MKTG 310 Principles of Marketing

Trade Facilitation Agreement (TFA)

a World Trade Organization agreement that aims to cut customs-related red tape and ease the flow of trade between countries

price strategy

a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle

global brand

a brand that obtains at least a one-third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data

management decision problem

a broad-based problem that uses marketing research in order for managers to take proper actions

production orientation

a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace management assesses its resources and asks: what ca we do best? what can our engineers design? what is easy to produce, given our equipment?

seasonal discounts

a price reduction for buying merchandise out of season

cash discount

a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill

quantity discount

a price reduction offered to buyers buying in multiple units or above a specified dollar amount

leader pricing (loss-leader pricing)

a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store

flexible pricing (variable pricing)

a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities

freight absorption pricing

a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer

uniform delivered pricing

a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge

basing-point pricing

a price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped

two-part pricing

a price tactic that charges two separate amounts to consume a single good or service

single-price tactic

a price tactic that offers all goods and services at the same price (or perhaps two or three prices)

FOB origin pricing

a price tactic that requires the buyer to absorb the freight costs from the shipping point ("free on board")

bait pricing

a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise

odd-even pricing (psychological pricing)

a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality

functional discount (trade discount)

a discount to wholesalers and retailers for performing channel functions

status quo pricing

a pricing objective that maintains existing prices or meets the competition's prices

price skimming

a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion

penetration pricing

a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market

shopping product

a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores

unsought product

a product unknown to the potential buyer or a known product that the buyer does not actively seek

blog

a publicly accessible Web page that functions as an interactive journal, whereby readers can post comments on the author's entries

value

a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct

observation research

a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity

central-location telephone (CLT) facility

a specially designed phone room used to conduct telephone interviewing

product item

a specific version of a product that can be designated as a distinct offering among an organization's products

mission statement

a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions establishes boundaries for all subsequent decisions,objectives and strategies should focus on the market(s) the firm is attempting to serve rather than on the good or service offered the way a firm defines the businesses mission profoundly affects the firms long run resource allocation, profitability and survival

Marketing Objectives

a statement of what is to be accomplished through marketing activities objectives should be realistic, measurable, time specifice and compared to a benchmark must be consistent and indicate the priorities of the firm they communicate the marketing management philosophies, provide management direction, motivate employees, force executives to think clearly, and form a basis for control flow from business mission statement to the rest of the marketing plan

diversification

a strategy of increasing sales by introducing new products into new markets

informational labeling

a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase

persuasive labeling

a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary

executive interview

a type of survey that involves interviewing businesspeople at their offices concerning industrial products or services

utilitarian value

a value derived from a product or service that helps the consumer solve problems and accomplish tasks

hedonic value

a value that acts as an end in itself rather than as a means to an end

marketing plan

a written document that acts as a guidebook of marketing activities for the marketing manager should define: 1) business mission 2) perform a situation analysis 3) define objectives 4) delineate a target market 5) establish components of the marketing mix

express warranty

a written guarantee range from simple statements to extensive documents written in technical language

product line extension

adding additional products to an existing product line in order to compete more broadly in the industry

captive brand

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation

private brand

a brand name owned by a wholesaler or a retailer

competitive intelligence

an intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors

an ethical decision is solely based on the number of people who are benefited by the decision true/false

false

cannibalization occurs when the sales of an existing product remain the same despite the introduction of a new product true/false

false

component lifestyle refers to choosing products and services that conform to traditional stereotypes true/false

false

conventional morality is the most basic level of ethical development true/false

false

demography is one of the controllable variables in the external environment true/false

false

ethics refers to a firm's belief that an ongoing relationship with another firm is so important that it warrants maximum efforts at maintaining it indefinitely true/false

false

firms that want to become involved in licensing or to become heavily involved in global marketing may engage in contract manufacturing true/false

false

fluctuating demand is the demand for two or more items used together in a final product true/false

false

for a successful market segmentation, one marketing mix cannot be used for another market segment true/false

false

greenwashing is the term used to describe industrial processes that cause pollution above the permissible limit set by the government true/false

false

hedonic value is derived from a product or service that helps a consumer solve problems and accomplish task true/false

false

in a buying center, the decider is the person who actually negotiates a purchase true/false

false

in the context of developing an effective customer relationship management system, the use of big data analytics is restricted to the collection of customer data true/false

false

in the context of direct foreign investment, direct investors have the lowest potential reward and the lowest potential risk true/false

false

in the context of distribution, ocean shipping is faster than airfreight true/false

false

insurance, burial plots, and similar items fall under the convenience products category true/false

false

internet surveys are labor-intensive in nature and incur training, telecommunications and management costs true/false

false

market segments cannot be differentiated by demographic characteristics true/false

false

marketing research helps managers understand the marketing environment with the aid of big data analytics true/false

false

marketing research is of little help to managers who want to improve the quality of decision making true/false

false

need recognition cannot be triggered when a consumer is exposed to an external stimulus true/false

false

of all the types of managers, managers of global social media campaigns are the ones who need not be aware of the cultures of the countries in which they operate true/false

false

opening an e-commerce site on the internet makes it difficult for a company to gain recognition in the international marketplace true/false

false

people in a subculture do not share the characteristics of the broader culture true/false

false

perception is the process that creates changes in behavior practice true/false

false

personality refers to how consumers perceive themselves in terms of attitudes, perceptions and beliefs true/false

false

processed materials include capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes and buildings true/false

false

profit maximization means striving for profits that are satisfactory to the stockholders and management - in other words, a level of profits consistent with the level of risk an organization faces true/false

false

psychological pricing is marketing two or more products in a single package for a special price true/false

false

research questions cannot be answered with primary data true/false

false

scanning universal product codes (UPCs) consumes time required for preparing records of customer purchases true/false

false

single variable segmentation is clearly more precise than multiple-variable segmentation true/false

false

the final step in market segmentation is selecting segmentation descriptors true/false

false

the process by which we select, organize and interpret stimuli into a meaningful and coherent picture is called learning true/false

false

trademark rights come from registration rather than use true/false

false

unlike a firm that launches a new item resembling several others already on the market, a firm that introduces a totally new product with no close substitutes will have no pricing freedom true/false

false

unlike an operating decision, a strategic decision probably will not have a big impact on the long-run profitability of the company true/false

false

unlike rule utilitarianism, act utilitarianism is accurate in predicting the future outcomes of an action true/false

false

when a company invests in a foreign firm and holds active ownership of the firm, then the company is said to be in a joint venture with the foreign firm. true/false

false

when making a purchase, satisficers consider numerous suppliers, solicit bids, and study all proposals carefully before selecting one true/false

false

when retailers stock exclusive versions of products that have similar specifications to ones carried in other stores but have different model or serial numbers, it facilitate price matching true/false

false

while break-even pricing is relatively simple, markup pricing uses more complicated concepts of cost true/false

false

with the personal and targeted nature of customer relationship management, consumers spend more time making purchase decisions true/false

false

The more digits in a North American Industry Classification System code, the less homogeneous a group will be. true/false

false the more digits in a code, the more homogeneous a group will be

sales oriented

firm defines its business (or mission) in terms of goods and services seeks to achieve profitability through sales volume and tries to convince potential customers to buy, even if the seller knows that the customer and product dont match seek to generate sales volume through intensive promotional activities (personal selling and advertising) place higher premium on making the sale than on developing long lasting customer relationships often misses opportunities to serve customers whos wants can be met through a wide range of product offerings instead of through specific products targets its products at "everybody" or "the average customer"

primary data

information that is collected for the first time; used for solving the particular problem under investigation

marketing research and the internet

interet has simplified the secondary data search process internet survey research is surging in popularity, can be created rapidly, are reported in real time, are relatively inexpensive, are easily personalized contact respondents who are difficult to reach by other means can be used for focus groups, to distribute research proposals and reports, to facilitate collaboration between client and research supplier

unfair trade practice acts

laws that prohibit wholesalers and retailers from selling below cost

Pricing Strategies

often most flexible of the Four Ps and the quickest element to change important competitive weapon very important to the firm because price multiplied by the number of units sold equals total revenue for the firm

basic research

pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon

global vision

recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets

research design

specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed

Stratigic Business Unit (SBU)

subgroup of a single business or collection of related businesses within the larger organization Characteristics: 1) distinct mission and a specific target market 2) control over its resources 3) its own competitors 4) a single business 5) plans independent from other SBUs in the organization each SBU has its own rate of return on investment, growth potential and associated risks, and requires its own strategies and funding

dynamic pricing

the ability to change prices very quickly, often in real time

trademark

the exclusive right to use a brand or part of a brand rights come from use rather than registration to renew a trademark, the company must prove it is using the mark

big data

the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data

marketing research objective

the specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information

an organization's product mix includes all of the products it sells true/false

true

by pressurizing a supplier to sell products at very low prices, a buyer may, in effect, force the supplier to compromise on the quality of the product true/false

true

competitive intelligence was derived from military intelligence true/fakse

true

dynamic segmentation approaches adjust to fit the changes that occur in customers lives true/false

true

each product item in the product mix may require a separate marketing strategy true/false

true

federal, state and local buying units account for the greatest volume of purchases of any customer category in the U.S. true/false

true

imitating a rival's competitive advantage requires the company to first identify the rival's competitive advantage true/false

true

in the context of marketing, an exchange refers to people giving up something in order to receive something else they would rather have true/false

true

manufacturers find that their large customers such as department stores often make specific pricing demands that suppliers must agree to true/false

true

marketers often try to create opinion leaders as it is rare to find an opinion leader who spans multiple diverse domains true/false

true

marketing research helps managers gauge the perceived value of their goods and services, as well as the level of customer satisfaction true/false

true

mobile research provides immediate feedback about a consumers purchase decision to the researcher true/false

true

neuromarketing is a fresh attempt to better understand consumers responses to promotion and purchase motivations true/false

true

predatory pricing is illegal under the Sherman Act and the Federal Trade Commission Act true/false

true

since facebook, youtube, and other social media are popular around the world, firms both large and small have embraced social media marketing true/false

true

teamwork entails collaborative efforts of people to accomplish common objectives true/false

true

the key distinction between the consumer products and business products in their intended use true/false

true

the universal product codes (UPC) system and scanners are used in scanner-based research true/false

true

the younger Millennials will create a significant amount of growth in the U.S. true/false

true

traditional marketing media offers a mass media method of interacting with consumers, whereas social media offer more one-to-one ways to meet consumer true/false

true

unlike television, social media enable firms to create conversations with customers and establish meaningful connections true/false

true

value of a product can mean an enduring belief shared by a society that a specific mode of conduct is personally socially preferable to another mode of conduct true/false

true

marketing research - when should it be conducted

depends on managers perceptions of its quality, price and timing research should be undertaken only when the expected value of the info is greater than the cost of obtaining it customer relationship management system is integral to analyzing, transforming and leveraging customer data

marketing planning

designing activities relating to marketing objectives and the changing marketing environment

marketing research problem

determining what information is needed and how that information can be obtained efficiently and effectively

opinion leader

an individual who influences the opinions of others

co-branding

placing two or more brand names on a product or its package

profit

revenue minus expenses

SWOT analysis

(s) strenghts (w) weaknesses (o) opportunities (t) threats identifying internal strengths and weaknesses - resources such as production costs, marketing skills, financial resources, company or brand image, employee capabilities and available technology examining external opportunities and threats - environmental scanning - collection and interpretation of information about forces, events and relationships in the external environment

marketing audit - post audit task

1) audit should profile weaknesses and inhibiting factors as well as strengths and the new opportunities available 2) ensure the role of the audit has been clearly communicated (address the question "where are we now?" and suggest ways to improve what the firm already does) 3) make someone accountable for implementing he recommendations

allocation of future resources

1) build - decide to give up short term profits and use its financial resources to achieve this goal (usually start at problem child - but have potential to be Star) 2) hold - if SBU is very successful cash cow a key goal would be to hold or preserve market share to take advantage of the very positive cash flow 3) harvest - appropriate for all SBUs except star - goal is to increase short term cash return without too much concern for long term impact (especially worth while when more cash is needed from a cash cow with long run prospects that are unfavorable because of low market growth rate) 4) divest - getting rid of SBUs with low shares of markets or low growth markets (problem children and dogs)

marketing audit characteristics

1) comprehensive - covers all the major marketing issues 2) systematic - takes p lace in an orderly sequence, and covers the marketing environment, internal marketing system, specific marketing activities (followed by an action plan with both short and long run proposals for improving overall marketing effectiveness) 3) independent - normally conducted by an inside/outside party that is independent enough to have top managements confidence and has the ability to be objective 4) periodic - should be carried out on a regular schedule - instead of only in a crisis

Marketing's Importance in the Firm

1) contributes directly to business goals (survival, profits and growth) 2) includes these vital qualities: assess wants a nd satisfactions of present and potential customers, designing and managing product offerings, determining prices and pricing policies, developing distribution strategies, communicating with present and potential customers, part of the job of everyone in the organization

marketing research project steps

1) determine a problem statement or set of research objectives 2) create an overall research design to specify how primary data will be gathered and analyzed 3) determine if the interview group will be a probability or nonprobability sample 4) collect data 5) analyze data using statistical analysis 6) prepare and present oral and written reports with conclusions and recommendations 7) determine if recommendations were implemented and what could have been done to make the project more successful

factors in ethical decision making

1) extent of ethical problems within the firm 2) top managements actions on ethics 3) potential magnitude of the consequences 4) social consensus - greater the degree o f agreement that an act is unethical by peers,the more likely people will recognize a problem and unethical 5) probability of a harmful outcome 6) length of time between the decision and the onset of consequences 7) number of people to be affected

Marketing involves

1) process that focuses on delivering value and benefits to customers 2) uses communication, distribution and pricing strategies to provide customers and other stakeholders with goods/services, ideas, values and benefits they desire when and where they want them 3) building long-term, mutually rewarding relationships when those benefit all parties 4) understanding that organizations have many connected stakeholder "partners", including employees, suppliers, stockholders, distributors, owner, etc

branding

A brand can use: Name, logo symbols, characters, slogans, jingles and even distinctive packages. established brands encourage customer loyalty and help new products succeed

B Corp

A certification that someone gets for having his or her business organization meet a certain standard for profit companies certified by the non profit B Lab to meet rigorous standards of social and environmental performance, accountability and transparency

target market

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

subculture

A group of people with shared value systems based on common life experiences and situations

inelastic demand

A situation in which an increase or a decrease in price will not significantly affect demand for the product

he social media tools i

A marketer has many tools to imple-ment a social media campaign. However, new tools emerge daily, so these resources will change rapidly. Some of the strongest social media platforms are blogs, microblogs, social networks, media creation and sharing sites, social news sites, location-based social networking sites, and virtual worlds and online gaming. Blogs allow marketers and consumers to create content in the form of posts, which ideally build trust and a sense of authenticity in customers. Microblogs allow brands to follow, repost, respond to potential customers, and post content that inspires customers to engage the brand, laying a foundation for meaningful two-way conversation. Social networks allow marketers to increase awareness, target audi-ences, promote products, forge relationships, attract event partici-pants, perform research, and generate new business. Media sharing sites give brands an interactive channel to disseminate content. Social news sites are useful to marketers to promote campaigns, create conversations, and build website traffic. Location-based social networking sites can forge lasting relationships and loyalty in customers. Review sites allow marketers to respond to customer reviews and comments about their brand. Online and mobile gaming are fertile grounds for branded content and advertising.

elastic demand

A situation in which consumer demand is sensitive to changes in price

greenwashing

A practice in which companies promote their products as environmentally friendly when in truth the brand provides little ecological benefit.

extranet

A private electronic network that links a company with its suppliers and customers

social media campaign

A social media campaign should take advantage of owned media, earned media, and paid media. To use these types of media in a social media campaign, first implement an effective listening system. Marketers can interact with negative feedback, make changes, and effectively manage their online presence. Paying attention to the ways that competing brands attract and engage with their customers can be particularly enlightening for both small businesses and global brands. Second, develop a list of objectives that reflects how social media dynamically communi-cate with customers and build relationships

Maslow's Hierarchy

A theory that arranges the five basic needs of people—physiological, security, social, esteem, and self-actualization—into the order in which people strive to satisfy them

processed materials

Are products used directly in manufacturing other products. they have had some processing sheet metal, chemicals, specialty steel, treated lumber, corn syrup and plastics

single variable segmentation

Buyer behavior adequately related to only one segmentation variable

fixed cost

Costs that does not change as output is increased or decreased

Restoring American Financial Stability Act of 2010

Created the Consumer Financial Protection Bureau to protect consumers against unfair, abusive, and deceptive financial practices.

consumer product safety act of 1972

Created the Consumer Product Safety Commission, which has authority to specify safety standards for most products.

Promotion Strategies

Decisions about selling, advertising, sales promotions, and public relations activities to use in the promotional mix. goal is to bring mutually satisfying exchanges with target markets by informing, educating, persuading and reminding them of the benefits of product/service

fine-tune a base pric

Discounts, allowances, and rebates give lower prices to those who pay promptly, order a large quantity, or perform some function for the manufacturer. Geographic pricing tactics are used to moderate the impact of shipping costs on distant customers. A variety of other pricing tactics stimulate demand for certain products, increase store patronage, and offer more merchandise at specific prices

Children's Online Privacy Protection Act of 1998

Empowers the FTC to set rules regarding how and when marketers must obtain parental permission before asking children marketing research questions.

National Environmental Policy Act (1970)

Established the Environmental Protection Agency to deal with various types of pollution and organizations that create pollution.

Reasons for studying marketing

First, marketing affects the allocation of goods and services that influence a nation's economy and standard of living. Second, an understanding of marketing is crucial to understanding most businesses. Third, career opportunities in marketing are diverse, profitable, and expected to increase significantly during the coming decade. Fourth, understanding marketing makes consumers more informed.

legal constraints on pricing decisions

Government regulation helps monitor four major areas of pric-ing: unfair trade practices, price fixing, price discrimination, and predatory pricing. Many states have enacted unfair trade practice acts that protect small businesses from large firms that operate on extremely thin profit margins. The Sherman Act and the Federal Trade Commission Act prohibit both price fixing and predatory pricing. The Robinson-Patman Act of 1936 makes it illegal for firms to discriminate between two or more buyers in terms of price. Predatory pricing is the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a marke

global packaging considerations

Labeling Aesthetics Climate

American Marketing Association (AMA)

Marketing is 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.

measurement for social media

Most marketers have not been able to figure out how to measure the benefits of social media. Hundreds of metrics have been developed to measure social media's value, but these metrics are meaningless unless they are tied to key performance indicators. Some social media metrics to consider include buzz, interest, participation, search engine rank and results, influence, sentiment analysis, and website metrics.

conventional morality

Moves toward the expectations of society loyalty and obedience to the firm or society becomes paramount concerned only with a proposed action is legal and how others will view it

global branding considerations

One name Modify or adapt one name Different names in different markets

Patient Protection and Affordable Care Act

Overhauled the U.S. healthcare system; mandated and subsidized health insurance for individuals.

child protection and toy safety act of 1969

Prevents marketing of products so dangerous that adequate safety warnings cannot be given

importance of pricing decisions to the economy and to the individual firm

Pricing plays an integral role in the U.S. economy by allocating goods and services among consumers, governments, and businesses. Pricing is essential in business because it creates revenue, which is the basis of all business activity

pricing objectives

Profit-oriented pricing is based on profit maximization, a satisfactory level of profit, or a target return on investment (ROI). Sales-oriented pricing focuses on either maintaining a percentage share of the market or maximizing dollar or unit sales. Status quo pricing aims to maintain the status quo by matching competit

public health smoking act of 1970

Prohibits cigarette advertising on television and radio and revises the health hazard warning on cigarette packages.

public health cigarette smoking act of 1971

Prohibits tobacco advertising on radio and television.

federal food and drug act of 1906

Prohibits adulteration and misbranding of foods and drugs involved in interstate commerce; strengthened by the Food, Drug, and Cosmetic Act (1938) and the Kefauver-Harris Drug Amendment (1962).

Homeland Security Act of 2002

Protects consumers against terrorist acts; created the Department of Homeland Security.

CAN-SPAM Act of 2003

Protects consumers against unwanted e-mail, or spam.

Credit Card Act of 2009

Provides many credit card protections

child protection act of 1990

Regulates the number of minutes of advertising on children's television.

convenience products

Relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort

Aviation Security Act of 2001

Requires airlines to take extra security measures to protect passengers, including the installation of stronger cockpit doors, improved baggage screening, and increased security training for airport personnel

Poison Prevention labeling act of 1970

Requires safety packaging for products that may be harmful to children

Consumer Credit Protection Act of 1968

Requires that lenders fully disclose true interest rates and all other charges to credit customers for loans and installment purchases.

Federal Hazardous Substances Act (1960)

Requires warning labels on hazardous household chemicals.

social media, how they are used, and their relation to integrated marketing communications.

Social media, commonly thought of as digital technology, offer a way for marketers to communicate one-on-one with consum-ers and measure the effects of those interactions. Social media include social networks, microblogs, and media sharing sites, all of which are used by the majority of adults. Smartphones and tablet computers have given consumers greater freedom to access social media on the go, which is likely to increase usage of social media sites. Many advertising budgets are allotting more money to online marketing, including social media, mobile marketing, and search marketing.

product modification

changing one or more of a product's characteristics

need recognition

The first stage of the buyer decision process, in which the consumer recognizes a problem or need

a production-oriented firm focuses on satisfying customer wants and needs true/false

false

Product Strategies

The heart of the marketing mix, the starting point The product includes its package, warranty, after-sale service, brand name, company image, and many other factors.

Mercosur

The largest latin american trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay and Venezuela

Impact of mobile technology on social media

The mobile platform is such an effective marketing tool—especially when targeting a younger audience. There are six reasons for the popularity of mobile marketing: (1) mobile platforms are standardized, (2) fewer consumers are concerned about privacy and pricing policies, (3) advertising can be done in real time, (4) mobile marketing is measurable, (5) in-store notifica-tion technology such as Apple's iBeacon can send promotiona messages based on real-time interactions with customers, and (6) there is a higher response rate than with traditional advertis-ing. Because of the rapid growth of smartphones, well-branded, integrated apps allow marketers to create buzz and generate cus-tomer engagement. Widgets allow customers to post a company's information to its site, are less expensive than apps, and broaden that company's exposure

product life cycle, competition, distribution and promotion strategies, customer demands, the Internet and extranets, and perceptions of quality can affect price

The price of a product normally changes as it moves through the life cycle and as demand for the product and competitive conditions change. Management often sets a high price at the introductory stage, and the high price tends to attract competition. The competition usually drives prices down because individual competitors lower prices to gain market share. Adequate distribution for a new product can sometimes be obtained by offering a larger-than-usual profit margin to wholesal-ers and retailers. The Internet enables consumers to compare products and prices quickly and efficiently. Perceptions of quality can also influence pricing strategies

setting the right price

The process of setting the right price on a product involves four major steps: (1) establishing pricing goals; (2) estimating demand, costs, and profits; (3) choosing a price policy to help determine a base price; and (4) fine-tuning the base price with pricing tactics. A price strategy establishes a long-term pricing framework for a good or service. The three main types of price policies are price skimming, penetration pricing, and status quo pricing

social media plan

The social media plan should fit into the overall market-ing plan and help marketers meet the organization's larger goals. There are six stages in creating an effective social media plan; (1) listening, (2) setting social media objectives, (3) defining strategies, (4) identifying the target audience, (5) selecting the appropriate tools and platforms, and (6) implementing and monitoring the strategy. Listening and revising the social media plan to accommodate changing market trends and needs is key to an effective social media plan.

n consumer behavior on social media.

To effectively leverage social media, marketers must understand who uses social media and how they use it. If a brand's target market does not use social media, a social media campaign might not be useful. There are six categories of social media users: creators, critics, collectors, joiners, spectators, and inactives. A new category is emerging called "conversationalists," who post status updates on social networking sites or microblogs.

media sharing sites

Web sites that allow users to upload and distribute multimedia content like videos and photos

dynamic pricing concept

When competitive pressures are high, a company must know when it should raise or lower prices to maximize its revenues. Companies are increasingly turning to dynamic pricing to help adjust prices. Although dynamic pricing originated with airlines, which are limited by fixed capacity, the new thinking is that dynamic pricing can be used in any industry where demand or supply fluctuates. Dynamic pricing is the ability to adjust prices very quickly, often in real time.

role of demand in price determination

When establishing prices, a firm must first determine demand for its product. A typical demand schedule shows an inverse relationship between quantity demanded and price: when price is lowered, sales increase; when price is increased, the quantity demanded falls. Elasticity of demand is the degree to which the quantity demanded fluctuates with changes in price. If consumers are sensitive to changes in price, demand is elastic; if they are insensitive to price changes, demand is inelastic

cost-oriented pricing strategies

Wholesalers and retailers commonly use markup pricing to cover expenses and turn a profit. With this strategy, they tack an extra amount on to he manufacturer's original price. With break-even pricing, a firm determines how much it must sell to break even; this amount in turn is used as a reference point for adjusting price.

Corporate Social Responsibility

a business's concern for society's welfare responsibility in business refers to a firms concern for the way its decisions affect society managers consider both the long-range best interest of the firm and the firms' relationship to society stakeholders theory means paying attention to the interest of every affected stakeholder in every aspect of a firms operation (employees, management, customers, local community, suppliers and owners) 4 components: economic, legal, ethical and philanthropic

web community

a carefully selected group of consumers who agree to participate in an ongoing dialogue with a particular corporation

rebate

a cash refund given for the purchase of a product during a specific period

virtue

a character trait valued as being good

scaled-response question

a closed-ended question designed to measure the intensity of a respondent's answer

multinational corporation

a company that is heavily engaged in international trade, beyond exporting and importing

market share

a company's product sales as a percentage of total sales for that industry

purchasing power

a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas

variable cost

a cost that varies with changes in the level of output

noncumulative quantity discount

a deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period

cumulative quantity dicsount

a deduction from list price that applies to the buyer's total purchases made during a specific period

global marketing mix basic elements

a f irms major consideration is how much it will adjust the four Ps - product, promotion, place (distribution) and price - within ech coutry one strategy is to use on product and one promotion message worldwide a second strategy is to create a new product for global markets a thirds strategy is to keep the product basically the same but alter the promotional message a fourth strategy is to slightly alter the product to meet local conditions

Food and Drug Administration (FDA)

a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products

Federal Trade Commission (FTC)

a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce

Consumer Product Safety Commission (CPSC)

a federal agency established to protect the health and safety of consumers in and around their homes

neuromarketing

a field of marketing that studies the body's responses to marketing stimuli

field service firm

a firm that specializes in interviewing respondents on a subcontracted basis

convenience sample

a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher—for example, employees, friends, or relatives

behavioral targeting

a form of observation marketing research that combines a consumer's online activity with psychographic and demographic profiles compiled in databases

product line

a group of closely related product items

code of ethics

a guideline to help marketing managers and other employees make better decisions advantages: 1) helps employees identify what their firm recognizes as acceptable business practices 2) effective internal control of behavior (more desirable then external, such as government regulations) 3) helps employees avoid confusion when determining whether their decisions are ethical 4) facilitates discussion among employees about what is right and wrong and ultimately leads to better decisions

Foreign Corrupt Practices Act

a law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries

market development

a marketing strategy that entails attracting new customers to existing products

product development

a marketing strategy that entails the creation of new products for present markets

market penetration

a marketing strategy that tries to increase market share among existing customers

inflation

a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year

cross-tabulation

a method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions

break-even analysis

a method of determining what sales volume must be reached before total revenue equals total costs

experiment

a method of gathering primary data in which the researcher alters one or more variables while observing the effects of those alterations on another variable

pyramid of corporate social responsibility

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 1) economic performance is the foundation - as same time a firm pursues profits (economic responsibility) 2) expected to obey the law (legal responsibility) 3) do what is right (ethical responsibility) 4) be a good corporate citizen (philanthropic responsibility)

zone pricing

a modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone

brand

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

specialty product

a particular item for which consumers search extensively and are very reluctant to accept substitutes

promotional allowance (trade allowance)

a payment to a dealer for promoting the manufacturer's products

random sample

a sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample

infoscan

a scanner-based sales-tracking service for the consumer packaged-goods industry

Universal Product Code (UPC)

a series of electronically readable lines identifying a product and containing inventory and pricing information

United Nations Global Compact

a set of 10 principles that promote human rights, sustainability, and the eradication of corruption Human rights: Principle 1 - businesses should support and respect the protection of internationally proclaimed human rights Principle 2 - businesses should make sure they are not complicit in human rights abuses Labor: Principle 3 - uphold the freedom of association and the effective recognition of the right to collective bargaining Principle 4 - uphold the elimination of all forms of forced and compulsory labor Principle 5 - uphold the effective abolition of child labor Principle 6 - uphold the elimination of discrimination in respect of employment and occupation Environment: Principle 7 - support a precautionary approach to environmental challenges Principle 8 - undertake initiatives to promote greater environmental responsibility Principle 9 - encourage the development and diffusion of environmentally friendly technologies Anti-Corruption: Principle 10 - work against corruption in all its forms, including extortion and bribery

competitive advantage

a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition factor(s) that cause customers to patronize a firm and not the competition Three types: cost product/service differentiation and niche

cannibalization

a situation that occurs when sales of a new product cut into sales of a firm's existing products

market segment

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

sample

a subset from a larger population

social commerce

a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services

mall intercept interview

a survey research method that involves interviewing people in the common areas of shopping malls

scanner-based research

a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy

marketing audit

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization helps management allocate marketing resources efficiently a way to improve communication and raise the level of marketing consciousness useful for selling the philosophy and techniques of strategic marketing to other members of the firm

General Agreement on Tariffs and Trade (GATT)

a trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements

Uruguay Round

a trade agreement to dramatically lower trade barriers worldwide; created the World Trade Organization

World Trade Organization (WTO)

a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)

service mark

a trademark for a service

political and legal environment of marketing

all marketing activities are subject to state and federal laws and the rulings of regulatory agencies marketers are responsible for remaining aware of and abiding by such regulations key federal agencies that affect marketing are Consumer Product Safety Commission, FDA, FTC. many laws, including privacy laws have been passed to protect the consumer as well in 2012, the FTC called for online data collectors to adopt better privacy policies and asked Congress to pass comprehensive privacy legislation Despite federal efforts, online tracking has become widespread and pervasive

sustainable competitive advantage

an advantage that cannot be copied by the competition focus the firms skills and assets on sustaining and creating competitive advantages function of the speed at which competitors can imitate a leading companys strategy and plans (requires competitors to identify the leaders competitive advantage, determine how it is achieved, and then learn how to duplicate it)

North American Free Trade Agreement (NAFTA)

an agreement between Canada, the United States, and Mexico that created the world's then-largest free trade zone

price fixing

an agreement between two or more firms on the price they will charge for a product

philosophy

an attitude, a perspective or a management orientation that stresses customer satisfaction

frame error

an error that occurs when a sample drawn from a population differs from the target population

sampling error

an error that occurs when a sample somehow does not represent the target population

random error

an error that occurs when the selected sample is an imperfect representation of the overall population

measurement error

an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process

Moral Relativism

an ethical theory of time-and-place ethics; that is, the belief that ethical truths depend on the individuals and groups holding them

consumer penalty

an extra free paid by the consumer for violating the terms of the purchase agreement

closed-ended questions

an interview question that asks the respondent to make a selection from a limited list of responses

open-ended questions

an interview question that encourages an answer phrased in the respondent's own words

computer-assisted self-interviewing

an interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys his or her answers into the computer

computer-assisted personal interviewing

an interviewing method in which the interviewer reads questions from a computer screen and enters the respondent's data directly into the computer

implied warranty

an unwritten guarantee that the good or service is fit for the purpose for which it was sold all sales have an implied warranty under the Uniform Commercial Code

competitive intelligence

analyzed information it becomes decision making intelligence when it has implications for the organization helps managers assess their competition and vendors, leads to fewer surprises, is part of a sound marketing strategy, helps companies respond to competitive threats, helps reduce unnecessary costs

social control

any means used to maintain behavioral norms and regulate conflict

nonprobability sample

any sample in which little or no attempt is made to get a representative cross section of the population

social media

any tool or service that uses the internet to facilitate conversations

local brand names

are often used when translation or pronunciation problems occur, when the marketer wants the brand to appear to be a local brand, or when the regulations require localization a one-brand-name strategy is useful when the company markets mainly one product and the brand name does not have negative connotations in any local market

Marketing Orientation

assumes t hat a sale does not depend on aggressive sales force but rather on a customers decision to purchase a product synonymous with marketing concept involves obtaining info about customers, competitors and markets, examining the info from a total business perspective, determining how to deliver superior customer value, and implementing actions to provide value to customers

ethical behavior in business

behavior that is consistent with the principles, norms, and standards of business practice that have been agreed upon by society boundaries of ethical decision making are predicted on which ethical theory one follows a) laws typically rely on juries to determine if an act is legal or illegal b) society determines if an action is ethical or unethical

corporate blogs

blogs that are sponsored by a company or one of its brands and maintained by one or more of the company's employees

microblogs

blogs with strict post length limits

global marketing importance

businesspeople who adopt a global vision are better able to identify global marketing opportunities, understand the nature of global networks, create effective global marketing strategies, and compete against foreign competition in domestic markets larg corporations have traditionally been the major global competitors, but more small businesses are entering the global marketplace despite fears of job losses to other countries with cheaper labor, there are many benefits to globalization, including the reduction of poverty and increased standards of living

marketing plan -why?

by specifying objectives and defining the actions required to attain them, you can provide in the marketing plan the basis by which actual and expected performance can be compared provides clearly stated activities that help employees and managers understand and work toward common goals serves as a reference point for the success of future activities awareness of possibilities and problems

consumer products

classified into four categories: convenience products, shopping products, specialty products and unsought products

teamwork

collaborative efforts of people to accomplish common objectives

environmental scanning

collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan helps identify market opportunities an threats and provides guidelines for the design of marketing strategy the six most studied macroenvironmental forces: social, demographic, economic, technological, political & legal and competitive

Basics of foreign and domestic competition

competitive environment encompases the number of competitors a firm faces, the relative size of the competitors, and the degree of interdependence within the industry declining population growth, rising costs and shortages of resources have heightened domestic compensation

Place (Distribution) Strategy

concerned with making products available when and where customers want them physical distribution involves storing and transporting raw materials or finished products (making sure products arrive in usable condition when needed)

brand loyalty

consistent preference for one brand over all others

external environment of marketing

consists of social, demographic, economic, technological, political and legal, and competitive variables. generally cannot control marketers must understand how the external environment is changing and the impact of that change on the target market then managers can create a marketing mix to effectively meet the needs of target customers

Marketing in Everyday Life

consumers participate in the marketing process as a consumer of goods and services half of every dollar spent pays for marketing costs (research, product development, packaging, transportation, storage, advertising and sales expenses) better understanding of marketing - become a better informed consumer, better understanding of the buying process, and be able to negotiate more effectively with sellers, better prepared to demand satisfaction when standards are not met

elasticity of demand

consumers' responsiveness or sensitivity to changes in price

Packaging Functions

containing and protecting products, promoting products, facilitating storage, use, and convenience, facilitating recycling and reducing environmental damage tool for promotion,packaging identifies the brand and its features serves the critical function of differentiating a product from competing products and linking it with related products from the same manufacturer label is an integral part of the package, with persuasive and informational functions package is the marketers last chance to influence buyers before they make a purchase decision

experience curves

curves that show costs declining at a predictable rate as experience with a product increases reflect learning by doing, technological advances and economies of scale allow management to forecast costs and set prices based on anticipated costs as opposed to current cost

customer satisfaction

customers' evaluation of a good or service in terms of whether it has met their needs and expectations

secondary data

data previously collected for any purpose other than the one at hand

Marketing Myopia

defining a business in terms of goods and services rather than in terms of the benefits customers seek myopia means narrow, short term thinking

Empowerment

delegation of authority to solve customers' problems quickly—usually by the first person the customer notifies regarding a problem

on-demand marketing

delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer's decision and buying process delivers relevant experiences throughout the consumers decision and buying process that is integrated across both physical and virtual environments to be successful, companies must deliver high quality experiences across all touch points with the customer, including sales, service, product use and marketing on demand consumers: 1) want to interact anywhere, anytime 2) want to do new things with varied kinds of info in ways that create value 3) exect data stored about tem to be targted to there needs or to personalize their experiences 4) expect all i nteractions with the company to be easy

scanner-based research importance

enables marketers to monitor a market panels exposure and reaction to such variables as advertising, coupons, store displays, packaging, and price analyzing these variable in relation to the panels subsequent buying behavior, marketers gain useful insight into sales and marketing strategies

Stakeholder Theory

ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation 1) employees - jobs and outcomes at stake (hardship if firm closes, employees expect to be paid for work, in return for their loyalty, expect the firm to carry them through difficult times) 2) management - jobs and outcomes at stake (must safeguard the welfare of the firm) 3) customers - expect high-quality goods and services delivered in a timely manner (customer satisfaction - high revenues) 4) local community - through its local government - grants firms the right to build facilities (community benefits directly from local taxes paid by the firm, and indirectly by property and sales taxes paid by workers) 4) suppliers - vital source to the success of a company and the firm is vital to the success of the supplier 6) owners - have a financial stake in the form of stock in the firm (expect a reasonable return)

casuist ethical theory

ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes

societal marketing orientation

extends the marketing concept by acknowledging that some products that customers want may not really be in their best interests or the best interests of society as a whole this philosophy states 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 interest

prices always steadily decline for a product in the decline stages of the product life cycle true/false

fales

A one-brand-name strategy is useful when the marketer wants the brand to appear to be a local brand, or when regulations require localization. true/false

false

A service mark is the exclusive right to use a brand or part of a brand true/false

false

Asian American, who represent only 6% of the U.S. population, have the lowest average family income of all groups true/false

false

Items such as forklifts are more commonly sold as consumer goods than as business products. true/false

false

Online panel providers consist of a carefully selected group of consumers who agree to participate in an ongoing dialogue with a particular corporation. true/false

false

Services and ideas are not considered products because they are intangible. true/false

false

The final step in customer relationship management (CRM) is to identify a firm's profitable and unprofitable customers. true/false

false

Washers, dryers, refrigerators, and televisions are examples of unsought products. true/false

false

a market segment is a subgroup of people or firms having different characteristics that cause them to have distinct product needs true/false

false

a practice whereby business purchasers choose to buy from customers of their competitors is called reciprocity true/false

false

market oriented

firm defines its business in terms of the benefits its customers seek aims at specific groups of people recognize the four basic marketing mix decisions: 1) product decisions 2) place decisions 3) promotion decisions 4) pricing decisions recognizes that different customer groups want different features or benefits (may need to develop different goods/services, promotional appeals) seeks to achieve profitability through creating customer value, providing customer satisfaction and building long term relationships with customers Three advantages: 1) ensures the firm keeps focusing on customers and avoids becoming preoccupied with goods and services, or the firms internal needs 2) encourages innovation and creativity by reminding people that there are many ways to satisfy customer wants 3) stimulates an awareness of changes in customer desires and preferences so that product offerings are more likely to remain relevant

evaluation

gauging the extent to which the marketing objectives have been achieved during the specified time period 4 common reasons for failing to achieve marketing objectives: inappropriate strategies, poor implementation, unrealistic objectives, and changes in the environment after implementation

global markets external environment

global marketers face the same environmental factors as they do domestically; culture, economic and technological development, the global economy, political structure and actions, demography and nations resources cultural considerations include societal values, attitudes, beliefs, language and customary business practices a country's economic and technological status depends on its stage of industrial development, which, in turn, affects average family income a global marketer today must be fully aware of the intertwined nature of the global economy political structure is shaped by political ideology and such policies as tariffs, quotas, boycotts, exchange controls, trade agreements, and market groupings demographic variables include the size of a population and its age and geographic distribution a shortage of natural resources also affects the external environment by dictating what is available and at what price

self-concept

how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations

generic product name

identifies a product by class or type and cannot be trademarked

cash cow

in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share low growth market but product has a dominant market share (personal computer and laptops) basic strategy is to maintain market dominance by being price leader and making technological improvements in the product (heinz ketchup)

dog

in the portfolio matrix, a business unit that has low growth potential and a small market share most eventually leave the marketplace typical strategies - harvest or divest sometimes successful in other markets

star

in the portfolio matrix, a business unit that is a fast-growing market leader usually have large profits but need lots of cash to finance rapid growth must capture new users as enter the market best marketing tactic is to protect existing market share by reinvesting earnings in product improvement, better distribution, more promotion and production efficiency

problem child (question mark)

in the portfolio matrix, a business unit that shows rapid growth but poor profit margins low market share in a high-growth industry needs a great deal of cash strategy options: invest heavily or gain better market share, acquire competitors to get the necessary market share, or drop the SBU reposition the products of the SBU to move them into Star category

product mix

includes all the different products that a company makes or sells

noncorporate blogs

independent blogs that are not associated with the marketing efforts of any particular company or brand

North American Industry Classification System (NAICS)

is a detailed numbering system developed for classifying North American business establishments by their main production process

personality

is a way of organizing and grouping the consistencies of an individuals reactions to situations

product

is anything, desired or not, that a person or firm receives in an exchange goal of purchasing decisions is to receive the tangible and intangible benefits associated with a product tangible aspects include packaging, style, color, size and features intangible qualities include service, the retailers image, the manufacturers reputation, and social status associated with a product a firms product offering is the crucial element in any marketing mix

market

is people or organizations with needs or wants and with the ability and the willingness to buy

Service Orientation

make sure everyone in the organization has the same objective: customer satisfaction what services are most convenient for the firm to offer

The Boston Consulting Group Model

management must find a balance among the SBUs that yields the overall organizations desired growth and profits with an acceptable level of risk a) portfolio matrix b) allocate future resources

The General Electric Model

market attractiveness and company strength horizontal axis - Business refers to how well positioned the firm is to take advantage of market opportunities vertical axis - measures the attractiveness of a market, which is expressed both quantitatively and qualitatively 1) high profitability, rapid growth, a lack of government regulation, consumer insensitivity to a price increase, lack of competition and availability of technology 2) conditions that are highly attractive - a thriving market plus a strong business position

family branding

marketing several different products under the same brand name

global marketing

marketing that targets markets throughout the world

price bundling

marketing two or more products in a single package for a special price

Ansoff's Opportunity Matrix

matches products with markets 1. Market Penetration 2. Market Development 3. Product Development 4. Diversification

mobile research importance

mobile survey traffic accounts for approx 30% of interview responses designed to fit into the brief cracks of time provided immediate feedback when consumer makes a decision to purchase, comsume or experience some form of promotion expanded into qualitative research, using an app, respondents can participate in bulletin board and research community discussions

Innovation Matrix

modern businesses plan growth in a more fluid manner based on current capabilities rather than clear cut sectors enables a company to see exactly what types of assets need to be developed and what types of markets are possible to grow into (or create) based on the company's core capabilities as a company moves away from its core capabilities it travels a range of change and innovation 3 Levels of ranges: 1) core innovation 2) adjacent innovation 3) plans independent of other SBUs in the total oranization

multinational firms impact on the world

multinational corporations are international traders that regularly operate across national borders because of their vast size and financial, technological, and material resources, multinational corporation have great influence on the world economy they have the ability to overcome trade problems, save on labor costs, and tap new technology there are critics and supporters of multinational corporations, and the critics question the actual benefits of bringing capital intensive technology to impoverished nations many countries block foreign investment in factories, land and companies to protect their economies some companies presume that markets throughout the world are more and more similar, s o some global products can be standardized across global markets

reciprocity

mutual exchange

Return on Investment (ROI)

net profit after taxes divided by total assets

baby boomers

people born between 1946 and 1964

Generation x

people born between 1965 and 1978

Millennials (Generation Y)

people born between 1979 and 1994

Generation Z

people born between 1995 and 2010

exchange

people giving up something in order to receive something else they would rather have do not require money (trade, barter, etc) 5 conditions of exchange: 1) must be at least two people 2) ea. party has something that may be of value to the other party 3) ea.party is capable of communication and delivery 4) ea. party is free to accept or reject the exchange offer 5) ea. party believes it is appropriate or desirable to deal with the other party

recession

period of reduced economic activity characterized by negative growth, which reduces demand for goods and services

Marketing Research

process of collecting and analyzing data for the purpose of solving specific marketing problems used to improve the decision making process, trace problems, serve customers, gauge the value of goods and services, and understand the marketplace, and measure customer service efforts

consumer behavior

processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use for managers, an understanding of consumer behavior reduces marketing managers uncertainty when they are defining a target market and designing a marketing mix

global marketing standardization

production of uniform products that can be sold the same way all over the world

marketing career opportunities

professional selling marketing research advertising retail buying distribution management product management product development wholesaling nonbusiness organizations including hospitals, museums, universities, armed forces and various government and social service agencies

Do Not Call Law of 2003

protects consumers against unwanted telemarketing calls

warranty

protects the buyer and gives essential information about the product confirms the quality o r performance of a good or service

control

provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

dynamic segmentation

refers to real-time or near-real-time customer segmentation analytics that will enhance their understanding about individuals' responses to the price signals and identify the best customers to be targeted with specific marketing campaigns.

product mix width

refers to the number of product lines a firm offers

postconventional morality

represents the morality of mature adult - concerned with how they see and judge themselves over the long run might ask "even though it is legal and will increase sales, is it right in the long run? might it cause more harm than good in the end?

techniques of strategic planning

requires continual attention, creativity and management commitment 1) an ongoing process and not once a year exercise (environment i s continually changing and firms resources and capabilities are continually evolving) 2) involves a high level of creativity (managers should challenge assumptions about the firm and the environment and establish new strategies) 3) top management must support and participation

Kefauver-Harris Amendment of 1962

requires that manufacturers conduct tests to prove drug effectiveness and saftey

applied research

research that attempts to develop new or improved products

mystery shoppers

researchers posing as customers who gather observational data about a store

inshoring

returning production jobs to the United States

niche competitive advantage

seeks to target and effectively serve a single segment of the market within a limited geographic area targeting unique segments with specific needs and wants market segment that has good growth potential but is not crucial to the success of a major competitor is a good candidate

outsourcing

sending U.S. jobs abroad

value based pricing

setting the price at a level that seems to the customer to be a good price compared to the prices of other options

focus group

seven to ten people who participate in a group discussion led by a moderator

global marketing and the internet

simply opening an e-commerce site can open the door for international sales international carriers can help solve logistics problems language translation software can help e-commerce business become multilingual yet cultural differences and old-line rules, regulations, and taxes hinder rapid development of e-commerce in many countries

behavioral norms

standards of proper or acceptable behavior. Several modes of social control are important to marketing

technology - impact on firms

technological success is based upon innovation, and innovation requires imagination and risk taking monitoring new technology and encouraging research and development of new technology are essential to keeping up with competitors innovation through research and development needs to be stimulated by upper management and fostered in creative environments developing new technology internally is a key to creating and maintaining long term competitive advantage, external technology is also important

brand name

that part of a brand that can be spoken, including letters, words, and numbers

price

that which is given up in an exchange to acquire a good or service

state of the economy

the annual median household income in the U.S. in 2015 was approx. $56,516 though the median household income varies widely from state to state. During inflation, marketers generally attempt to maintain level pricing to avoid loosing customer brand loyalty during recession, many marketers maintain or reduce prices to counter the effects of decreased demands, they also concentrate on increasing production efficiency and improving customer service the great recession was the largest economic downturn since the Great Depression while the causes of recession are very complex, this one began with the collapse of inflated housing prices

Sales Orientation

the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits marketing means selling things and collecting money problem: lack of understanding of the needs and wants of the market place (can not convince people to buy goods and services tat are neither wanted or needed)

manufacturer's brand

the brand name of a manufacturer

cause-related marketing

the cooperative marketing efforts between a for-profit firm and a nonprofit organization enhances the reputation of the corporation and also make additional profit for the company nonprofit firm hopes to receive money, goods and/or services creates good public relations

markup pricing

the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for

fluctuating demand

the demand for any given business product can change in response to consumer demand changes

market opportunity analysis (MOA)

the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

green marketing

the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment regulatory guidelines issued by the FTC

balance of payments

the difference between a country's total payments to other countries and its total receipts from other countries

balance of trade

the difference in value between a country's imports and exports.

base price

the general price level at which the company expects to sell the good or service

social marketing orientation

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 some products customers wants may not be in their best interest examples: marketing products and containers that are less toxic than normal, more durable, contain reusable materials, recycled material

Sustainability

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 can be costly benefits are not always immediate consumers desire to purchase responsible products does not always translate to actual purchases environmental sustainability is concerned with the physical environment (clean water, etc) social sustainability means developing processes and structures that meet the needs of the current community AND benefit future generations (building schools and providing means for kids to attend those schools) economic sustainability is the efficient use of assets so a firm can continue operating profitably over time

market concept

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 what customers think they are buying - the perceived value - defines a business (not what a business thinks it produces) Includes: 1) focusing on customer wants/needs so the firm can distinguish its products from competitors offerings 2) integrating all the firms activities, including production, to satisfy customer wants 3) achieving long term goals by satisfying customer wants and needs legally and responsibly

strategic planning

the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities is the basis for all marketing strategies and decisions, which affect the allocation of resources and ultimately the financial success of the company goal is long run profitability and growth requires long term commitments of resources

promotion

the means by which firms communicate with present and prospective customers a bout the merits and characteristics of the firm and products effective promotion is an essential part of effective marketing

ethnic markets

the minority population today is about 118 million by 2050, around one in three U.S. residents will be Hispanic The U.S. will flip completely to a majority-minority makeup in 2035 many companies are creating departments and product lines to target multicultural market segments effectively companies have quickly found that ethnic markets are not homogeneous

ethics

the moral principles or values that generally govern the conduct of an individual or a group ethical rules and guidelines along with customs and traditions provide principles of right action

preconventional morality

the most basic level, is childlike. It is calculating, self-centered, and even selfish, based on what will be immediately punished or rewarded.

survey research

the most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes

product line depth

the number of product items in a product line

perceived value

the value a consumer expects to obtain from a purchase

core innovations

the optimizing of products or services for existing customers the decisions that implement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands example: Tide laundry pods

brand mark

the part of a brand that is not made up of words, such as a symbol or design

decider

the person who the formal or informal power to choose or approve the selection of the supplier or brand

universe

the population from which a sample will be drawn

predatory pricing

the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market

component lifestyles

the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle

keystoning

the practice of marking up prices by 100 percent, or doubling the cost

planned obsolescence

the practice of modifying products so those that have already been sold become obsolete before they actually need replacement

price lining

the practice of offering a product line with several items at specific price points

revenue

the price charged to customers multiplied by the number of units sold

perception

the process by which people select, organize, and interpret information to form a meaningful picture of the world

planning

the process of anticipating future events and determining strategies to achieve organizational objectives in the future

learning

the process that creates changes in behavior through experience and practice. it is not possible to observe learning directly, but we can infer when it has occured by a persons actions

brand equity

the value of a company or brand name

supply

the quantity of a product that will be offered to the market by a supplier at various prices for a specified period

demand

the quantity of a product that will be sold in the market at various prices for a specified period

customer value

the relationship between benefits and the sacrifice necessary to obtain those benefits

ethnographic research

the study of human behavior in its natural context; involves observation of behavior and physical setting

Demography

the study of people's vital statistics, such as age, race and ethnicity and location 7.5 billion people in the world China - 1.38 bill Indian - 1.27 bill U.S. - more than 323 mill, with metropolitan area growing and rural areas shrinking in population marketers are faced with increasingly experienced consumers among the younger generations such as tweens and teens. because the population is also growing older, marketers are offering more products that appeal to middle-aged and older consumers

Gross Domestic Product (GDP)

the total market value of all final goods and services produced during a time period

social media monitoring

the use of automated tools to monitor online buzz, chatter, and conversations the process of identifying and assessing what is being said about a company, individual, product or brand

adjacent innovation

these decisions are designed to take company strengths into new markets, use existing abilities in new ways

transformational innovation

these decisions result in brand-new markets, products, and often new businesses must rely on new, unfamiliar assets to develop the type of break through decisions that fall in this category

A local grocer groups his customers into specific groups based on what they buy and when they shop. The grocer then schedules shipments of specific items based on these customer segments and offers different promotions to different customer groups. This is an example of customer relationship management. true/false

true

According to Ansoff's strategic opportunity matrix, both product development and diversification entail creating new products true/false

true

According to garment makers, the demands of large customers are nearly wiping out profits for all but the very large suppliers. true/false

true

As products enter the growth stage of the product life cycle, prices generally begin to stabilize. true/false

true

Morals are the rules people develop as a result of cultural values and norms true/false

true

The surge in global trade in recent years has added to strains and charges for all forms of transport. true/false

true

a company that is heavily engaged in international trade, beyond exporting and importing, is called a multinational corporation true/false

true

a firms marketing mix is intended to bring about a mutually satisfying exchange relationship with a market true/false

true

a market-oriented organization states that the social and economic justification for an organizations existence is the satisfaction of customer wants and needs while meeting organizational objectives true/false

true

a mobile moment is the point in time at which a customer pulls out a mobile device to get immediate access to the information that he or she wants true/false

true

a multidomestic strategy occurs when multinational firms enable individual subsidiaries to compete independently in domestic markets true/false

true

a product can be sold both as a consumer good and business product true/false

true

according to Maslow's hierarchy of needs theory, self-actualization is the highest human needs of all true/false

true

crowdsourcing

using consumers to develop and market products

individual branding

using different brand names for different products

capital intensive

using more capital than labor in the production process

social network sites

website that allow individuals to connect - or network - with friends, peers, and business assiciates

review sites

websites that allow consumers to post, read, rate, and comment on opinions regarding all kinds of products and services

social news sites

websites that allow users to decide which content is promoted on a given website by voting that content up or down

location-based social networking sites

websites that combine the fun of social networking with the utility of location-based GPS technology

multidomestic strategy

when multinational firms enable individual subsidiaries to compete independently in domestic markets

social factors that affect marketing

within the external environment, social factors are perhaps the most difficult for marketers to anticipate several major social trends are currently shaping marketing strategies. 1) people of all ages have a broader range of interest, defying traditional consumer profiles 2) social media, web-based and mobile technology change how people and marketers interact by allowing one-to-one, one-to-many, and many-to-many communications because facebook is about human-to-human interaction, companies are turning to it and other forms of social media

Marketing facets

1) philosophy - an attitude, a perspective or a management orientation that stresses customer satisfaction 2) a organization function and a set of processes used to implement this philosophy

determinants of a civil society

1. ethics - moral principles or values that generally govern the conduct of an individual or group 2. laws - ethical rules are guidelines are codified into law by Congress (often address t he lowest common denominator of socially acceptable behavior) - just because its legal, doesnt mean is right 3. formal and informal groups - have codes of conduct that prescribe acceptable and desired behaviors of their members 4. self-regulation - voluntary acceptance of standards established by nongovernmental entities 5. the media - key role in informing the public about the actions of individuals and organization (childrens online privacy protection act and US family educational right and privacy act) 6. an active civil society - informed and engaged society can help mold individual and corporate behavior

Customer Relationship Management (CRM)

a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups organize the company around customer segments, establishing and tracking customer interactions, fostering customer satisfying behaviors, and linking all processes of the company from its customers through special suppliers

relationship marketing

a strategy that focuses on keeping and improving relationships with current customers assumes customers prefer an ongoing relationship with one firm success depends on customer oriented personnel, effective training programs, employees with the authority to make decisions and solve problems and teamwork

portfolio matrix

a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate market share and profitability are strongly linked (measure of market share is relative market share - ratio between the companys share and the share of the largest competitor) breaks SBUs into four categories of Portfolio Matrix: 1) stars 2) cash cows 3) problem children (question mark) 4) Dog Boston consulting group model

marketing mix (four Ps)

a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market strategies of all four components must be blended to achieve optimal results (only as good as its weakest component) must be carefully designed to satisfy target markets marketing strategies are designed to gain advantages over competitors and best serve the needs/wants of a particular target segment

cost competitive advantage

being the low-cost competitor in an industry while maintaining satisfactory profit margins include: 1) experience curves - tell us that costs decline at a predictable rate as experience with a product increases (manufacturing, marketing and admin costs) 2) efficient labor - outsourcing to countries with lower labor rates 3) no-frills goods/services - remove frills and options from a product/service to lower cost 4) government subsidies - grants and interest free loans to target industries 5) product design - cutting edge technology can help off set high labor costs (reverse engineering - process of disassembling a product piece by piece to learn its components) 6) re-engineering - rethinking and redesign of business processes to achieve dramatic improvements in critical measures of performance 7) production innovations - new technology and simplified production techniques help lower the average cost of production 8) new methods of service delivery - online only magazine and newspapers, out patient surgery etc, save costs

utilitarian ethical theory

ethical theory that is founded on the ability to predict the consequences of an action the choice that yields the greatest benefit to the most people is the choice that is ethically correct benefit - the utilitarian ca compare similar predicted solutions and use a point system to determine which choice is more beneficial for more people (provides a logical and rational argument for each decision and allows a person to use it on a case by case context) Two types of Utilitarianism: 1) act utilitarianism - adheres exactly to the above definition of utilitarianism - person performs the acts that benefit the most people, regardless of personal feelings or societal constraints such as laws 2) rule utilitarianism - takes into account the law and is concerned with fairness - seeks to benefit the most people but through the fairest and most just means available (values justice and doing good at same time) flaws: 1) flaws associated with predicting the future 2) choice made may look unethical as time passes if the choice doesnt help the most people 3) assumes they have the ability to compare the various types of consequences against each other on a similar scale (allows one to determine the severity of the situation and to create the best possible solution according to others' experiences) - (usually one finds extreme examples of the situation) (drawback - there may not be a set of similar examples for a given ethical dilemma) (assumes the results of the current ethical dilemma will be similar to the results in the examples) 4) moral relativism -belief in time and place ethics (truth of the moral judgment is relative to the judging person or group) (proper resolution is based on weighing the competing factors to take the lessor of the evils as the resolution) (do not believe is absolute rules) (beliefs center on the pressures of the moment and whether the pressure justifies the action taken) 4) virtue ethics - Aristotle and Plato taught that solving ethical dilemmas requires training - that individuals solve ethical dilemmas when they develop and nurture a set of virtues (some modern philosophers have embraced this notion and developed lists of what constitutes a virtuous business person - self-discipline, friendliness, caring, courage, compassion, trust, responsibility, honesty, determination, enthusiasm and humility)

deontological theory

ethical theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma people follow their obligations to another person or society because upholding one's duty is what is considered ethically correct provide very consistent decisions because they will be based on the individuals set duties

ethical behavior

ethics are the standards of behavior by which conduct is judged consists of personal moral principles standards that are legal might not always be ethical ethics violation offends a persons sense of justice or fairness unwritten rules developed to guide interactions ethical questions range from practical, narrowly, defined issues to broader social and philosophical questions

target marketing strategy

evaluation and selection of appropriate customer segments and the development of appropriate offers begins with market opportunity analysis and an assessment of key competitors in these market segments 3 general strategies: 1) appealing to entire market with one marketing mix 2) concentrating on one segment 3) appealing to multiple market segments using multiple marketing mixes

product/service differentiation competitive advantage

exists when a firm provides something unique that is valuable to buyers beyond just low price

Business gift giving is considered as the most unacceptable business practice in China. true/false

false

Fresnas Inc. introduced a new line of smartphones in the market. Since it generates huge profits and needs more financing, t he new line of smartphones can be categorized as dogs true/false

false

The key to having a competitive advantage is the ability to imitate a competitor's strategy true/false

false

a company's skills include patents, copyrights and technology that are superior to those of the competition true/false

false

a firm's assets are functions - such as customer service and promotions - that the firm performs better than its competitors true/false

false

a market-oriented organization targets its products at "everybody" or "the average customer" true/false

false

cause-related marketing is a marketing relationship based on a straight donation true/false

false

ethical beliefs vary widely from culture to culture true/false

false

preconventional morality moves from an egocentric viewpoint toward the expectations of society true/false

false

relationship marketing assumes that many consumers and business customers prefer to switch relationships among different organizations rather than continuing with just one provider true/false

false

sustainability is a popular theory in cause-related marketing true/false

false

the local community is not a stakeholder of an organization true/false

false

the pyramid of corporate social responsibility portrays philanthropic performance as the foundation for the responsibilities true/false

false

the sales orientation extends the marketing concept by acknowledging that some products that customers want may not really be in their best interest or the best interests of society as a whole true/false

false

the utilitarian theory is a belief in time-and-place ethics, that is, that ethical truths depend on the individuals and groups holding them true/false

false

marketing strategy

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

implementation

the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives involve detailed job assignments, activity descriptions, timelines, budgets and lots of communication requires delegating authority and responsibility, determining a time frame from completing tasks, and allocating resources task force management - a tightly organized unit under the direction of a manager, who usually has broad authority - to accomplish a single goal or mission and works against a deadline gaining acceptance - new plans mean change, and change creates resistance

morals

the rules people develop as a result of cultural values and norms culture is a socializing force that dictates what is right and wrong may also reflect the laws and regulations that affect social and economic behavior can be considered a foundation of ethical behavior characterized as good or bad, effective and ineffective, conforming and deviant, law-abiding and criminal and different religions define good and bad differently

a strategic business unit (SBU) is a single business or collection of related businesses true/false

true

a virtue is a character trait valued as being good true/false

true

behavioral norms are standards of proper or acceptable behavior true/false

true

individuals in the age group of 11 to 16 years who extensively use the internet is an example of a market segment true/false

true

postconventional morality represents the morality of the mature adult true/false

true