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119 Cards in this Set
- Front
- Back
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Consumer orientation
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a management philosophy that focuses on ways to satisfy customer’s needs and wants.
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Total Quality Management (TQM)
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a management effort to involve all employees from the assembly line onward in continuous product quality improvement. (early 1990’s)
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New Era orientation
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: a management philosophy in which marketing means a devotion to excellence in designing and producing products that benefit the customer plus the firm’s employees, shareholders, and communities. (building long term bonds with customers rather than merely selling them stuff today).
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Customer Relationship Management
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a philosophy that sees marketing as a process of building long-term relationships with customers to keep them satisfied and to keep them coming back. A concept that involves systematically tracking consumers’ preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual’s unique wants and needs.
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Paradigm shift for business
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means that companies must adhere to a new model or pattern of how to profit in a wired world.
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Attention economy
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one in which a company’s success will be measured by its share of mind rather than share of market.
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Social marketing concept
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a management philosophy that marketers must satisfy customers’ needs in ways that also benefit society-and are also profitable for the firm.
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Sustainability
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meeting present needs without compromising the ability of future generations to meet their needs.
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Accountability
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measuring just how much value is created by marketing activities.
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Return on Investment (ROI)
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the direct financial impact of a firm’s expenditure of a resource such as time or money.
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Popular culture
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the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market.
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Myths
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stories containing symbolic elements that express the shared emotions and ideals of a culture
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Product
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a tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses.
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Consumer goods
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the tangible products that individual consumers purchase for personal or family use.
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Services
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intangible products that we pay for and use but never own.
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Business-to-business marketing
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the marketing of goods and services form one organization to another
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Industrial goods
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goods bought by individuals or organizations for further processing or for use in doing business.
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e-commerce
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the buying and selling of goods and services electronically, usually over the internet.
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Not for profit organizations
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organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members
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Target market
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the market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts.
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Value
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the benefits a customer receives from buying a good or service.
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Value proposition
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a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased
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Lifetime value of a customer
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how much profit companies expect to make from a particular customer, including each and every purchase he or she will make from them now and in the future. To calculate lifetime value, companies estimate the amount the person will spend and then subtract what it will cost the company to maintain this relationship
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Competitive advantage
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the ability of a firm to out perform the competition, thereby providing customers with a benefit the competition cannot.
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Distinctive competency
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a firm’s capability that is superior to that of its competition. (Coca-Coca)
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Differential benefit
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properties of products that set them apart from competitors’ products by providing unique customer benefits. (not necessarily different)
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Value chain
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a series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has potential to either add or remove value from the product the customer eventually buys.
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Consumer-generated value
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everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers.
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Consumer addiction
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a physiological or psychological dependency on goods or services.
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Marketing plan
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a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
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Mass market
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all possible customers in a market, regardless of the differences in their specific needs and wants.
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Market segment
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a distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market.
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Market position
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the way in which the target market perceives the product in comparison to competitor’s brands.
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Marketing mix
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a combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers.
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Price:
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the assignment of value, or the amount the consumer must exchange to receive the offering.
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Promotion:
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includes all the activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products
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Place
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refers to the availability of the product to the customer at the desired time and location
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Business planning
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an ongoing process of making decisions that guide the firm both in the short term and for the long haul. Planning means that an organization develops objectives before it takes action
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Business plan
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a plan that includes the decisions that guide the entire organization.
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Marketing plan
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a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy.
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Strategic planning
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a managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth and survival. (developing the mission statement, assessing the internal and external environment—SWOT, setting objectives, establishing the business portfolio, and developing growth strategies.)
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Functional planning
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a decision process that concentrates on developing detailed plans for strategies and tactics for the short term that support an organization’s long-term strategic plan.
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Operational planning
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a decision process that focuses on developing detailed plans for day to day activities that carry out an organization’s functional plans.
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Strategic business units (SBUs):
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individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors.
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Mission statement
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a formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources.
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Situation analysis
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an assessment of a firm’s internal and external environments
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Internal environment
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the controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization.
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External environment:
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the uncontrollable elements outside an organization that may affect its performance either positively or negatively.
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SWOT analysis
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an analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment.
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Business portfolio
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the group of different products or brands owned by an organization and characterized by different income generating and growth capabilities
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Portfolio analysis
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a management tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units.
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BCG growth-market share matrix:
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a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products.
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Stars
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SBUs with products that have a dominant market share in high-growth markets. (Disney’s Touchstone Studios)
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Cash cows:
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SBUs with a dominant market share in a low-growth potential market. (Disney Pictures unit)
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Question marks
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SBUs with low market shares in fast-growth markets.
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Dogs
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SBUs with a small share of a slow-growth market. They are businesses that offer specialized products in limited markets that are not likely to grow quickly.
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Market penetration strategies
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growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets.
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Market development strategies
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growth strategies that introduce existing products to new markets.
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Product development strategies
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growth strategies that focus on selling new products in served markets.
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Diversification strategies
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growth strategies that emphasize both new products and new markets.
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Control
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: a process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis.
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Marketing metrics
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concrete measures of various aspects of marketing performance.
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Return on marketing investment (ROMI)
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quantifying just how an investment in marketing has an impact on the firm’s success, financially and otherwise.
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Action plans
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individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. Action plans are sometimes referred as “marketing programs.”
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Operational plans
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plans that focus on the day-to-day execution of the marketing plan. Operational plans include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines for accomplishing the tasks.
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Corporate culture
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the set of values, norms, and beliefs that influence the behavior of everyone in the organization.
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social profit
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the net benefit both the firm and society receive from a firm's ethical practices and socially responsible behavior.
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business ethics
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are basic values that guide a firm's behavior. (rules of conduct for an organization)
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bribery
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when someone voluntarily offers payment to get an illegal advantage.
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extortion
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when someone in authority extracts payment under duress.
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codes of ethics
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written standards of behavior to which everyone in the organization must subscribe.
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consumerism
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a social movement that attempts to protect consumers from harmful business practices.
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Consumer Bill of Rights
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the rights of consumers to be protected by the federal government...established by JFK
-THe right to be safe -The right to be informed -The right to be heard -The right to choose freely |
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corrective advertising
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messages that clarify or qualify previous deceptive advertising claims.
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puffery
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claims made in advertising of product superiority that cannot be proven true or or untrue.
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slotting allowance
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a fee paid by a manufacturer to a retailer in exchange for agreeing to place products on the retailer's shelves.
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social responsibility
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a management philosophy in which organizations engage in activities that have a positive effect on society and promote the public good.
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environmental stewardship
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socially responsible business decisions that also protect the environment.
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green market strategy
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efforts to choose packages, product designs, and other aspects of the marketing mix that are earth friendly but still profitable.
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cause marketing
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marketing activities in which firms seek to have their corporate identity linked to a good cause through advertising, public service, and publicity.
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cultural diversity
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a management practice that actively seeks to include people of different sexes, races, ethnic groups, and religions in an organization's employees, customers, suppliers, and distribution channel.
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world trade
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the flow of goods and services among different countries--the value of all the exports and imports of the world's nations.
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countertrade
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a type of trade in which goods are paid for with other items instead of with cash.
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protectionism
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a policy adopted by a government to give domestic companies an advantage.
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import quotas
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limitations set by a government on the amount of a product allowed to enter or leave a country.
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embargo
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a quota completely prohibiting specified goods from entering or leaving a country.
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tariffs
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taxes on imported goods.
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General Agreement on Tariffs and Trade (GATT)
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international treaty to reduce import tax levels and trade restrictions.
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World Trade Organization
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an organization that replaced GATT, and sets rules for its member nations and mediates disputes between nations.
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economic communities
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groups of countries that band together to promote trade among themselves and to make it easier for member nations to compete elsewhere.
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gross domestic product
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the total dollar value of goods and services produced by a nation within its borders in a year.
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marketing
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an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
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marketing concept
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a management orientation that focuses on identifying and satisfying consumer needs to ensure the organizations long term profitability.
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needs
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the recognition of any difference between a consumer's actual state and some ideal or desired states. This is problem oriented (i.e. I realize I have a problem)
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Wants
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The desire to satisfy needs in specific ways that are culturally and socially influenced. Wants are often product related and involve how we satisfy needs.
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Benefits
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the outcomes sought by a customer that motivates buying behavior--that satisfies a need or want. Products and services deliver benefits.
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market
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all the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange.
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form utility
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the benefit marketing provides by transforming raw materials into finished goods.
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place utility
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the benefit marketing provides by making products available where customers want them.
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time utility
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the benefit marketing provides by storing products until they are needed.
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possession utility
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the benefit marketing provides by allowing consumers to own, use, and enjoy the products.
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exchange
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the process by which some transfer of value occurs between a buyer and seller.
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the consumer era
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began in 1970s and involved a consumer orientation--a management philosopy that focuses on ways to satisfy customers' wants and needs. TQM emerged herein, which is a management effort to involve all employees from the assembly line onward in continuous product quality improvement.
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B2B internet commerce (figure)
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8.5 trillion
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market position
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the way in which the target market percieves the product in comparision to competitor's brands.
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3 levels of business planning
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strategic planning, functional planning, operational planning.
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market penetration strategies
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growth strategies designed to increase sales of existing products to current customers, non users, and users of competitive brands in served markets.
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market development strategies
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growth strategies that introduce existing products to new markets.
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product development strategies
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new products in served markets
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diversification strategies
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new products and new markets.
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leadership
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exerting influence, motivating and inspiring, helping others realize their potential, leading by example, selflessness, and making a difference.
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3 universal priciples in COC's
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honesty, fairness, and openness
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gross national product
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the value of all goods and services produced by a country's citizens or organizations, whether located within the country's borders or not.
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economic infrastructure
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the quality of a countries distribution, financial, and communications systems.
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level of economic development
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the broader economic picture of a country.
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less developed country
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a country at the lowest stage of economic development.
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standard of living
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an indicator of the average quality and quantity of goods and services consumed in a country.
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developing countries
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countries in which the economy is shifting its emphasis from agriculture to industry.
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developed country
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a country that boasts sophisticated marketing systems, strong private enterprise, and bountiful market potential from many goods and services.
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