Marketing Midterm Vocabulary Study Guide
Marketing Midterm Vocabulary Study Guide MAR 250
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This 13 page Study Guide was uploaded by Melanie Guerrero on Sunday February 28, 2016. The Study Guide belongs to MAR 250 at Pace University taught by Harvey Markowitz in Winter 2016. Since its upload, it has received 63 views. For similar materials see Principles of Marketing (20335) in Marketing at Pace University.
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Date Created: 02/28/16
Marketing Midterm – Vocabulary Terms by Chapter – Study Guide Chapter 1 Customer experience – the internal response that customers have to all aspects of an organization and its offering Customer relationship management (CRM) – the process of identifying prospective buyers, understanding them, and developing favorable perceptions of the organization so that buyers will choose them in the marketplace Customer value – the unique combination of benefits received by targeted buyers Customer value proposition – a cluster of benefits that an organization promises customers to satisfy their needs Environmental forces – social, economic, technological, competitive, and regulatory forces Exchange – trade of things of value between a buyer and a seller so that each is better off after the trade Market – people with both the desire and ability to buy a specific offering Market orientation – focuses efforts on continuously collecting information about customers’ needs, sharing this information across departments, and using it to create customer value Market segments – homogeneous groups of prospective buyers that have common needs and will respond similarly to a marketing action Marketing – the activity for creating, communication, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large Marketing concept – the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organizations goals Marketing mix – the 4 P’s – product, price, promotion, and place – that can be used by the marketing manager to solve a marketing problem Marketing program – a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers Organizational buyers – those manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale Product – a good, service, or idea consisting of attributes that satisfies a customers’ needs and is exchanged for money or something else of value Relationship marketing – links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit Target market – one or more specific groups of potential consumers, which an organization directs its marketing program towards Ultimate consumers – the people who use the products and services purchased for a household Utility – the benefits or customer value received by users of the product Chapter 2 Business – the clear, broad, underlying industry or market sector of an organizations offering Business portfolio analysis – a technique that managers use to quantify performance measures and growth targets to analyze the strategic business units Core Values – the fundamental, passionate, and enduring principles that guide its conduct over times Diversification analysis – a technique that helps a firm search for growth opportunities from among current and new marketing as well as current and new products Goals (objectives) – are statements of an accomplishment of a task to be achieved, often by a specific time Market Segmentation – involves aggregating prospective buyers into groups, or segments that have common needs and will respond similarly to a marketing action Market share – the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself Marketing dashboard – the visual computer display of essential information related to achieving a marketing objective Marketing metric – a measure of the quantitative value or trend of a marketing action or result Marketing plan – a road map for the marketing actions of an organization for a specified future time period Marketing strategy – the means by which a marketing goal is to be achieved, usually characterized by a specific target marketing strategies and marketing tactics Marketing tactics – are detail day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies Mission – a statement of the organizations function in society that often identifies its customers, markets, products, and technologies Organizational culture – the set of values, ideas, attitudes, and norm behavior that is learned and shared among the members of an organization Points of difference – those characteristics of a product that make it superior to competitive substitutes Situation analysis – taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organizations marketing plans and the external forces and trends affecting it Strategic marketing process – whereby an organization allocates its marketing mix resources to reach its target markets Strategy – an organizations long-term course of action designed to deliver a unique customer experience while achieving its goals SWOT Analysis – internal Strengths, Weaknesses, and its external Opportunities and Threats Chapter 3 Baby boomers – the generation of children born between 1946 and 1964 Barriers to entry – business practices or conditions that make it difficult for new firms to enter the market Blended family – one formed by merging two previously separated unites into a single household Competition – refers to the alternative firms that could provide a product to satisfy a specific market’s needs Consumerism – a movement used to increase the influence, power, and rights of consumers in dealing with institutions Culture – the set of values, ideas, and attitudes that are learned and shared among members of a group Demographics – age, gender, ethnicity, income, and occupation Discretionary income – the money that remains after paying for taxes and necessities Disposable income – the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation Economy – the income, expenditures, and resources that affect the cost of running a business and household Electronic commerce – any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of products and services Environmental scanning – the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends Generation X – 50 million people born between 1965-1976 – aka Baby Bust Generation Y – 72 million American born between 1977-1994 – aka Echo-boom Gross income – the total amount of money made in one year by a person, household, or family unit Marketspace – an information and communication based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technology and digitized offerings Multicultural marketing – combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races Regulation – consists of restrictions state and federal laws place on business with regard to the conduct of its activities Self-regulation – where an industry attempts to police itself Social forces – the demographic characteristics of the population and its culture Technology – innovations or inventions from applied science or engineering research Value Consciousness – the concern for obtaining the best quality, features, and performance of a product or service for a given price Chapter 4 Cause marketing – when the charitable contributions of a firm are tied directly to the customers revenues produced through the promotion of one of its products Caveat emptor – “let the buyer beware” Code of ethics – a formal statement of ethical principles and rules of conduct Consumer Bill of rights – ethics of exchange between buyers and sellers - the right to safety, to be informed, to choose, and to be heard Economic Espionage – the clandestine collection of trade secrets or proprietary information about the a company’s competitors Ethics – moral principles and values that govern the actions and decisions of an individual or group Green marketing – marketing efforts to produce, promote, and reclaim environmentally sensitive products Laws – society’s values and standards that are enforceable in the courts Moral Idealism – personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome Social audit – a systematic assessment of a firm’s objectives, strategies, and performance in terms of social responsibility Social responsibility – organizations are part of a larger society and are accountable to that social for their actions Sustainable development – conducting business in a way that protects the natural environment while making economic progress Triple-bottom line – recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth Utilitarianism – a personal moral philosophy that focuses on the “greatest good for the greatest number” by assessing the costs Whistle-blowers – employees who report unethical or illegal actions of their employers Chapter 5 Attitude – a “learned predisposition to respond to an object or class of subjects in a consistently favorable or unfavorable way” Beliefs – a consumer’s subjective perception of how a product or brand performs on different attributes Brand community – a specialized group of consumers with a structured set of relationship involving a particular brand, fellow consumers of that brand, and the product in use Brand loyalty – favorable attitude toward and consistent purchase of a single brand over time Cognitive dissonance – the feeling of post-purchase psychological tension or anxiety Consideration set – the group of brands a consumer would consider acceptable from among all the brands in the product class of which he or she is aware Consumer behavior – the actions a person takes in purchasing and using products and services Consumer socialization – process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers Evaluative criteria – represent both the objective attributes of a brand (display) and the subjective ones (prestige) Family life cycle – concept that describes the distinct phases that a family progresses though from formation to retirement, each phase bringing with it identifiable purchasing behaviors Involvement – the personal, social, and economic significance of the purchase to the consumer Learning – those behaviors that result from repeated experience and reasoning Lifestyle – a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves, and the world around them Motivation – the energizing force that stimulates behavior to satisfy a need Opinion leaders – considered to be knowledgeable about or users of particular products and services, so their opinions influence others’ choices Perceived risk – represents the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences Perception – the process of which an individual selects, organizes, and interprets information to create a meaningful picture of the world Personality – a person’s consistent characteristics within a person or in his or her relationships with others Purchase decision process – the stages a buyer passes through in making choices about which products and services to buy Reference groups – people to whom an individual looks as a basis for self-appraisal or as a source of personal standards Self-concept – the way people see themselves and the way they believe others see them Situational influences – 5 influences that have an impact on the purchase decision process Social class – the relatively permanent, homogeneous division in a society into which people sharing similar values, interest, and behavior can be grouped Subcultures – subgroups within the larger, or national, culture with unique values, ideas, and attitudes Subliminal perception – that you see or hear messages without being aware of them Word of mouth – the most powerful and authentic information source for consumers because it typically involved friends viewed as trustworthy Chapter 6 Bidder’s list – a list of firms believed to be qualified to supply a given item Business marketing – the marketing of goods and services to companies, governments, or not- for-profit organizations for use in the creation of goods and services that they can produce and market to others Buy classes – consist of three types of organizational buying situations: straight rebuy, new buy, and modified rebuy Buying center – a group of people who share common goals, risks, and knowledge important to a purchase decision Derived demand – the demand for industrial products and services driven by, or derived from, demand for consumer products and services E – marketplaces – online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services ISO 9000 – standards for registration and certification of a manufacturer’s quality management and assurance system based on an on-site audit of practices and procedures Make-buy decision – an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself North American Industry Classification System (NAICS) – provides common industry definitions for Canada, Mexico, and the U.S., which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) Organizational buyers – those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale Organizational buying behavior – the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers Organizational buying criteria – the objective attributes of the supplier’s products and services and the capabilities of the supplier itself Reciprocity – an industrial buying practice in which two organizations agree to purchase each other’s products and services Reverse auction – a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other Supplier development – the deliberate effort by organizational buyers to build relationships that shape suppliers’ products, services, and capacities to fit a buyer’s needs and those of its customers Supply partnership – exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer Traditional auction – a seller puts up an item for sale and would-be buyers are invited to bid in competition with each other Value analysis – a systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs Chapter 7 Back transaction – where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors Balance of trade – the difference between the monetary value of a nation’s exports and imports Bottom of the pyramid – the largest, but poorest, socioeconomic group of people in the world Consumer ethnocentrism – the tendency to believe that it is inappropriate, indeed immortal, to purchase foreign-made products Countertrade – the practice of using barter rather than money for making global sales Cross-cultural analysis – involves a study of similarities and differences among consumers in two or more nations or societies Cultural symbols – things that represent ideas and concepts Currency exchange rate – the price of one country’s currency expressed in terms of another country’s currency Customs – what is considered normal and expected about the way people do things in specific country Direct investment – entails a domestic firm actually investing in and owning a foreign subsidiary or division Dumping – when a firm sells a product in a foreign country below its domestic price or below its actual cost Economic Espionage Act (1996) – the theft of trade secrets by foreign entities a federal crime in the United States Exporting – producing products in one country and selling them in another country Foreign corrupt practices act – makes it a crime for the US corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country Global brand – a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs Global competition – exists when firms originate, produce, and market their products and services worldwide Global consumers – consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar features or benefits from products or services Global marketing strategy – the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ Gray market – a situation where products are sold through unauthorized channels of distribution Gross domestic product (GDP) – the monetary value of all products and services produced in a country during one year Joint venture – when a foreign company and a local firm invest together to create a local business Microfinance – the practice of offering small, collateral-free loans to individuals who otherwise would not have access to capital necessary to begin small businesses or other income-generating activities Multidomestic marketing strategy – have as many different product variations, brand names, and advertising programs as countries in which they do business Protectionism – the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas Quota – a restriction placed on the amount of a product allowed to enter or leave a country Semiotics – the role of symbols that of a field of study Strategic alliances – agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation Tariffs – a government tax on products or services entering a country, primarily serve to raise prices on imports Values – represent personally or socially preferable modes of conduct or states of existence that tend to persist over time World trade organization (WTO) – a organization created to address an array of world trade issues Chapter 8 Constraints – a decision are the restrictions placed on potential solutions to a problem Cross tabulation – a method of presenting and analyzing data involving two or more variables to discover relationships in the data Data – the facts and figures related to the project, are divided into 2 main parts (1) secondary data and (2) primary data Information technology – involves operating computer networks that can store and process data Marketing research – the process of defining a marketing program and opportunity Measures of success – criteria or standards used in evaluating proposed solutions to the problem Observational data – facts and figures obtained by watching, either mechanically or in person, how people actually behave Primary data – facts and figures that are newly collected for the project Questionnaire data – facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors Sales forecast – the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts Secondary data – are facts and figures that have already been recorded prior to the project at hand Chapter 9 80/20 Rule – a concept that suggests 80% of a firm’s sales are obtained from 20% of its customers Market segmentation – aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action Market-product grid – a framework to relate the market segments of potential buyers to products offered or potential marketing actions Perceptual map – a means of displaying in two dimensions the location of products or brands in the minds of consumers Product differentiation – a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products Product positioning – refers to the place a product occupies in consumers’ minds based on important attributes relative to competitive products Product repositioning – changing the place a product occupies in a consumers’ mind relative to competitive products Usage rate – the quality consumed or patronage (store visits) during a specific period Chapter 10 Business analysis – the features of the product and the marketing strategy needed to bring it to market and make financial projections Business products – products organizations buy that assist in providing other products for resale Commercialization – the stage of the new-product process that positions and launches a new product in full-scale production and sales Consumer products – products purchased by the ultimate consumer Convenience products – items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort Customer Experience Management (CEM) – the process of managing the entire customer experience within the company Development – the stage of the new-product process that turns the idea on paper into a prototype Idea Generation – the second stage of the new-product process, involves developing a pool of concepts to serve as candidates for new products, building upon the previous stage’s results Market testing – stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy New-product process – the seven stages an organization goes through to identify opportunities and convert them into salable products or services New-product strategy development – the stage pf the new-product process that defines the role for a new product in terms of the firm’s overall objectives Product – a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value Product item – a specific product that has a unique brand, size, or price Product line – a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within the a given price range Product mix – consists of all the product lines offered by an organization Protocol – a statement that identifies a well-defined target market, specific customers’ needs, wants, and preferences; and what the product will be and do to satisfy consumers Screening and evaluation – the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort Services – intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value Shopping products – items for which the consumer compares several alternatives on criteria such as price, quality, or style Specialty products – items that the consumer makes a special effort to search out and buy Unsought products – items that the consumer does not know about or knows about but does not initially want Chapter 11 Brand equity – the added value a brand name give to a product beyond the functional benefits provided Brand licensing – contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee Brand name – any word, device (design, sound, shape, or color) or combination of these used to distinguish a seller’s products or services Brand personality – a set of human characteristics associated with a brand name Branding – an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors Label – an integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients Market modification – strategies, a company tries to find new customers, increase a product’s use among existing customer, or create new use situations Mixed branding – where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market Multibranding – giving each product a distinct name Multiproduct branding – a company uses one name for all its products in a product class Packaging – component of a product refers to any container in which it is offered for sale and on which label information is conveyed Private branding – when it manufactures products but sells them under the brand name of a wholesaler or retailer Product class – refers to the entire product category or industry Product form – pertains to variations within the product class Product life cycle – describes stages a new product goes through in the marketplace Product modification – involves altering one or more of a product’s characteristics, such as its quality, performance, or appearance, to increase the product’s value to customers and increase sales Trade name – a commercial, legal name under which a company does business Trademark – identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it Trading down – involves reducing a product’s number of features, quality, or price Trading up – involves adding value to the product (or line) through additional features or high- quality materials Warranty – a statement indicating the liability of the manufacturer for product deficiencies Chapter 12 Capacity management – integrating the service component of the marketing mix with efforts to influence consumer demand Customer contact audit – a flowchart of the points of interaction between consumer and service provider Customer experience management (CEM) – the process of managing the entire customer experience with the company Four I’s of services – Intangibility, Inconsistency, Inseparability, Inventory Gap analysis – type of analysis that compares the differences between the consumer’s expectations about and experiences with a service based on dimensions of service quality Idle Production capacity – when the service provider is available but there is not demand for the service Internal marketing – based on the notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers Off-peak pricing – consists of charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service Service continuum – the range of offerings companies bring to the market, from the tangible to the intangible or the product-dominant to service-dominant Services – intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value Seven P’s of services marketing – Product, Price, Promotion, Place, People, Physical environment, Process Chapter 13 Average revenue (AR) – the average amount of money received for selling one unit of a product, or simply the price of that unit Barter – exchanging products and services for other products and services rather than money Break-even Analysis – technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output Break-event chart – a graphic presentation of the break-even analysis Break-even point – the quantity at which total revenue and total cost are equal Demand Curve – a graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price Demand factors – factors that determine consumers’ willingness and ability to pay for products and services Fixed cost (FC) – the sum of the expenses of a the firm that are stable and do not change with the quantity of a product that is produced and sold Marginal Analysis – a continuing, concise trade-off of incremental costs against incremental revenues Marginal Cost (MC) – change in total cost that result from producing and marketing one additional unit of a product Marginal Revenue (MR) – the change in total revenue that results from producing and marketing one additional unit of a product Price – the money or other considerations (including products and services) exchanged for the ownership or use of a product or service Price elasticity demand – the percentage change in quantity demanded relative to a percentage change in price Pricing constraints – factors that limit the range of prices a firm may set Pricing objectives – specifying the role of price in an organization’s marketing and strategic plans Profit equation – Profit = Total revenue – total cost Total (TC) – the total expense incurred by a firm in producing and marketing a product Total revenue (TR) – the total money received from the sales of a product Unit variable cost (UVC) – variable cost expressed on a per unit basis of a product Value – the ratio of perceived benefits to price (perceived benefits/price) Value-pricing – the practice of simultaneously increasing product and service benefits while maintaining or decreasing price Variable cost (VC) – the sum of the expenses of the firm that vary directly with the quantity of a product that produced and sold Chapter 14 Above-at, or below-market pricing – setting a market price for a product or product class bared on a subjective feel for the competitor’s price or market price as the benchmark Basing-point pricing – selecting one or more geographical locations (basing point) from which the list price for products plus freight expenses are charged to the buyer Bundle pricing – the marketing or two or more products in a single package price Cost-plus pricing – summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a cost price Customary pricing – setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors Dynamic pricing policy – setting different prices for products and services in real time response to supply and demand conditions Everyday low pricing (EDLP) – the practice of replacing promotional allowances with lower manufacturer list prices Experience curve pricing – based on the learning effect, which hold that the unit cost of many products and service declines by 10% to 30% each time a firm’s experience at producing and selling them doubles Fixed-price policy – setting one price for all buyers of a product or service FOB origin policy – the “free on board” (FOB) price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the landing is to occur (seller’s factory or warehouse) Loss-leader pricing – deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention to it in hopes that they will buy other products with large markups as well Odd-even pricing – setting prices a few dollars or cents under an even number Penetration pricing – the exact opposite of skimming pricing Predatory pricing – Prestige pricing – setting a high price so that quality – or status-conscious consumers will be attracted to the product and buy it Price discrimination – the practice of charging different prices to different buyers for products of like grade and quality Price fixing – a conspiracy among firms to set prices for a product Price lining – a firm that is selling no just a specific product but a line of products may price them at a number of different specific pricing points Price War – successive price butting by competitors to increase or maintain their unit sales or market share Product-line pricing – setting of prices for all items in a product line Promotional allowances – cash payments or an extra amount of “free goods” awarded to sellers in the marketing channel for undertaking certain advertising or selling activities to promote a product Quantity discounts – reductions in unit costs for a larger order Skimming pricing – setting the highest initial price that customers who really desire the product are willing to pay Standard markup pricing – adding a fixed percentage to the cost of all items in a specific product class Target pricing – consists of (1) estimating the price that ultimate consumers would be willing to pay for product, (2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers and then (3) deliberately adjusting the composition and features of the product to achieve the target price to consumers Target profit pricing – setting an annual target of a specific dollar volume of profit Target return-on-sales pricing – setting a price to achieve a profit that is a specified percentage of the sales volume Target return-on-investment pricing – setting a price to achieve an annual target return on investment Uniform delivered pricing – the price the seller quotes that includes all transportation costs Yield management pricing – adding a fixed percentage to the cost of all items in a specific product class
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