MRKTNG 3000: EXAM 1
99 Cards in this Set
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Marketing
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the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
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Exchange
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people giving something up to receive something they would rather have
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Production Orientation
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A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
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Sales Orientation
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the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales results in high profits
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Marketing Concept
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the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives
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Market Orientation
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A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase product; it is synonymous with the marketing concept
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Societal Marketing Orientation
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the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests
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Customer Value
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the relationship between benefits and the sacrifice necessary to obtain these benefits
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Customer Satisfaction
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Customers' evaluation of a good or service in terms of whether it has met their needs and expectations
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Relationship Marketing
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a strategy that focuses on keeping and improving relationships with current customers
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Empowerment
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Designation of authority to solve customers' problems quickly- usually by the first person that the customer notifies regarding a problem
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Teamwork
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Collaborative efforts of people to accomplish common objectives
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Ethics
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The moral principles or values that generally govern the conduct of an individual or group
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Morals
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the rules people develop as a result of cultural values and norms
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Code of Ethics
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Guideline to help marketing managers and other employees make better decisions
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Corporate Social Responsibility
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A business's concern for society's welfare
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Sustainability
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The idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time
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Pyramid of Corporate Social Responsibility
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A model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure
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Green Marketing
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The development and marketing of products designed to minimize negative effects on the physical environment or to improve environment
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Target Market
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A defined group most likely to buy a firm's product
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Environmental Management
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when a company implements strategies that attempt to shape the external environment within which it operates
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Component Lifestyles
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The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle
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Demography
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The study of people's vital statistics, such as their age, race, and ethnicity, and location
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Generation Y
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People born between 1979 and 1994
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Generation X
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people born between 1965 and 1978
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baby boomers
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People born between 1946 and 1964
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multiculturalism
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when all major ethnic groups in an area- such as a city, county or census tract- are roughly equally represented
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Purchasing power
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a comparison of income versus the relative cost of a set standard of goods and services in different geographic areas
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Inflation
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A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
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Recession
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a period of economic activity characterized by negative growth, which reduces demand for goods and services
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Basic research
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pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
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Applied research
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an attempt to develop new or improved products
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FDA
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a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded or hazardous food and drug products
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Consumer Product Safety Commission (CPSC)
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a federal agency established to protect the health and safety of consumers in and around their homes
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Federal Trade Commission (FTC)
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a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
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Consumer Decision Making Process
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a five step process used by consumers when buying goods or services
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Need Recognition
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result of an imbalance between actual and desired states
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Want
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recognition of an unfulfilled need and a product that will satisfy it
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Stimulus
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any unit of input affecting one or more of the five senses
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Internal information search
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the process of recalling past information stored in the memory
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External Information Search
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the process of seeking information in the outside environment
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Nonmarketing-controlled information source
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A product information source that is not associated with advertising or promotion
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Marketing-controlled information source
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a product information source that originates with marketers promoting the product
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Cognitive Dissonance
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Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
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Involvement
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the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
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Routine Response Behavior
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The type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services, requires little search and decision time
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Limited decision making
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the type of decision that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
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Extensive Decision Making
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The 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 evaluating opinions and much time for seeking information
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Culture
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The 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
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Value
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The enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
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Subculture
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A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group
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Social class
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A 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
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reference group
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a group in society that influences an individual's purchasing behavior
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Primary membership group
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a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers
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Secondary membership group
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a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group
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Aspirational Reference Group
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A group that someone would like to join
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Norm
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a value or attitude deemed acceptable by a group
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Nonaspirational Reference Group
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a group with which an individual does not want to associate with
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Opinion Leader
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an individual who influences the opinions of others
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Socialization process
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how cultural values and norms are passed down to children
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Personality
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A way of organizing and grouping the consistencies of an individual's reactions to situations
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Self-concept
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How consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self evaluations
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Ideal Self-Image
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The way an individual would like to be
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Real self-image
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the way an individual actually perceives himself or herself
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Perception
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The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
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Selective exposure
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The process by which a consumer notices certain stimuli and ignores others
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Selective distortion
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A process whereby a consumer changes or distorts information that conflicts with his/her feelings or beliefs
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Selective retention
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A process whereby a consumer remembers only that information that supports personal beliefs
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Motive
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A driving force that causes a person to take action to satisfy specific needs
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Maslow's Hierarchy of Needs
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a method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, self-actualization
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Learning
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A process that creates changes in behavior, immediate or expected, through experience and practice
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Stimulus Generalization
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A form of learning that occurs when one response is extended to a second stimulus similar to the first
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Stimulus Discrimination
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a learned ability to differentiate among similar products
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Belief
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An organized pattern of knowledge that an individual holds as true about his/her world
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Attitude
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A learned tendency to respond consistently toward a given object
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Market
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People or organizations with needs or wants and the ability and willingness to buy
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Market Segment
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A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
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Market Segmentation
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the process of dividing a market into meaningful, relatively similar and identifiable segments or groups
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Segmentation Bases (variables)
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Characteristics of individuals, groups, or organization
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Geographic Segmentation
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Segmenting markets by region of a country or the world, market size, market density or climate
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Demographic segmentation
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segmenting markets by age gender, income, ethnic background, and family life cycle
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Family life cycle
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A series of stages determined by a combination of age, marital status, and the presence or absence of children
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Psychographic Segmentation
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Market segmentation on the basis of personality, motives, lifestyles, and geodemographics
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Geodemographic Segmentation
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Segmenting potential customers into neighborhood lifestyle categories
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Benefit segmentation
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The process of grouping customers into market segments according to the benefits they seek from the product
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Usage-rate Segmentation
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Dividing a market by the amount of product bought or consumed
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80/20 principle
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A principle holding that 20 percent of all customers generate 80 percent of demand
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Target Market
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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
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Undifferentiated Targeting Strategy
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A marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
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Concentrated targeting strategy
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a strategy used to select one segment of a market for targeting marketing efforts
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Niche
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One segment of a market
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Multisegment Targeting Strategy
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A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
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Cannibalization
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A situation that occurs when sales of a new product cut into sales of a firm's existing products
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One to one marketing
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An individualized marketing method that utilizes customer information to build long term personalized and profitable relationships with each customer
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Positioning
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Developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
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Position
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the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings
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Product Differentiation
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a positioning strategy that some firms use to distinguish their products from those of our competitors
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Perceptual Mapping
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A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups or products in customers' minds
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Repositioning
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Changing consumers' perceptions of brand in relation to competing brands
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Study Guide: Exam 1