Marketing Key Terms--Test One
Terms
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- Marketing
- the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
- Exchange
- people give up something to receive something they would rather have.
- Production Orientation
- a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
- Sales Orientation
- The idea that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
- Customer Satisfaction
- The feeling that a product has met or exceeded the customer’s expectations.
- Customer Value
- The ratio of benefits to the sacrifice necessary to obtain those benefits.
- Relationship Marketing
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A strategy that entails forging long-term partnerships with
customers. - Societal Marketing Orientation
- The idea that an organization exists not only to satisfy customer wants/needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests.
- Competitive Advantage
- The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
- Diversification
- A strategy of increasing sales by introducing new products into new markets.
- Environmental Scanning
- 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
- Four Ps
- Product, place, promotion, and price, which together make up the marketing mix.
- Market Development
- Attracting new customers to existing products.
- Market penetration
- A marketing strategy that tries to increase market share among existing customers.
- Marketing plan
- A written document that acts as a guidebook of marketing activities for the marketing manager.
- Mission Statement
- The firm’s long-term vision based on a careful analysis of benefits sought by present and potential customers and analysis of existing and anticipated environmental conditions.
- Product development
- Marketing strategy that entails the creation of new products for present markets; process of converting applications for new technologies into marketable products.
- Strategic planning
- The managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities.
- Sustainable competitive advantage
- A differential advantage that cannot be copied by the competition.
- SWOT analysis
- One that identifies internal strengths (S) and weaknesses (W) and also examines external opportunities (O) and threats (T).
- Applied Research
- Attempts to develop new or improved products.
- Basic research
- Pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon.
- Component lifestyles
- Practice of choosing goods/services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle.
- Consumer Product Safety Commission (CPSC)
- A federal agency established to protect the health and safety of consumers in and around their homes.
- Corporate social responsibility
- Business’s concern for society’s welfare
- Demography
- The study of people’s vital statistics, such as their age, race and ethnicity, and location
- Ethics
- The moral principles or values that generally govern the conduct of an individual.
- Federal Trade Commission (FTC)
- A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce.
- Inflation
- A general rise in prices without a corresponding increase in wages, which results in decreased purchasing power.
- Morals
- The rules people develop as a result of cultural values and norms.
- Multiculturalism
- A situation in which all major ethnic groups in an area-such as a city, county, or census tract-are roughly equally represented
- Poverty of time
- Lack of time to do anything but work, commute to work, handle family situations, do housework, shop, sleep, and eat
- Recession
- A period of economic activity when income, production, and employment tend to fall0all of which reduce demand for goods and services
- Target Market
- 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
- Value
- Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
- Culture
- 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.
- Contract manufacturing
- Private label manufacturing by a foreign company
- Countertrade
- A form of trade in which all or part of the payment for goods/services is in the form of other goods/services
- Direct foreign investment
- Active ownership of a foreign company or of overseas manufacturing or marketing facilities
- Dumping
- 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
- Global marketing
- Marketing to target markets throughout the world.
- Global marketing standardization
- Production of uniform products that can be sold the same way all over the world.
- Joint venture
- A venture in which a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.
- Licensing
- The legal process whereby a licensor aggress to let another firm use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.
- Multinational corporation
- A company that is heavily engaged in international trade, beyond exporting and importing
- North American Free Trade Agreement (NAFTA)
- An agreement between Canada, the United States, and Mexico that created the world’s largest free-trade zone.
- Uruguay Round
- An agreement to dramatically lower trade barriers worldwide.
- Tariff
- a tax levied on the goods entering a country
- Quota
- a limit on the amount of a specific product that can enter a country.
- Boycott
- the exclusion of all products from certain countries or companies.
- Exchange control
- a law compelling a company earning foreign exchange from its exports to sell it to a control agency, usually a central bank.
- Market grouping
- also known as a common trade alliance; occurs when several countries agree to work together to form a common trade area that enhances trade opportunities.
- Trade agreement
- an agreement to stimulate international trade
- Attitude
- Learned tendency to respond consistently toward a given object.
- Belief
- Organized pattern of knowledge that an individual holds as true about his or her world.
- Cognitive dissonance
- Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
- Consumer behavior
- Processes a consumer uses to make purchase decisions as well as to use and dispose of purchased goods/services; also includes factors that influence purchase decisions and the use of products.
- Consumer decision-making process
- A five step process used by consumers when buying goods/services.
- Evoked set (consideration set)
- Group of brands, resulting from an information search, from which a buyer can choose.
- Extensive decision making
- 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 evaluation options and much time for seeking information
- External Information Search
- Process of seeking information in the outside environment.
- Internal information search
- Process of recalling past information stored in the memory.
- Involvement
- Amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.
- Learning
- Process that creates changes in behavior, immediate or expected, through experience and practice.
- Lifestyle
- Mode of living as identified by a person’s activities, interests, and opinions.
- Limited decision making
- Type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category.
- Marketing-controlled information source
- Product information source that originates with marketers promoting the product.
- Maslow’s hierarchy of needs
- Method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization.
- Need recognition
- Result of an imbalance between actual and desired states.
- Nonmarketing-controlled information source
- Product information source that is not associated with advertising or promotion.
- Norm
- Value or attitude deemed acceptable by a group
- Opinion leader
- Individual who influences the opinions of others
- Perception
- Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
- Reference group
- Group in society that influences an individual’s purchasing behavior.
- Routine response behavior
- Type of decision making exhibited by consumers buying frequently purchased, low-cost goods/services; requires little search and decision time.
- Self-concept
- How a consumer perceived himself/herself in terms of attitudes, perceptions, beliefs, and self-evaluations
- Social class
- 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
- Subculture
- Homogeneous group of people who share elements of the overall culture as ell as unique elements of their own group
- Accessory equipment
- Goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment
- Business marketing
- The marketing of goods/services to individuals and organizations for purposes other than personal consumption
- Business services
- Expense items that do not be come part of a final product
- Buying center
- All those persons in an organization who become involved in the purchase decision
- Component parts
- Either finished items ready for assembly or products that need very little processing before becoming part of some other product.
- Derived demand
- The demand for business products
- Keiretsu
- A network of interlocking corporate affiliates
- Major equipment (installations)
- Capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings.
- Modified rebuy
- Situation in which the purchaser wants some change in the original good/service.
- New buy
- A situation requiring the purchase of a product for the first time.
- North American Industry Classification System (NAICS)
- A detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes.
- Processed materials
- Products used directly in manufacturing other products.
- Raw materials
- Unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish.
- Straight rebuy
- Buying situation in which the purchaser reorders the same goods/services without looking for new information or investigating other suppliers.
- Strategic alliance (strategic partnership)
- A cooperative agreement between business firms.
- Supplies
- Consumable items that do not become part of the final product.
- Producers
- includes profit-oriented individuals and organizations that use purchased goods/services to produce other products, to incorporate into other products, or to facilitate the daily operations of the organizations. (i.e. construction, manufacturing, transportation, finance, real estate, and food service firms).
- Resellers
- includes retail and wholesale businesses that buy finished goods and resell them for a profit.
- Governments
- include thousands of federal, state, and local buying units. Put up for bid.
- Initiator
- the person who first suggests making a purchase
- Influencers/evaluators
- people who influence the buying decision
- Gatekeepers
- group members who regulate the flow of information
- Decider
- the person who has the formal or informal power to choose or approve the selection of the supplier or brand.
- Purchaser
- the person who actually negotiates the purchase.
- Users
- members of the organization who will actually use the product.