
The 49 million people born between 1965 and 1976 in the "birth dearth" following the baby boom. |
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Millennials |
The 83 million children of the baby boomers born between 1977 and 2000. |
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What is Marketing Research? |
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. |
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What is Marketing Intelligence? |
[Competitive] Marketing Intelligence: The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. |
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Four Steps in the Marketing Research Process |
1. Define the problem and research objectives. 2. Develop the research plan for collecting information. 3. Implement the research plan. 4. Interpret and report the findings. |
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Exploratory Research |
Marketing research to gather preliminary information that will help define problems and suggest hypotheses. |
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Descriptive Research |
Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product of the demographics and attitudes of consumers. |
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Causal Research |
Marketing Research to test hypotheses about cause-and-effect relationships. |
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Research Approaches for Gathering Primary Data |
1. Observational Research 2. Survey Research 3. Experimental Research
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Observational Research |
Gathering primary data by observing relevant people, actions, and situations. |
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Ethnographic Research |
A form of observational research that involves sending trained observers to watch and interact with customers in their "natural environments." |
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Survey Research |
Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior. |
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Experimental Research |
Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. |
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Samples |
A segment of the population selected for marketing research to represent the population as a whole. |
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Probability Samples |
Each population member has a known chance of being included in the sample, and researches can calculate confidence limits for sampling error. |
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Non-Probability Samples |
Population where sampling error cannot be calculated. |
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Research Instrument |
In collecting primary data, marketing researchers have a choice between two main research instruments--questionnaires and mechanical devices. |
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Questionnaires |
Most common instrument, whether administered in person, by phone, by e-mail, or online. |
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Mechanical Instruments |
Meters on TV sets, cable boxes, satellite, etc., in selected homes. (Example). |
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Ethical Consideration Market Researchers and Managers Need to be Aware of. |
Intrusion on consumer privacy. Misuse of research finding. |
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Four Major Factors that Influence Buyer Behavior |
1. Culture 2. Social 3. Personal 4. Psychological |
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Cultural Influence on Consumer Buyer Behavior |
1. Culture 2. Subculture 3. Social Class |
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Social Influence on Consumer Buyer Behavior |
1. Groups and Social Networks 2. Family 3. Roles and Status |
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Personal Influence on Consumer Buyer Behavior |
1. Age and Life-cycle Stage 2. Occupation 3. Economic Situation 4. Lifestyle 5. Personality and Self-Concept |
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Psychological Influence on Consumer Buyer Behavior |
1. Motivation (Drive) 2. Perception 3. Learning 4. Beliefs and Attitudes |
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Major American Social Classes |
1. Upper Class (Upper Uppers and Lower Uppers).
2. Middle Class (Upper Middles and Lower Middles).
3. Working Class
4. Lower Class (Upper Lowers and Lower Lowers). |
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Opinion Leader |
(AKA the influential or leading adopters). A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others. |
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Maslow's Hierarchy of Needs |
1. Physiological Needs 2. Safety Needs 3. Social Needs 4. Esteem Needs 5. Self-Actualization Needs |
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Major Types of Buying Decision Behavior |
1. Complex Buying Behavior 2. Dissonance-Reducing Buying Behavior 3. Habitual Buying Behavior 4. Variety-Seeking Buying Behavior |
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Complex Buying Behavior |
Consumer buying behavior in situations characterized by high involvement in a purchase and significant perceived differences among brands. |
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Dissonance-Reducing Buying Behavior |
Consumer buying behavior in situations characterized by high involvement in a purchase, but few perceived differences among brands. |
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Habitual Buying Behavior |
Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences. |
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Variety-Seeking Buying Behavior |
Consumer buying behavior characterized by low consumer involvement but significant perceived brand differences. |
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Stages in the Buyer Decision Process |
1. Need Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase Decision 5. Post-purchase behavior |
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Need Recognition |
The first stage of the buyer decision process in which consumer recognizes a problem or need. |
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Information Search |
The stage of the buyer decision process in which the consumer is motivated to search for more information. |
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Evaluation of Alternatives |
The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. |
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Purchase Decision |
The buyer's decision about which brand to purchase. |
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Post-Purchase Behavior |
The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction. |
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Cognitive Dissonance |
Buyer discomfort caused by post-purchase conflict. |
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New Product |
A good, service, or idea that is perceived by some potential customers as new. |
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Adoption Process |
The mental process by which an individual passes from first hearing about an innovation to final adoption. |
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Five Adopter Groups |
1. Innovators 2. Early Adopters 3. Early Majority 4. Late Majority 5. Laggards |
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Innovators |
Venturesome people; risk-takers. The first to users. |
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Early Adopters |
Prestige-Oriented opinion leaders. |
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Early Majority |
The leading segment of the mass market. |
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Late Majority |
Followers of the Early Majority |
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Laggards |
Conservative; price-conscious. |
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Business vs. Consumer Markets |
Business Markets: Are much bigger in size. Involve far more dollars and items. Involves more decision participants. Involves more professional purchasing effort.
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Derived Demand |
Business demand that ultimately comes from the demand for consumer goods. |
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What are the Major Types of Buying Situations? |
1. Straight Rebuy 2. Modified Rebuy 3. New Task 4. Systems Selling (Solutions Selling) |
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Straight Rebuy |
A business buying situation in which the buyer routinely reorders something without any modification. |
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Modified Rebuy |
A business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers. |
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New Task |
A business buying situation in which the buyer purchases a product or service for the first time. |
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Systems Selling (Solutions Selling) |
Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation. |
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Who are the participants in the business buying process? |
1. Users 2. Influencers 3. Buyers 4. Deciders 5. Gatekeepers |
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Users |
Members of the buying organization who will actually use the purchased product or service. |
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Influencers |
People in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives. |
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Buyers |
People in an organization's buying center who make an actual purchase. |
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Deciders |
People in an organization's buying center who have formal or informal power to select or approve the final suppliers. |
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Gatekeepers |
People in an organization's buying center who control the flow of information to others. |
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What are the major influences on business buyer behavior? |
1. Environmental 2. Organizational 3. Interpersonal 4. Individual
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Environmental Factors on Business Buyer Behavior |
1. The economy 2. Supply Conditions 3. Technology 4. Politics/regulation 5. Competition 6. Culture and Customs |
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Organizational Factors on Business Buyer Behavior |
1. Objectives 2. Strategies 3. Structure 4. Systems 5. Procedures |
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Interpersonal Factors on Business Buyer Behavior |
1. Influence 2. Expertise 3. Authority 4. Dynamics |
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Individual Factors on Business Buyer Behavior |
1. Age/Education 2. Job position 3. Motives 4. Personality 5. Preferences 6. Buying Style |
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Institutional Markets |
Schools, hospitals, nursing homes, and other institutions that provide goods and services to people in their care.
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Government Markets |
Governmental units--federal, state, and local--that purchase or rent goods and services for carrying out the main functions of government. |