Marketing 2301- Exam 1

Extended Problem Solving

Exists in high-involvement purchase situations (ex. New Car)

Routine Problem Solving

Exists in low-priced cases for frequently purchased goods. (ex. Peanut Butter)

Limited Problem Solving

Exists in situations that do not require a great deal of time or effort (ex. New Toaster)

Oligopoly

Few companies control a majority of industrial sales.

Market Orientation

Focusing organizational efforts to collect and use information about customers' needs to create customer value.

The Sherman Anti Trust Act

Forbids actual monopolies.

The Clayton Act

Forbids certain actions that are likely to lessen competition.

Straight Rebuy

Reordering an existing order/product. Exactly like the time before.

Customer Value Proposition

A cluster of benefits that an organization promises customers to satisfy their needs.

New Buy

A first-time buyer of a product or service. Involves greater potential risks.

Diversification Analysis

A technique a firm uses to search for growth opportunities from among current and new products and markets.

Business Portfolio Analysis

A technique that managers use to quantify performance measures and growth targets of their firms' strategic business units.

Competitive Advantage

A unique strength relative to competitors that provides superior returns, often based on quality, time, cost or innovation.

SWOT Analysis

An acronym describing an organization's appraisal of its INTERNAL Strengths and Weaknesses and its EXTERNAL Opportunities and Threats.

Strategic Marketing Process

An approach whereby an organization allocated its marketing mix resources to reach its target markets.

Marketspace

An information-and-communication based electronic exchange environment occupied by digitized offerings.

Strategy

An organization's long-term course of action that delivers a unique customer experience while achieving its goals.

Core Competencies

An organization's special capabilities - the skills, technologies and resources - that distinguish it from other organizations.

Relationship Marketing

Linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.

Robinson-Patman Act

Makes it unlawful to discriminate in prices charged to different purchasers of the same product.

Organizational Buyers

Manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale.

Monopolistic Competition

Many sellers compete with substitutable products within a price range.

Multicultural Marketing

Marketing programs that reflect unique aspects of different races.

Form, Place, Time, and Possession Utility

Name the 4 times of utilities:

Target Market

One or more specific groups of potential consumers toward which an organization directs its marketing program.

Aspiration Group

One that a person wished to be a member of or wishes to be identified with. (ex. professional sports team)

Dissociative Group

One that a person wishes to maintain a distance from because of differences in values to behaviors.

Associative Group

One to which a person actually belongs. (ex. Frats, Sororities, etc.)

e-marketplaces

Online trading communities that bring together buyers and supplier organizations.

Market

People with both the desire and the ability to buy a specific offering.

Market Share

Ratio of a firm's sales to the total sales of all firms in the industry.

Market Segments

Relatively homogenous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action.

Modified Rebuy

Same general order, with few minor adjustments to quantity or model.

Cash Cows

Strategic Business Units (SBUs) that generate large amounts of cash, far more than they can use.

Stars

Strategic Business Units (SBUs) with a high share of high-growth markets that may need extra cash to finance their own rapid future growth.

Question Marks

Strategic Business Units (SBUs) with a low share of high-growth markets. They require large injections of cash just to maintain their market share

Dogs

Strategic Business Units (SBUs) with a low share of slow-growth markets. Although they generate enough cash to sustain themselves, they may not become real winners for an organization.

Market Penetration

Strategy to increase sales for a current product in a current market.

Market Development

Strategy to sell current products to new markets.

Diversification

Strategy to sell new products in new markets. High-risk.

Product Development

Strategy to sell new products to current markets.

Product, Price, Promotion, and Place

The 4Ps of marketing are:

Problem Recognition Information Search Alternative Evaluation Purchase Decision Post-purchase Behavior

The 5 stage purchasing decision process:

Generation Y

The 72 million Americans born between 1977 and 1994.

Consumer Behavior

The actions a person takes in purchasing and using products and services.

Marketing

The activity for creating and delivering offerings that benefit the organization, its stakeholders, and society.

Perceived Risk

The anxiety felt when a consumer cannot anticipate possible negative outcomes of a purchase.

Utility

The benefits or consumer value received by users of the product.

Marketing Mix

The controllable factors - price, promotion, price, and place - that the marketing manager can use to solve a marketing problem.

Derived Demand

The demand for industrial products and services is driven by demand for consumer products and services.

Cognitive Dissonance

The feeling of post-purchase physiological tension or anxiety.

Baby Boomers

The generation of children born between 1946 and 1964.

Generation X

The generation of people born between 1965 and 1976.

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.

Buying Center

The group of people in an organization that participates in the buying process.

Business Marketing

The marketing of products and services to firms, governments, or not-for-profit organizations.

Disposable Income

The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing and transportation.

Discretionary Income

The money that remains after paying taxes and necessities. Used for luxury items.

Ultimate Consumers

The people who use the products and services purchased for a household.

Environmental Scanning

The process of acquiring information on events outside the organization to identify and interpret potential trends.

Profit

The reward to a for-profit organization for the risk it undertakes in marketing its offerings.

Gross Income

The total amount of money made in one year by a person.

Exchange

The trade of things of value between a buyer and a seller so that each is better off.

Environmental Forces

The uncontrollable social, economical, technological, competitive, and regulatory forces that affect the results of a marketing decision.

Societal Marketing Concept

The view that organizations should discover and satisfy the needs of customers in a way that also provides for society's well-being.

Pure Competition

There are many sellers with a similar product.

Points of Difference

Those characteristics of a product that make it superior to competitive substitutes.

(1) To discover the needs and wants of prospective customers (2)to satisfy them

To serve both buyers and sellers, marketing seeks to:

Cause Marketing

Tying the charitable contributions of a firm directly to sales produced through the promotion of one of its products.

-Two or more parties with unsatisfied needs -Desire and ability to satisfy these needs -A way for the parties to communicate -Something to exchange

What is needed for marketing to occur?