Vocab Exam 1 1 Ch 1 a Marketing the process of creating distributing promoting and pricing goods services and ideas to facilitate satisfying exchange relationships with the customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment b Customers the purchasers of organizations products the focal point of all marketing activities c Target Market a specific group of customers on whom an organization focuses its marketing efforts d Marketing Mix 4 marketing activities product pricing place and promotion that a firm can control to meet the needs of customers within its target market e Product a good service or idea f Value a customer s subjective assessment of benefits relative to costs in determining the worth of the product g Exchange the provision or transfer of goods services or ideas in return for something of value h Stakeholders constituents who have a stake or claim in some aspect of a company s products operations markets industry and outcomes i Marketing Environment the competitive economic political legal and regulatory technological and sociocultural forces that surround the customer and affect the marketing mix j Marketing Concept a managerial philosophy that an organization should try to satisfy customers needs through a coordinated set of activities that also allows the organization to achieve its goal k Marketing Orientation an organization wide commitment to researching and responding to customer needs l marketing strategy the selection and analysis of a target market and the creation and maintenance of an appropriate marketing mix that will satisfy those people i what is a marketing strategy 1 Identify a target market 2 Develop an appropriate marketing mix m Customer Relationship Management using information about customers to create marketing strategies that develop and sustain desirable customer relationships n Relationship Marketing establishing long term mutually satisfying buyer seller relationships o Green Marketing a strategic process involving stakeholder assessment to create meaningful longer relationships with customers while maintaining supporting and enhancing the natural environment 2 Ch 3 a Environmental scanning the process of collecting information about forces in the marketing environment b Environmental analysis the process of assessing and interpreting the information gathered through environmental scanning c Types of competitors 1 Competition other organizations that market products that are similar to or can be substitutes for a marketers products in the same geographic area ii Brand Competitors firms that market products with similar features and benefits to the same customers at similar prices iii Product Competitors firms that compete in the same product class but market products with different features benefits and prices iv Generic Competitors firms that provide very different products that solve the same problem or satisfy the same basic customer need v Total Budget Competitors firms that compete for the limited financial resources of the same customers d Types of competitive structure i Monopoly a competitive structure in which in organization offers a product that has no close substitutes making that organization the sole source of supply ii Oligopoly a competitive structure in which a few sellers control the supply of a large proportion of a product iii Monopolistic Competition a competitive structure in which a firm has many potential competition and tries to develop a marketing strategy to differentiate its products iv Pure Competition a market structure characterized by an extremely large number of sellers none strong enough to significantly influence price or supply v e Business Cycle pattern of economic fluctuations that has 4 stages prosperity recession depression recovery i Prosperity a stage of the business cycle characterized by low unemployment and relatively high total income which together ensure high buying power provided the inflation rate stays low ii Recession a stage of the business cycle during which unemployment rises and total buying power declines stifling both customers and business spending iii Depression a stage of the business cycle when unemployment is extremely high wages are very low total disposable income is at a minimum and consumers lack confidence in the economy iv Recovery a stage of the business cycle in which the economy moves from recession or depression toward prosperity f g h i j k l m n o p q Buying Power resources such as money goods and services that can be traded in an exchange Income for an individual the amount of money received through wages rent investments pensions and subsidy payments for a given period Disposable Income after tax income Discretionary Income disposable income available for spending and saving after an individual has purchased the basic necessities of food clothing and shelter Wealth the accumulation of past income natural resources and financial resources Willingness to Spend an inclination to buy because of expected satisfaction from a product influenced by the ability to buy and numerous psychological and social forces FTC Federal Trade Commission i Major regulatory agency an agency that regulates a variety of business practices and curbs false advertising misleading pricing and deceptive packaging and labeling Better Business Bureau a system of nongovernmental independent local regulatory agencies supported by local businesses that help settle problems between customers and specific business firms NARB National Advertising Review Board a self regulatory unit that considers challenges to issues raised by the National Advertising Division about an advertisement Technology the application of knowledge and tools to solve problems and perform tasks more efficiently Sociocultural Forces the influences in a society and its culture that change people s attitudes beliefs norms customs and lifestyles Consumerism organized efforts by individuals groups and organizations to protect consumer rights 2 Ch 4 a social responsibility an organization s obligation to maximize its positive impact and minimize its negative impact on society i deals with the total effect of marketing decisions on society b marketing citizenship the adoption of a strategic focus for fulfilling the economic legal ethical and philanthropic social responsibilities expected by stakeholders c stakeholder orientation an important element in social responsibility d