Principles of Marketing Terms

sense of mission marketing

the principle of sustainable marketing that holds a company should define its mission in broad social terms rather than narrow product terms

societal marketing

the principle of sustainable marketing that holds that a company should make marketing decisions by considering consumers' wants, the company's requirements, consumers long-run interests, and societies long-run interests

customer value marketing

the principle of sustainable marketing that holds that a company should put most of its resources into customer value building marketing investments

innovative marketing

the principle of sustainable marketing that requires a company seek real product and marketing improvements

busn portfolio analysis

the process by which management evaluates the products and businesses that make up the company.

Strateguc planning

the process of developing and maintaining a strategic fit between the organization's capabilities and its changing marketing opportunities.

Market targeting

the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

market targeting (targeting)

the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

marketing mix

the set of controllable tactical marketing tools -- product, price, place, promotion -- that the firm blends to produce the response it wants in the target market.

idea generation

the systematic search for new product ideas.

advertising media

the vehicles through which advertising messages are delivered to their intended audiences.

product position

the way a product is defined by consumers on important attributes -- the place the product occupies in consumers' minds relative to competing products.

Viral marketing

this is an old people answer

Click and mortar companies

traditional companies that have added online marketing to their operations.

commercialization (product dev)

introducing a new product into the market.

commercial online data bases

computerized collections of information available from online commercial sources or via the Internet.

distrubution center

large, highly automated warehouse to recieve crap, take orders for the crap, and deliver that crap quickly.

channel level

layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

marketing control

process of measuring and evaluating marketing strategies and plans to take corrective actions.

setting an advertising budget

1. ad budget: dollars and other resources allocated to a product pr company advertising program 2. affordable method: setting budget where management thinks company can afford. 3. percentage of sales method: setting budget at certain percentage of current or forecasted sales or as percentage of unit sales price. 4. competitive-parity method: developing promotion budget by: 1) defining specific objectives 2)determining tasks that must be performed to achieve those objectives 3) estimating the cost of performing those tasks.

Direct marketing

connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships

advertising strategy

consists of creating ad message and choosing ad media.

types of market

1. 1. target market: set of buyers sharing common needs or characteristics that the company decides to serve. 2. undifferentiated (mass) marketing: market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. 3. differentiated (segmented) marketing: firm decides to target several market segments and design separate offers for each. 4. undifferentiated > differentiated > concentrated > micromarketing 5. concentrated (niche) marketing: firm goes after large share of one or a few segments or niches. 6. micromarketing: tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments. 1. local: local customer segments -- cities, neighborhood. 2. individual: tailoring products and marketing programs to the needs and preferences of individual customers -- also called one-to-one. 2. socially responsible target marketing.

Forms of direct marketing

1. Direct mail marketing: sending an offer announcement reminder for other item to a person in particular physical or virtual address. 2. Catalog marketing: direct-marketing through print, video, or digital catalog mail to select customers, made available in stores, or presented online. 3. Telephone marketing: using telephones to sell directly to customers 4. Direct response television marketing: direct marketing via television, including direct response television advertising (or infomercials) and home shopping channels.

Deciding how to enter the market (global marketing)

1. Exporting: entering a foreign market by selling goods produced in the company's home country, often with little modification 2. Joint venturing: entering foreign markets by joining with foreign companies to produce or market a product or service 3. Licensing: a method of entering a foreign market in which the company enters into an agreement with a licensee in the foreign market 4. Contract manufacturing: a joint venture in which a company contracts with manufacturers in a foreign market to produce the product or provide its service 5. management contracting: the joint venture in which the domestic firm supplies the management know-how to aid a foreign company that supplies the capital; domestic firm exports management services rather than products 6. Joint ownership: a joint venture in which a company joins investors in a foreign market to create a local business in which the company shares joint ownership and control 7. Direct investment: entering a foreign market by developing foreign-based assembly or manufacturing facilities

Micro vs macro marketing environment

1. Microenvironment: the actors close to the company that affect its ability to serve its customers -- the comapny, suppliers, marketing intermediaries, customer markets, competitors, and publics. 2. Macroenvironment: the larger societal forces that affect the microenvironment -- demographic, economic, natural,technological, political, and cultural forces.

promotion mix

1. advertising: any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor. 2. sales promotion: short-term incentives to encourage purchase of product/service. 3. personal selling: personal presetnation by the firm's sales force for the purpose of making sales and building customer relationships. 4. public relations: building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling unfavorable stories, rumors, or events. 5. direct marketing: direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting consumer relationships.

product and service classifications

1. consumer product: bought by final consumers for personal consumption. 2. convenience product: product that consumers buy frequently, immediately, and with a minimum of comparison and buying effort. 3. shopping product: consumer, in the process of selection and purchase, usually on such bases as suitability, quality, price, and style. 4. specialty product: product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. 5. unsought product: consumer either does not know exists or knows about but does not normally think of buying. 6. industrial product: purchased by a individuals and organizations for further processing or use in conducting a business. 7. social marketing (product): use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well being and that of society.

vertical marketing systems

1. conventional distributer channel: producer > wholesaler > retailer > consumer 2. vertical marketing system (VMS): distribution channel structure in which producers, wholesalers, and retailers act as inufied system. pne channel member owns the others , or has so much power that htey all cooperate. producer/wholesaler/retailer>consumer. 3. corporate VMS: VMS that combines successive staged of production and distribution under single ownership. 4. contractual VMS: independent firms join together contractually to obtain better economy of scale. 1. franchise organization: CVM system where a channel member, called a franchiser, links several stages in the production-distribution process. 5. administered VMS: coordinates successive stages of production and distribution through the size and power of one of the parties.

characteristics affecting consumer behavior

1. culture: the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. 2. subculture: a group of people with shared value systems based o common life experiences and situations. 3. social class: relatively permanent ordered divisions in society whose members share similar values, interests, and behaviors. 4. Group: two or more people who interact to accomplish individual or mutual goals. 5. opinion leader: person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others. 6. online social networks: online social communities where people socialize or exchange information and opinions. 7. lifestyle: a person's pattern of living as expressed in his or her activities, interests, and opinions. 8. personality: unique psychological characteristics that distinguish a person or group. 9. motive (drive): a need that is sufficiently pressing to direct the person to seek satisfaction of the need. 10. perception: the process by which people select, organize, and interpret information to form a meaningful picture of the world. 11. learning: changes in an individual's behavior arising from experience. 12. belief: descriptive thought that a person holds about something. 13. attitude: a person's consistently favorable or unfavorable evaluations, feelings, and tendencies to an idea/object.

managing new-product development

1. customer-centered new-product development--: new-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences. 2. team-based new-product development--: an approach to developing new products in which various company departments work closely together, overlapping the steps in the development process to save time and increase effectiveness.

the macroenvironment consists of

1. demographic environment -- demography: the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics 1. baby boomers: the 78 mil born after WWII into 1664. 2. gen X: 45 mil born between 1965 and 1976 in the "birth dirth." 3. millennials (gen Y): 83 mil between 1977 and 2000. 4. changing American family, geographic shifts, better educated and more white collar populace, increasing diversity 5. economic environment: factors that affect consumers buying power and spending patterns. 1. changes in income and spending, changing spending patterns 2. Engel's laws: differences noted more than a century ago by Ernst Engel about how people shift their spending across food, housing, transportation, health care, and other goods and services categories as family income rises. 2. natural environment: -- nat. resources that are needed as inputs by marketers or that are affected by marketing activities. 1. environmental sustainability: developing strategies and practices that create a world economy that the planet can sustain indefinitely. 3. technological environment: -- forces that create new technologies, creating new product and market opportunities. 4. political and social environment: 1. political: laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society. 2. increased emphasis on ethics and socially responsible actions. 1. cause related marketing, socially responsible behavior, 5. cultural environment: -- institutions and other forces that affect society's values, perceptions, preferences, and behaviors. 1. persistence of cultural values 2. shifts in secondary cultural values 1. peoples' view of: themselves, others, organizations, society, nature, the universe,

business markets characteristics

1. derived demand: business demand that ultimately comes from (derives form) the demand for consumer goods. 2. supplier development: systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products and materials for use in making products or reselling them to others.

discount and allowance pricing

1. discount: straight reducing in price on purchases during a stated period of time or of larger quantities. 2. allowance: promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.

major pricing strategies

1. fig 9.2 1. cost based pricing: design a good product > determine > set price based on cost > convince buyers of the product's value. 2. value-based pricing: asses customer needs and value perceptions> set target price to match customer perceived value > determine costs that can be incurred > design product to deliver desired value at target price. 2. customer value-based pricing--: setting price based on buyers' perceptions of value rather than on the seller's cost. 1. good-value pricing: offering just the right combination of quality and good service at a fair price. 2. value-added pricing: attaatching value added freatures and services to differentiate a comapny's offers and charging higher prices. 3. cost-based pricing --: setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. 1. fixed costs (overhead): costs that do not vary with output level. 2. variable costs: vary directly with output level. 3. total costs: variable plus fixed. 4. cost-plus pricing: adding a standard markup to the cost of a product. 5. break-even pricing (target return pricing): settign price to break even on the costs of making and marketing a product, or setting price to make a target return. 4. competition based pricing--: setting prices based on competitors' strategies, prices, costs, and market offering.

types of market segmentation

1. geographic segmentation: dividing a market into different geographic units such as nations, states, counties, etc. 2. demographic segmentation: dividing the market into segments such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. 1. age and life cycle: dividing markets into different age and life-cycle groups. 2. gender: division based on gender. 3. income: 3. psychographic segmentation: based on social class, lifestyle, or personality characteristics. 4. behavioral segmentations: consumer knowledge, attitudes, uses, or responses to a product. 1. occasion: according to occasions when buyers get the idea to buy, actually make their purchase, or use purchased item. 2. benefit: dividing the market according to different benefits that consumers seek from the product. 5. segmenting international markets: 1. intermarket seg: forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.

nature and characteristics of a service

1. intangibility: cannot be seen, tasted, felt, heard, or smelled before they are bought. 2. inseparability: priduced and consumed at the same time and cannot be separated from consumers. 3. perishability: cannot be stored for later sale or use.

# of marketing intermediaries (distribution)

1. intensive distribution: stock products in as many outlets as possible. 2. exclusive distribution: limited # of dealers have exclusive rights. 3. selective distribution: more than one, but fewer than all, of the intermediaries who are willing to carry the product.

new-product pricing:

1. market skimming pricing--: setting high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price: makes fewer but higher-profit sales. 2. market-penetration pricing--: setting low price for a new product in order to attract a large number of buyers and a large market share.

types of wholesalers

1. merchant wholesaler: independently owned wholesaler business that takes title to the merchandise it handles. 2. broker: does not take title to the goods. functions to bring buyers and sellers together and assist in negotiations. 3. agent: represent buyers and sellers on a more permanent basis than brokers. 4. manufacturers' sales branches and offices: wholesaling by buyers and sellers themselves rather than through independent wholesalers.

buyer decision process

1. need recognition, information search, evaluation of alternatives, purchase decision, post-purchase behavior. 2. cognitive dissonance: buyer discomfort by post-purchase conflict. 3. new product: a good, service, or and idea that is perceived by some potential customers as new. 4. adoption process: a mental process through which an individual passes form first hearing about an innovation to final adoption.

types of Primary data collection

1. observational research: gathering primary data by observing relevant people, actions, and situations. 2. ethnographic research: a form of observational research that involves sending trained observers to watch and interact with consumers in their natural habitat. 3. survey research: gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior. 4. experimental research: gathering primary data by selecting matches groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. 5. focus group interviewing: personal interviews that involve inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. 6. online marketing research: collecting primary data online through Internet surveys, online focus groups, web-based experiments, or tracking consumers' online behavior. 7. online focus groups: online chat room focus group. 8. sample: a segment of the population selected for a marketing research to represent the population as a whole.

concept and development testing:

1. product concept: detailed versions of the new-product idea stated in meaningful consumer terms. 2. concept testing: testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.

product life-cycle strategies

1. product life-cycle: course of a products sales and profits over its lifetime. it involves five distinct stages: product development, introduction, growth, maturity, and decline. 2. style: basic and distinctive mode of expression. 3. fashion: currently accepted or popular style in a given field. 4. fad: temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity. 5. introduction stage--: life-cycle stage in which the new is first distributed and made available for purchase. 6. growth stage--: stage in which a product's sales start climbing quickly. 7. maturity stage--: stage in which sales growth slows or levels off. 8. decline stage--: sales decline.

third-party logistics (3PL)

inteprendent logistics provider that performs any or all of the functions required to get it clients product to market.

product mix pricing

1. product line pricing--: setting the price steps between various products in a product line based on cost differences between the products, customer evaluation of different features, and competitors' prices. 2. optional-product pricing--: pricing of optional or accessory products along with a main product. 3. captive-product pricing--: setting a price for products that must be used along with a main product, e,g. razors or video game console. 4. by-product pricing--: setting price for by-products in order to make the main products price more competitive. 5. product-bundle pricing--: combining several products and offering the bundle at a reduced price.

promotion mix strategies

1. push strategy: involves "pushing" the product through marketing channels to final consumers. 2. pull strategy: calls for spending a lot on advertising to create demand for a product to "pull" it in from the producer.

sales promotion:

1. sales promotion:short-term incentives to encourage the purchase or sale of a product/service. 2. consumer promotions: tools used to boost short-term customer buying and involvement or to enhance long-term customer relationships. 3. event marketing (event sponsorship): brand-marketing events or sponsoring events by others. 4. trade promotions: sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertisement, and push it to consumers. 5. business promotions: sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.

marketing strategies for service firms

1. service -profit chain: chain that links service firm profits with employee and customer satisfaction. 2. internal marketing: orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction. 3. interactive marketing: trainging service employees in the fine art of intereacting with customers to satisfy their needs.

types of retailers

1. specialty store: carries narrow product line and has deep assortment within that line. 2. department store: carries wide variety of product lines. 3. supermarket: large, low-cost, low-margin, high-volume, self-service store that carries a wide variety pf grocery and household items. 4. convenience store: limited supply of high-turnover goods. 5. superstore: larger than supermarket. food, nonfood, and services. 6. category killer: giant specialty store that carries deep assortment of a particular line. knowledgable employees. 7. service retailer: product line is actually a service. they retail service. hotels, airlines, banks, etc. 8. discount store: sells standard merchandise at lower prices by accepting lower margins for higher volume. 9. off-price retailer: buys at less-than-regular wholesale prices and sells at less-than-regular retail. E.g., factory outlets, warehouse clubs, and independents. 10. independent off-price retailer: independently owned or is division of a larger retail corporation. Marshals, TJ Maxx, etc. 11. factory outlet: owned and operated by manufacturer. sells surplus, irregular, discontinued goods. 12. warehouse club: operate in warehouse facilities and offer few frills but have low prices. 13. chain stores: two or more outlets that are commonly owned and controlled.

business buyer behavior (how businesses buy)

1. straight buy: a business buying situation in which the buyer routinely reorders something without modification. 2. modified re-buy: buyer wants to modify product specs, prices, terms, or suppliers. 3. new task: buyer purchases product for the first time. 4. systems selling (or solutions selling): buying a packaged solution to a problem from a single seller, thus avoiding all the separate decision involved in a complex buying situation. 5. buying center: all the individuals and units that play a role in the purchase decision-making process. 6. value analysis: carefully analyzing a product's pr service's components to determine if they can be redesigned and made more effectively and efficiently to provide greater value. 7. E-procurement: purchasing through electronic connection between buyers and sellers.

sales force structures

1. territorial: person has exclusive geographic area. 2. product: salespeople specialize in selling portion or products or lines. 3. customer (or market): specializes in selling to certain customers or industries. outside sales force: outside sales people who travel to call on customers in the field.

the microenvironment consists of

1. the company 2. suppliers 3. marketing intermediaries: firms that help the company to promote, sell, and distribute, its goods to final buyers. 4. competitors 5. publics: a group that has an actual or potential interest in or impact on and organization's ability to achieve its objectives. 6. customers

internal data (MIS)

internal database: electronic collections of consumer and market information obtained from data sources within the company network.

Business-to-business online marketing

Businesses using B2B websites, email, online catalogs, online trading networks, and other online resources to reach new business customers, serve current customers more effectively, and obtained buying efficiencies and better prices.

product mix decisions

product mix (or product portfolio): set of all product lines and items that a particular seller offers for sale.

Online marketing

Company efforts to market products and services and build customer relationships over the Internet.

consumer oriented marketing

the philosophy of sustainable marketing that holds that the company should view and organized marketing activities from the consumer's point of view

Online social networks

I'm not 80 years old

integrated marketing communications

IMC: carefully integrates its many communication channels to deliver clear, consistent, and compelling messages about the organization and its brands.

Major international marketing decisions

Looking at the global marketing environment> Deciding whether to go global> deciding which markets to enter> Deciding how to enter the market> Deciding on the global marketing program> Deciding on the global marketing organization

Desirable products

Products that give both high immediate satisfaction and long-run benefits

Pleasing products

Products that give high immediate satisfaction but may hurt consumers in the long run

salutary products

Products that have low appeal but may benefit consumers in the long run

Deficient products

Products that have neither immediate appeal nor long run benefits

value chain

THE SERIES OF INTERNAL DPEARTMENTS THAT CARRY OUT AVLUE-CREATING activities to design, produce, market, deliver, and support a firm's products.

marketing channel management

calls for seleting, managing, and motivating individual channel members and evaluating their performance over time.

Global firm

a firm that, by operating in more than one country, Gains R&D, production, marketing, and financial advantages in its cost and reputation that are not available to purely domestic competitors.

assessing market information needs

a good MIS separates what marketers want and what they need based on what is feasible to collect. too much information can be as unhelpful as too little.

Economic community

a group of nations organized to work towards common goals in the regulation of international trade

environmental sustainability

a management approach that involves developing strategies that both sustain the environment and produce profits for the company

Growth-share matrix

a portfolio planning method that evaluates a company's strategic business units (SBUs) in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs. (fig 2.2, P 43)

product/market expansion grid

a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Mission statement

a statement of the organizations's purpose -- what it wants to accomplish in the larger environment.

Market development

a strategy for comp growth by identifying and developing new market segments for current company products.

market penetration

a strategy for company growth by increasing sales of current products to current market segments without changing the product.

product development

a strategy for company growth by offering modified or new products to current market segments.

Diversification

a strategy for company growth through starting up or acquiring new businesses outside the company's current market segments.

Corporate website

a website designed to build customer goodwill, collect customer feedback, and supplement other sales channels, rather than sell the company's products directly.

Marketing website

a website that engages consumers in interactions that will move them closer to a direct purchase or other marketing outcome.

horizontal marketing system

channel arrangement where two or more companies at one level join toegther to follow a new marketing opportunity.

packaging

activities of designing and producing the container or wrapper for a product.

service

activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.

differentiation

actually differentiating the market offering to create superior customer value.

dynamic pricing

adjusting prices continually to meet the characteristics and needs of individual customers and situations.

Online advertising

advertising that appears while consumers are surfing the web, including display ads, search related ads, online classifieds, and other forms.

retailing

all activities involved in selling goods and services directly to final consumers.

wholesaling

all activities involved in selling goods and services to those buying for resale or business use.

product quality

characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

consumer market

all the individuals and households that buy or acquire goods and services for personal consumption.

what is a price

amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.

competitive advantage

an advantage over competitors gained by offering greater customer value, either through lower prices or by offering higher value to justify higher prices.

Customer database

an organized collection of comprehensive individual customers or prospects including geographic, demographic, psychographic, behavioral data.

sales force management

analysis, planning, implementation, and control of sale force activities. major steps: design SF strategy and structure > recruiting > training > compensating > supervising > evaluating.

marketing channel design

analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluationg them.

Consumerism

and organize movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers

environmentalism

and organized movement of concerned citizens and government agencies to protect and improve people's current and future living environment

product

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

execution style

approach, style, tone, and format used for executing an advertising message.

positioning

arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers.

creative concept

compelling "big ideas" that will bring the advertising message strategy to life in a distinctive and memorable way.

store brand (or private brand)

brand created and owned by a reseller of a product or service

retailer

business whose sales come primarily from retailing.

channel disintermediation

cutting out of marketing channel intermediaries by product or service producers.

marketing strategy development (product dev)

designing an initial marketing strategy for a new product based on the product concept.

product development

developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product offering.

new-product development

development of original, product improvements, product modifications, and new brands through the firm's own development efforts.

brand equity

differential effect that knowing the brand name has on customer response and to the product or its marketing

channel conflict

disagreement among marketing channel members on goals, roles, and rewards.

multichannel distribution system

dist. system where a single firm sets up two or more marketing channels to reach one or more customer segments. often called hybrid marketing channel.

Market segmentation

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and hwo might require seperate products or marketing programs. market segment: a group of consumers who respond in a similar way to a given set of marketing efforts.

market segmentation

dividing a market into small segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.

line extension

extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.

brand extension

extending existing brand name to new product categories

wholesaler

firm engaged primarily in wholesaling activites.

customer insights

fresh understanding of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships.

product line

group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

direct marketing channel

has no intermediary levels.

salesperson

individual representing company to customers by performing on ore more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.

primary data

info collected for the specific purpose at hand

secondary data

info that already exists somewhere, having been collected for another purpose.

customer relationship management

managing detailed information about individual customers and carefully managing customer "touch points" in order to maximize customer loyalty.

supply chain management

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

descriptive research

marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.

exploratory research

marketing research to gather preliminary information that will help define problems and suggest hypotheses.

causal research

marketing research to test hypotheses about cause-and-effect relationships.

advertising agency

marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs.

price elasticity

measure of the sensitivity of demand to changes is price.

brand

name, term, symbol, design, or a combination of these that identifies the products and services of one seller or group of sellers and differentiates them from those of competitors.

marketing ROI

net return from marketing investment divided by the costs of the marketing investment.

return on advertising investment

net return on advertising investment divided by the costs of the advertising investment

value delivery network

netowrk made up of company, suppliers, distributors, and ultimately consumers who "partner" with each other to improve the performance of the entire system in delivering customer value.

indiriect marketing channel

on or more intermediary levels.

Consumer to business online marketing

online exchanges in which consumer search out sellers, learn about their offers, and initiate purchases, sometimes even driving transaction terms.

Consumer to consumer online marketing

online exchanges of goods and information between final consumers.

Click only companies

operate online without any brick and mortar market presence

inside vs outside sales force

outside sales force: outside sales people who travel to call on customers in the field. inside sales force: salespeople who conduct business via the office form their phone, the Internet, or visits from perspective buyers.

SWOT analysis

overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).

marketing information systems

people and procedure for assessing information needs, developing needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.

mrkting logistics (or physical dustribution):

planning, implementing, controlling the physical flow of materials, final, goods, and relateed information among suppliers, the comapny resellers, and final consumers.

personal selling

presentation by the firm's sales force for the purpose lf making sales and building customer relationships

reference prices

prices that buyers carry in their minds and refer to when they look at a given product.

psychological pricing

pricing that considers the psychology of prices and not simply the economics; the price is used ot say something about the product.

target costing

pricing that starts with an ideal selling price, then targets costs that will ensure the price is met.

integrated logistics management-

recognizes that providing better customer serivce and trimming distribution costs require teamwork noth inside the company and inside the company and among marketing channels.

Downsizing

reducing business portfolio by eliminatoing business units or products that are not profitable or thst no longer fit the company's overall strategy.

wheel of retailing concept

retalers begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like who they replaced.

business analysis (product dev)

review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.

Positioning

rranging for a product to occupy and clear, distinct, and desirable place relative to competing products in the minds of target consumers. 1. differentiation: actually differentiating the market offering to create superior customer value.

idea screening

screening new product ideas in order to spot good ideas and drop bad ones as soon as possible.

segmented pricing

selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.

Business to consumer online marketing

selling goods and services online to final consumers.

personal selling process:

selling process: steps that salespeople follow when selling. Which include: 1. prospecting: identifying qualified potential customers 2. preapproach: salesperson learns as much has possible about prospective customer before making sales call. 3. approach: meets the customer for the first time. 4. presentation: tells the "value story" to the buyer. 5. handling objections: seeking and clarifying customer objections to buying. 6. closing: salesperson asks customer for an order. 7. follow-up: follows up after sale to ensure satisfaction and repeat business.

MC (or dist. channel)

set of imterdependant organizations that help make a product or service available for use or consumption by the consumer or business user.

demand curve

shows the # of units the market will buy in a given time period, at different prices.

Sustainable marketing

socially and environmentally responsible marketing meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs

advertising objectives

specific communication task to be accomplished with a specific target audience during a specific period of time. Goal overall is to create customer relationship by communicating customer value.

test marketing

stage of new-product development in which the product and marketing program are tested in realistic market settings.

competitive marketing intelligence

systematic collection and analysis pf publicly available information about consumers, competitors, and developments in the marketing environment.

marketing research

systematic collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

positioning statement

tatement that summarizes the company or brand positioning -- "to target (target segment and need) our (brand) is (concept) that (point-of-difference).

promotional pricing

temporarily pricing products below the list price, and sometimes even below the cost to increase short-run sales.

madison & vine

term that has come to represent the merging of advertising and entertainment.

consumer buyer behavior

the buying behavior of final consumers -- individuals and households that buy goods and services for personal consumption.

business buyer behavior

the buying behavior of the organizations that buy goods and services for use in the production of other products and services or to resell or rent them to others at a profit.

Business portfolio

the collection of the businesses and products the make up the company.

value proposition

the full positioning of a brand -- the mix of benefits on which it is positioned.

marketing strategy

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.

value delivery network

the network made up of the company, suppliers, distributers, and ultimateltly , customers who improve the perfomrance of the entire system.

marketing implementation

turning strategies and plans into marketing actions in order to accomplish strategic objectives.

co-branding

using established names of two different companies on the same product.

team selling

using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts.