Marketing Test 1
database
A collection of information arranged for easy access and retrieval
market opportunity
A combination of circumstances and timing that permits an organization to take action to reach a particular target market
oligopoly
A competitive structure in which a few sellers control the supply of a large proportion of a product
Monopolistic competition
A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product
Monopoly
A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
validity
A condition that exists when a research method measures what it is supposed to measure
reliability
A condition that exists when a research technique produces almost identical results in repeated trials
value
A customer's subjective assessment of benefits relative to costs in determining the worth of a product
strategic business unit (SBU)
A division, product line, or other profit center within the parent company
data silo
A file of fixed data that is in one department isolated from the rest of the organization
time series analysis
A forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analyses
random sampling
A form of probability sampling in which all units in a population have an equal chance of appearing in the sample, and the various events that can occur have an equal or known chance of taking place
marketing information system (MIS)
A framework for managing and structuring information gathered regularly from sources inside and outside the organization
product
A good, a service, or an idea
market
A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
market growth/market share matrix
A helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy
sample
A limited number of units chosen to represent the characteristics of a total population
Better Business Bureau (BBB)
A local, nongovernmental regulatory agency, supported by local businesses, that helps settle problems between customers and specific business firms
mission statement
A long-term view, or vision, of what the organization wants to become
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 goals
homogeneous market
A market in which a large proportion of customers have similar needs for a product
heterogeneous market
A market made up of individuals or organizations with diverse needs for products in a specific product class
concentrated targeting strategy
A market segmentation strategy in which an organization targets a single market segment using one marketing mix
Pure competition
A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
Geodemographic segmentation
A method of market segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information
regression analysis
A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or income
quota sampling
A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group
business cycle
A pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery
in-home (door-to-door) interview
A personal interview that takes place in the respondent's home
marketing strategy
A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
Delphi technique
A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts
personal interview survey
A research method in which participants respond to survey questions face-to-face
mail survey
A research method in which respondents answer a questionnaire sent through the mail
online survey
A research method in which respondents answer a questionnaire via email or on a website
telephone survey
A research method in which respondents' answers to a questionnaire are recorded by an interviewer on the phone
shopping mall intercept interview
A research method that involves interviewing a percentage of individuals passing by "intercept" points in a mall
Executive judgment
A sales forecasting method based on the intuition of one or more executives
nonprobability sampling
A sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen
National Advertising Review Board (NARB)
A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement
focus group
A small group of 8-12 people who are brought together to participate in an interview that is often conducted informally, without a structured questionnaire, to observe interaction when members are exposed to an idea or a concept
target market
A specific group of customers on whom an organization focuses its marketing efforts
marketing objective
A statement of what is to be accomplished through marketing activities
green marketing
A strategic process involving stakeholder assessment to create meaningful, long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
undifferentiated targeting strategy
A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product
differentiated targeting strategy
A strategy in which an organization targets two or more segments by developing a marketing mix for each segment
Corporate strategy
A strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals
decentralized organization
A structure in which decision-making authority is delegated as far down the chain of command as possible
centralized organization
A structure in which top-level managers delegate little authority to lower levels
sales force forecasting survey
A survey of a firm's sales force regarding anticipated sales in their territories for a specified period
customer forecasting survey
A survey of customers regarding the types and quantities of products they intend to buy during a specific period
stratified sampling
A type of probability sampling in which the population is divided into groups with a common attribute, and a random sample is chosen within each group
probability sampling
A type of sampling in which every element in the population being studied has a known chance of being selected for study
on-site computer interview
A variation of the shopping mall intercept interview in which respondents complete a self-administered questionnaire displayed on a computer monitor
marketing plan
A written document that specifies the activities to be performed to implement and control the organization's marketing strategies
population
All the elements, units, or individuals of interest to researchers for a specific study
sustainable competitive advantage
An advantage that the competition cannot copy
Term: Federal Trade Commission (FTC)
An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling
random factor analysis
An analysis attempting to attribute erratic sales variations to random, nonrecurrent events
seasonal analysis
An analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales
cycle analysis
An analysis of sales figures for a three- to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner
Trend analysis
An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales
Micromarketing
An approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets
performance standard
An expected level of performance against which actual performance can be compared
ethical issue
An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
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
hypothesis
An informed guess or assumption about a certain problem or a certain set of circumstances
telephone depth interview
An interview that combines the traditional focus group's ability to probe with the confidentiality provided by telephone surveys
social responsibility
An organization's obligation to maximize its positive impact and minimize its negative impact on society
market orientation
An organizationwide commitment to researching and responding to customer needs
research design
An overall plan for obtaining the information needed to address a research problem or issue
Marketing cost analysis
Analysis of costs to determine which are associated with specific marketing efforts
Sales analysis
Analysis of sales figures to evaluate a firm's performance
Statistical interpretation
Analysis of what is typical and what deviates from the average
SWOT analysis
Assessment of an organization's strengths, weaknesses, opportunities, and threats
Segmentation variables
Characteristics of individuals, groups, or organizations used to divide a market into segments
crowdsourcing
Combines the words crowd and outsourcing and calls for taking tasks usually performed by a marketer or researcher and outsourcing them to a crowd, or potential market, through an open call
Stakeholders
Constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes
marketing decision support system (MDSS)
Customized computer software that aids marketing managers in decision making
Secondary data
Data compiled both inside and outside the organization for some purpose other than the current investigation
Primary data
Data observed and recorded or collected directly from respondents
discretionary income
Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
relationship marketing
Establishing long-term, mutually satisfying buyer-seller relationships
Strategic performance evaluation
Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed
Total budget competitors
Firms that compete for the limited financial resources of the same customers
Product competitors
Firms that compete in the same product class but market products with different features, benefits, and prices
Brand competitors
Firms that market products with similar features and benefits to the same customers at similar prices
Generic competitors
Firms that provide very different products that solve the same problem or satisfy the same basic customer need
codes of conduct
Formalized rules and standards that describe what a company expects of its employees
marketing mix
Four marketing variables—product, price, distribution, and promotion—that a firm controls to meet the needs of customers within its target market
business market
Individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
market segment
Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs
single-source data
Information provided by a single marketing research firm
Big data
Involves massive structured and unstructured data sources that can be used by marketers to discover unique insights and make strategic decisions
market test
Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts
breakdown approach
Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it
buildup approach
Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered
Consumerism
Organized efforts by individuals, groups, and organizations to protect consumers' rights
competition
Other firms that market products that are similar to or can be substituted for a firm's products in the same geographic area
Consumer Market
Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits or serve an organizational need
descriptive research
Research conducted to clarify the characteristics of certain phenomena to solve a particular problem
exploratory research
Research conducted to gather more information about a problem or to make a tentative hypothesis more specific
Conclusive research
Research designed to verify insights through objective procedures and to help marketers in making decisions
Experimental research
Research that allows marketers to make causal inferences about relationships between variables
buying power
Resources—such as money, goods, and services—that can be traded in an exchange
expert forecasting survey
Sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors
customer advisory boards
Small groups of actual customers who serve as sounding boards for new-product ideas and offer insights into their feelings and attitudes toward a firm's products and other elements of its marketing strategy
strategic windows
Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market
first-mover advantage
The ability of a company to achieve long-term competitive advantages by being the first to offer an innovative product in the marketplace
late-mover advantage
The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a product in a marketplace
marketing citizenship
The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
sales forecast
The amount of a product a company expects to sell during a specific period at a specified level of marketing activities
Technology
The application of knowledge and tools to solve problems and perform tasks more efficiently
marketing environment
The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
Benefit segmentation
The division of a market according to benefits that consumers want from the product
Sociocultural forces
The influences in a society and its culture(s) that change people's attitudes, beliefs, norms, customs, and lifestyles
Company sales potential
The maximum percentage of a market that an individual firm within an industry can expect to obtain for a specific product
Market density
The number of potential customers within a unit of land area
market share
The percentage of a market that actually buys a specific product from a particular company
cause-related marketing
The practice of linking products to a particular social cause on an ongoing or short-term basis
Environmental analysis
The process of assessing and interpreting information gathered through environmental scanning
Environmental scanning
The process of collecting information about forces in the marketing environment
marketing
The process of creating, pricing, distributing, and promoting goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
Market segmentation
The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs
strategic planning
The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan
Strategic marketing management
The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
Marketing implementation
The process of putting marketing strategies into action
Sampling
The process of selecting representative units from a total population
exchanges
The provision or transfer of goods, services, or ideas in return for something of value
customers
The purchasers of organizations' products; the focal point of all marketing activities
competitive advantage
The result of a company matching a core competency to opportunities it has discovered in the marketplace
strategic philanthropy approach
The synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits
marketing research
The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
Market potential
The total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity
Marketing analytics
The use of databases, big data, and measurement methods enabled by technology to interpret the effectiveness of a firm's marketing functions
core competencies
Things a company does extremely well, which sometimes give it an advantage over its competition
Customer relationship management (CRM)
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
disposable income
after-tax income